Document:

Purchase and Sale Agreement

 Exhibit 10.2 
 PURCHASE AND SALE AGREEMENT 
 AMONG 
 HPL STORAGE LP, AND 
 AEP ENERGY SERVICES GAS HOLDING COMPANY II, L.L.C. 

 AS SELLERS 
 AND 

 LA GRANGE ACQUISITION, L.P., 
 AS BUYER 
 DATED AS OF JANUARY 26, 2005 
 Purchase and Sale Agreement 

 PURCHASE AND SALE AGREEMENT 
 TABLE OF CONTENTS 
  

							
	 1.
	  	RULES OF CONSTRUCTION; DEFINITIONS	  	1
				
		  	1.1.	  	DEFINITIONS	  	1
		  	1.2.	  	RULES OF CONSTRUCTION	  	2
			
	 2.
	  	PURCHASE AND SALE; CONSIDERATION; CLOSING	  	2
				
		  	2.1.	  	PURCHASE AND SALE OF THE PURCHASED INTERESTS	  	2
		  	2.2.	  	CONSIDERATION	  	2
		  	2.3.	  	THE CLOSING	  	12
		  	2.4.	  	CLOSING OBLIGATIONS	  	12
			
	 3.
	  	SELLERS’ REPRESENTATIONS AND WARRANTIES	  	15
				
		  	3.1.	  	ORGANIZATION AND GOOD STANDING OF SELLERS	  	15
		  	3.2.	  	ENFORCEABILITY; AUTHORITY; NO CONFLICT; NO CONSENT REQUIREMENTS WITH
RESPECT TO SELLERS	  	15
		  	3.3.	  	NO LITIGATION AGAINST SELLERS	  	16
		  	3.4.	  	ORGANIZATION AND GOOD STANDING OF THE HPL COMPANIES	  	16
		  	3.5.	  	NO CONFLICT; NO CONSENT REQUIREMENTS WITH RESPECT TO THE
HPL COMPANIES	  	17
		  	3.6.	  	CAPITALIZATION OF THE HPL COMPANIES; SELLERS’ TITLE	  	17
		  	3.7.	  	FINANCIAL STATEMENTS OF THE HPL ENTITIES	  	18
		  	3.8.	  	NO MATERIAL ADVERSE CHANGE	  	18
		  	3.9.	  	NO UNDISCLOSED LIABILITIES	  	18
		  	3.10.	  	PROPERTY AND LEASES OF THE HPL COMPANIES	  	19
		  	3.11.	  	CONTRACTS OF THE HPL COMPANIES	  	19
		  	3.12.	  	INSURANCE MAINTAINED BY THE HPL COMPANIES	  	20
		  	3.13.	  	NO LITIGATION AGAINST THE HPL COMPANIES	  	20
		  	3.14.	  	COMPLIANCE BY THE HPL ENTITIES WITH APPLICABLE LAW; PERMITS	  	21
		  	3.15.	  	INTELLECTUAL PROPERTY OF THE HPL COMPANIES	  	21
		  	3.16.	  	TAX MATTERS	  	22
		  	3.17.	  	WORKFORCE MATTERS OF THE HPL ENTITIES	  	23
		  	3.18.	  	ENVIRONMENTAL MATTERS	  	25
		  	3.19.	  	REGULATORY MATTERS	  	26
		  	3.20.	  	AFFILIATE TRANSACTIONS OF THE HPL COMPANIES	  	26
		  	3.21.	  	FINDERS AND BROKERS	  	26
		  	3.22.	  	BANKRUPTCY	  	26
		  	3.23.	  	SUFFICIENCY OF ASSETS	  	26
		  	3.24.	  	CERTAIN WARRANTY DISCLAIMERS	  	27
			
	 4.
	  	BUYER’S REPRESENTATIONS AND WARRANTIES	  	28
				
		  	4.1.	  	ORGANIZATION AND GOOD STANDING OF BUYER	  	28
		  	4.2.	  	ENFORCEABILITY; AUTHORITY; NO CONFLICT; NO CONSENT REQUIREMENTS WITH
RESPECT TO BUYER	  	28
		  	4.3.	  	NO LITIGATION AGAINST BUYER	  	29
		  	4.4.	  	FINDERS AND BROKERS	  	29
		  	4.5.	  	BANKRUPTCY	  	29
		  	4.6.	  	AVAILABILITY OF FUNDS	  	29
			
	 5.
	  	COVENANTS OF THE PARTIES	  	30
				
		  	5.1.	  	CONTINUING ACCESS	  	30
		  	5.2.	  	RETAINED MATTERS	  	31

  

			
	Purchase and Sale Agreement	  	Page i

							
		  	5.3.	  	WORKFORCE MATTERS	  	31
		  	5.4.	  	DISCONTINUATION OF INTERCOMPANY TRANSACTIONS	  	36
		  	5.5.	  	TERMINATION AND CONTINUATION OF CERTAIN INSURANCE COVERAGES	  	37
		  	5.6.	  	SUBSTITUTIONS OF CREDIT SUPPORT	  	37
		  	5.7.	  	CLAIMS FOR CERTAIN MEASUREMENT ADJUSTMENTS	  	38
		  	5.8.	  	DISCONTINUANCE OF TRADEMARKS AND TRADENAMES	  	38
		  	5.9.	  	CHANGE OF SELLERS’ NAMES	  	39
		  	5.10.	  	REQUIRED NOTICES	  	39
		  	5.11.	  	PUBLIC STATEMENTS	  	39
		  	5.12.	  	AUDIT MATTERS	  	39
		  	5.13.	  	POST-CLOSING TITLE REVIEW	  	40
		  	5.14.	  	DISTRIBUTIONS TO HPL CONSOLIDATION’S PARTNERS	  	42
		  	5.15.	  	AGREEMENT TO COVER OPEN POSITIONS	  	42
			
	 6.
	  	SURVIVAL; INDEMNIFICATION	  	42
				
		  	6.1.	  	SURVIVAL	  	42
		  	6.2.	  	INDEMNIFICATION BY SELLER	  	43
		  	6.3.	  	INDEMNIFICATION BY BUYER	  	47
		  	6.4.	  	INDEMNIFICATION NET OF BENEFITS; MITIGATION OBLIGATIONS OF INDEMNITEE
	  	48
			
	 7.
	  	TAX MATTERS	  	48
				
		  	7.1.	  	TAX INDEMNIFICATION	  	48
		  	7.2.	  	PREPARATION AND FILING OF TAX RETURNS	  	49
		  	7.3.	  	PROCEDURES RELATING TO INDEMNIFICATION OF TAX CLAIMS	  	50
		  	7.4.	  	TAX REFUNDS AND CREDITS	  	51
		  	7.5.	  	TAX TREATMENT OF PAYMENTS	  	51
		  	7.6.	  	TRANSFER TAXES	  	51
		  	7.7.	  	TERMINATION OF PARTICIPATION IN TAX ALLOCATION AGREEMENT	  	51
		  	7.8.	  	ALLOCATION OF THE PURCHASE PRICE	  	51
			
	 8.
	  	GENERAL PROVISIONS	  	52
				
		  	8.1.	  	NOTICE PROVISIONS	  	52
		  	8.2.	  	CONFIDENTIALITY	  	54
		  	8.3.	  	SCHEDULES AND EXHIBITS	  	54
		  	8.4.	  	INTEREST ON OVERDUE AMOUNTS	  	55
		  	8.5.	  	AMENDMENT	  	55
		  	8.6.	  	MERGER AND INTEGRATION; BINDING ON SUCCESSORS; NO THIRD
PARTY BENEFICIARIES; ASSIGNMENT	  	55
		  	8.7.	  	FORBEARANCE AND WAIVER	  	55
		  	8.8.	  	PARTIAL INVALIDITY	  	55
		  	8.9.	  	ATTORNEY’S FEES	  	56
		  	8.10.	  	GOVERNING LAW; JURISDICTION AND VENUE	  	56
		  	8.11.	  	WAIVER OF RIGHT TO JURY TRIAL	  	56
		  	8.12.	  	CONSTRUCTION	  	56
		  	8.13.	  	MULTIPLE COUNTERPARTS	  	56
		  	8.14.	  	FURTHER ASSURANCES	  	56
		  	8.15.	  	HEADINGS	  	57

  

			
	Purchase and Sale Agreement	  	Page ii

 PURCHASE AND SALE AGREEMENT 
 This Purchase and Sale Agreement (the “Agreement”) is made to be effective as of January 26, 2005 among HPL Storage
LP, a Delaware limited partnership (“Storage LP”), AEP Energy Services Gas Holding Company II, L.L.C., a Delaware limited liability company (“AEP Gas Holding II”, and together with Storage LP,
individually, a “Seller” and collectively, “Sellers”), and La Grange Acquisition, L.P., a Texas limited partnership (“Buyer”), as follows: 
 RECITALS 
  

	A.	Sellers own all of the outstanding partner interests in HPL Consolidation LP, a Delaware limited partnership (“HPL Consolidation”)]. HPL Consolidation owns all of
the outstanding member interests in each of HPL Storage GP LLC, a Delaware limited liability company (“Storage GP”) and HPL GP, LLC, a Delaware limited liability company (“HPL GP”). HPL Consolidation, Storage GP,
and HPL GP own all of the outstanding partner interests in each of AEP Asset Holdings LP, a Delaware limited partnership (“Storage Holdings”), AEP Leaseco LP, a Delaware limited partnership (“Storage Leaseco”),
Houston Pipe Line Company LP, a Delaware limited partnership (“HPL Company LP”), HPL Resources Company LP, a Delaware limited partnership (“HPL Resources”), and AEP Gas Marketing LP, a Delaware limited partnership
(“Gas Marketing”). HPL Consolidation, Storage GP, HPL GP, Storage Holdings, Storage Leaseco, HPL Company LP, HPL Resources, and Gas Marketing are herein referred to collectively as the “HPL Entities”, or separately
as “HPL Entity”. 

  

	B.	The HPL Entities are engaged, through themselves and the HPL Entity Subsidiaries, in the gathering, transportation, purchase, sale, and storage of natural gas within the State of
Texas (the “Business”). 

  

	C.	Sellers desire to sell and Buyer desires to buy, on the terms and conditions herein set forth, all of the general partner interests in HPL Consolidation and all of the limited
partner interests in HPL Consolidation, with the exception of a 2% limited partner interest in HPL Consolidation to be retained by Storage LP. 

 AGREEMENTS 
 NOW, THEREFORE, in consideration of the premises and the representations, warranties, and covenants
contained herein and for other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows: 
  

	1.	RULES OF CONSTRUCTION; DEFINITIONS 

  

	1.1.	Definitions. 

 As used in this Agreement, terms defined in
Exhibit 1.1 hereto have the meanings set forth therein or, to the extent they are accounting terms, they will have the meanings set forth in GAAP. 
  

			
	Purchase and Sale Agreement	  	Page 1

	1.2.	Rules of Construction. 

 Unless the context of this
Agreement requires otherwise, the plural includes the singular, the singular includes the plural, and “including” has the inclusive meaning of “including without limitation.” The words “hereof,” “herein,”
“hereby,” “hereunder” and other similar terms of this Agreement refer to this Agreement as a whole and not exclusively to any particular provision of this Agreement. All pronouns and any variations thereof will be deemed to refer
to masculine, feminine or neuter, singular or plural, as the identity of the Person or Persons may require. Unless otherwise expressly provided, any agreement, instrument or Applicable Law defined or referred to herein means such agreement or
instrument or Applicable Law as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of Applicable Law) by succession of comparable successor law and includes
(in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein. 
  

	2.	PURCHASE AND SALE; CONSIDERATION; CLOSING 

  

	2.1.	Purchase and Sale of the Purchased Interests. 

 Upon the
terms and subject to the conditions set forth in this Agreement, at the Closing on the Closing Date, Buyer agrees to purchase from Sellers, respectively, and Sellers hereby agree to sell, transfer and assign to Buyer, free of any and all
Encumbrances other than Permitted Encumbrances, a 1% general partner interest and a 97% limited partner interest in HPL Consolidation (the “Purchased Interests”). 
 Immediately after the consummation of the purchase and sale contemplated hereby, Storage LP will continue to own a 2% limited partner interest in HPL
Consolidation, such retained interest being referred to herein as the “Retained Interest”. Buyer has no rights in or with respect to the Retained Interest. 
  

	2.2.	Consideration. 

  

	 	2.2.1. 	Purchase Price. The consideration for the Purchased Interests (the “Purchase Price”) will be: 

  

	 	(a)	$825,000,000; plus 

  

	 	(b)	the Net Working Capital Payment determined pursuant to Section 2.2.3 hereof; plus 

  

	 	(c)	the Inventory Payment determined pursuant to Section 2.2.4 hereof. 

  

			
	Purchase and Sale Agreement	  	Page 2

 The Purchase Price will be allocated between the Sellers in the following proportion: 
  

				
	 Seller
	  	Allocation	 
	 Storage LP
	  	37	% 
	 AEP Gas Holding II
	  	63	% 

  

	 	2.2.2. 	Closing Payment. In accordance with Section 2.4.2(a), at the Closing, Buyer will tender to Sellers or their designee the portion of the Purchase Price described in
Section 2.2.1(a) hereof, plus the Initial Net Working Capital Payment pursuant to Section 2.2.3 hereof, plus the Initial Inventory Payment pursuant to Section 2.2.4 hereof (collectively, the “Closing Payment”). The
amount of the Closing Payment will be reduced by $760,552 to reflect interest from the receipt of funds by the Sellers to the Valuation Time. 

  

	 	2.2.3. 	Net Working Capital Payment. The “Net Working Capital Payment” will be equal to the net aggregate of the Initial Net Working Capital Payment and the Net Working
Capital Adjustment, which in the aggregate are intended to reflect the positive or negative Net Working Capital as of the Valuation Time. The Net Working Capital Payment will be computed and paid as follows: 

  

	 	(a)	At the Closing, Buyer will pay (or receive as a credit against the other elements of the Closing Payment) as part of the Net Working Capital Payment, an amount (the “Initial
Net Working Capital Payment”) equal to Sellers’ good faith estimate of the aggregate Net Working Capital of the HPL Entities expected as of the Valuation Time determined in accordance with Exhibit 2.2.3. Such estimate will be
based on pro forma balance sheets of the HPL Entities as of the Valuation Time, to be prepared by Sellers in accordance with GAAP and in consultation with Buyer, in the same format and level of detail as the Final Balance Sheet, and to be delivered
to Buyer no later than 2 Business Days before the scheduled Closing Date. 

  

	 	(b)	 Within 90 days following the Closing Date, Buyer will prepare and deliver to Sellers (i) unaudited balance sheets of each of the HPL Entities as of the
Valuation Time (each a “Final Balance Sheet”), prepared in accordance with GAAP consistently applied, and (ii) a detailed computation of the Net Working Capital of each of the HPL Entities as of the Valuation Time, reconciled
to those balance sheets and (iii) a computation of the amount, if any, (the “Net Working Capital Adjustment”) by which the aggregate 

  

			
	Purchase and Sale Agreement	  	Page 3

	 	 
Net Working Capital of the HPL Entities as of the Valuation Time, as so computed, exceeds or is less than the Initial Net Working Capital Payment. Sellers
will provide Buyer and its representatives and advisors (and if appropriate, the Independent Accounting Firm), at no expense to Buyer, with all accounting services, assistance, and access to data during normal business hours to the working papers,
accounting, operating, and other books and records of Sellers, and the appropriate personnel to the extent required to complete the preparation of the Final Balance Sheets and the related computations, and any deadline imposed by this Agreement on
Buyer for the computation or payment of the Net Working Capital Adjustment will be extended as appropriate in light of any party’s failure to promptly make such information available. Pursuant to the Transition Services Agreement, Sellers shall
also ensure that the employees of Sellers (to the extent they continue to be employed by Sellers or any Affiliate of Sellers) previously involved with the foregoing accounting services and operation activities will perform their customary and usual
monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the periods following the Closing Date for purposes of the foregoing. Buyer shall also ensure that the employees of Sellers (to the
extent they continue to be employed by Sellers or any Affiliate of Sellers and made available under the Transition Services Agreement) and the Transferred Employees (to the extent they continue to be employed by Buyer or any Affiliate of Buyer)
previously involved with the foregoing accounting services and operation activities will perform their customary and usual monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the
periods following the Closing Date for purposes of the foregoing. However, if Sellers have failed to assist and provide reasonable access to data as required for Buyer to complete the preparation of the Final Balance Sheets and the related
computations, Buyer must notify Sellers of such failure on or before the 90th day
following the Closing Date specifying in detail the documents that Buyer requires, and Buyer will have an additional 90 days after receipt to complete the preparation of the Final Balance Sheets and the related computations. If Sellers do not
dispute the Final Balance Sheets or the related computations in accordance with the next following sentence, the Net Working Capital Adjustment as computed by Buyer will be final and binding as between the parties hereto. If Sellers wish to dispute
the Final Balance Sheets or the related computations, it may do so, within 30 days (or such longer period as the parties hereto may agree in writing) after the submission of the Final Balance Sheets, by notifying Buyer in writing of any disputed
items in the Net Working Capital Adjustment. Sellers and Buyer shall, over 

  

			
	Purchase and Sale Agreement	  	Page 4

	 	 
the 20 days following the date of such notice (the “Resolution Period”), attempt to resolve their differences and any written resolution by
them as to any disputed item shall be final and binding for all purposes of this Agreement. If at the conclusion of the Resolution Period, Sellers and Buyer have not reached an agreement on the disputed items, then all items remaining in dispute
shall be submitted by Sellers and Buyer to the Independent Accounting Firm. The Independent Accounting Firm shall act as an arbitrator to determine only those items still in dispute at the end of the Resolution Period. In making its decision, the
arbitrator must render a decision on each disputed item that adopts the position of one of the parties on that item and may not decide on any other amount for that item. The parties shall instruct the Independent Accounting Firm to render its
reasoned written decision as soon as practicable but in no event later than 60 days after its engagement (which engagement shall be made no later than 10 Business Days after the end of the Resolution Period). Such decision shall be set forth in a
written statement delivered to Sellers and Buyer and shall be final and, binding for all purposes of this Agreement, and judgment may be entered thereon. The fees and expenses of the Independent Accounting Firm will be paid one-half by Sellers and
one-half by Buyer. 

  

	 	(c)	Within 30 days of receipt by Sellers of the Final Balance Sheets and related computations described in Section 2.2.3(b) hereof from Buyer (or, if Sellers dispute the same, then
within 10 days of the parties’ resolution of any disputed items or receipt of the Independent Accounting Firm’s decision on any disputed items) Buyer will pay to Sellers or their designee an amount equal to any positive Net Working Capital
Adjustment, or Sellers will pay to pay to Buyer an amount equal to any negative Net Working Capital Adjustment, in either such case by wire transfer and with interest thereon at the Borrowing Rate from the Closing Date to the date of payment.

  

	 	(d)	 Notwithstanding any other provisions of this Agreement, no later than November 30 of the year in which the Closing occurs, Buyer will provide to Sellers a
detailed schedule of property taxes for the HPL Companies for the calendar year in which the Closing occurs. Included with the schedule will be copies of each Tax statement and/or bill. The schedule will detail the allocation of property taxes to
Sellers in accordance with the computation of Net Working Capital. In the event the amount of the allocation of property taxes to Sellers exceeds the amount of property taxes allocated to Sellers as computed for the Net Working Capital Adjustment
computed pursuant to Section 2.2.3(b) of this Agreement, Sellers will pay the excess to Buyer within 20 

  

			
	Purchase and Sale Agreement	  	Page 5

	 	 
Business Days. If the amount allocated to Sellers is less than the amount as computed for the Net Working Capital Adjustment pursuant to
Section 2.2.3(b) of this Agreement, Buyer will pay to Sellers the deficit within 20 Business Days. Payments made pursuant to this Section are subject to the provisions of Section 7.5 of this Agreement. In the event of a dispute over the
allocation of property taxes under this Section 2.2.3(d), Buyer and Sellers shall use the dispute resolution procedures set forth in Section 2.2.3(b) of this Agreement to resolve such dispute. 

  

	 	2.2.4. 	Inventory Payment. The “Inventory Payment” will be equal to the net aggregate of the Initial Inventory Payment and the Final Inventory Payment Adjustment, which in
the aggregate are intended to reflect the value of the Gas Inventory as of the Valuation Time. The Inventory Payment will be computed and paid as follows: 

  

	 	(a)	At the Closing, Buyer will pay, as part of the Inventory Payment, the amount of $174,751,900 (the “Initial Inventory Payment”), based on Sellers’ good faith
estimate of a Gas Inventory of 31,200,000 MMBtus based on the regularly maintained perpetual gas inventory records of the HPL Entities. 

  

	 	(b)	Within 15 days following the Valuation Time, Buyer shall provide to Sellers a revised estimate of the Gas Inventory based on the perpetual gas inventory records in MMBtus as of the
Valuation Time (the “Valuation Time Estimate”). The “Valuation Time Adjustment Amount” shall be the number of MMBtus determined by subtracting 31,200,000 MMBtus from the Valuation Time Estimate. In the event the
Valuation Time Adjustment Amount is a positive number, Buyer shall pay to Sellers, or Sellers’ designee, within 15 days of receipt of an invoice, an amount equal to the Valuation Time Adjustment Amount multiplied by $5.601. In the event the
Valuation Time Adjustment Amount is a negative number, Sellers shall pay to Buyer, or Buyer’s Designee, within 15 days of receipt of an invoice, an amount equal to the Valuation Time Adjustment Amount multiplied by $5.601 plus $0.40 per MMBtu.
Any payment under this Section 2.2.4(b) shall be made by wire transfer and is the “Valuation Time Adjustment”. 

  

	 	(c)	 No later than 90 days following the Closing Date, Buyer may deliver written notice (the “Inventory Verification Notice”) to Sellers advising them
whether or not it has elected to undertake a verification of the actual storage inventory contained in the Bammel Facilities. Any election by Buyer to undertake (or not undertake) such verification shall be final and irrevocable in all respects. In
the event Buyer timely delivers an Inventory Verification Notice advising Sellers that it has elected to 

  

			
	Purchase and Sale Agreement	  	Page 6

	 	 
undertake such a verification, Buyer and Sellers shall engage Wells Chappell & Company, Inc. (“Wells”) to perform such verification
in accordance with the procedures and methods set forth on Exhibit 2.2.4 (with all fees and expenses of Wells to be borne  1/
2 by Buyer and  1/2 by Sellers). Buyer and Sellers shall instruct Wells to complete its physical verification testing of the actual storage volume of the Bammel Facilities no later than 120 days after the Closing Date (and shall each
use their reasonable best efforts to ensure that such testing is completed by Wells no later than 120 days after the Closing Date), and to deliver to each of them no later than 30 days after its completion a copy of its verification of the actual
storage volume of the Bammel Facilities and any supporting documentation therefor, and any deadline imposed by this Agreement on Buyer or Sellers which is contingent upon Wells’ verification of the actual storage volume of the Bammel Facilities
will be extended as appropriate in light of any failure by Wells to promptly complete and deliver its verification of the actual storage volume of the Bammel Facilities and any supporting documentation therefor. Based upon the results of this
verification, Buyer shall (i) recompute in accordance with Exhibit 2.2.4 that portion of the amount of the Gas Inventory as of the Valuation Time that was stored in the Bammel Facilities (as so recomputed, the “Recomputed Bammel
Inventory”) and (ii) deliver to Sellers a statement thereof (“Buyer’s Statement of Recomputed Bammel Inventory”) no later than 180 days following the Closing Date. However, if Wells has failed to promptly complete
and deliver its verification of the actual storage volume of the Bammel Facilities and any supporting documentation therefor, Buyer must notify Sellers of such failure on or before the 150th day following the Closing Date, and Buyer will have an additional 30 days after receipt of the verification of the actual storage
volume of the Bammel Facilities and any supporting documentation therefor from Wells to complete the Recomputed Bammel Inventory and Buyer’s Statement of Recomputed Bammel Inventory. In the event (A) Buyer does not timely deliver to
Sellers the Inventory Verification Notice, (B) Buyer does not deliver to Sellers Buyer’s Statement of Recomputed Bammel Inventory on or prior to 180 days following the Closing Date (or if Wells has failed to promptly complete and deliver
its verification of the actual storage volume of the Bammel Facilities and any supporting documentation therefor, on or prior to 30 days after receipt of such verification), (C) Buyer timely delivers an Inventory Verification Notice stating
that it shall not cause a verification of the actual storage volume of the Bammel Facilities to be undertaken, or (D) the amount of Recomputed Bammel Inventory set forth on Buyer’s Statement of Recomputed Bammel Inventory is not more than
1.03, and not less than 0.97, times that portion of 

  

			
	Purchase and Sale Agreement	  	Page 7

	 	 
the Gas Inventory as of the Valuation Time that was stored in the Bammel Facilities according to the most current perpetual gas inventory records (the events
referred to in the immediately preceding clauses (A) through (D) inclusive each being referred to as a “Inventory Finalization Event”), Buyer shall have no right to thereafter conduct a verification of the actual storage
inventory contained in the Bammel Facilities for purposes of any adjustment pursuant to this Agreement. If Buyer provides to Sellers a timely Buyer’s Statement of Recomputed Bammel Inventory which indicates that the Recomputed Bammel Inventory
is more than 1.03, or less than 0.97, times that portion of the Gas Inventory as of the Valuation Time that was stored in the Bammel Facilities according to the most current perpetual gas inventory records (such event being referred to herein as a
“Bammel Inventory Recomputation Event”), then subject to the provisions of Section 2.2.4(d) hereof the Recomputed Bammel Inventory will be used for all purposes of Section 2.2.4(e) hereof as the final actual storage
inventory of the Bammel Facilities as of the Valuation Time. 

  

	 	(d)	 The provisions of this Section 2.2.4(d) shall apply only if a Bammel Inventory Recomputation Event occurs. After receipt of Buyer’s Statement of
Recomputed Bammel Inventory, Sellers shall have 30 days to review and dispute Buyer’s Statement of Recomputed Bammel Inventory (which dispute may not include any challenge to or disagreement with the results reported by Wells of its
verification of the actual storage volume of the Bammel Facilities), and for this purpose will have the right to review, copy, abstract, and audit all relevant meter data and other relevant information held by or available to the HPL Entities for
the period from the Valuation Time through the date as of which the Recomputed Bammel Inventory was determined by Wells. Buyer will provide Sellers and their representatives and advisors, at no expense to Sellers, with all accounting services,
assistance, and access to data during normal business hours to the working papers, accounting, operating, and other books and records of the HPL Entities, and the appropriate personnel to the extent required to review and audit the Recomputed Bammel
Inventory, and any deadline imposed by this Agreement on Sellers for the completion of that review and audit will be extended as appropriate in light of Buyer’s or its Affiliates’ failure to promptly make such information available.
Pursuant to the Transition Services Agreement, Buyer shall also ensure that the employees of Sellers (to the extent they continue to be employed by Sellers or any Affiliate of Sellers and made available under the Transition Services Agreement)
previously involved with the foregoing accounting services and operation activities will perform their customary and usual monthly tasks, including the 

  

			
	Purchase and Sale Agreement	  	Page 8

	 	 
assistance in the month end closing of the books and records of the HPL Entities, during the periods following the Closing Date for purposes of the
foregoing. Buyer shall also ensure that the Transferred Employees (to the extent they continue to be employed by Buyer or any Affiliate of Buyer) previously involved with the foregoing accounting and operation activities will perform their customary
and usual monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the periods following the Closing Date for purposes of the foregoing. However, if Buyer has failed to assist and provide
reasonable access to data as required for Sellers to complete their review, Sellers must notify Buyer of such failure on or before the 30th day after receipt of Buyer’s Statement of Recomputed Bammel Inventory specifying in detail the documents that Sellers require,
and Sellers will have an additional 90 days after receipt to review Buyer’s Statement of Recomputed Bammel Inventory and notify Buyer of a dispute. On or prior to the 30th day after receipt of Buyer’s Statement of Recomputed Bammel Inventory and supporting documentation (including access to and
audit of such data and information), Sellers shall deliver written notice to Buyer, specifying in detail any disputed items and the basis therefor. If Sellers fail to so notify Buyer of any such disputes or failures on or prior to the 30th day after receipt of Buyer’s Statement of Recomputed Bammel Inventory, the calculations
set forth on Buyer’s Statement of Recomputed Bammel Inventory will be used for all purposes of Section 2.2.4(e) hereof as the final actual storage inventory of the Bammel Facilities as of the Valuation Time. If Sellers so notify Buyer of
any disputed items on Buyer’s Statement of Recomputed Bammel Inventory, Buyer and Sellers shall, over the 20 days following the date of such notice (the “Resolution Period”), attempt to resolve their differences and any written
resolution by them as to any disputed item shall be final and binding for all purposes of Section 2.2.4(e) hereof as the final actual storage inventory of the Bammel Facilities as of the Valuation Time. If at the conclusion of the Resolution
Period, Sellers, on the one hand, and Buyer, on the other, have not reached an agreement on the disputed items, then all items remaining in dispute shall be submitted by Sellers and Buyer to the Independent Accounting Firm. The Independent
Accounting Firm shall act as an arbitrator to determine only those items still in dispute at the end of the Resolution Period. In making its decision, the arbitrator must render a decision on each disputed item that adopts the position of one of the
parties on that item and may not decide on any other amount for that item. The parties shall instruct the Independent Accounting Firm to render its reasoned written decision as soon as practicable but in no event later than 60 days after its
engagement (which engagement shall 

  

			
	Purchase and Sale Agreement	  	Page 9

	 	 
be made no later than 10 Business Days after the end of the Resolution Period). Such decision shall be set forth in a written statement delivered to Sellers
and Buyer and shall be final and binding on the parties hereto for all purposes of Section 2.2.4(e) hereof as the final actual storage inventory of the Bammel Facilities as of the Valuation Time. The fees and expenses of the Independent
Accounting Firm will be paid one-half by Sellers and one-half by Buyer. 

  

	 	(e)	 Within 90 days following the Closing Date (or, if there has been a Bammel Inventory Recomputation Event, then within 30 days following the determination under
Sections 2.2.4(c) and/or 2.2.4(d) of the final actual storage inventory of the Bammel Facilities as of the Valuation Time), Buyer will prepare and deliver to Sellers (i) a computation of the Gas Inventory as of the Valuation Time, taking into
account any final actual storage inventory of the Bammel Facilities as of the Valuation Time determined under Sections 2.2.4(c) and/or 2.2.4(d) (it being understood that, except in the event of a failure by Wells to promptly complete and deliver its
verification of the actual storage volume of the Bammel Facilities and any supporting documentation therefor, unless the procedures and time limits for the determination of the actual storage inventory under Sections 2.2.4(c) and/or 2.2.4(d) are
fully complied with, no results of any physical storage inventory will be used for purposes of this Section 2.2.4(e), and (ii) a computation of the Final Inventory Payment Adjustment. Sellers will provide Buyer and its representatives and
advisors (and if appropriate, the Independent Accounting Firm), at no expense to Buyer, with all accounting services, assistance, and access to data during normal business hours to the working papers, accounting, operating, and other books and
records of Sellers, and the appropriate personnel to the extent required to complete the computation of the Gas Inventory and the Final Inventory Payment Adjustment, and any deadline imposed by this Agreement on Buyer for the computation or payment
of the Final Inventory Payment Adjustment will be extended as appropriate in light of Sellers’ or their Affiliates’ failure to promptly make such information available. Pursuant to the Transition Services Agreement, Buyer shall also ensure
that the employees of Sellers (to the extent they continue to be employed by Sellers or any Affiliate of Sellers and made available under the Transition Services Agreement) previously involved with the foregoing accounting services and operation
activities will perform their customary and usual monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the periods following the Closing Date for purposes of the foregoing. Buyer shall
also ensure that the Transferred Employees (to the extent they 

  

			
	Purchase and Sale Agreement	  	Page 10

	 	 
continue to be employed by Buyer or any Affiliate of Buyer) previously involved with the foregoing accounting services and operation activities will perform
their customary and usual monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the periods following the Closing Date for purposes of the foregoing. However, if Sellers have failed to
assist and provide reasonable access to data as required for Buyer to complete the computation or payment of the Final Inventory Payment Adjustment, Buyer must notify Sellers of such failure on or before the 90th day following the Closing Date or, if there has been a Bammel Inventory Recomputation Event, then within 30 days
following the determination under Sections 2.2.4(c) and/or 2.2.4(d) of the final actual storage inventory of the Bammel Facilities as of the Valuation Time) specifying in detail the documents that Buyer requires, and Buyer will have an additional 90
days after receipt to complete the preparation and delivery of such computations. If Sellers do not dispute the computation of the Gas Inventory or the related computation of the Final Inventory Payment Adjustment in accordance with the next
following sentence, the Final Inventory Payment Adjustment as computed by Buyer will be final and binding as between the parties hereto. If Sellers wish to dispute the computation of the Gas Inventory or the related computation of the Final
Inventory Payment Adjustment, they may do so, within 30 days (or such longer period as the parties hereto may agree in writing) after the submission of the Final Inventory Payment Adjustment, by notifying Buyer of any disputed items in the Gas
Inventory or the related computation of the Final Inventory Payment Adjustment. No such dispute may include a reconsideration of any final actual storage inventory of the Bammel Facilities as of the Valuation Time determined under Sections 2.2.4(c)
and/or 2.2.4(d). Sellers and Buyer shall, over the 20 days following the date of such notice (the “Resolution Period”), attempt to resolve their differences and any written resolution by them as to any disputed item shall be final
and binding for all purposes of this Agreement. If at the conclusion of the Resolution Period, Sellers and Buyer have not reached an agreement on the disputed items, then all items remaining in dispute shall be submitted by Sellers and Buyer to the
Independent Accounting Firm. The Independent Accounting Firm shall act as an arbitrator to determine only those items still in dispute at the end of the Resolution Period. In making its decision, the arbitrator must render a decision on each
disputed item that adopts the position of one of the parties on that item and may not decide on any other amount for that item. The parties shall instruct the Independent Accounting Firm to render its reasoned written decision as soon as practicable
but in no event later than 60 days after its engagement (which engagement shall 

  

			
	Purchase and Sale Agreement	  	Page 11

	 	 
be made no later than 10 Business Days after the end of the Resolution Period). Such decision shall be set forth in a written statement delivered to the
parties hereto and shall be final and binding for all purposes of this Agreement, and judgment may be entered thereon. The fees and expenses of the Independent Accounting Firm will be paid one-half by Sellers and one-half by Buyer.

  

	 	(f)	Within 30 days of receipt by Sellers of the computations of the Gas Inventory as of the Valuation Time and the Final Inventory Payment Adjustment described in Section 2.2.4(e)
hereof from Buyer (or, if Sellers dispute the same, then within 10 days of the parties’ resolution of disputed items or receipt of the decision of the Independent Accounting Firm on disputed items), Buyer will pay to Sellers or Sellers’
designee (if the Final Inventory Adjustment Amount is positive) or Sellers will pay to Buyer (if the Final Inventory Adjustment Amount is negative) the Final Inventory Payment Adjustment and in order to reverse the adjustment to the Inventory
Payment made under Section 2.2.4(b) the parties will offset the Final Inventory Payment Adjustment by the Valuation Time Adjustment. Such payment, in either case, shall be made by wire transfer and with interest thereon at the Borrowing Rate
from the Closing Date to the date of payment. 

  

	2.3.	The Closing. 

 The purchase and sale provided for in this
Agreement (the “Closing”) will take place at the offices of Sellers’ counsel in Austin, Texas, commencing at 10:00 a.m. (local time) on January 27, 2005 (the “Closing Date”). 
  

	2.4.	Closing Obligations. 

 In addition to any other documents
to be delivered under other provisions of this Agreement, at the Closing: 
  

	 	2.4.1.	Sellers will deliver to Buyer: 

  

	 	(a)	assignments of all of the Purchased Interests in the forms of Exhibit 2.4.1(a) hereto (each an “Assignment and Assumption Agreement”) executed by Sellers,
assigning respectively to Buyer or its designee the Purchased Interests; 

  

	 	(b)	a closing statement and cross receipt executed by Sellers, setting out the computation of the Closing Payment and acknowledging receipt of the Closing Payment, in a form reasonably
acceptable to Buyer; 

  

	 	(c)	[intentionally blank]; 

  

			
	Purchase and Sale Agreement	  	Page 12

	 	(d)	such other instruments of transfer and conveyance as may reasonably be requested by Buyer to effectuate the purchase of the Purchased Interests, each in form and substance
satisfactory to Buyer and its legal counsel and executed by Sellers; 

  

	 	(e)	an option agreement in the form of Exhibit 2.4.1(e) hereto (the “Option Agreement”) executed by Storage LP, granting to Storage LP the option to sell the
Retained Interest on the terms and conditions therein set out; 

  

	 	(f)	a transition services agreement in the form of Exhibit 2.4.1(f) hereto (the “Transition Services Agreement”) executed by AEP Energy Services, Inc.;

  

	 	(g)	a limited guaranty in the form of Exhibit 2.4.1(g) hereto (the “Sellers’ Limited Guaranty”) executed by AEP (“Sellers’
Guarantor”), guaranteeing in accordance with the terms thereof certain of Sellers’ obligations under this Agreement; 

  

	 	(h)	the Cushion Gas Litigation Agreement; 

  

	 	(i)	the Partnership Agreement for HPL Consolidation; 

  

	 	(j)	certificates in accordance with section 1445 of the Code stating that Sellers are not “foreign persons”; 

  

	 	(k)	a certificate of the Secretary or similar officer of each Seller and Sellers’ Guarantor certifying and attaching all requisite resolutions or actions of such Person’s
governing body and, if appropriate, its equity holders, approving the execution and delivery of this Agreement and the consummation of the Contemplated Transactions and any change of name contemplated for such Person by Section 5.9 and
certifying to the incumbency and signatures of the officers of such Person executing this Agreement and any other document relating to the Contemplated Transactions; and 

  

	 	(l)	opinions of Sellers’ in-house and Sellers’ outside counsel, in form and substance reasonably acceptable to Buyer, containing customary legal opinions including an opinion
regarding the enforceability of the Cushion Gas Litigation Agreement. 

  

	 	2.4.2. 	Buyer will deliver to Sellers: 

  

	 	(a)	the Closing Payment by wire transfer to the account of Sellers to an account specified by Sellers in a writing, which writing will be delivered to Buyer at least 3 days prior to the
Closing Date; 

  

			
	Purchase and Sale Agreement	  	Page 13

	 	(b)	the Assignment and Assumption Agreements executed by Buyer or its designee; 

  

	 	(c)	the closing statement and cross receipt described in Section 2.4.1(b) hereof, executed by Buyer, setting out the computation of the Closing Payment and acknowledging receipt of
the Purchased Interests, in a form reasonably acceptable to Sellers; 

  

	 	(d)	[intentionally blank]; 

  

	 	(e)	such other instruments of transfer and conveyance as may reasonably be requested by Sellers to effectuate the sale of the Purchased Interests, each in form and substance
satisfactory to Sellers and their legal counsel and executed by Buyer; 

  

	 	(f)	the Option Agreement executed by Buyer; 

  

	 	(g)	the Transition Services Agreement executed by each of the HPL Entities; 

  

	 	(h)	 a corporate guaranty in the form of Exhibit 2.4.2(h) hereto (the “Buyer’s Limited Guaranty”) executed by Energy Transfer Partners, L.P.
(“Buyer’s Guarantor”), guaranteeing in accordance with the terms thereof certain of Buyer’s obligations under this Agreement; 

  

	 	(i)	a 2002 ISDA Master Agreement with Schedule, Credit Support Annex, and Letters of Confirmation in the form of Exhibit 2.4.2(i) hereto between ETC Marketing, Ltd. and AEP
Energy Services, Inc. (the “Swap Agreement”); 

  

	 	(j)	the Cushion Gas Litigation Agreement; 

  

	 	(k)	the Partnership Agreement for HPL Consolidation; 

  

	 	(l)	a certificate of the Secretary or similar officer of Buyer and Buyer’s Guarantor certifying and attaching all requisite resolutions or actions of such Person’s governing
body, approving the execution and delivery of this Agreement and the consummation of the Contemplated Transactions and certifying to the incumbency and signatures of the officers of such Person executing this Agreement and any other document
relating to the Contemplated Transactions; and 

  

	 	(m)	opinions of Buyer’s in-house and Buyer’s outside counsel, in form and substance reasonably satisfactory to Sellers, containing customary legal opinions.

  

			
	Purchase and Sale Agreement	  	Page 14

	3.	SELLERS’ REPRESENTATIONS AND WARRANTIES 

 Sellers hereby represent and warrant as follows: 
  

	3.1.	Organization and Good Standing of Sellers. 

 Except as
disclosed in Sellers’ Disclosure Schedules, Sellers are duly organized or formed, as applicable, validly existing and in good standing under the laws of their respective states of formation or organization, as applicable, with full limited
liability company or limited partnership, as applicable, power and authority to conduct their business as it is now being conducted, to own or use the properties and assets that they purport to own or use, and to perform all their obligations under
this Agreement and to otherwise undertake the Contemplated Transactions. 
  

	3.2.	Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Sellers. 

  

	 	3.2.1. 	Except as disclosed in Sellers’ Disclosure Schedules, this Agreement constitutes the legal, valid, and binding obligation of Sellers, enforceable against them in accordance
with its terms except as such enforceability may be limited by General Exceptions to Enforceability. Except as disclosed in Sellers’ Disclosure Schedules, upon the execution and delivery by Sellers of the instruments required to be executed by
Sellers pursuant to Section 2.4.1 (collectively, the “Sellers’ Documents”), each of the Sellers’ Documents will constitute the legal, valid and binding obligation of Sellers, enforceable against them in accordance
with its terms except, in each case, as such enforceability may be limited by General Exceptions to Enforceability. Except as disclosed in Sellers’ Disclosure Schedules, neither the execution and delivery of this Agreement nor the consummation
or performance of any of the Contemplated Transactions by Sellers will breach (i) any provision of any of the Governing Documents of Sellers or (ii) any resolution adopted by the equity holders or governing bodies of Sellers.

  

	 	3.2.2. 	Except as disclosed in Sellers’ Disclosure Schedules, Sellers have the full right, power and authority to execute and deliver this Agreement and the Sellers’ Documents, to
perform their obligations under this Agreement and the Sellers’ Documents, and to carry out the Contemplated Transactions, and such actions have been duly authorized by all necessary action by Sellers’ governing body and by Sellers’
equity holders. 

  

	 	3.2.3. 	Except as disclosed in Sellers’ Disclosure Schedules, neither the execution and delivery of this Agreement nor the consummation or performance of any of the Contemplated
Transactions by Sellers will: 

  

	 	(a)	violate any Applicable Law to which Sellers are subject; or 

  

	 	(b)	result in the imposition or creation of any Encumbrance other than Permitted Encumbrances upon or with respect to any of the Purchased Interests to be sold by Sellers.

  

			
	Purchase and Sale Agreement	  	Page 15

	 	3.2.4. 	Except as disclosed in Sellers’ Disclosure Schedules, Sellers are not required to give any notice to or obtain any consent, approval, permit, license, franchise, or other
authorization, or a variance or exemption therefrom or waiver thereof from any Governmental Authority or other Person in connection with the execution and delivery of this Agreement or the consummation of any of the Contemplated Transactions (the
“Sellers’ Consents”). 

  

	3.3.	No Litigation Against Sellers. 

 Except as disclosed in
Sellers’ Disclosure Schedules, there is no pending or, to Sellers’ Knowledge, threatened Proceeding by or against Sellers or any of their Affiliates that challenges, or seeks to restrain, delay, or prohibit the Contemplated Transactions.
Except as disclosed in Sellers’ Disclosure Schedules, to the Knowledge of Sellers, no event has occurred or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Proceeding. Except as
disclosed in Sellers’ Disclosure Schedules, there is not in effect any order, judgment, or decree of any Governmental Authority enjoining, barring, suspending, prohibiting, or otherwise limiting Sellers from undertaking the Contemplated
Transactions. 
  

	3.4.	Organization and Good Standing of the HPL Companies. 

 Except as disclosed in Sellers’ Disclosure Schedules, each of the HPL Companies is duly formed or organized, validly existing and in good standing, as applicable, under the laws of its state of formation or organization, with full
general partnership, limited partnership, or limited liability company, as applicable, power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports to own or use, and to perform
all its obligations under this Agreement and to otherwise undertake the Contemplated Transactions. Except as disclosed in Sellers’ Disclosure Schedules, each HPL Company, as applicable, is duly qualified to do business as a foreign entity and
is in good standing under the laws of each state or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities conducted by it, requires such qualification. Except as disclosed in
Sellers’ Disclosure Schedules, complete and accurate copies of the Governing Documents of each HPL Company, as currently in effect, have been provided to Buyer. Except as disclosed in Sellers’ Disclosure Schedules, no HPL Entity has any
subsidiary or, directly or indirectly, owns any shares of capital stock or other equity, securities, or other ownership interest of any other Person. Except as disclosed in Sellers’ Disclosure Schedules, neither the execution and delivery of
this Agreement by Sellers nor the consummation or performance of any of the Contemplated Transactions by Sellers or by any of the HPL Entities will breach (i) any provision of any of the Governing Documents of an HPL Company or (ii) any
resolution adopted by the general or limited partners or the managers, members, or other owners of any HPL Company. 
  

			
	Purchase and Sale Agreement	  	Page 16

	3.5.	No Conflict; No Consent Requirements with Respect to the HPL Companies. 

  

	 	3.5.1. 	Except as disclosed in Sellers’ Disclosure Schedules, neither the execution and delivery of this Agreement by Sellers nor the consummation or performance of any of the
Contemplated Transactions by Sellers or by any of the HPL Entities will: 

  

	 	(a)	violate any Applicable Law to which an HPL Company is subject; 

  

	 	(b)	contravene, conflict with or result in a violation or breach of any of the terms or requirements of, or give any Governmental Authority the right to revoke, withdraw, suspend,
cancel, terminate or modify, any Permit that is held by an HPL Company or that otherwise relates to the Business conducted by an HPL Company; 

  

	 	(c)	breach any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or payment under, or to
cancel, terminate or modify, any indenture, mortgage, lease, note, or other Material HPL Contract or other instrument to which any Seller or HPL Company is a party or by which its properties may be bound; or 

  

	 	(d)	result in the imposition or creation of any Encumbrance other than a Permitted Encumbrance upon or with respect to any of the assets of any HPL Company. 

  

	 	3.5.2. 	Except as disclosed in Sellers’ Disclosure Schedules, no HPL Company is required to give any notice to or obtain any consent, approval, permit, license, franchise, or other
authorization, or a variance or exemption therefrom or waiver thereof from any Governmental Authority or other Person in connection with the execution and delivery of this Agreement or the consummation of any of the Contemplated Transactions by an
HPL Entity (the “HPL Company Consents”). 

  

	3.6.	Capitalization of the HPL Companies; Sellers’ Title. 

  

	 	3.6.1. 	 Except as disclosed in Sellers’ Disclosure Schedules, there are no member, partner or other ownership interests in any of the HPL Companies authorized, issued,
or outstanding or reserved for any purpose. The member, partner, or other ownership interests, as applicable, of such HPL Companies shown thereon to be outstanding are duly authorized, validly issued, and fully paid and were not issued in violation
of any preemptive rights, and are owned beneficially and of record by the party indicated in Sellers’ Disclosure Schedules. Except as disclosed in Sellers’ Disclosure Schedules, there are no (A) existing options, warrants, calls,
conversion rights or privileges, pre-emptive rights, subscriptions, or other rights, 

  

			
	Purchase and Sale Agreement	  	Page 17

	 	 
agreements, arrangements, or commitments of any character obligating any of such HPL Companies to issue, transfer, or sell or cause to be issued,
transferred, or sold any partner interests or other interests in any of such HPL Companies, or (B) contracts, agreements, or arrangements of any kind relating to any of the same. 

  

	 	3.6.2. 	Except as disclosed in Sellers’ Disclosure Schedules, (a) Sellers have good and marketable title to their respective member or partner interests, as applicable, in HPL
Consolidation, free and clear of any Encumbrances other than Permitted Encumbrances, (b) the HPL Entities have good and marketable title to their respective HPL Subsidiary Interests free and clear of any Encumbrances other than Permitted
Encumbrances, and (c) the HPL Entities’ percentage interest as tenant-in-common in the South Texas Pipeline is 80%, and in each of the Austin Pipeline, the Big Cowboy Pipeline, and in the A/S Pipeline is 50%. 

  

	3.7.	Financial Statements of the HPL Entities. 

 Sellers have
delivered to Buyer an unaudited balance sheet of each of the HPL Entities (other than HPL Consolidation) as of December 31, 2004, and the related unaudited statements of income and expense for the fiscal year then ended (the “HPL
Financial Statements”). Except as disclosed in Sellers’ Disclosure Schedules, the HPL Financial Statements fairly present as at the respective dates of and for the period referred to therein and in accordance with GAAP the financial
condition and the results of operations of the HPL Entities. 
  

	3.8.	No Material Adverse Change. 

 Except as disclosed in
Sellers’ Disclosure Schedules, since the date of the HPL Financial Statements, Sellers have operated, or caused the HPL Companies to operate, the Business in the Ordinary Course of Business, and there has not been any event or circumstance that
has had or is likely to have a Material Adverse Effect. 
  

	3.9.	No Undisclosed Liabilities. 

  

	 	3.9.1. 	Except as disclosed in Sellers’ Disclosure Schedules, no HPL Entity has any material liabilities that are required by GAAP to be reflected on the balance sheet of such HPL
Entity except for liabilities reflected or reserved against in the HPL Financial Statements and current liabilities incurred in the Ordinary Course of Business since the date of the HPL Financial Statements. 

  

	 	3.9.2. 	Except as disclosed in Sellers’ Disclosure Schedules, there are no Encumbrances securing the payment or other satisfaction of any liabilities of the kind described in
Section 3.9.1 without regard to the materiality test therein. 

  

			
	Purchase and Sale Agreement	  	Page 18

	3.10. 	Property and Leases of the HPL Companies. 

  

	 	3.10.1. 	Except as disclosed in Sellers’ Disclosure Schedules, each HPL Company owns good and marketable title to, or a valid lessee’s or licensee’s interest in, the major
operating assets used by such HPL Company in the conduct of the Business (other than pipeline easements and rights-of-way) as identified in Sellers’ Disclosure Schedules (the “Material Assets”), free and clear of any
Encumbrances other than Permitted Encumbrances. 

  

	 	3.10.2. 	Except as disclosed in Sellers’ Disclosure Schedules (and except with respect to pipeline easements and rights-of-way), to the Knowledge of Sellers, all leases and licenses of
material real property or other Material Assets of the HPL Companies are in full force and effect and are valid, binding and enforceable (except as such enforceability may be limited by General Exceptions to Enforceability), except where failure
thereof would not impair the conduct of normal operations of the Business. Except as disclosed in Sellers’ Disclosure Schedules, no HPL Company, and to the Knowledge of Sellers, no other party thereto, is in default under any such lease.

  

	3.11. 	Contracts of the HPL Companies. 

  

	 	3.11.1. 	Except for (A) contracts and other instruments identified or described as “Disclosed HPL Contracts” in Sellers’ Disclosure Schedules, (B) contracts
with gas suppliers, gas customers, transportation customers, and storage customers entered into in the Ordinary Course of Business consistent with past practice, (C) pipeline easement and right-of-way agreements, and (D) Benefit Plans,
there are no outstanding commitments, contracts, or agreements to which any HPL Company is a party or (except with respect to commitments, contracts, and agreements, entered into by other owners of undivided interests in certain of the property in
which the HPL Entities have undivided ownership interests, regarding such other owners’ use of their rights in that property) by which any of its properties are bound that (i) call for annual payments or receipts, or require capital
expenditures or commitments by the contracting HPL Company of more than $500,000 that may not be terminated without substantial penalty by the contracting HPL Company on reasonable notice, (ii) create an Encumbrance against any property of any
HPL Company securing the payment of funds borrowed by an HPL Company, or (iii) guaranty or otherwise provide credit support for, or indemnification with respect to, the obligations of any Person other than an HPL Company. Each Disclosed HPL
Contract, and each contract described in clause (B) of this Section 3.11.1 to the extent any such contract described in clause (B) calls for average daily volumes of more than 2,000 MMBtu is herein called a “Material HPL
Contract”. 

  

			
	Purchase and Sale Agreement	  	Page 19

	 	3.11.2. 	Except as otherwise provided in the next paragraph of this Section 3.11.2, and except as disclosed in Sellers’ Disclosure Schedules, each Material HPL Contract is in full
force and effect and is valid and enforceable in accordance with its terms. Except as disclosed in Sellers’ Disclosure Schedules, the contracting HPL Company on each such Material HPL Contract is not in material breach of any applicable terms
and requirements thereof. Except as disclosed in Sellers’ Disclosure Schedules, each other Person that has any obligation or liability under each such Material HPL Contract is, to the Knowledge of Sellers, not in material breach of any
applicable terms and requirements thereof. Except as disclosed in Sellers’ Disclosure Schedules, the contracting HPL Company has not given to or received from any other Person, at any time since January 1, 2004 any written notice given in
compliance with the notice provisions of the applicable contract alleging that the HPL Company or any other Person is in default under any such Material HPL Contract which has not been resolved. 

 The representations and warranties of this Section 3.11.2 shall be applicable with respect to the Bammel Documents, the Bammel Settlement Agreement,
and the Bammel Settlement Approval Order only to the extent that such documents, the rights and interests of the parties thereto under such documents, the performance under such documents of the parties thereto, and the transactions thereunder are
not in controversy in the Cushion Gas Litigation Agreement. 
  

	3.12. 	Insurance Maintained by the HPL Companies. 

 All of the
material policies of insurance carried on the date of this Agreement by the HPL Entities or any of their Affiliates directly insuring their properties or the Business on or prior to the Closing Date (such HPL Entities’ “Business
Insurance Policies”) are identified or described in Sellers’ Disclosure Schedule. Except as disclosed in Sellers’ Disclosure Schedules, all premiums payable on such Business Insurance Policies have been timely paid. Except as
disclosed in Sellers’ Disclosure Schedules, with respect to such Business Insurance Policies: (i) all are in full force and effect; (ii) all have been complied with in all material respects by the HPL Companies; (iii) no HPL
Company has received any notice from the insurer under any such Business Insurance Policy canceling or materially amending the same; and (iv) there is no claim under any such Business Insurance Policy that (A) has been denied by the
insurer, and (B) is still being asserted by the insured. 
  

	3.13.	 No Litigation Against the HPL Companies. 

 Except as
disclosed in Sellers’ Disclosure Schedules, there is no pending or, to the Knowledge of Sellers, threatened Proceeding by or against any HPL Company (i) that relates to or may reasonably be expected to affect, in any material respect, the
Business of, or any of the assets owned or used by any HPL Company, or (ii) that seeks to restrain, delay or prohibit the Contemplated Transactions. Except as disclosed in Sellers’ Disclosure Schedules, there is not in effect any order,
judgment, or decree of any Governmental Authority enjoining, barring, suspending, prohibiting, or otherwise limiting any HPL Company from engaging in the Business, or requiring any HPL Company to take or refrain from taking any action with respect
to any aspect of such Business. Notwithstanding the foregoing, Sellers make no representation or 

  

			
	Purchase and Sale Agreement	  	Page 20

 
warranty in this Section 3.13 as to Proceedings, judgments, orders, writs, injunctions, or decrees which are, or contain issues, of broad applicability
to, or which generally affect, the natural gas, natural gas liquids, or pipeline industry and do not specifically name Sellers, their Affiliates, or any of the HPL Companies or their respective properties. 
  

	3.14.	Compliance by the HPL Entities with Applicable Law; Permits. 

 Except as disclosed in Sellers’ Disclosure Schedules, since June 1, 2001, the HPL Entities have complied in all material respects with all Applicable Laws to which they are subject (not including Environmental Laws, with respect
to which Sellers’ representations and warranties are contained in Section 3.18 hereof). Except as disclosed in Sellers’ Disclosure Schedules, no investigation or review by any Governmental Authority, based on an alleged material
violation of any Applicable Law (not including Environmental Laws, with respect to which Sellers’ representations and warranties are contained in Section 3.18 hereof) is pending or, to the Knowledge of Sellers, threatened, against an HPL
Company, nor has any Governmental Authority indicated in writing to Sellers, or any HPL Company an intention to conduct the same at any time after the date hereof. 
 Except as disclosed in Sellers’ Disclosure Schedules, no Permit from or of any Governmental Authority or license, franchise, permit, order, or approval from any third party is required on the part of the HPL
Entities to conduct the Business as presently conducted or is required in connection with the execution and delivery of this Agreement or the consummation of the Contemplated Transactions except for such Permits as have been obtained if the failure
to have such Permits would not, alone or in the aggregate, result in a Material Adverse Effect. 
  

	3.15.	Intellectual Property of the HPL Companies. 

 All material
patents, trademarks, service marks, trade names, registered copyrights, domain names, and applications therefor used mainly in the conduct of the Business by any HPL Company are herein referred to as “Intellectual Property”. Except
as disclosed in Sellers’ Disclosure Schedules, each HPL Company owns or has the right to use all such Intellectual Property, free of all Encumbrances other than Permitted Encumbrances. Except as disclosed in Sellers’ Disclosure Schedules,
to the Knowledge of Sellers, (i) no Person is infringing any of the HPL Companies’ rights in such Intellectual Property, (ii) no HPL Company is infringing the intellectual property rights of any other Person, (iii) no
registration of any such Intellectual Property has expired or been abandoned, and (iv) no HPL Company is in default under any license agreement respecting any of its Intellectual Property, in each case where the result would materially impair
the conduct of the Business. 
  

			
	Purchase and Sale Agreement	  	Page 21

	3.16.	Tax Matters. 

  

	 	3.16.1.	 Except as disclosed in Sellers’ Disclosure Schedules and subject to Section 3.16.3, there has been timely filed by or for each of the HPL Companies all Tax Returns,
if any, which are required by law to be filed prior to the Closing Date by it or with respect to its operations, and all Taxes due or claimed to be due from it or with respect to its operations (whether or not shown on any Tax Return) have duly and
timely been paid, and there are no assessments or claims for payment of any such Taxes now pending or, to the Knowledge of Sellers, threatened, or any audit of the records of an HPL Company being made or threatened by, any taxing authority. Except
as disclosed in Sellers’ Disclosure Schedules and subject to Section 3.16.3, each Tax Return previously filed by each HPL Company is, or to be filed by each HPL Company in the future relating to any period ending prior to the Closing Date
shall be, correct and complete in all material respects. Except as disclosed in Sellers’ Disclosure Schedules and subject to Section 3.16.3, none of such HPL Companies is currently the beneficiary of any extension of time within which to
file any Tax Return, if any, and no extension or waiver of any statute of limitations is in effect with respect to any Tax owed by any HPL Company. Except as disclosed in Sellers’ Disclosure Schedules and subject to Section 3.16.3, each of
such HPL Companies has properly withheld and paid, or accrued for payment, when due, to appropriate state and/or federal authorities, all sales and use taxes, if any, and all amounts required to be withheld from payments made to its employees,
independent contractors, creditors, owners, or other third parties and have also paid all employment taxes as required under Applicable Law. 

  

	 	3.16.2.	 Each of HPL Company LP, HPL Resources, and Gas Marketing have been domestic eligible entities within the meaning of Treasury Regulation 301.7701-3 and each has been treated as
a disregarded entity by Sellers and their Affiliates for U.S. federal income tax purposes since July 31, 2001, and each of Storage Holdings and Storage Leaseco have been domestic eligible entities within the meaning of Treasury Regulation
301.7701-3 and each has been treated as a disregarded entity by Sellers and their Affiliates for U.S. federal income tax purposes since October 12, 2004, and no election for any of the HPL Entities has been made to change their respective
default classifications, and neither Sellers, nor any of their Affiliates, nor any taxing authority has taken a position inconsistent with such treatment for federal income tax purposes. Each of HPL GP, LLC, HPL Storage GP LLC and HPL Consolidation
are domestic eligible entities within the meaning of Treasury Regulation 301.7701-3 and each has been treated as a disregarded entity by Sellers and their Affiliates (and with respect to HPL Consolidation, such treatment was made up to the Closing)
for U.S. federal income tax purposes, and no election has been made to change the default classification of any such entities. The only investments ever made by HPL GP, LLC and HPL Storage GP LLC have been their respective interests in the HPL
Entities. 

  

	 	3.16.3.	 Sellers expressly make no representations or warranties regarding compliance with Code section 409A. 

  

			
	Purchase and Sale Agreement	  	Page 22

	3.17.	Workforce Matters of the HPL Entities. 

  

	 	3.17.1.	 Employees. 

 Sellers have provided to Buyer a
complete and accurate list of the name, current compensation, scheduled or agreed-upon pay adjustments or bonuses, job title or description, and date of hire of each employee of the HPL Entities or their Affiliates as of the day immediately
preceding Closing whose duties relate primarily to the Business (the “Closing Workforce”). 
  

	 	3.17.2.	 Labor Disputes. 

 Except as disclosed in
Sellers’ Disclosure Schedules, each HPL Company is in compliance in all material respects with all Applicable Law respecting employment and employment practices, terms and conditions of employment, and wages and hours. Except as disclosed in
Sellers’ Disclosure Schedules, there is no unfair labor practice complaint against any HPL Company before the National Labor Relations Board. Except as disclosed in Sellers’ Disclosure Schedules, there is no labor strike, dispute,
slowdown, or stoppage actually pending or threatened against or affecting any HPL Company. Except as disclosed in Sellers’ Disclosure Schedules, since June 1, 2001, no HPL Company has experienced a strike or work stoppage. Except as
disclosed in Sellers’ Disclosure Schedules, no HPL Company is a party to or subject to a collective bargaining agreement and no collective bargaining agreement relating to employees of any HPL Company is currently being negotiated. Except as
disclosed in Sellers’ Disclosure Schedules, no Proceedings are pending or, to the Knowledge of Sellers, threatened against any HPL Company with respect to employment and employment practices, terms and conditions of employment, and wages and
hours. Except as disclosed in Sellers’ Disclosure Schedules, to the Knowledge of Sellers, there is no effort currently underway to organize the work force of any HPL Company or any part thereof. 
  

	 	3.17.3.	 Employee Benefit Plans. 

 Sellers’ Disclosure
Schedules set forth a complete and accurate list of each plan, contract, agreement, or other arrangement providing any type of compensation or benefit, including without limitation any “employee benefit plan” as defined in
Section 3(3) of ERISA in which any individual included in the Closing Workforce is a participant or to which such individual is a party (collectively, the “Benefit Plans”). Except as set forth in Sellers’ Disclosure
Schedules, (i) the Benefit Plans are in compliance with all applicable requirements of ERISA, the Code, and other applicable laws and have been administered in accordance with their terms and such laws, in each case in all material respects;
and (ii) each Benefit Plan that is intended to be qualified within the meaning of Section 401 of the Code has received a favorable determination letter as to its qualification that is current as of the Closing Date except for changes
required by the Economic Growth 

  

			
	Purchase and Sale Agreement	  	Page 23

 
and Tax Relief Reconciliation Act (with respect to which good faith amendments have been made), and nothing has occurred (or failed to occur) that could
reasonably be expected to result in the revocation of such letter. Except as set forth in Sellers’ Disclosure Schedules, there are no pending or, to the Knowledge of Sellers, threatened claims involving any individual included in the Closing
Workforce and no pending or, to the Knowledge of Sellers, threatened litigation involving any individual included in the Closing Workforce with respect to any of the Benefit Plans, other than ordinary and usual claims for benefits by participants
and beneficiaries, in either case which, if determined or resolved adversely, would have a Material Adverse Effect. With respect to any employee benefit plan (within the meaning of Section 3(3) of ERISA) that is sponsored, maintained, or
contributed to, or has been sponsored, maintained, or contributed to since June 1, 2001, by any HPL Entity or any corporation, trade, business, or entity that is now or has been at any time since that date under common control with any HPL
Entity, within the meaning of Section 4.14(b), (c), (m) or (o) of the Code or Section 4001 of ERISA (“Commonly Controlled Entity”), except as set forth in Sellers’ Disclosure Schedules (iii) no
withdrawal liability, within the meaning of Section 4201 of ERISA, has been incurred, which withdrawal liability has not been satisfied in full or will be incurred as a result of the Contemplated Transactions; (iv) no liability to the
Pension Benefit Guaranty Corporation has been incurred by any HPL Entity or any Commonly Controlled Entity, which liability has not been satisfied in full; (v) no accumulated funding deficiency, whether or not waived, within the meaning of
Section 302 of ERISA or Section 412 of the Code has been incurred; (vi) all contributions and premium payments (including, without limitation, employer contributions and employee elective deferral contributions) that are due have been
paid to the applicable defined contribution Benefit Plan and all contributions (including, without limitation, installments) to any Benefit Plan (other than Seller’s defined contribution Benefit Plan) required by Section 302 of ERISA and
Section 412 of the Code have been timely made and all contributions for any period ending before the Closing Date that are not yet due have been paid up to and including the Closing Date to any Benefit Plan which is subject to Section 302
of ERISA or Section 412 of the Code, or accrued on the books of the appropriate HPL Entities or any Commonly Controlled Entity; and (vii) no liability under Section 302 of ERISA, Section 412 of the Code or Title IV of ERISA has
been incurred by any HPL Entity or any Commonly Controlled Entity that would become a liability of Buyer or any of its Affiliates and no condition exists that would result in any such liability. 
  

			
	Purchase and Sale Agreement	  	Page 24

	3.18.	Environmental Matters. 

 Certain environmental matters have
been identified as “Disclosed Environmental Matters” in Sellers’ Disclosure Schedules. Except as described as a Disclosed Environmental Matter, and except as otherwise set forth in Sellers’ Disclosure Schedules and with
respect to the period beginning June 1, 2001, and to Sellers’ Knowledge, with respect to the period preceding the period beginning June 1, 2001: 
  

	 	3.18.1.	 No HPL Company is in violation, in any material respect, of any Applicable Law pertaining to environmental protection, or protection of human health or safety, including
without limitation those arising under the Resource Conservation and Recovery Act (“RCRA”), the Comprehensive Environmental Response, Compensation and Liability Act of 1980 as amended (“CERCLA”), the Superfund
Amendments and Reauthorization Act of 1986 (“SARA”), the Federal Water Pollution Control Act, the Solid Waste Disposal Act, as amended, the Federal Clean Air Act, or the Toxic Substances Control Act (collectively,
“Environmental Laws”); and 

  

	 	3.18.2.	 Sellers have no Knowledge, and neither Sellers nor any of the HPL Companies nor any of their Affiliates have received written notice from any Person, including without
limitation any Governmental Authority, (i) that any HPL Company has been identified by the United States Environmental Protection Agency (“EPA”) as a potentially responsible party under CERCLA with respect to a site listed on
the National Priorities List, 40 C.F.R. Part 300 Appendix B; (ii) that any hazardous waste, as defined by 42 U.S.C. §6903(5), any hazardous substance as defined by 42 U.S.C. §9601(14), any pollutant or contaminant as defined by 42
U.S.C. §9601(33) or any other toxic substance, oil or hazardous material (including friable asbestos, urea formaldehyde insulation or polychlorinated biphenyls) in each case regulated by any Environmental Laws (“Hazardous
Substances”) which any HPL Company generated, transported or disposed of has been found at any site at which a federal, state or local agency or other third party has conducted an investigation, and in respect of which Hazardous Substances
any of the HPL Companies may have a remediation liability or obligation pursuant to any Environmental Law; or (iii) that any HPL Company is or shall be a named party to any claim, action, cause of action, complaint, or legal or administrative
proceeding under Environmental Laws arising out of any Person’s incurrence of costs, expenses, losses or damages in connection with the release (as that term is defined in 42 U.S.C. §9601(22) or the relevant foreign Environmental Laws,
hereinafter, “Release”) of Hazardous Substances. 

  

	 	3.18.3.	 To the Knowledge of Sellers, Sellers’ Disclosure Schedules list each material Permit required under applicable Environmental Laws for the operation of the Business. To
the Knowledge of Sellers, each such Permit is valid and in full force and effect, and no Proceeding is pending or threatened to suspend, revoke, terminate, or declare invalid any such Permit. Except as set forth in Sellers’ Disclosure
Schedules, the applicable HPL Company (i) holds and is in compliance, in all material respects, with each such Permit, (ii) has filed all necessary reports and maintained all necessary records pertaining to such Permits, in all material
respects, and (iii) has otherwise complied, in all material respects, with all such Permits. 

  

			
	Purchase and Sale Agreement	  	Page 25

	3.19.	Regulatory Matters. 

 Except as disclosed in Sellers’
Disclosure Schedules, no HPL Company is subject to regulation as a “holding company” or a “public utility company” under the Public Utility Holding Company Act of 1935, as amended. HPL Company LP and MidTexas Pipeline Company are
regulated as gas utilities under the laws of the State of Texas. Except as disclosed in Sellers’ Disclosure Schedules, no HPL Company is subject to regulation as a “natural gas company,” as defined in the Natural Gas Act of 1938, as
amended (“NGA”). 
  

	3.20.	Affiliate Transactions of the HPL Companies. 

 Except as
disclosed in Sellers’ Disclosure Schedules, none of the HPL Companies is party to an agreement or arrangement with Sellers or any of their other Affiliates that will continue in effect after Closing. Except as disclosed in Sellers’
Disclosure Schedules, there are no guarantees, letters of credit, indemnity agreements, equity contribution agreements, or other credit support agreements under which any HPL Company has any outstanding obligation relating to the obligations,
business, or assets of Sellers or any of their Affiliates (other than another HPL Company). 
  

	3.21.	Finders and Brokers. 

 Neither Sellers nor any of the HPL
Companies is party to any agreement with any finder or broker under which Buyer or any HPL Company after Closing would have any responsibility for any commissions, fees, or expenses in connection with the origin, negotiation, execution, or
performance of this Agreement. 
  

	3.22.	Bankruptcy. 

 Except as disclosed in Sellers’
Disclosure Schedules, neither Sellers nor any of the HPL Companies are subject to any bankruptcy proceeding, and to Sellers’ Knowledge no proceeding is contemplated, in which Sellers or the HPL Companies would be declared insolvent or subject
to the protection of any bankruptcy or reorganization laws or procedures. 
  

	3.23.	Sufficiency of Assets. 

 Except as set forth in
Sellers’ Disclosure Schedules, the equipment, facilities, real property, Intellectual Property, Material HPL Contracts, and Permits owned, leased, or licensed by the HPL Companies constitute substantially all of the equipment, facilities, real
property, Intellectual Property, Material HPL Contracts, and Permits used by the HPL Companies for the conduct of the Business as conducted immediately prior to Closing. 
  

			
	Purchase and Sale Agreement	  	Page 26

	3.24.	Certain Warranty Disclaimers. 

  

	 	3.24.1.	 Except as and to the extent expressly set out in this Agreement or the Exhibits hereto, in Sellers’ Disclosure Schedules, or in any certificate furnished or to be
furnished by Sellers pursuant hereto, Sellers make no representations or warranties whatsoever to Buyer and Sellers hereby disclaim all liability and responsibility for any other representation, warranty, statement or information made, communicated,
or furnished or purportedly made, communicated, or furnished (orally or in writing) to Buyer or its representatives (including without limitation any opinion, information, projection, or advice that may have been or may be provided to Buyer by any
director, officer, employee, agent, consultant, or representative of any Seller or any of their Affiliates). No information provided to Buyer or any of its Affiliates or any of its or their representatives, advisors, or lenders, shall enlarge or
alter in any way the representations and warranties set out in this Agreement or the Exhibits hereto, in Sellers’ Disclosure Schedules, or in any certificate furnished or to be furnished by Sellers pursuant hereto or otherwise constitute a
representation or warranty hereunder. Buyer expressly acknowledges that (i) it has undertaken all investigations, analyses, and evaluations considered by it to be necessary or appropriate with respect to the Business, its financial and
operating history and condition, and the Purchased Interests, Applicable Law, relevant industry and market conditions, and its decision to enter into this Agreement and consummate the Contemplated Transactions, (ii) it has had an opportunity to
ask for all information desired from Sellers and their Affiliates and the nature and extent of the responses to such requests are satisfactory to Buyer, and (iii) it has made its own evaluation of the value of the Business, its financial
condition and prospects, and the Purchased Interests and the risks and benefits of the Business and the Contemplated Transactions and is not relying on any information or evaluation from Sellers or any of their Affiliates or representatives other
than those expressly set out in this Agreement or the Exhibits hereto, in Sellers’ Disclosure Schedules, or in any certificate furnished or to be furnished by Sellers pursuant hereto. 

  

	 	3.24.2.	 EXCEPT AS OTHERWISE CONTAINED IN THIS AGREEMENT OR THE EXHIBITS HERETO, IN SELLERS’ DISCLOSURE SCHEDULES, OR IN ANY CERTIFICATE FURNISHED OR TO BE FURNISHED BY SELLERS
PURSUANT HERETO, SELLERS AND THEIR AFFILIATES MAKE NO REPRESENTATION OR WARRANTY REGARDING THE CONDITION, REMAINING USEFUL LIFE, OR STRUCTURAL INTEGRITY OF ANY OF THE PIPELINE OR GAS STORAGE ASSETS (OR RELATED EQUIPMENT OR FACILITIES) OF ANY OF THE
HPL COMPANIES. ALL SUCH ASSETS, EQUIPMENT, AND FACILITIES ARE ACCEPTED ON AN “AS IS” BASIS, AND SELLERS AND THEIR AFFILIATES HEREBY DISCLAIM ALL SUCH WARRANTIES, EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO THE IMPLIED
WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE. 

  

			
	Purchase and Sale Agreement	  	Page 27

	4.	BUYER’S REPRESENTATIONS AND WARRANTIES 

 Buyer
hereby represents and warrants as follows: 
  

	4.1.	Organization and Good Standing of Buyer. 

 Except as
disclosed in Buyer’s Disclosure Schedules, Buyer is duly formed and validly existing under the laws of its state of organization, with full limited partnership power and authority to conduct its business as it is now being conducted, to own or
use the properties and assets that it purports to own or use, and to perform all its obligations under this Agreement and to otherwise undertake the Contemplated Transactions. Except as disclosed in Buyer’s Disclosure Schedules, Buyer is duly
qualified to do business as a foreign entity and is in good standing, if applicable, under the laws of each state or other jurisdiction in which either the ownership or use of the properties owned or used by it, or the nature of the activities
conducted by it, requires such qualification. 
  

	4.2.	Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Buyer. 

  

	 	4.2.1.	 Except as disclosed in Buyer’s Disclosure Schedules, this Agreement constitutes the legal, valid, and binding obligation of Buyer, enforceable against it in accordance
with its terms except as such enforceability may be limited by General Exceptions to Enforceability. Except as disclosed in Buyer’s Disclosure Schedules, upon the execution and delivery by Buyer of the instruments required to be executed by
Buyer or by any of the HPL Entities pursuant to Section 2.4.2 (collectively, the “Buyer’s Documents”), each of the Buyer’s Documents will constitute the legal, valid and binding obligation of Buyer or HPL Entity party
thereto, as the case may be, enforceable against it in accordance with its terms except, in each case, as such enforceability may be limited by General Exceptions to Enforceability. Except as disclosed in Buyer’s Disclosure Schedules, neither
the execution and delivery of this Agreement or any of the Buyer’s Documents nor the consummation or performance of any of the Contemplated Transactions by Buyer or any HPL Entity will breach (i) any provision of any of the Governing
Documents of Buyer or (ii) any resolution adopted by the equity holders or governing bodies of Buyer. 

  

	 	4.2.2.	 Except as disclosed in Buyer’s Disclosure Schedules, Buyer has the full right, power and authority to execute and deliver this Agreement and the Buyer’s Documents as
applicable, to perform its obligations under this Agreement and the Buyer’s Documents as applicable, and to carry out the Contemplated Transactions, and such actions have been duly authorized by all necessary action by such the governing bodies
and equity holders of Buyer. 

  

	 	4.2.3.	 Except as disclosed in Buyer’s Disclosure Schedules, neither the execution and delivery of this Agreement or any of the Buyer’s Documents nor the consummation or
performance of any of the Contemplated Transactions by Buyer will: 

  

	 	(a)	violate any Applicable Law to which Buyer is subject; 

  

			
	Purchase and Sale Agreement	  	Page 28

	 	(b)	contravene, conflict with or result in a violation or breach of any of the terms or requirements of, or give any Governmental Authority the right to revoke, withdraw, suspend,
cancel, terminate or modify, any Permit that is held by Buyer; or 

  

	 	(c)	breach any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or payment under, or to
cancel, terminate or modify, any indenture, mortgage, lease, note, or other material contract or other instrument to which Buyer is a party or by which its properties may be bound. 

  

	 	4.2.4.	 Except as disclosed in Buyer’s Disclosure Schedules, Buyer is not required to give any notice to or obtain any consent, approval, permit, license, franchise, or other
authorization, or a variance or exemption therefrom or waiver thereof from any Governmental Authority or other Person in connection with the execution and delivery of this Agreement or the consummation or performance of any of the Contemplated
Transactions. 

  

	4.3.	No Litigation Against Buyer. 

 Except as disclosed in
Buyer’s Disclosure Schedules, there is no pending or, to Buyer’s Knowledge, threatened Proceeding by or against Buyer that challenges, or seeks to restrain, delay, or prohibit the Contemplated Transactions. Except as disclosed in
Buyer’s Disclosure Schedules, to the Knowledge of Buyer, no event has occurred or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Proceeding. Except as disclosed in Buyer’s
Disclosure Schedules, there is not in effect any order, judgment, or decree of any Governmental Authority enjoining, barring, suspending, prohibiting, or otherwise limiting Buyer from undertaking the Contemplated Transactions. 
  

	4.4.	Finders and Brokers. 

 Buyer is not a party to any
agreement with any finder or broker under which any Seller would have any responsibility for any commissions, fees, or expenses in connection with the origin, negotiation, execution, or performance of this Agreement. 
  

	4.5.	Bankruptcy. 

 Except as disclosed in Buyer’s
Disclosure Schedules, Buyer is not subject to any bankruptcy proceeding, and to Buyer’s Knowledge no proceeding is contemplated, in which Buyer would be declared insolvent or subject to the protection of any bankruptcy or reorganization laws or
procedures. 
  

	4.6.	Availability of Funds. 

 Buyer has sufficient funds
available or has received binding written commitments from responsible financial institutions to provide sufficient funds on the Closing Date to pay the Purchase Price and conduct the Business. The ability of Buyer to consummate the transactions
contemplated hereby are not subject to any condition or contingency with respect to financing. 
  

			
	Purchase and Sale Agreement	  	Page 29

	5.	COVENANTS OF THE PARTIES 

  

	5.1.	Continuing Access. 

 After the Closing Date and in addition
to any rights under the Cushion Gas Litigation Agreement, each of the parties hereto, its Affiliates, and its and their representatives and advisors will have reasonable access to (and the right to make and retain copies of) the records (including,
but not limited to email messages) of the HPL Companies and reasonable access to the officers, directors, then-serving employees, members, agents, and any other personnel of the HPL Companies, in each case for purposes of consultation or otherwise
to the extent reasonably required in connection with matters relating to the operations of the HPL Companies before the Closing Date, in connection with the performance of its obligations and exercise of its rights under this Agreement (including
its prosecution, defense, and settlement of Retained Matters or other litigation or investigations), or otherwise in connection with the Contemplated Transactions. Each of the parties hereto agrees to preserve and cause its Affiliates to preserve
all such records for the period of time set forth in any records retention policy in effect at an HPL Entity as of the Closing Date or for any longer period as may be required by law, but in any event for at least 6 years from the Closing Date. Each
of the parties hereto and their representatives and advisors will have reasonable access to (and the right to make and retain copies of) the documents, books and records, and other information of the HPL Companies (to the extent currently possessed
by the HPL Companies, and such parties shall authorize Buyer or Sellers, as applicable, to seek or obtain, at the expense of the party seeking such access, such documents, books, records, and other information of the HPL Companies that are not
currently possessed by such parties). At no cost or expense to the cooperating party other than actual out-of-pocket expenditures (which shall not include attorney’s fees), each party will reasonably (or otherwise upon reimbursement of the
cooperating party’s out-of-pocket costs) cooperate and cause their Affiliates to reasonably (or otherwise upon reimbursement of the cooperating party’s out-of-pocket costs) cooperate in connection with any audit, investigation, hearing, or
inquiry by any Governmental Authority and any litigation, arbitration, or other Proceeding which may continue or arise after the Closing Date relating to any of the Retained Matters, such cooperation to include making individuals and records
reasonably (or otherwise upon reimbursement of Buyer’s out-of-pocket costs) available for review, analysis, testing, consultation, interview, deposition, or testimony, making a corporate representative available for deposition or at trial, and
executing declarations, affidavits, settlement agreements, and other instruments as reasonably requested by the other party hereto. Any cost associated with accessing former employees will be borne by the party seeking such access. 
  

			
	Purchase and Sale Agreement	  	Page 30

	5.2.	Retained Matters. 

  

	 	5.2.1.	 Except as otherwise set forth in Sellers’ Disclosure Schedules, Sellers or their Affiliates will be entitled to exclusively control, conduct, and otherwise direct the
prosecution, defense, and settlement of any of the Proceedings described as or arising out of “Retained Matters” in Sellers’ Disclosure Schedules and Buyer covenants to cause the HPL Entities to grant such control to Sellers.
Following the Closing, the liability of the HPL Entities for any demands, claims, causes of action, suits, judgments, damages, amounts paid in settlement, penalties, liabilities, losses or deficiencies, court costs, expenses of arbitration or
mediation, and other out-of-pocket expenses relating to any Retained Matter (“Retained Matter Liabilities”) will be limited as set out in the description thereof in Sellers’ Disclosure Schedule, and Sellers hereby agree to
solely bear the cost of, or if unable to directly bear the cost of, shall indemnify and hold harmless, the HPL Entities from all Retained Matter Liabilities in excess of such limit on the liability of the HPL Entities therefor
(“Sellers’ Retained Matter Responsibility”), in accordance with the provisions of Section 6.2. Sellers will retain rights in proportion to Sellers’ Retained Matter Responsibility with respect to any recovery from any
of the Retained Matters or any counterclaim thereto or cross-claim with respect thereto (whether or not presently asserted), and Buyer agrees to immediately remit, and cause the HPL Entities to immediately remit, any and all such recoveries to
Sellers or their designees. 

  

	 	5.2.2.	 Cushion Gas Litigation is not a Retained Matter under this Agreement. Allocation of responsibility and liability among Sellers and their Affiliates on the one hand and Buyer,
the HPL Entities, and their Affiliates on the other hand with respect to Cushion Gas Litigation is controlled exclusively by the Cushion Gas Litigation Agreement, and neither Sellers nor any of their Affiliates will have any liability under this
Agreement to Buyer, the HPL Entities, or any of their Affiliates (including liability based on a breach of the representation and warranty in Section 3.11) for any Damages or other loss, liability, obligation, damage, cost, or expense of any
kind arising out of or relating to any Cushion Gas Litigation and none of the limitations on liability contained in this Agreement will apply to any liability arising under the Cushion Gas Litigation Agreement. 

  

	5.3.	Workforce Matters. 

  

	 	5.3.1.	 Post-Closing Employment and Compensation; Severance. 

  

	 	(a)	 Sellers have transferred, or have caused to be transferred, all members of the Closing Workforce to a Seller or an Affiliate of a Seller (other than an HPL
Company). From the Closing Date until the expiration of the Employee Review Period, Sellers shall be responsible for the Closing Workforce in accordance with the terms of the Transition Services Agreement. Not later than 100 days following the
Closing Date (such period being the “Employee Review Period”), except as provided in Section 5.3.1(b), Buyer shall extend offers of employment, or cause the HPL Entities or another of its Affiliates to extend offers of 

  

			
	Purchase and Sale Agreement	  	Page 31

	 	 
employment, to the members of the Closing Workforce that it so elects with terms consistent with Section 5.3.2 (“Offer of Employment”).
Buyer will make Offers of Employment and initiate employment in consultation with Sellers in an orderly fashion that does not impose an undue administrative burden on Sellers. Buyer shall notify Sellers in writing at least 10 days prior to making an
Offer of Employment of: (i) the name of each such member of the Closing Workforce to whom Buyer or an Affiliate of Buyer intends to make an Offer of Employment; and (ii) the terms of each such Offer of Employment. Buyer shall not give
notice to any member of the Closing Workforce that such employee will not receive an Offer of Employment in the period beginning on the Closing Date and ending 30 days after the Closing Date. At any time and from time to time on or before the date
that is the last day of the Employee Review Period, Buyer or an Affiliate of Buyer shall hire those members of the Closing Workforce who accept an Offer of Employment. Each member of the Closing Workforce who accepts an Offer of Employment shall be
referred to as a “Transferred Employee”. The date on which a Transferred Employee becomes an employee of Buyer or Buyer’s Affiliate shall be referred to as the “Hire Date” for such Transferred Employee. Sellers
or their Affiliate, as the case may be, shall terminate each of the Transferred Employees as of such employee’s Hire Date. Except to the extent that such liabilities are to be borne by Buyer under Section 5.3.1(c), Sellers shall be liable
for any Required Severance Benefits and health care continuation benefits (COBRA rights) of any member of the Closing Workforce that does not become a Transferred Employee, and except as otherwise provided herein or in the Transition Services
Agreement, neither Buyer nor any Affiliate thereof shall have any other liability or obligation whatsoever with respect to any member of the Closing Workforce who does not become a Transferred Employee. 

  

	 	(b)	The provisions of Section 5.3.1(a) notwithstanding, (i) Buyer will have no obligation to employ, or cause to be employed, any member of the Closing Workforce who does not
accept an Offer of Employment that conforms to the requirements of Section 5.3.1(a); (ii) Buyer will have no obligation to continue the employment of any individual who voluntarily terminates his or her employment other than in the
circumstances described in clause (ii) or (iii) of Section 5.3.1(c), and (iii) Buyer may terminate the employment of any member of the Closing Workforce at anytime for Cause. For purposes of this Agreement, termination for
“Cause” means termination because of material dereliction of duty, commission of a crime of moral turpitude, material violation of any written policy of the employer, or termination because of any other “termination for
cause” provision in the involved individual’s written employment agreement, if any. 

  

			
	Purchase and Sale Agreement	  	Page 32

	 	(c)	Buyer will provide, or will cause the HPL Entities or another of its Affiliates to provide the Required Severance Benefits to each Transferred Employee who:

  

	 	(i)	is terminated without Cause during the Continuation Period, 

  

	 	(ii)	elects during the Continuation Period to terminate such employment within 7 days following such Transferred Employee’s receipt of a notice from his or her employer of its
intent to reduce such employee’s base rate of pay, or 

  

	 	(iii)	elects during the Continuation Period to terminate such employment within 30 days after his or her employer notifies such employee of its intent to assign such employee to a
principal place of work that is more than 50 miles from such employee’s principal place of work as of the Closing Date. 

 Additionally, in the event Buyer fails to extend, or cause to be extended, Offers of Employment to not less than 75% of the Closing Workforce as required by Section 5.3.1(a), and the members of the Closing Workforce that are severed by
Sellers or their Affiliates who have not received Offers of Employment from Buyer and have not resigned or have not received offers of employment from Sellers or any of their Affiliates that in each such case would relieve Sellers of any severance
obligation to such employees, then Buyer will pay to Sellers or their designated Affiliate, within 30 days of written request therefor (such request to be made within 30 days of the end of the Employee Review Period) an amount equal to (A) the
weighted average severance benefits (based on credited service and COBRA premium rates determined as of the last day of the Employee Review Period) that could be available pursuant to the Required Severance Benefits to the remaining members of the
Closing Workforce described above multiplied by (B) a number equal to (x) the number of individuals constituting 75% of the Closing Workforce minus (y) the number of individuals who receive an Offer of Employment that conforms to the
requirements of Section 5.3.1(a). 
  

	 	(d)	Sellers and their Affiliates will not discourage any member of the Closing Workforce from accepting an Offer of Employment that conforms to the requirements of
Section 5.3.1(a). 

  

			
	Purchase and Sale Agreement	  	Page 33

	 	(e)	Prior to the Closing Date, Sellers shall have caused the HPL Entities to (i) terminate any Benefit Plans that are sponsored, contributed to, maintained, or entered into solely
by one or more of the HPL Entities, unless sponsorship is transferred to and assumed by a Seller or an Affiliate of Sellers (other than an HPL Company) prior to the Closing Date (including any liability that might otherwise apply to the HPL
Entities), and (ii) terminate the participation of all HPL Entities in all Benefit Plans. It is expressly understood and agreed that neither Buyer nor any Affiliate thereof is, by virtue of this Agreement or otherwise, assuming any Benefit Plan
or any liability or obligation of any kind under any such Benefit Plan. 

  

	 	5.3.2.	 Post-Closing Benefits; Service Credit for Transferred Employees. 

  

	 	(a)	During the Continuation Period, Buyer will provide, or cause the HPL Entities or another of its Affiliates to provide, Transferred Employees with (i) a base compensation level
at least as high as that referred to in Section 3.17.1 hereof (including scheduled increases in compensation identified therein), and (ii) a principal place of work that is no more than 50 miles from such Transferred Employee’s
principal place of work as of the day immediately preceding Closing. 

  

	 	(b)	During the Continuation Period, Buyer will provide, or cause the HPL Entities or another of its Affiliates to provide, to the extent permitted by Applicable Law, bonus, fringe
benefits, welfare benefits, retirement and pension benefits, medical, dental, and other health plans, vacation pay, sick leave, deferred compensation arrangements, and other benefits (other than severance benefits, which are controlled by
Section 5.3.1(c)) (the “Buyer Plans”) for Transferred Employees that are no less favorable than those provided by Buyer or its Affiliates to other similarly situated employees of Buyer or its Affiliates.

  

	 	(c)	 To the extent permitted under Applicable Law and the applicable Buyer Plans, Buyer agrees that for purposes of all Buyer Plans (including all policies and employee
fringe benefit programs, including vacations, of Buyer) under which an employee’s benefit depends, in whole or in part, on length of service, credit will be given to Transferred Employees as of each employee’s Hire Date for service
previously credited with or by Sellers or any of their Affiliates prior to such Hire Date for such programs, provided that such crediting of service shall not be given for benefit accrual purposes under any defined benefit plan. If permitted under
the applicable Buyer Plans with no immediate increase in Buyer’s premiums with respect to any insured group health plan, each Transferred Employee shall also be given credit 

  

			
	Purchase and Sale Agreement	  	Page 34

	 	 
for any deductible or co-payment amounts paid in respect of the plan year in which the Closing occurs to the extent that, following such employee’s Hire
Date, such Transferred Employee participates in any Buyer Plan for which deductibles or co-payments are required. Buyer shall also cause each Buyer Plan (except Buyer’s insured welfare benefit plans that are not group health plans, with respect
to which Buyer shall use its commercially reasonable efforts to cause such plans) to waive (i) any preexisting conditions, exclusions, evidence of insurability requirements, and actively-at-work exclusions for each Transferred Employee and his
or her dependents under any Buyer Plan in which a Transferred Employee becomes eligible to participate to the extent that such pre-existing conditions, exclusions, evidence of insurability requirements, and actively-at-work exclusions were
previously satisfied under the comparable Benefit Plan, and (ii) any waiting period limitation which would otherwise be applicable to a Transferred Employee on or after the Closing to the extent such Transferred Employee had satisfied any
similar waiting period limitation under an analogous plan prior to the Closing. All claims and expenses incurred by any such Transferred Employee and any dependents that were to be taken into account for purposes of satisfying any deductible or
out-of-pocket limit under any Benefit Plan will be taken into account for purposes of satisfying any deductible or out-of-pocket limit under the plans maintained after Closing for the benefit of such Transferred Employee. Sellers shall use their
reasonable best efforts to provide to Buyer information concerning out-of-pocket expenses incurred by Transferred Employees under any Benefit Plan for pre-Hire Date treatments or services. 

  

	 	(d)	 Buyer will recognize, or will cause the HPL Entities or another of its Affiliates to recognize, all unused earned, banked, and accrued vacation of each Transferred
Employee as of such employee’s Hire Date up to a maximum of 2 weeks of vacation for each Transferred Employee and will provide to each such Transferred Employee a level of sick leave and other leave benefits that is no less favorable than the
sick leave and other leave benefits provided by Buyer or its Affiliates to similarly situated employees of Buyer or its Affiliates. If any Transferred Employee has more than 2 weeks unused earned, banked, and accrued vacation available to be taken
in the year of Closing under Sellers’ or their Affiliates’ vacation policy as of such Transferred Employee’s Hire Date, Sellers shall be responsible for the payment to such Transferred Employee of such additional amount of unused
earned, banked, and accrued vacation based on such Transferred Employee’s salary immediately prior to the Hire Date. At any time and from time to time during the Employee 

  

			
	Purchase and Sale Agreement	  	Page 35

	 	 
Review Period, at Buyer’s request, Sellers will prepare a report of the amounts accrued by Sellers and their Affiliates for vacation benefits of the
Closing Workforce. To the extent that Buyer provides such benefits to the Transferred Employees as a result of such accruals (rather than as a result of accruals from service after the Transferred Employee’s Hire Date), Sellers will remit to
Buyer the amount of such accruals as a reduction of the Purchase Price. 

  

	 	(e)	Buyer will provide or cause to be provided to each Transferred Employee and their qualified beneficiaries who incur a “qualifying event” (as defined in COBRA) on or after
such Transferred Employee’s Hire Date continuation health coverage in accordance with the continuation health coverage requirements of COBRA. 

  

	 	5.3.3.	 WARN Act Compliance. 

 Sellers do not anticipate
terminating the employment of any member of the Closing Workforce prior to Closing as a result of the Contemplated Transactions. Buyer will, at its expense, effect or cause the HPL Entities or its other Affiliates to effect full compliance with the
Worker Adjustment and Retraining Notification Act (“WARN Act”) and regulations promulgated thereunder, and any comparable state or local Applicable Law, required as a result of the Contemplated Transactions, regardless of whether
the obligation to do so is that of Buyer, Sellers, their Affiliates, or the HPL Entities. Buyer agrees to indemnify Sellers for any damages, costs, fees, including but not limited to attorneys’ fees, penalties, or other legal obligations under
the WARN Act or comparable state or local Applicable Law, resulting from the Contemplated Transactions. 
  

	5.4.	Discontinuation of Intercompany Transactions. 

 Effective
as of the Closing, and consistent with the determination of Net Working Capital, all intercompany receivables and payables and loans including amounts due to or from the HPL Entities under the AEP System Amended and Restated Non-Utility Money Pool
Agreement then existing between any HPL Entity on the one hand and AEP or any of its Affiliates on the other hand (other than those between the HPL Entities) shall be fully settled so that there are, as of the Valuation Time, no such outstanding
payables, receivables, or loans except as set forth in Sellers’ Disclosure Schedules. Without limitation of the foregoing, all accruals of federal income tax and state income tax, all deferred tax liabilities, and all deferred tax assets will
be eliminated from the accounts of the HPL Entities. Except as set forth in Sellers’ Disclosure Schedules, all intercompany agreements or arrangements between any HPL Entity on the one hand and AEP or any of its Affiliates on the other hand
including agreements for accounting services and access to accounting processes (other than those between the HPL Entities) shall be terminated as of the Valuation Time. 
  

			
	Purchase and Sale Agreement	  	Page 36

	5.5.	Termination and Continuation of Certain Insurance Coverages. 

  

	 	5.5.1.	 Buyer acknowledges that as of Closing the insurance coverages relating to the Business and described as “Terminating Insurance Coverages” in Sellers’
Disclosure Schedules will terminate or otherwise cease to be in effect, except with respect to claims of any of the HPL Companies that are pending under such insurance coverage as of the Closing Date, which shall survive the Closing Date and
continue in effect until resolution thereof. No HPL Company will be entitled to any refund of any premium paid with respect to any such coverage. Except as otherwise provided in this Agreement, Buyer agrees that it will be solely responsible for,
and neither Sellers nor any of their Affiliates will have any responsibility for, all risks as to which a claim for coverage under any of the Terminating Insurance Coverages may have otherwise been brought after Closing. 

  

	 	5.5.2.	 Until December 20, 2006, and thereafter at the option and expense of Sellers, Buyer will maintain, or cause the HPL Entities to maintain, continuously in force Chubb
Custom Insurance Company Policy Number 3725-37-46 (or an equivalent policy from an insurer acceptable to Sellers in their sole discretion) covering insured losses, providing for deductibles and limits, and including endorsements, in each case, as
presently set forth in such policy, and naming AEP and its Affiliates as additional named insureds. Buyer shall notify Sellers at least 60 days prior to the end of the coverage period of its intention to not renew the above-described policy. If such
coverage is extended at the option and expense of Sellers, Sellers shall have the sole right to modify and limit coverage at their discretion. 

  

	5.6.	Substitutions of Credit Support. 

 Buyer shall, within 30
days following the Closing Date, cause itself or one or more of its Affiliates to be substituted in all respects for Sellers or one or more of their Affiliates, as the case may be, in respect of all obligations of Sellers or any of their Affiliates
under each and every guaranty, indemnity agreement, surety bond, performance bond, letter of credit, support agreement, keep-well agreement, third party collateral assignment or other pledge of collateral, or other credit support arrangement of any
kind supporting the credit or facilitating the transactions of any of the HPL Companies in connection with the Business (each a “Credit Support Arrangement”) and shall cause Sellers and each of their Affiliates, as the case may be,
to be discharged from all obligations under any such Credit Support Arrangement. The Credit Support Arrangements include those listed in Schedule 5.6 of Sellers’ Disclosure Schedules. If Buyer is unable to timely effect such substitution with
respect to any Credit Support Arrangement on terms acceptable to Buyer, then Buyer will immediately obtain a letter of credit, on terms and from a financial institution reasonably satisfactory to Sellers, with respect to the obligations of Sellers
and each of their Affiliates under such Credit Support Arrangement. 
  

			
	Purchase and Sale Agreement	  	Page 37

	5.7.	Claims for Certain Measurement Adjustments. 

 Buyer agrees
to remit to Sellers, within 30 days of receipt, any amount receivable within the 18 months following the Closing Date to correct any misallocation, calculation error, measurement problem or similar event relating to performance prior to the Closing
Date under any of the HPL Companies’ contracts with gas suppliers, gas customers, transportation customers, and storage customers. If any such amount is offset for any reason, the amount so offset will be remitted within 30 days of the date on
which the HPL Companies receive credit as a result of such offset. Sellers will have the right to direct Buyer and the HPL Companies in the administration of any contract provision calling for any such a correction to the extent necessary to protect
its interests under this Section 5.7. At the expense of Sellers, Sellers shall have the right, in accordance with this Section 5.7 and Section 5.1, to audit the records of the HPL Entities to determine the existence of a right to any
such correction and/or the details concerning any such correction and for this purpose will have the right, in accordance with this Section 5.7 and Section 5.1, to review, copy, abstract, and audit all relevant meter data and other
relevant information held by or available to the HPL Entities for the relevant period. Buyer will provide Sellers and their representatives and advisors, at no expense to Sellers, with all accounting services, assistance, and access to data during
normal business hours to the working papers, accounting, operating, and other books and records of the HPL Entities, and the appropriate personnel to the extent required to exercise Sellers’ rights under this Section 5.7. Pursuant to the
Transition Services Agreement, Buyer shall also ensure that the employees of Sellers (to the extent they continue to be employed by Sellers or any Affiliate of Sellers and made available under the Transition Services Agreement) previously involved
with the foregoing accounting services and operation activities will perform their customary and usual monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the periods following the
Closing Date for purposes of the foregoing. Buyer shall also ensure that the Transferred Employees (to the extent they continue to be employed by Buyer or any Affiliate of Buyer) previously involved with the foregoing accounting services and
operation activities will perform their customary and usual monthly tasks, including the assistance in the month end closing of the books and records of the HPL Entities, during the periods following the Closing Date for purposes of the foregoing.

  

	5.8.	Discontinuance of Trademarks and Tradenames. 

 Any and all
Intellectual Property owned by or licensed to the HPL Companies with respect to the name “Houston Pipe Line Company” or the acronym “HPL” or any variation or derivative thereof (the “Business Marks”) shall be
retained by the HPL Companies for their use after Closing. Effective upon Closing Sellers shall cause their appropriate Affiliates to grant to the HPL Companies a non-exclusive, non-transferable, non-sublicenseable, royalty-free right to display,
solely in connection with the Business, “AEP”, “American Electric Power” or any other similar trademarks, service marks, and tradenames owned by or licensed to Sellers or any of their Affiliates (the “Retained
Marks”), for a period of time, not to exceed 6 months from the Closing Date, as is reasonably necessary to promptly discontinue such 

  

			
	Purchase and Sale Agreement	  	Page 38

 
display, on any stationery, billing stock, signs, vehicles, pipeline markers, manuals, forms, or in connection with the normal operation of computer
software, but solely to the extent and in the form that the Retained Marks exist or are contained thereon as of the Closing. At the conclusion of such period, Buyer shall cause each of the HPL Companies to discontinue display or other use of, and
license to others of, the Retained Marks. 
  

	5.9.	Change of Sellers’ Names. 

 At Closing each Seller
will take all steps necessary to change its name effective as of the Closing Date so as to eliminate any reference to “HPL”. 
  

	5.10.	Required Notices. 

 Buyer will timely prepare and file or
cause to be prepared and filed, at its own expense, with a complete and contemporaneous copy to Sellers, all notices or other filings required to be filed by any HPL Company or Buyer after Closing with any Governmental Authority as a result of or
with respect to the execution and delivery of this Agreement or the Buyer’s Documents or the consummation of the Contemplated Transactions. Upon the request of Buyer, Sellers will fully cooperate with Buyer in making any such filing.

  

	5.11.	Public Statements. 

 After the Closing Date, no party will
issue any press release or make any public disclosure concerning the Contemplated Transactions or the contents of this Agreement, the Option Agreement, the Cushion Gas Litigation Agreement, the Guaranties, or the Transition Services Agreement
without the prior written consent of the other parties, which shall not be unreasonably withheld. Notwithstanding the above, nothing in this Section will preclude any party from making any disclosures required by Applicable Law or necessary and
proper in conjunction with the filing of any tax return or other document required to be filed with any Governmental Authority or to comply with the regulations of any securities exchange; provided, that the party required to make such
disclosure shall allow the other parties reasonable time to review and comment thereon in advance of such disclosure. 
  

	5.12.	Audit Matters. 

 Promptly following Closing, Sellers will
provide representatives of Buyer, at no expense to Sellers, with all assistance and access to data during normal business hours, including accounting and other books and records of the HPL Entities and Sellers and the appropriate personnel of
Sellers and the HPL Entities, reasonably required by Buyer to enable Buyer to prepare for the HPL Entities: (i) an audited balance sheet as may be required or, in the judgment of Buyer, advisable to be filed by Buyer or any Affiliate of Buyer
in accordance with Regulation S-X under the Securities Act of 1933, as amended, and related statements of income and cash flows for each of its then three most recent fiscal years, or (ii) other financial statements (including without
limitation adjusted historical financial statements), in each case as may be required or 

  

			
	Purchase and Sale Agreement	  	Page 39

 
advisable for filings with the Securities and Exchange Commission in compliance with Regulation S-X in connection with or on account of the Contemplated
Transactions. Buyer, at its sole expense, shall engage independent auditors to undertake the above-described audit, and if Buyer engages Deloitte & Touche, LLP, Sellers (at no expense to Sellers) will authorize access to that firm’s
working papers relating to its audit of AEP insofar as they relate exclusively to Sellers and their direct and indirect subsidiaries. It is expressly agreed that no Buyer representative, including the independent auditors engaged by Buyer as
contemplated by this Section 5.12, shall have access to any unpublished accounting information or working papers other than those of Sellers and their direct or indirect subsidiaries. 
  

	5.13.	Post-Closing Title Review. 

  

	 	5.13.1.	 Within 60 days following the Closing Date, Buyer may conduct a review of the HPL Companies’ title to the real property interests described in Exhibit 5.13 to this
Agreement, and assert Title Defects against Sellers, in accordance with the procedures set forth in this Section 5.13. 

  

	 	5.13.2.	 Prior to the expiration of the Defect Examination Period (as defined below), Buyer shall furnish to Sellers written notice(s) (each, a “Defect Notice”)
specifying in reasonable detail each matter which, in Buyer’s opinion, constitutes a Title Defect (including any and all reasonable supporting documentation), and which Buyer wishes to assert as a Title Defect hereunder, together with the costs
that Buyer, in good faith, estimates to be the costs necessary to cure or remediate the described Title Defects (each a “Defect Amount”). The “Defect Examination Period” shall mean the period commencing on the
Closing Date and ending 30 days after such date. Any Title Defects not asserted by Buyer on or before the expiration of the Defect Examination Period in accordance with this Section 5.13 shall be deemed conclusively to be waived. Sellers shall
have no liability for any Defect Amount unless such Defect Amount exceeds $50,000 (a “Qualifying Defect Amount”) and until and unless the sum of all Qualifying Defect Amounts exceeds $1,000,000 (the “Title
Threshold”) and then only to the extent that such sum exceeds the Title Threshold, and Sellers’ liability therefor is subject to the Sellers’ Cap. 

  

	 	5.13.3.	  Sellers shall provide a written response to Buyer within 30 days following the expiration of the Defect Examination Period stating, with respect to each Title
Defect asserted in the Defect Notice(s), whether or not Sellers agree: (a) that the alleged Title Defect constitutes a Title Defect under the terms of this Agreement; and (b) that Buyer’s estimate of the Defect Amount attributable to
each Title Defect asserted by Buyer is acceptable to Sellers (the “Response Notice”). If Sellers disagree with Buyer’s assertion of the existence of a Title Defect or the Defect Amount with respect thereto, Sellers’
Response Notice shall also specify in reasonable detail Sellers’ grounds for such disagreement, the Defect Amount estimated in good faith by Sellers therefor, or both, as the case may be. If Sellers do not include in their Response Notice an
objection to a Title Defect or to the Defect 

  

			
	Purchase and Sale Agreement	  	Page 40

	 	 
Amount, or if Sellers’ Response Notice agrees that the alleged Title Defect constitutes a Title Defect under the terms of this Agreement and that
Buyer’s estimate of the Defect Amount is acceptable, then that Defect Amount shall be the amount taken into consideration under Section 5.13.2, regardless of the costs that Buyer in fact incurs in curing that Title Defect. Sellers and
Buyer will attempt in good faith to resolve any disagreements with respect to the matters set forth in Buyer’s Defect Notice(s) and Sellers’ Response Notice within 30 days following Buyer’s receipt of Sellers’ Response Notice. If
Sellers and Buyer are unable, within such 30 day period, to agree in writing as to the existence or value, as applicable, of any Title Defect, the parties agree to submit the dispute to the Independent Accounting Firm, which shall employ persons who
are independent of the parties hereto and are impartial and experienced in the evaluation of matters of the type to be determined. The decision of the Independent Accounting Firm with respect to the disputed matters shall be final and binding on the
parties. The parties will direct the Independent Accounting Firm to render its decision with respect to such matters within 15 days after the dispute is submitted, or such reasonably longer period as the Independent Accounting Firm requires in its
reasonable discretion. Sellers and Buyer will each promptly provide all information and documents within their respective possession that the Independent Accounting Firm requests in order to make its decision with respect to the disputed matters.
The fees of the Independent Accounting Firm will be borne equally by Sellers, on the one hand, and Buyer, on the other hand. 

  

	 	5.13.4. 	With respect to each Title Defect that has a Qualifying Defect Amount, Sellers may, at their election, either remit to Buyer such Qualifying Defect Amount (after satisfaction of the
Title Threshold) or at Sellers’ sole cost and expense, and subject to the prior consent of Buyer (such consent not to be unreasonably withheld), cure within the Cure Period (as hereinafter defined) such Title Defect asserted by Buyer for which
Sellers are liable hereunder. The “Cure Period” shall mean the period of time commencing on the expiration of the Defect Examination Period and ending 180 days after such date. Immediately following the expiration of the Cure
Period, Sellers shall provide Buyer with written evidence of any curative actions which, in Sellers’ determination, cure the Title Defect. On or before the expiration of 15 days following Buyer’s receipt of such notice, Buyer shall provide
to Sellers in writing a list of those Title Defects asserted by Buyer which Sellers claim to have cured pursuant to this Section, and which Buyer determines not to have been cured. For a period of 30 days after Sellers’ receipt of Buyer’s
notice of uncured Title Defects, Sellers and Buyer shall attempt in good faith to resolve disputes as to such items by agreement. In the event that the dispute concerning any uncured Title Defect is not resolved within this 30 day period, then
parties are unable to resolve all disputes concerning the existence of Title Defects or Defect Amounts within this 30 day period, then Sellers shall remit to Buyer the Qualifying Defect Amount for such uncured Title Defect (after satisfaction of the
Title Threshold). 

  

			
	Purchase and Sale Agreement	  	Page 41

	5.14. 	Distributions to HPL Consolidation’s Partners. 

 During the period from the Closing Date through and including the Valuation Time, Buyers will not cause or allow HPL Consolidation to make any distributions to its partners. 
  

	5.15.	  Agreement to Cover Open Positions. 

 In the event
that either party determines, within 30 days following the Closing Date, that any Fixed Price Risk as of the end of the trading day immediately before the Closing Date is not hedged as of the Valuation Time, Sellers shall cause AEP Energy Services,
Inc. to provide (and Buyer will cause ETC Marketing, Ltd. to accept) offsetting hedges to said Fixed Price Risk from the Closing Date. The obligation of Sellers to provide offsetting hedges shall not apply to volume variances during February 2005 in
the normal course of business. 
  

	6.	SURVIVAL; INDEMNIFICATION 

  

	6.1.	Survival. 

  

	 	6.1.1. 	Subject to the following, the representations and warranties of Sellers and Buyer in this Agreement shall, without regard to any investigation made by any party, survive the Closing
Date; provided, however, that (i) the representations and warranties set forth in Sections 3.1, 3.2.1, 3.2.2, 3.4, 3.6, 3.20, 3.21, 4.1, 4.2.1, 4.2.2, and 4.4 hereof shall survive indefinitely, (ii) the representations and
warranties set forth in Section 3.16 and Section 3.17.3 hereof shall survive for a period of 90 days after the expiration of the applicable statute of limitations, and (iii) the remainder of the representations and warranties of
Sellers in Article 3 and Buyer in Article 4 shall survive the Closing until 12 months thereafter. 

  

	 	6.1.2. 	No claim for Damages or other relief of any kind, including a claim under Sections 6.2.1(i) or 6.3.1(i), arising out of or relating to any breach of representation or warranty under
this Agreement or otherwise arising out of any information alleged to have been provided or not provided by Sellers or any of their Affiliates in connection with this Agreement or the Contemplated Transactions (whether sounding in contract, tort,
breach of warranty, securities law, other statutory cause of action, deceptive trade practice, strict liability, product liability, or other theory of liability) may be brought unless suit thereon is filed, or a written notice describing the nature
of the claim, the theory of liability or the nature of the relief sought and the material factual assertions upon which the claim is based is given to the other party, before the termination of the applicable Survival Period.

  

	 	6.1.3. 	 The applicable survival period of each representation or warranty is provided in Section 6.1.1 and each such period is referred to herein as a
“Survival Period”. Notwithstanding the foregoing, any representation or warranty that would otherwise terminate shall survive for any Damages with respect to which suit thereon is filed and process is served, or of which 

  

			
	Purchase and Sale Agreement	  	Page 42

	 	 
notice describing the nature of the claim, the theory of liability, or the nature of the relief sought and the material factual assertions upon which the
claim is based is given pursuant to this Agreement, prior to the end of the Survival Period until the matter is finally resolved and any related Damages are paid. 

  

	6.2.	Indemnification by Seller. 

  

	 	6.2.1. 	 Except as otherwise provided in Article 7 below, Sellers jointly shall defend, indemnify and hold Buyer, its Affiliates and respective successors and permitted
assigns, and their respective shareholders, members, partners (general and limited), officers, directors, managers, employees, agents, and representatives, and each of their heirs, executors, successors and assigns (“Buyer Indemnified
Parties”) harmless from and against and in respect of any and all actual damages relating to any demands, claims, lawsuits, causes of action, losses, investigations and other proceedings (whether or not before a Governmental Authority and
whether or not brought by a third party), including reasonable attorney’s fees (which shall not include fees on a contingency basis), court costs and other documented out-of-pocket expenses reasonably incurred investigating or preparing, but
excluding in all cases any special, indirect, incidental, consequential, or punitive damages (collectively, “Damages”) which arise out of (i) any breach by any Seller of any of the representations and warranties contained in
this Agreement (except for the representations and warranties set forth in Sections 3.16 (which shall be governed by Article 7 hereof), (ii) any breach of any of the covenants of any Seller in this Agreement, (iii) except to the extent
that such liabilities are to be borne by Buyer under Section 5.3.1(c) or pursuant to any Buyer Plans in accordance with the requirements of Section 5.3 or otherwise, any liabilities or obligations with respect to any employee of any Seller
or with respect to any employee of any HPL Entity if arising out of or related to employment by an HPL Entity prior to the Closing Date, any contributions, payments or other obligations arising out of the administration, sponsorship or participation
of the Closing Workforce in any Benefit Plan with respect to periods of service prior to the Closing Date, and, except as provided in Section 5.3.1(c), any severance or other liabilities owed to any such employee who does not become a
Transferred Employee in accordance with Section 5.3, (iv) any Proceeding pending or which may be asserted with respect to any Retained Matter, but only to the extent of Sellers’ Retained Matter Responsibility, (v) any personal
injury or property damage loss claims arising from the ownership or operations by the HPL Companies of their assets or the Business prior to the Closing Date that is first threatened, asserted, or brought after the Closing Date, (vi) any
obligations to make a correcting adjustment under any of the HPL Companies’ contracts with gas suppliers, gas customers, transportation customers, and storage customers as a result of any misallocation, calculation error, measurement problem or
similar event relating to performance under such contract prior to the Closing Date, (vii) other than claims arising under this Agreement or any other agreement or arrangement 

  

			
	Purchase and Sale Agreement	  	Page 43

	 	 
entered into at or in connection with the Closing and claims under affiliate transactions that are identified in Schedule 5.4 of Sellers’ Disclosure
Schedules, any claims by Sellers or any of their Affiliates or any of their respective officers, directors, partners, shareholders or members, including claims of any Person that served as an officer or manager of any HPL Company, against any HPL
Company to the extent such claims relate to the period of time prior to the Closing Date or relate to the Contemplated Transactions, specifically including claims under or with respect to any of the affiliate transactions terminated in accordance
with Sections 3.20 and 5.4, and (viii) the failure, prior to the Closing Date, to obtain any of the Seller Consents or HPL Company Consents required to be obtained prior to the Closing Date. 

  

	 	6.2.2. 	The foregoing obligation to indemnify Buyer Indemnified Parties set forth in Section 6.2.1 shall be subject to each of the following limitations. 

  

	 	(a)	Sellers’ indemnification obligations under Section 6.2.1(i) shall be subject to the Survival Period limitations set forth in Section 6.1. 

  

	 	(b)	Sellers’ indemnification obligations set forth in Section 6.2.1(v) shall be limited such that Sellers shall only be liable thereunder to the extent that a written claim
describing the nature of the claim, the theory of liability, or the nature of the relief sought and the material factual assertions upon which the claim is based is given to Sellers prior to the first anniversary of the Closing Date.

  

	 	(c)	Sellers’ indemnification obligations set forth in Section 6.2.1(vi) shall be limited such that Sellers shall only be liable thereunder to the extent that a written claim
describing the nature of the claim, the theory of liability, or the nature of the relief sought and the material factual assertions upon which the claim is based is given to Sellers within 18 months following the Closing Date.

  

	 	(d)	Sellers’ indemnification obligations set forth in Section 6.2.1(iii) shall be limited such that Sellers shall only be liable thereunder to the extent that a written claim
describing the nature of the claim, the theory of liability, or the nature of the relief sought and the material factual assertions upon which the claim is based is given to Sellers within 90 days after the expiration of the applicable statute of
limitations. 

  

	 	(e)	 No reimbursement or payment for any Damages asserted against Sellers under Section 6.2.1(i) (other than for breach of Sellers’ representations and
warranties set forth in Sections 3.1, 3.2.1, 3.2.2, 3.4, 3.6, and 3.9.2, which are not subject to the Sellers’ Threshold) or 6.2.1(v) shall be required unless and until the cumulative aggregate amount of such Damages for all claims 

  

			
	Purchase and Sale Agreement	  	Page 44

	 	 
arising thereunder equals or exceeds $10,000,000 (the “Sellers’ Threshold”) and then only to the extent that the cumulative aggregate
amount of Damages, as finally determined, exceeds the Sellers’ Threshold. 

  

	 	(f)	Notwithstanding anything to the contrary contained in this Agreement, Sellers’ aggregate liability to Buyer and its Affiliates for all Damages under Sections 6.2.1(i) (other
than for breaches of Sellers’ representations and warranties set forth in Section 3.6, which are not subject to Sellers’ Cap), 6.2.1(v), and 6.2.1(vi) and those items of Sellers’ Retained Matter Responsibility that are shown in
Sellers’ Disclosure Schedules to be subject to Sellers’ Cap shall not exceed $220,000,000 (“Sellers’ Cap”). 

  

	 	(g)	In addition to the limitation set forth in Section 6.2.2(e) above, Sellers’ indemnification obligations with respect to Section 3.18 are subject to the additional
limitations set forth below: 

  

	 	(i)	Sellers shall only be liable to the extent that a claim is provided to Sellers in a reasonably detailed written communication prior to the first anniversary of the Closing Date and
Buyer shall afford Sellers a reasonable opportunity to evaluate the conditions giving rise to such claim. 

  

	 	(ii)	Sellers shall not be responsible for any Damages that arise out of any action to meet a cleanup or remedial standard under any Environmental Law that is more stringent or costly
than necessary for the continued ownership or use of any property or facility as it was last owned or used by the HPL Entities prior to the Closing Date in compliance with Environmental Laws applicable as of the Closing Date.

  

	 	(iii)	Sellers shall not be responsible for any costs of any post-Closing construction, demolition, or renovation of any facilities owned, leased, or operated by the HPL Entities including
any asbestos abatement obligations arising from such activities, except to the extent that such activities are required to comply with Applicable Law, and such non-compliance was a breach under Section 3.18. 

  

	 	(iv)	 Sellers shall be entitled, but not obligated, to undertake and control, with Buyer Indemnified Parties’ reasonable participation, any investigation,
remediation or other action required by Environmental Laws (and any negotiation with Governmental Authorities regarding same) with respect to any matter to the extent covered by 

  

			
	Purchase and Sale Agreement	  	Page 45

	 	 
Sellers’ indemnification for a breach of Section 3.18, but in doing so they must use their commercially reasonable efforts to avoid any
unreasonable interference with the operations of Buyer, the HPL Entities, or any of their Affiliates. Buyer Indemnified Parties shall cause the HPL Entities to afford Sellers reasonable access to any relevant property or facility to undertake any
such investigation, remediation or other action (it being understood that if Sellers do not assume responsibility for undertaking actions pursuant to this subsection, Buyer Indemnified Parties may undertake to complete such actions in a reasonably
cost effective manner, and Sellers shall have a right to reasonable participation in such undertaking). Sellers will promptly repair and restore any damage to the property of an HPL Entity caused by Sellers in connection with any such investigation,
remediation, or other action as close as reasonably practicable to the former condition of such property, and Sellers will indemnify Buyer and the HPL Entities from and against any Damages related to or arising from Sellers’ or their
agents’ or employees’ performance of the remediation work or their presence on the premises of Buyer or the HPL Entities. Sellers will perform any investigation, remediation, or other action undertaken by Sellers hereunder in a reasonably
diligent manner and in compliance with all Applicable Laws, including Environmental Laws. 

  

	 	6.2.3. 	The indemnities provided in this Section 6.2 shall survive the Closing. The indemnity provided in this Section 6.2 shall be the sole and exclusive remedy of the
indemnified party against the indemnifying parties at law or equity for any matter covered by Section 6.2.1. 

  

	 	6.2.4. 	Except as otherwise set forth in Section 6.2, Buyer shall give Sellers prompt written notice of any third party claim which may give rise to any indemnity obligation under this
Section, together with the estimated amount of such claim, and Sellers shall have the right to assume the defense of any such claim through counsel of their own choosing, by so notifying Buyer within 60 days of receipt of Buyer’s written notice
under this paragraph; provided, however, that Sellers’ counsel shall be reasonably satisfactory to Buyer. Failure to give prompt notice shall not affect the indemnification obligations hereunder in the absence of actual prejudice. If
Buyer desires to participate in any such defense assumed by Sellers, it may do so at its sole cost and expense but Sellers shall retain control of any assumed defense. If Sellers decline to assume any such defense, they shall be liable for all
reasonable costs and expenses of defending such claim incurred by Buyer, including reasonable fees and disbursements of counsel. 

  

			
	Purchase and Sale Agreement	  	Page 46

	 	6.2.5. 	Sellers shall have no indemnification obligation to Buyer with respect to any Damages arising from or relating to the condition, remaining useful life, or structural integrity of
the pipeline or gas storage assets (or related equipment or facilities) of the HPL Entities unless such Damages arise out of Sellers’ breach of a representation or covenant in this Agreement. 

  

	6.3.	Indemnification by Buyer. 

  

	 	6.3.1. 	Except as otherwise provided in Article 7 below, Buyer shall defend, indemnify and hold each Seller, their respective Affiliates and respective successors and permitted assigns, and
their respective shareholders, members, partners (general and limited), officers, directors, managers, employees, agents, and representatives, and each of their heirs, executors, successors and assigns (“Seller Indemnified Parties”)
harmless from and against and in respect of any and all Damages which arise out of (i) any breach of any of the representations and warranties contained in this Agreement, (ii) any breach of any of the covenants of Buyer in this Agreement,
(iii) activities of the HPL Companies after the Closing Date except to the extent any liability with respect thereto is included in Sellers’ Retained Matter Responsibility or is otherwise the responsibility of Sellers under another express
provision of this Agreement, and (iv) any liability incurred or amount paid by AEP or any of its Affiliates under any Credit Support Agreement with respect to events or circumstances arising after the Closing Date. 

  

	 	6.3.2. 	The foregoing obligation to indemnify Seller Indemnified Parties set forth in Section 6.3.1 shall be subject to each of the following limitations: 

  

	 	(a)	Buyer’s indemnification obligations under Section 6.3.1(i) shall be subject to the Survival Period limitations set forth in Section 6.1. 

  

	 	(b)	No reimbursement or payment for any Damages asserted against Buyer under Sections 6.3.1(i) or 6.3.1(iii) shall be required unless and until the cumulative aggregate amount of such
Damages for all claims arising thereunder equals or exceeds $10,000,000 (the “Buyer’s Threshold”) and then only to the extent that the cumulative aggregate amount of Damages, as finally determined, exceeds the Buyer’s
Threshold. 

  

	 	(c)	Notwithstanding anything to the contrary contained in this Agreement, Buyer’s liability to Seller Indemnified Parties for Damages in excess of Buyer’s Threshold under
Section 6.3.1(i) shall not exceed $220,000,000 (“Buyer’s Cap”). 

  

			
	Purchase and Sale Agreement	  	Page 47

	 	6.3.3. 	Sellers shall give Buyer prompt written notice of any third party claim which may give rise to any indemnity obligation under this Section, together with the estimated amount of
such claim, and Buyer shall have the right to assume the defense of any such claim through counsel of its own choosing, by so notifying Sellers within 60 days of receipt of Sellers’ written notice under this paragraph; provided, however,
that Buyer’s counsel shall be reasonably satisfactory to Sellers. Failure to give prompt notice shall not affect the indemnification obligations hereunder in the absence of actual prejudice. If Sellers desire to participate in any such defense
assumed by Buyer they may do so at their sole cost and expense. If Buyer declines to assume any such defense, it shall be liable for all costs and expenses of defending such claim incurred by Sellers, including reasonable fees and disbursements of
counsel. No party shall, without the prior written consent of the other parties, which shall not be unreasonably withheld, settle, compromise or offer to settle or compromise any such claim or demand on a basis which would result in the imposition
of a consent order, injunction or decree which would restrict the future activity or conduct of the parties or any Affiliate thereof or if such settlement or compromise does not include an unconditional release of the other parties for any liability
arising out of such claim or demand. 

  

	 	6.3.4. 	The indemnities provided in this Section 6.3 shall survive the Closing. The indemnity provided in this Section 6.3 shall be the sole and exclusive remedy of the
indemnified parties against the indemnifying party at law or equity for any matter covered by Section 6.3.1. 

  

	6.4.	Indemnification Net of Benefits; Mitigation Obligations of Indemnitee. 

 The Damages recoverable by any Indemnified Party under this Article 6 shall be calculated after giving effect to the actual receipt of any available insurance proceeds, third party indemnification or contribution
payment, or other similar right of recovery (collectively, “Recoveries”) paid or payable to the Indemnified Party. In computing the amount of any Recovery, (i) such Recovery shall be reduced by a reasonable estimate of the
present value of future insurance premium increases that the Indemnified Party may reasonably expect to bear to the extent attributable to the payment of insurance proceeds included in the Recovery and (ii) insurance proceeds which are
ultimately borne by the Indemnified Party under any self-insurance, retrospective premium, deductible or comparable arrangement shall not be taken into account. In all cases in which a Person is entitled to be indemnified under this Article 6, such
Indemnified Party shall be under a duty to take all commercially reasonable measures to mitigate all such Damages. 
  

	7.	TAX MATTERS 

  

	7.1.	Tax Indemnification. 

  

	 	7.1.1. 	In accordance with Section 7.3 hereof and except to the extent that such liabilities are included in the computation of Net Working Capital, Sellers shall indemnify and hold
Buyer and its Affiliates harmless from and against (i) all liability for Taxes of, or pertaining or attributable to the HPL 

  

			
	Purchase and Sale Agreement	  	Page 48

	 	 
Companies with regard (x) to all taxable periods ending as of or prior to the Closing Date (the “Pre-Closing Period”) (y) with
respect to any Tax period beginning prior to the Closing and ending after the Closing (the “Straddle Period”), the portion of Taxes attributable to the portion of such taxable period beginning before (but not ending on) the Closing
Date shall be calculated as though the tax year terminates as of Closing; provided, however, that in the case of a Tax not based on income, receipts, proceeds, profits, or similar items, such Taxes shall be equal to the amount of Tax
for the taxable period multiplied by a fraction, the numerator of which shall be the number of days from the beginning of the taxable period up to but not including the Closing Date and the denominator of which shall be the total number of days in
the taxable period; and (ii) all Taxes arising out of or related to a breach of any of the representations and warranties set forth in Section 3.16 of this Agreement. 

  

	 	7.1.2. 	Except for any Liabilities associated with Sellers’ Retained Interest in each HPL Entity after the Closing and any Liabilities for which Sellers are required to indemnify Buyer
under Section 7.1.1 hereof, Buyer shall indemnify and hold Sellers and each of their Affiliates harmless from and against any and all Taxes of, or pertaining or attributable to, the HPL Entities with respect to any taxable period that begins on
or after the Closing. 

  

	7.2.	Preparation and Filing of Tax Returns. 

  

	 	7.2.1. 	With respect to any Tax which is based on federal income, any Tax election relating thereto, and with respect to any Tax accounting method, for any Pre-Closing Period, Sellers,
without the consent of Buyer, shall be entitled to file any amended Tax Return with respect to any Tax which Sellers deem appropriate, as determined in Sellers’ sole discretion, provided that no filing may change the status of any HPL Companies
as disregarded entities for federal income tax purposes. For all other Taxes, either Buyer or Sellers, as appropriate, shall be entitled to file an amended Tax Return provided that: (i) Buyer may not amend a Tax Return in such a manner that
would cause Sellers to have any indemnification obligations under Section 7.1.1 hereof, and further provided that no filing may change the status of any HPL Companies as disregarded entities for federal income tax purposes for any Pre-Closing
Period, and (ii) Sellers may not amend any Tax Return for a Tax not based on income without the consent of Buyer which consent shall not be unreasonably withheld. To the extent not made for previous tax years, Sellers agree to make a timely and
valid 754 election for MidTexas Pipeline Company for the period ending December 31, 2004. Sellers shall prepare or cause to be prepared and file or cause to be filed all Tax Returns for the HPL Companies for all Pre-Closing Periods, and shall
pay all Taxes due with respect to such Tax Returns except to the extent that the liability for such Taxes is included as a liability in the computation of Net Working Capital. 

  

			
	Purchase and Sale Agreement	  	Page 49

	 	7.2.2. 	Buyer and Sellers agree to provide such assistance as may reasonably be requested by such other party in connection with the preparation of any Tax Return, any audit or other
examination by any taxing authority, or any judicial or administrative proceedings relating to liability for Taxes, and any deadline imposed by this Agreement on Buyer or Sellers in connection with the preparation of any Tax Return, any audit or
other examination by any taxing authority, or any judicial or administrative proceedings relating to liability for Taxes will be extended as appropriate in light of any party’s failure to promptly make such assistance available, and each will
retain and provide the requesting party with any records or information which may be relevant to such return, audit or examination, proceedings or determination. Any information obtained pursuant to this Section 7.2.2 or pursuant to any other
Section hereof providing for the sharing of information relating to or review of any Tax Return or other schedule relating to Taxes shall be kept confidential hereto in accordance with Section 8.2. 

  

	7.3.	Procedures Relating to Indemnification of Tax Claims. 

  

	 	7.3.1. 	If a claim regarding liability for a Tax or with respect to a Tax Return shall be made by any Governmental Authority, for which Sellers are or may be liable pursuant to this
Agreement, Buyer shall notify Sellers in writing within 10 Business Days of receipt by Buyer of notice of such claim (a “Tax Claim”). 

  

	 	7.3.2. 	With respect to any Tax Claim, Sellers, at Sellers’ expense, shall control all proceedings taken in connection with such Tax Claim (including selection of counsel), and Buyer
shall execute or cause to be executed powers of attorney or other documents necessary to enable Sellers to take all actions that do not materially adversely affect Buyer or the HPL Companies with respect to such Tax Claim. Sellers shall permit Buyer
to participate in (but not control) such proceedings through counsel chosen by Buyer (but the fees and expenses of such counsel shall be paid by Buyer). Sellers may in their sole discretion pursue or forego any and all administrative appeals,
proceedings, hearings and conferences with any taxing authority with respect to such Tax Claim, and may initiate any claim for refund, file and amended return, or take any other action which is deemed appropriate by Sellers with respect to such Tax
Claim, provided such actions do not materially adversely affect Buyer or the HPL Companies. 

  

	 	7.3.3. 	Buyer and its Affiliates (including after the Closing, the HPL Companies), on the one hand, and Sellers, on the other hand, shall cooperate with each other in contesting any Tax
Claim, which cooperation shall include, without limitation, the retention and, at the contesting party’s request and expense, the provision of records and information which are reasonably relevant to such Tax Claim, and making employees
available on a mutually convenient basis to provide additional information or explanation of any material provided hereunder or to testify at proceedings relating to such Tax Claim. 

  

			
	Purchase and Sale Agreement	  	Page 50

	7.4.	Tax Refunds and Credits. 

 Any refund or credits of Taxes
paid or payable that are attributable to the HPL Companies for any Pre-Closing Period will be for the account of Sellers. Any refunds or credits of Taxes paid or payable that are attributable to the HPL Companies for any other taxable period will be
for the account of Buyer and Seller with respect to each Buyer’s interest in and Sellers’ Retained Interest in each HPL Entity. Buyer shall, if Sellers so request and at Sellers’ expense, cause the HPL Entities to file for and obtain
any refunds or credits to which Sellers are entitled. Buyer shall cause the HPL Entities to forward to Sellers any such refund within 10 days after the refund is received (or reimburse Sellers for any such credit within 10 days after the credit is
applied against another Tax liability); provided, however, that Sellers shall indemnify Buyer in accordance with Section 7.3 hereof for any amount paid pursuant to this Section 7.4 if any such refund or credit is subsequently
disallowed. 
  

	7.5.	Tax Treatment of Payments. 

 The Parties shall treat any
indemnification payment made pursuant to this Agreement as a purchase price adjustment for Tax purposes. 
  

	7.6.	Transfer Taxes. 

 All Transfer Taxes incurred in connection
with this Agreement and the transactions shall be borne by the person upon whom such tax is imposed by Applicable Law. Sellers shall file, to the extent required by Applicable Law, all necessary Tax Returns and other documentation with respect to
such Transfer Taxes. Buyer shall, to the extent required by Applicable Law, join in the execution of any such Tax Return. For purposes of this Agreement, “Transfer Taxes” shall mean transfer, documentary, sales, use, registration,
and other such taxes (including all applicable real estate transfer taxes). Prior to the Closing Date, Buyer shall provide to Sellers appropriate exemption certificates in connection with this Agreement and the Contemplated Transactions with respect
to each applicable Taxing Authority. 
  

	7.7.	Termination of Participation in Tax Allocation Agreement. 

 As of the Closing Date, none of the HPL Entities will be parties to that certain agreement known as the American Electric Power Company, Inc. and Its Consolidated Affiliates Tax Agreement under Title 17, Chapter II of the Code of Federal
Regulations Paragraph (c) of Section 250.45 Regarding Method of Allocating Consolidated Income Taxes and said agreement shall have no further effect for any taxable year of any HPL Company (whether there is an adjustment for the current
year, a future year, or a past year). 
  

	7.8.	Allocation of the Purchase Price. 

 The Purchase Price will
be allocated in accordance with Exhibit 7.8 hereto. After the Closing, the parties will make consistent use of the allocation, fair market value, and useful lives specified in Exhibit 7.8 hereto for all Tax purposes and in all Tax
Returns, 
  

			
	Purchase and Sale Agreement	  	Page 51

 
including those required by section 1060 of the Code. Buyer will prepare and deliver IRS Form 8594 to Sellers within 45 days after the Closing Date. The Form
8594 will be amended, subject to the mutual consent of both parties, from time to time to reflect any adjustments subsequently made to the Purchase Price. In any Proceeding relating to the determination of any Tax, neither Buyer nor any Seller
contend, agree, or represent that such allocation is not a correct allocation or agree to any allocation other than that set out in the Form 8594 as amended from time to time. 
  

	8.	GENERAL PROVISIONS 

  

	8.1.	Notice Provisions. 

 Any notice that is required or
permitted under this Agreement may be given by personal delivery to the party entitled thereto, by facsimile transmission, by any courier service which guarantees overnight, receipted delivery, or by U.S. Certified or Registered Mail, return receipt
requested, addressed to the party entitled thereto, at: 
  

			
	If to HPL Storage LP:	  	 HPL Storage LP
 c/o American Electric Power Company,
Inc.

		  	Attention: Chief Financial Officer
		  	1 Riverside Plaza
		  	Columbus, OH 43215
		  	Facsimile No.: (614) 716-1603
		
	with copy to:	  	Clark, Thomas & Winters, P.C.
		  	Attention: C. Joseph Cain
		  	300 West 6th Street, 15
th Floor
		  	Austin, Texas 78701
		  	Facsimile No.: (512) 474-1129
		
	with copy to:	  	American Electric Power Company, Inc.
		  	Attention: Randy G. Ryan
		  	1 Riverside Plaza
		  	Columbus, Ohio 43215
		  	Facsimile No.: (614) 583-1603
		
	If to AEP Energy Services Gas Holding Company II, L.L.C.:	  	 AEP Energy Services Gas Holding Company II, L.L.C.
 c/o American Electric Power Company, Inc.

		  	Attention: Chief Financial Officer
		  	1 Riverside Plaza
		  	Columbus, OH 43215
		  	Facsimile No.: (614) 716-1603

  

			
	Purchase and Sale Agreement	  	Page 52

			
	with copy to:	  	Clark, Thomas & Winters, P.C.
		  	Attention: C. Joseph Cain
		  	300 West 6th Street, 15
th Floor
		  	Austin, Texas 78701
		  	Facsimile No.: (512) 474-1129
		
	with copy to:	  	American Electric Power Company, Inc.
		  	Attention: Randy G. Ryan
		  	1 Riverside Plaza
		  	Columbus, Ohio 43215
		  	Facsimile No.: (614) 583-1603
		
	If to Buyer:	  	La Grange Acquisition, L.P.
		  	Attention: Clay Kutch
		  	2838 Woodside Street
		  	Dallas, Texas 75204
		  	Facsimile No.: (214)-981-0703
		
	with copy to:	  	Hunton & Williams LLP
		  	Attention: Joe A. Davis
		  	Energy Plaza, 30th Floor

		  	1601 Bryan Street
		  	Dallas, Texas 75201
		  	Facsimile No.: (214) 880-0011
		
	with copy to:	  	Energy Transfer Partners, L.P.
		  	Attention: Robert A. Burk
		  	8801 S. Yale, Suite 310
		  	Tulsa, Oklahoma 74137
		  	Facsimile No.: (918) 493-7290

 Any notices will be sent to the address or facsimile number when permitted, as specified in this
Agreement or at such other address or facsimile number for a party as it may specify in writing to the other parties from time to time. Any notice properly given to the proper address will be deemed to have been given when dispatched. 
  

			
	Purchase and Sale Agreement	  	Page 53

	8.2.	Confidentiality. 

 Each of the parties hereby agrees,
except in order to comply with Applicable Law and any applicable stock exchange rules and regulations, not to disclose (or permit any of their Affiliates to disclose), in whole or in part, this Agreement or any information disclosed by one party to
the other parties during the period beginning on the effective date of the Confidentiality Agreement and ending on the Closing Date and which constituted or would constitute “Confidential Information” under the Confidentiality Agreement
(collectively, the “Confidential Information”) to any Person, other than an Affiliate of a party who requires such Confidential Information in connection with the consummation of Contemplated Transactions, for a period of 2 years
from the Closing Date without having first obtained the prior written consent of the disclosing party. Additionally, each of the parties hereby agrees not to use (or permit any of its Affiliates to use) any of the Confidential Information for any
purpose other than the exercise of that party’s rights and the performance of its obligations under this Agreement and the consummation of the Contemplated Transactions, including the conduct by Buyer and its Affiliates of the Business.
Additionally, Sellers agree not to disclose, except in order to comply with Applicable Law and any applicable stock exchange rules and regulations, or use (or permit any of their Affiliates to so disclose or use), for a period of 2 years from the
Closing Date, any information and documents relating to the Business that are of a proprietary nature to Sellers, the HPL Companies, or their Affiliates, including market and competitive information, customer lists, technology, know how, and trade
secrets (collectively, the “Business Information”), and to otherwise treat such information and documents as Confidential Information for all purposes hereunder. Each of the parties further agrees to protect the Confidential
Information by using the same degree of care, but not less than a reasonable degree of care, to prevent the unauthorized use, dissemination, or publication of the Confidential Information as such party uses to protect its own confidential
information of a like nature. The provisions of this Section 8.2 impose no obligation upon a party with respect to specific Confidential Information which (a) except for Business Information in possession of Sellers, was in such
party’s possession before receipt from the disclosing party as evidenced by written records; (b) is or becomes a matter of public knowledge through no fault of such party; (c) except for Business Information in possession of Sellers,
is rightfully obtained by such party from a third party who represents that it is free to pass on such information without a duty of confidentiality and the receiving party has no knowledge of any such duty of confidentiality; (d) is disclosed
by the disclosing party to a third party without a duty of confidentiality on the third party; or (e) except for Business Information in possession of Sellers, is independently developed by such party as evidenced by written records. It is
understood and agreed that the terms of this Section 8.2 shall apply to, and the terms of the Confidentiality Agreement shall not be applicable to, any Confidential Information disclosed by one party to the other parties after the date hereof.

  

	8.3.	Schedules and Exhibits. 

 All Schedules and Exhibits hereto
are incorporated herein by reference and made a part of this Agreement. Any fact or item which is disclosed in any part of any Schedule or Exhibit hereto or in the HPL Financial Statements or the notes thereto will be deemed to have been disclosed
in every part of such Schedules and Exhibit where it is reasonably apparent that such fact or item is relevant to the matters there under consideration, notwithstanding the omission of a reference or cross-reference thereto. 
  

			
	Purchase and Sale Agreement	  	Page 54

	8.4.	Interest on Overdue Amounts. 

 Any amount due to a party
under this Agreement will earn interest accruing daily from the due date thereof until paid at the Borrowing Rate. 
  

	8.5.	Amendment. 

 No amendment to this Agreement will be valid
or binding unless and until reduced to writing and executed by each party’s authorized representative. 
  

	8.6.	Merger and Integration; Binding on Successors; No Third Party Beneficiaries; Assignment. 

 This Agreement sets out the entire understanding of the parties with respect to the matters it purports to cover and supersedes all prior communications, agreements and understandings, whether written or oral,
concerning such matters. No party will be liable or bound to any party in any manner by any warranties, representations, or covenants other than those set forth in this Agreement and the instruments to be executed and delivered at Closing. The terms
and conditions of this Agreement will inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express or implied, is intended to confer upon any third party any rights,
remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. No party to this Agreement shall have the right to assign this Agreement, or any of its rights or obligations hereunder,
without the written consent of the other parties (such consent not to be unreasonably withheld); provided, however, that without the consent of the other parties, a party hereto may assign this Agreement, and its rights and obligations
hereunder, to an Affiliate of such party but, in such event, the assigning party will not be released from its obligations hereunder. 
  

	8.7.	Forbearance and Waiver. 

 Except where a specific time
period is provided hereunder for the exercise of a right or remedy, any party’s forbearance in the exercise or enforcement of any right or remedy under this Agreement will not constitute a waiver thereof, and a waiver under one circumstance
will not constitute a waiver under any other circumstance. 
  

	8.8.	Partial Invalidity. 

 Any invalidity, illegality or
unenforceability of any provision of this Agreement in any jurisdiction will not invalidate or render illegal or unenforceable the remaining provisions hereof in such jurisdiction and will not invalidate or render illegal or unenforceable such
provision in any other jurisdiction. 
  

			
	Purchase and Sale Agreement	  	Page 55

	8.9.	Attorney’s Fees. 

 In the event of any suit, action,
or arbitration proceedings (whether based on contract, tort, or any other theory of liability) to enforce any provision of this Agreement, to recover damages for a breach hereof, or to secure or preserve the rights of any party against any other
party to any property which is the subject of this Agreement, the prevailing party will be entitled to recover reasonable attorney fees (other than fees computed on a contingency fee basis), court costs and expenses of arbitration and litigation
expended in the prosecution or defense thereof. 
  

	8.10.	  Governing Law; Jurisdiction and Venue. 

 THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT AND THE RIGHTS OF
THE PARTIES HEREUNDER WILL BE INTERPRETED, CONSTRUED, AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS
OF LAW PRINCIPLES. EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE JURISDICTION OF THE COURTS OF SUCH
JURISDICTION IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT AGAINST IT RELATED
TO OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW (AND ASSUMING
EFFECTIVE SERVICE OF PROCESS), EACH PARTY HERETO HEREBY WAIVES AND AGREES
NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE
IN ANY SUCH SUIT, ACTION, OR PROCEEDING, ANY CLAIM THAT IT IS
NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT THE
SUIT, ACTION, OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT
THE VENUE OF THE SUIT, ACTION, OR PROCEEDING IS IMPROPER, OR THAT
THIS AGREEMENT OR ANY DOCUMENT OR INSTRUMENT REFERRED TO HEREIN OR
THE SUBJECT MATTER HEREOF MAY NOT BE LITIGATED IN OR BY SUCH
COURT. EACH PARTY HERETO AGREES THAT SERVICE OF PROCESS MAY BE MADE
UPON IT BY CERTIFIED OR REGISTERED MAIL TO THE ADDRESS FOR
ADMINISTRATIVE NOTICE SET FORTH HEREIN OR ANY OTHER METHOD AUTHORIZED BY
THE LAWS OF NEW YORK. 
  

	8.11.	  Waiver of Right to Jury Trial. 

 To the fullest
extent permitted by law, and as separately bargained-for-consideration, each party hereby waives any right to trial by jury in any action, suit, proceeding, or counterclaim of any kind arising out of or relating to this Agreement or the Contemplated
Transactions. 
  

	8.12.	  Construction. 

 This Agreement was prepared jointly
by the parties, and no rule that it be construed against the drafter will have any application in its construction or interpretation. 
  

	8.13.	  Multiple Counterparts. 

 This Agreement may be
executed by the parties in multiple original counterparts, and each such counterpart will constitute an original hereof. 
  

	8.14.	  Further Assurances. 

 Upon request from time to
time, Sellers and Buyer shall execute or cause to be executed and delivered such other documents and instruments and do such other acts as may be reasonably necessary or appropriate to consummate the Contemplated Transactions. 
  

			
	Purchase and Sale Agreement	  	Page 56

	8.15.	  Headings. 

 The headings used in this Agreement have
been inserted for convenience of reference only and do not define or limit the provisions hereof. 
 [The remainder of this page is
intentionally left blank. 
 The next page of this document is S-1] 
  

			
	Purchase and Sale Agreement	  	Page 57

 Executed to be effective as provided above: 
  

											
	HPL Storage LP	 		 	AEP Energy Services Gas Holding Company II, L.L.C.
					
	By:	 	 HPL Storage, Inc.
 its General Partner
	 		 	By:	 	HPL Storage LP, its Sole Member
						
	By:	 	/s/ Ronald A. Erd	 		 		 	By:	 	HPL Storage, Inc., its General Partner
	Name: Ronald A. Erd	 		 		 		 	
	Title: President	 		 		 	By:	 	/s/ Ronald A. Erd
		 		 		 		 	Name: Ronald A. Erd
		 		 		 		 	Title: President

  

			
	La Grange Acquisition, L.P.
		
	By:	 	 LA GP, LLC,
 its General Partner

		
	By:	 	/s/ Kelcy L. Warren

			
	Name:	 	Kelcy L. Warren

			
	Title:	 	Co-CEO

  

			
	Purchase and Sale Agreement	  	Page S-1

 EXHIBIT 1.1 
 DEFINITIONS 
 Terms defined in this Exhibit 1.1 will have the meanings set forth in this Exhibit. 

 

			
	 TERM
	  	 DEFINITION

		
	 1.        AEP
	  	American Electric Power Company, Inc.
		
	 2.        AEP Gas Holding II
	  	As defined in the first paragraph of the Agreement.
		
	 3.        AEPSC
	  	As defined in Section 2.4.1(f) of the Agreement.
		
	 4.        Affiliate
	  	An “Affiliate” of a Person is any Person directly or indirectly controlling, controlled by, or under common control with the first such Person. For the purposes of this
definition, “control,” when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract, or
otherwise; and the terms “controlling” and “controlled” have meanings correlative to the foregoing.
		
	 5.        Agreement
	  	This Purchase and Sale Agreement, together with all exhibits, schedules, and appendices attached hereto, as any of the same may be amended from time to time in accordance with the provisions
hereof.
		
	 6.        Applicable Law
	  	Any statute, law, ordinance, executive order, rule, or regulation (including a regulation that has been formally promulgated in a rule making proceeding but, pending final adoption, is in
proposed or temporary form having force of law); guideline or notice having force of law; or approval, permit, license, franchise, judgment, order, decree, injunction, or writ of any Governmental Authority applicable to a specified Person or
specified property, as in effect from time to time.
		
	 7.        Assignment and
            Assumption Agreement
	  	As defined in Section 2.4.1(a) of the Agreement.
		
	 8.        Bammel Documents
	  	As defined in the Cushion Gas Litigation Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 1

			
	 TERM
	  	 DEFINITION

		
	 9.        Bammel Facilities
	  	An underground natural gas storage reservoir located near Houston, Texas, known as the Bammel storage reservoir, and certain appurtenant pipelines, compressors, wells, pipes, and other equipment
and related facilities
		
	 10.      Bammel Gas Inventory Verification
	  	As defined in paragraph 1.1 of Exhibit 2.2.4 of the Agreement.
		
	 11.      Bammel Inventory Recomputation Event
	  	As defined in Section 2.2.4(c) of the Agreement.
		
	 12.      Bammel Settlement Agreement
	  	As defined in the Cushion Gas Litigation Agreement.
		
	 13.      Bammel Settlement Approval Order
	  	As defined in the Cushion Gas Litigation Agreement.
		
	 14.      Benefit Plans
	  	As defined in Section 3.17.3 of the Agreement.
		
	 15.      Borrowing Rate
	  	The lesser of the prime rate as published in The Wall Street Journal, or the maximum rate permitted by Applicable Law.
		
	 16.      Business
	  	As defined in Recital B of the Agreement.
		
	 17.      Business Day
	  	Any day other than a Saturday, Sunday, or Holiday.
		
	 18.      Business Information
	  	As defined in Section 8.2 of the Agreement.
		
	 19.      Business Insurance Policies
	  	As defined in Section 3.12 of the Agreement.
		
	 20.      Buyer
	  	As defined in the first paragraph of the Agreement.
		
	 21.      Buyer Indemnified Parties
	  	As defined in Section 6.2.1 of the Agreement.
		
	 22.      Buyer Plans
	  	As defined in Section 5.3.2(b) of the Agreement.
		
	 23.      Buyer’s Cap
	  	As defined in Section 6.3.2(c) of the Agreement.
		
	 24.      Buyer’s Disclosure Schedules
	  	Those certain disclosure schedules delivered by Buyer to Sellers concurrently with Buyer’s execution and delivery of the Agreement.
		
	 25.      Buyer’s Documents
	  	As defined in Section 4.2.1 of the Agreement.
		
	 26.      Buyer’s Guarantor
	  	As defined in Section 2.4.2(h) of the Agreement.
		
	 27.      Buyer’s Limited Guaranty
	  	As defined in Section 2.4.2(h) of the Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 2

			
	 TERM
	  	 DEFINITION

		
	 28.      Buyer’s Statement of Recomputed Bammel Inventory
	  	As defined in Section 2.2.4(c) of the Agreement.
		
	 29.      Buyer’s Threshold
	  	As defined in Section 6.3.2(b) of the Agreement.
		
	 30.      Cause
	  	As defined in Section 5.3.1(b) of the Agreement
		
	 31.      Closing
	  	As defined in Section 2.3 of the Agreement.
		
	 32.      Closing Date
	  	As defined in Section 2.3 of the Agreement.
		
	 33.      Closing Payment
	  	As defined in Section 2.2.2 of the Agreement.
		
	 34.      Closing Workforce
	  	As defined in Section 3.17.1 of the Agreement.
		
	 35.      COBRA
	  	Section 4980B of the Code and Title 1, Subtitle B, Part 6 of ERISA, each as amended.
		
	 36.      Code
	  	The Internal Revenue Code of 1986, as amended from time to time, and regulations or other Applicable Law promulgated thereunder.
		
	 37.      Commonly Controlled Entity
	  	As defined in Section 3.17.3 of the Agreement.
		
	 38.      Confidential Information
	  	As defined in Section 8.2 of the Agreement.
		
	 39.      Confidentiality Agreement
	  	That certain Confidentiality Agreement dated as of December 16, 2004 between AEPSC, as agent for the Affiliates of AEP and Energy Transfer Partners, L.P.
		
	 40.      Contemplated Transactions
	  	Each and all of the transactions contemplated by this Agreement to be undertaken between or among the parties hereto.
		
	 41.      Continuation Period
	  	With respect to each Transferred Employee, the period from each such employee’s Hire Date through the last day of the month in which occurs the first anniversary of such Hire
Date.
		
	 42.      Credit Support Arrangement
	  	As defined in Section 5.6 of the Agreement.
		
	 43.      Cure Period
	  	As defined in Section 5.13 of the Agreement.
		
	 44.      Current Assets
	  	As defined in Exhibit 2.2.3 to the Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 3

			
	 TERM
	  	 DEFINITION

		
	 45.      Current Liabilities
	  	As defined in Exhibit 2.2.3 to the Agreement.
		
	 46.      Cushion Gas Litigation
	  	As defined in the Cushion Gas Litigation Agreement.
		
	 47.      Cushion Gas Litigation Agreement
	  	That certain Cushion Gas Litigation Agreement dated as of the date of the Agreement by and among Sellers, Buyer, Storage Holdings, Storage Leaseco, HPL Company LP, and HPL Resources
LP.
		
	 48.      Damages
	  	As defined in Section 6.2.1 of the Agreement.
		
	 49.      Defect Amount
	  	As defined in Section 5.13 of the Agreement.
		
	 50.      Defect Examination Period
	  	As defined in Section 5.13 of the Agreement.
		
	 51.      Defect Notice
	  	As defined in Section 5.13 of the Agreement.
		
	 52.      Disclosed Environmental Matters
	  	As defined in Section 3.18 of the Agreement.
		
	 53.      Disclosed HPL Contract
	  	As defined in Section 3.11.1 of the Agreement.
		
	 54.      Disclosure Schedules
	  	Those certain disclosure schedules delivered by Sellers to Buyer concurrently with Sellers’ execution and delivery of the Agreement.
		
	 55.      Employee Review Period
	  	As defined in Section 5.3.1 of the Agreement.
		
	 56.      Encumbrance
	  	Any lien, security interest, mortgage, pledge, hypothecation, assignment, easement, right-of-way, servitude, other encumbrance, equitable interest, charge, restrictive covenant, mineral
interest, community or other marital property interest, right of first refusal or similar restriction, option, contractual provision, provision of Governing Documents, provision of Applicable Law, or other restriction or matter affecting title to
the involved property or the freedom to dispose of any interest in or use the involved property or exercise voting rights associated therewith.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 4

			
	 TERM
	  	 DEFINITION

		
	 57.      Environmental Claims
	  	Any claim for remediation, containment, removal, or disposal costs or other direct costs incurred as a result of a violation of Environmental Laws and any third-party claims by any Person,
including any Governmental Authority, for damages (including, without limitation, punitive damages), losses, penalties, fines, interest, fees, liabilities (including strict liability), taxes, costs and expenses (including, without limitation, costs
and expenses of investigation and defense of any claim) based on a violation of Environmental Laws.
		
	 58.      Environmental Laws
	  	As defined in Section 3.18.1 of the Agreement.
		
	 59.      EPA
	  	As defined in Section 3.18.2 of the Agreement.
		
	 60.      ERISA
	  	The Employee Retirement Income Security Act of 1974, as amended.
		
	 61.      Exchange Imbalances
	  	The aggregate of all imbalances as of the determination date under transportation agreements or operational balancing agreements, expressed as a positive number if such aggregate sum of such
imbalances is a net receivable or expressed as a negative number if such aggregate sum is a net payable but excluding any such imbalances accounted for as Gas Inventory.
		
	 62.      FERC
	  	The Federal Energy Regulatory Commission.
		
	 63.      Final Balance Sheet
	  	As defined in Section 2.2.3(b) of the Agreement.
		
	 64.      Final Inventory Adjustment Amount
	  	An amount equal to (i) the amount of the Gas Inventory as determined under Section 2.2.4(e) of the Agreement and expressed in MMBtus minus (ii) 31,200,000 MMBtus.
		
	 65.      Final Inventory Payment Adjustment
	  	A dollar amount equal to (i) Final Inventory Adjustment Amount, multiplied by (ii) (a) in the case that the Final Inventory Adjustment Amount is a positive number, $5.601 or (b) in the case that
the Final Inventory Adjustment Amount is a negative number, $5.601 plus $0.40 per MMBtu.
		
	 66.      Fixed Price Risk
	  	Those financial and physical gas purchase and sale agreements of the HPL Entities in place as of the Closing Date, which contain a currently determined fixed price, a currently determined fixed
basis, or price caps and/or floors with currently determined strike prices.
		
	 67.      GAAP
	  	Generally Accepted Accounting Principles for financial reporting as in effect as of the Valuation Time in the United States, applied on a consistent basis. Any change in GAAP that becomes
effective after the date hereof will not be taken into account in the use of GAAP under Section 2.2.3 of the Agreement for the computation of the Net Working Capital Adjustment, and any such a computation will be made by application of GAAP as in
effect on the date of this Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 5

			
	 TERM
	  	 DEFINITION

		
	 68.      Gas Inventory
	  	The volume of natural gas owned by the HPL Entities as of the determination date, wherever located, but excluding 10.5 bcf of cushion gas in the Bammel Facilities and excluding line
pack.
		
	 69.      Gas Marketing
	  	As defined in Recital A of the Agreement.
		
	 70.      General Exceptions to Enforceability
	  	Limitations on or exceptions to the enforceability of an agreement or instrument by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting
creditors’ rights, or (ii) general principles of equity relating to the availability of equitable remedies (regardless of whether such agreement or instrument is sought to be enforced in a proceeding at law or in equity).
		
	 71.      Governing Documents
	  	With respect to a particular Person, (i) if a corporation, the articles or certificate of incorporation and the bylaws; (ii) if a general partnership, the partnership agreement and any statement
of partnership; (iii) if a limited partnership, the limited partnership agreement and the certificate of limited partnership; (iv) if a limited liability company, the articles of organization and operating agreement or regulations; (v) if another
type of Person, any other charter or similar document promulgated, adopted, or filed in connection with the creation, formation, or organization of the Person; (vi) all equityholders’ agreements, voting agreements, voting trust instruments,
joint venture agreements, registration rights agreements, or other agreements or documents relating to the organization, management, or operation of the Person or relating to the rights, duties, or obligations of the equityholders of the Person, and
(vii) any amendment or supplement to any of the foregoing.
		
	 72.      Governmental Authority
	  	Any federal, state, foreign, tribal, local, or municipal governmental body; and any governmental, regulatory, or administrative agency, commission, body, agency, instrumentality, or other
authority exercising or entitled to exercise any executive, judicial, legislative, administrative, regulatory, or taxing authority or power, including any court or other tribunal.
		
	 73.      Hazardous Substances
	  	As defined in Section 3.18.2 of the Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 6

			
	 TERM
	  	 DEFINITION

		
	 74.      Hire Date
	  	As defined in Section 5.3.1 of the Agreement.
		
	 75.      Holiday
	  	Any day on which banking institutions located in the City of Houston, Texas are authorized or required to close for business.
		
	 76.      HPL Companies
	  	The HPL Entities and the HPL Entity Subsidiaries, collectively.
		
	 77.      HPL Company Consents
	  	As defined in Section 3.5.2 of the Agreement.
		
	 78.      HPL Company LP
	  	As defined in Recital A of the Agreement.
		
	 79.      HPL Consolidation
	  	As defined in Recital A of the Agreement.
		
	 80.      HPL Entities
	  	As defined in Recital A of the Agreement.
		
	 81.      HPL Entity Subsidiaries
	  	AEP Houston Pipe Line Company, LLC, a Delaware limited liability company, and Mid Texas Pipeline Company, a Texas general partnership.
		
	 82.      HPL Financial Statements
	  	As defined in Section 3.7 of the Agreement.
		
	 83.      HPL GP
	  	As defined in the first paragraph of the Agreement.
		
	 84.      HPL Resources
	  	As defined in Recital A of the Agreement.
		
	 85.      HPL Subsidiary Interests
	  	The membership and partnership interests of the HPL Entities in and to the HPL Entity Subsidiaries.
		
	 86.      Independent Accounting Firm
	  	KPMG Peat Marwick or, if such firm is unable or unwilling to serve, another nationally recognized firm of independent public accountants that is willing to serve to be selected by mutual
agreement of the parties hereto (which firm shall not be the auditor for any party to the Agreement or any Affiliate of any such party unless disclosed to each other party and agreed to by such other parties and will otherwise be selected by mutual
agreement of the parties hereto).
		
	 87.      Initial Inventory Payment
	  	As defined in Section 2.2.4(a) of the Agreement.
		
	 88.      Initial Net Working Capital Payment
	  	As defined in Section 2.2.3(a) of the Agreement.
		
	 89.      Intellectual Property
	  	As defined in Section 3.15 of the Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 7

			
	 TERM
	  	 DEFINITION

		
	 90.      Inventory Finalization Event
	  	As defined in Section 2.2.4(c) of the Agreement.
		
	 91.      Inventory Payment
	  	As defined in Section 2.2.4 of the Agreement.
		
	 92.      Inventory Verification Notice
	  	As defined in Section 2.2.4(c) of the Agreement.
		
	 93.      Knowledge
	  	As to any Seller, “Knowledge” means the actual knowledge of any of the individuals listed in Sellers’ Disclosures Schedules as “Sellers’ Knowledge
Group” or any other presently serving officer, member of the board of directors, or limited liability company manager of such Seller or the HPL Companies that such Seller directly or indirectly owned before the Closing Date, and the
knowledge that such individual would have obtained as a result of the proper operation of reporting procedure concerning the business of Sellers or the HPL Entities that was not grossly negligent. As to Buyer, “Knowledge” means the
actual knowledge of any presently serving officer or manager of Buyer or its general partner, and the knowledge that such individual would have obtained as a result of the proper operation of reporting procedure concerning the business of Buyer that
was not grossly negligent.
		
	 94.      Material Adverse Effect
	  	A material adverse effect on the business, operations, properties, financial condition, or results of operations of the aggregate Business as conducted by the HPL Companies, excluding any effect
relating to or resulting from (i) any event affecting the local, regional, or United States or global economy or financial or capital markets generally, (ii) any change in the natural gas transportation, storage, and marketing business generally,
including the availability of or any changes in prices for commodities, goods or services, or the availability or cost of hedges, (iii) the condition or integrity of any of the pipeline or storage assets of the HPL Entities, or (iv) changes in
Applicable Law.
		
	 95.      Material Assets
	  	As defined in Section 3.10 of the Agreement.
		
	 96.      Material HPL Contracts
	  	As defined in Section 3.11.1 of the Agreement.
		
	 97.      Net Working Capital
	  	As defined in Exhibit 2.2.3 to the Agreement.
		
	 98.      Net Working Capital Adjustment
	  	As defined in Section 2.2.3(b) of the Agreement.

  

			
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	 TERM
	  	 DEFINITION

		
	 99.      Net Working Capital Payment
	  	As defined in Section 2.2.3 of the Agreement.
		
	 100.    NGA
	  	As defined in Section 3.19 of the Agreement.
		
	 101.    Offer of Employment
	  	As defined in Section 5.3.1 of the Agreement.
		
	 102.    Option Agreement
	  	As defined in Section 2.4.1(e) of the Agreement.
		
	 103.    Ordinary Course of Business
	  	An action taken by a Person if that action (i) is consistent in nature, scope, and magnitude with past practices of that Person and is taken in the ordinary course of the normal, day-to-day
operations of such Person’s existing lines of business, and (ii) is similar in nature, scope, and magnitude to actions customarily taken in the ordinary course of the normal, day-to-day operations of other Persons that are in the same line of
business as such Person.
		
	 104.    Permit
	  	Any permit, license, franchise, certificate, or other authorization, consent, order, or approval, or variance therefrom or waiver thereof, in each case from a Governmental
Authority.
		
	 105.    Permitted Contest
	  	Any Proceeding if and only so long as while such Proceeding or any appeal therefrom is pending (i) there shall be no material danger that the involved property or any portion thereof is subject
to sale, forfeiture or loss, and (ii) no material restrictions are imposed on the use of such property.
		
	 106.    Permitted Encumbrance
	  	Any of the following affecting title to the involved property or the freedom to dispose of any interest in or use the involved property: (i) any of the items described in Exhibit 3.10 to
the Agreement; (ii) any Encumbrance securing any obligation of Buyer or any of its Affiliates; (iii) with respect to any property other than the Purchased Interests (A) any lien securing the payment of taxes, assessments and other governmental
charges or levies which are either not delinquent or, if delinquent, are being contested in good faith as a Permitted Contest; (B) any materialmen’s, mechanic’s, worker’s, repairmen’s, employee’s, carrier’s,
warehouseman’s or other like lien relating to the construction of the property or in connection with any maintenance, repair, improvement, addition, alteration to, or other services or materials relating to, the property, or arising in the
ordinary course of business for

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 9

			
	 TERM
	  	 DEFINITION

		
		  	amounts in respect of the foregoing that are not more than 30 days past due or are being contested as a Permitted Contest; (C) any lien arising out of judgments or awards with respect to which
appeals or other proceedings for review are being prosecuted in good faith, so long as such proceedings have the effect of staying the execution of such judgments or awards; (D) any obligation or liability of a shareholder, member, or partner
imposed by an entity’s Governing Documents, any security interest and other Encumbrance created by or under an entity’s Governing Documents upon any equity interest in that entity, or any limitation, condition, or restriction imposed by
law or by or under an entity’s Governing Documents upon the transfer, assignment, collateral transfer, or other disposition of any equity interest in that entity; (E) any zoning or other land use ordinance that does not materially impair the
conduct of the normal operations of the Business; or (F) any subdivision and platting restrictions, easements, rights-of-way, licenses, restrictions on the use of any of the involved property, or encroachments or irregularities of title, none of
which individually or in the aggregate could reasonably be expected to materially impair the conduct of the normal operations of the Business; and (iii) any other or additional matter as may be approved in writing by all parties properly interested
therein.
		
	 107.    Person
	  	Any individual, corporation, partnership, limited liability company, other business organization of any kind, association, trust, or governmental entity, agency, or
instrumentality.
		
	 108.    Pre-Closing Period
	  	Any taxable period ending before or as of the Closing.
		
	 109.    Proceeding
	  	Any action, arbitration proceeding, audit, hearing, investigation, inquiry, litigation, or suit (in each such case whether civil, criminal, administrative, judicial, or investigative and whether
formal or informal, public or private) commenced, brought, conducted, or heard by or before any Governmental Authority or arbitrator.
		
	 110.    Purchase Price
	  	As defined in Section 2.2.1 of the Agreement.
		
	 111.    Purchased Interests
	  	As defined in Section 2.1 of the Agreement.
		
	 112.    Qualifying Defect Amount
	  	As defined in Section 5.13 of the Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 10

			
	 TERM
	  	 DEFINITION

		
	 113.    Recomputed Bammel Inventory
	  	As defined in Section 2.2.4(c) of the Agreement.
		
	 114.    Recoveries
	  	As defined in Section 6.4 of the Agreement.
		
	 115.    Release
	  	As defined in Section 3.18.2 of the Agreement.
		
	 116.    Required Severance Benefits
	  	Benefits payable under the program of severance benefits described in a separate writing delivered to Buyer at or before Closing.
		
	 117.    Resolution Period
	  	As defined in Sections 2.2.3(b), 2.2.4(d), and 2.2.4(e) of the Agreement, as applicable.
		
	 118.    Response Notice
	  	As defined in Section 5.13 of the Agreement.
		
	 119.    Retained Interest
	  	As defined in Section 2.1 of the Agreement.
		
	 120.    Retained Marks
	  	As defined in Section 5.8 of the Agreement.
		
	 121.    Retained Matter Liabilities
	  	As defined in Section 5.2 of the Agreement.
		
	 122.    Retained Matters
	  	As defined in Section 5.2 of the Agreement.
		
	 123.    Seller Indemnified Parties
	  	As defined in Section 6.3.1 of the Agreement.
		
	 124.    Sellers
	  	As defined in the first paragraph of the Agreement.
		
	 125.    Sellers’ Cap
	  	As defined in Section 6.2.2(f) of the Agreement.
		
	 126.    Sellers’ Consents
	  	As defined in Section 3.2.4 of the Agreement.
		
	 127.    Sellers’ Disclosure Schedules
	  	Those certain disclosure schedules delivered by Sellers to Buyer concurrently with Sellers’ execution and delivery of the Agreement.
		
	 128.    Sellers’ Documents
	  	As defined in Section 3.2.1 of the Agreement.
		
	 129.    Sellers’ Guarantor
	  	As defined in Section 2.4.1(g) of the Agreement.
		
	 130.    Sellers’ Limited Guaranty
	  	As defined in Section 2.4.1(g) of the Agreement.
		
	 131.    Sellers’ Retained Matter Responsibility
	  	As defined in Section 5.2 of the Agreement.

  

			
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	 TERM
	  	 DEFINITION

		
	 132.    Sellers’ Threshold
	  	As defined in Section 6.2.2(e) of the Agreement.
		
	 133.    Storage GP
	  	As defined in Recital A of the Agreement.
		
	 134.    Storage Holdings
	  	As defined in Recital A of the Agreement.
		
	 135.    Storage Leaseco
	  	As defined in Recital A of the Agreement.
		
	 136.    Storage LP
	  	As defined in the first paragraph of the Agreement.
		
	 137.    Straddle Period
	  	As defined in Section 7.1.1 of the Agreement.
		
	 138.    Survival Period
	  	As defined in Section 6.1.3 of the Agreement.
		
	 139.    Swap Agreement
	  	As defined in Section 2.4.2(i) of the Agreement.
		
	 140.    Tax
	  	(i) Any federal, state, local, or foreign income, gross receipts, value added, windfall or other profits, alternative or add-on minimum, estimated, franchise, profits, sales, use, real property,
personal property, ad valorem, vehicle, airplane, boat, license, payroll, employment, workers’ compensation, unemployment compensation, withholding, social security, disability, excise, severance, stamp, occupation, premium, environmental
(including taxes under Code section 59A), customs duties, import fees, capital stock transfer, title, documentary, or registration, or other tax, duty, or impost of any kind whatsoever, whether disputed or not. “Taxes” includes (ii)
any liability for the payment of any amounts described in clause (i) above as a result of being a member of an affiliated, consolidated, combined, or unitary group for any taxable period, (iii) any liability for the payment of any amount described
in clause (i) above as a result of being a Person required to withhold or collect Taxes imposed on another Person, (iv) any liability for the payment of any amount described in clause (i), (ii) or (iii) above as a result of being a transferee of, or
successor in interest to, any Person or as a result of an express or implied obligation to indemnify any Person, and (v) any and all interest, penalties, additions to tax, or additional amounts imposed in connection with or with respect to any
amount described in clauses (i) through (iv) of this definition.
		
	 141.    Tax Claim
	  	As defined in Section 7.3.1 of the Agreement

  

			
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	 TERM
	  	 DEFINITION

		
	 142.    Tax Return
	  	Any return, declaration, report, claim for refund, or information return or statement (including, but not limited to, information returns or reports related to back-up withholding and any
payments to third parties) relating to Taxes, including any schedule or attachment thereto, and including any amendment thereof.
		
	 143.    Terminating Insurance Coverages
	  	As defined in Section 5.5 of the Agreement.
		
	 144.    Title Defect
	  	Any Encumbrance (other than a Permitted Encumbrance) upon or against the HPL Companies’ title to the real property interests described in Exhibit 5.13 to this Agreement that would
cause Buyer not to have good and marketable title to such real property interests. The foregoing notwithstanding, any defect in title to an easement or right-of-way will not constitute a Title Defect if the HPL Company’s rights to maintain its
pipeline and facilities on, under, and over the involved land are at least equal to industry standard for such rights in Texas and if such defect does not and is not reasonably likely to prohibit or interfere with the use thereof in accordance with
past practice.
		
	 145.    Title Threshold
	  	As defined in Section 5.13 of the Agreement.
		
	 146.    Transfer Taxes
	  	As defined in Section 7.6 of the Agreement.
		
	 147.    Transferred Employees
	  	As defined in Section 5.3.1 of the Agreement.
		
	 148.    Transition Services Agreement
	  	As defined in Section 2.4.1(f) of the Agreement.
		
	 149.    Valuation Time
	  	The end of the gas day for January 31, 2005, which ends at 9:00 a.m. Central Standard Time on February 1, 2005.
		
	 150.    Valuation Time Adjustment
	  	As defined in Section 2.2.4(b) of the Agreement.
		
	 151.    Valuation Time Adjustment Amount
	  	As defined in Section 2.2.4(b) of the Agreement.
		
	 152.    Valuation Time Estimate
	  	As defined in Section 2.2.4(b) of the Agreement.
		
	 153.    Verified Bammel Gas Inventory
	  	As defined in paragraph 2.1 of Exhibit 2.2.4 of the Agreement.
		
	 154.    WARN Act
	  	As defined in Section 5.3.3 of the Agreement.
		
	 155.    Wells
	  	As defined in Section 2.2.4(c) of the Agreement.

  

			
	Purchase and Sale Agreement, Exhibit 1.1	  	Page 13

 EXHIBIT 2.2.3 
 NET WORKING CAPITAL 
  

	1.	Net Working Capital will be the net aggregate balance, as of the determination date, of the Current Assets as defined in Section 2 of this Exhibit 2.2.3 less the Current
Liabilities as defined in Section 2 of this Exhibit 2.2.3. 

  

	2.	“Current Assets” means the current assets of the HPL Entities as of the determination date, including any positive Exchange Imbalances (but excluding
(i) intercompany accounts between the HPL Entities, on the one hand, and AEP and its Affiliates, on the other including the AEP System Amended and Restated Non-Utility Money Pool Agreement (ii) the Gas Inventory, (iii) balance sheet
accounts reflecting unrealized gains, if any, (iv) federal income Tax receivables and state income or franchise Tax receivables, including refunds or credits of Taxes that are attributable to the HPL Entities or for any Pre-Closing Period and
are payable to Sellers or their Affiliates pursuant to the terms set forth in Section 7.4 of the Agreement, and (v) any other Current Assets which Seller will retain under the terms of the Agreement including prepaid insurance, AEP
Procurement Card balances and any employee-related balances), in each case as reflected on combined balance sheets of the HPL Entities as of such date as determined pursuant to GAAP, applied in a manner consistent with the preparation of the
Financial Statements, except that the exceptions to GAAP described in Section 1 of this Exhibit 2.2.3 will be made. “Current Liabilities” means the current liabilities of the HPL Entities as of the determination date,
including any negative Exchange Imbalances and including accruals for state and local property, sales, and excise taxes (but excluding (vi) intercompany accounts between the HPL Entities, on the one hand, and AEP and its Affiliates, on the
other including the AEP System Amended and Restated Non-Utility Money Pool Agreement (vii) balance sheet accounts reflecting unrealized losses, if any, (viii) accruals for federal income Taxes, (ix) federal income Taxes or state
income or franchise Taxes that are attributable to the HPL Entities for any Pre-Closing Period which are payable by Sellers or their Affiliates pursuant to the terms set forth in Section 7.1.1 of the Agreement, (x) accruals for vacation
benefits, and (xi) other current liabilities which Seller will pay under the terms of the Agreement including employee related liabilities and incentive compensation plan accruals), in each case as reflected on the combined balance sheets of
the HPL Entities as of such date as determined pursuant to GAAP, applied in a manner consistent with the preparation of the Financial Statements, except that the exceptions to GAAP described in Section 3 of this Exhibit 2.2.3 will be
made. 

  

	3.	State sales, property, and other excise Taxes will be accrued through the Valuation Time in accordance with GAAP using a level accrual of the liability then expected for the tax
period during which the Valuation Time occurs. 

  

			
	Purchase and Sale Agreement, Exhibit 2.2.3	  	Page 1

 EXHIBIT 2.2.4 
 GAS INVENTORY MATTERS 
  

	1.	The following procedures and methods will be used in the determination of the Gas Inventory: 

  

	1.1.	If inventory verification pursuant to Section 2.2.4(c) of the Agreement (the “Bammel Gas Inventory Verification”) is performed, but the Verified Bammel Gas
Inventory, determined pursuant to paragraph 2.1 of this Exhibit, is not more than 1.03 and not less than 0.97 times that portion of the Gas Inventory as of the Valuation Time that was stored in the Bammel Facilities according to the most current
perpetual gas inventory records, then Gas Inventory is as reflected on the HPL Entities’ perpetual gas inventory records. 

  

	2.	The following procedures and methods will be used to conduct the Bammel Gas Inventory Verification: 

  

	2.1.	The portion of the Gas Inventory as of the Valuation Time that was stored in the Bammel Facilities (the “Verified Bammel Gas Inventory”) will be determined by the
following calculation: 

  

	 	2.1.1.	Volume in MMBtus of the Gas Inventory stored in the Bammel Facilities, as of the verification date, as verified by Wells pursuant to Section 2.2.4(c) of the Agreement in
accordance with paragraph 2.2 of this Exhibit; 

  

	 	2.1.2.	minus 65.5 BCF cushion gas in MMBtus; 

  

	 	2.1.3.	minus third party inventory in the Bammel Facilities at the Valuation Time in MMBtus as reflected on the perpetual inventory records as adjusted for the Valuation Time.

  

	 	2.1.4.	minus injections into the Bammel Facilities between the Valuation Time and the verification date in MMBtus as determined from the gas measurement records; 

 

	 	2.1.5.	plus withdrawals from the Bammel Facilities between the Valuation Time and the verification date in MMBtus as determined from the gas measurement records; and

  

	 	2.1.6.	plus or minus any applicable inventory adjustments occurring between the Valuation Time and the verification date as determined from the gas measurement records.

  

			
	Purchase and Sale Agreement, Exhibit 2.2.4	  	Page 1

 Volumes will be determined in mmcf and will be converted to MMBtus as follows: 
 The conversion will be based on the heat content as reflected on Sellers’ perpetual gas inventory records. 
  

	2.2.	Procedures for the Bammel Gas Inventory Verification. 

 The
Verified Bammel Gas Inventory will be calculated by Wells using the same methods (including a shut-in period of at least 14 days) and assumptions as were used in the preparation by Wells of its report on the Bammel storage facility dated
August 3, 2004. 
  

			
	Purchase and Sale Agreement, Exhibit 2.2.4	  	Page 2

 EXHIBIT 2.4.1(A) 
 FORMS OF ASSIGNMENT AND ASSUMPTION AGREEMENT 
 ASSIGNMENT AND ASSUMPTION AGREEMENT

 (GENERAL PARTNER INTERESTS) 
 THIS ASSIGNMENT AND ASSUMPTION AGREEMENT (this “Agreement”), dated as of January 26, 2005, is made and entered into by and between HPL Storage LP, a Delaware limited partnership
(“Storage LP”), and HPL Holdings, L.L.C., a Delaware limited liability company (the “Buyer”). 
 RECITALS 
 A. Storage LP owns a 1% general partner interest in HPL Consolidation LP, a Delaware limited partnership (the
“Partnership”), which constitutes all of the outstanding general partner interests in the Partnership (the “General Partner Interests”). 
 B. Buyer desires to purchase and acquire the General Partner Interests and agrees to assume certain obligations and liabilities of Storage LP as more fully provided herein. 
 C. Storage LP, AEP Energy Services Gas Holding Company II, L.L.C., a Delaware limited liability company, and La Grange Acquisition, L.P., a Texas limited
partnership (“La Grange”), have made and entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”), dated as of even date herewith, under which such parties have agreed for Storage LP at the
Closing to sell and convey to Buyer, as the designee of La Grange, and for Buyer to purchase and acquire from Storage LP, the General Partner Interests, all as more fully provided therein. Capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Purchase and Sale Agreement. 
 Now therefore, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Storage LP and Buyer agree as follows: 
 AGREEMENT 
 1.1. Assignment of Interests. Pursuant to the Purchase and Sale Agreement and subject to (i) all conditions and restrictions imposed by the
partnership agreement of the Partnership upon the assignment contemplated hereby, (ii) all conditions and restrictions imposed by the partnership agreement of the Partnership on the right of Buyer to become a partner in the Partnership or to
exercise any rights under the partnership agreement of the Partnership, (iii) all of the LP Sellers’ obligations to the Partnership and its partners under the partnership agreement of the Partnership, and (iv) all restrictions on
transfer imposed by applicable securities laws, (A) Storage LP hereby sells, assigns, transfers, and delivers to Buyer the General Partner Interests and (B) Buyer hereby accepts such assignment and fully assumes and agrees to perform and
discharge when due all of the obligations and liabilities of Storage LP under the partnership agreement of the Partnership, with respect to the General Partner Interests or otherwise as a general partner of the Partnership, except as otherwise
contemplated by the Purchase and Sale Agreement, whether relating to periods of time before or after the date hereof. 
 ASSIGNMENT AND ASSUMPTION AGREEMENT

 (GENERAL PARTNER INTERESTS) 
  

 1 

 1.2. Purchase and Sale Agreement. This Agreement is subject to, in all respects, the terms and
conditions of the Purchase and Sale Agreement, and nothing contained herein is meant to enlarge, diminish or otherwise alter the terms and conditions of the Purchase and Sale Agreement or the parties’ duties and obligations contained therein.
To the extent there is a conflict between this Agreement and the Purchase and Sale Agreement, the terms of the Purchase and Sale Agreement shall control. It is expressly agreed that the exclusive representations and warranties made with respect to
the General Partner Interests are those made by Sellers in the Purchase and Sale Agreement and the exclusive remedies for a failure or breach of any such representation or warranty concerning the General Partner Interests are those provided in and
limited by the Purchase and Sale Agreement. All of the warranties and representations provided in the Purchase and Sale Agreement shall survive the execution and delivery of this Agreement, but all other warranties, express or implied, are hereby
disclaimed. 
 1.3. Limited Partnership Agreement Provisions. 
 (a) On or promptly following the date hereof, Buyer will file, or cause to be filed, with the Secretary of State of Delaware an amendment
to the Partnership’s Limited Partnership Certificate to reflect the substitution of Buyer for Storage LP (as applicable) as the sole general partner of the Partnership as a result of the assignment of the General Partner Interests effected by
this Agreement. 
 (b) Storage LP hereby (i) acknowledges that neither the execution and delivery of this Agreement or
the Purchase and Sale Agreement, nor the consummation of any transaction contemplated herein or therein, is intended to cause a dissolution of the Partnership under Delaware law or the partnership agreement of the Partnership; and (ii) agrees
that the Partnership will not be dissolved as a result of the execution and delivery of this Agreement or the Purchase and Sale Agreement, or the consummation of any transaction contemplated herein or therein. 
 1.4. Governing Law. This Agreement will be governed by, and construed in accordance with, the Laws of the State of New York without regard to the
conflict of laws rules of such state. 
 1.5. Counterparts. This Agreement may be signed in any number of counterparts, each of which
will be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 [Remainder of Page
Intentionally Left Blank] 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 (GENERAL PARTNER INTERESTS) 
  

 2 

 IN WITNESS WHEREOF, the Storage LP and Buyer have executed this Agreement as of the date first written
above. 
  

					
	STORAGE LP:
	
	 HPL STORAGE LP,
 a Delaware limited
partnership

		
	By:	 	 HPL Storage Inc.,
 Its general
partner

			
	By:	 	 	 	 
		 	Name:	 	 

					
		 	Title:	 	 

  

					
	BUYER:
	
	HPL HOLDINGS GP, L.L.C.
			
	By:	 	 	 	 
		 	Name:	 	 

					
		 	Title:	 	 

  

			
	 ASSIGNMENT AND ASSUMPTION AGREEMENT
 (GENERAL PARTNER
INTERESTS)
	  	S-1

 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 (LIMITED PARTNER INTERESTS) 
 THIS ASSIGNMENT AND ASSUMPTION
AGREEMENT (this “Agreement”), dated as of January 26, 2005, is made and entered into by and among HPL Storage LP, a Delaware limited partnership (“Storage LP”), and AEP Energy Services Gas Holding Company II,
L.L.C., a Delaware limited liability company (“AEPES Gas Holding,” and together with Storage LP, the “LP Sellers”), on the one hand, and HP Houston Holdings, L.P, a Delaware limited partnership (the
“Buyer”), on the other hand. 
 RECITALS 
 A. Storage LP owns a 36% limited partner interest in HPL Consolidation LP, a Delaware limited partnership (the “Partnership”), and AEPES
Gas Holding owns a 63% limited partner interest in the Partnership, which, together, constitute all of the outstanding limited partner interests in the Partnership. 
 B. The LP Sellers desire to sell, and Buyer desires to purchase and acquire from the LP Sellers, a 97% limited partner interest in the Partnership (the “Limited Partner Interests”), and Buyer agrees
to assume certain obligations and liabilities of the LP Sellers as more fully provided herein. 
 C. Storage LP will retain a 2% limited
partner interest in the Partnership (the “Retained Interests”). 
 D. La Grange Acquisition, L.P., a Texas limited
partnership (“La Grange”), and the LP Sellers have made and entered into a Purchase and Sale Agreement (the “Purchase and Sale Agreement”), dated as of even date herewith, which provides for the LP Sellers at the
Closing to sell and convey to Buyer, as the designee of La Grange, and for Buyer to purchase and acquire from the LP Sellers, the Limited Partner Interests, all as more fully provided therein. Capitalized terms used herein and not otherwise defined
shall have the respective meanings set forth in the Purchase and Sale Agreement. 
 Now therefore, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the LP Sellers and Buyer agree as follows: 
 AGREEMENT 
 1.1. Assignment of Interests. Pursuant to the Purchase and Sale Agreement and subject to (i) all conditions and restrictions imposed by the
partnership agreement of the Partnership upon the assignment contemplated hereby, (ii) all conditions and restrictions imposed by the partnership agreement of the Partnership on the right of Buyer to become a partner in the Partnership or to
exercise any rights under the partnership agreement of the Partnership, (iii) all of the LP Sellers’ obligations to the Partnership and its partners under the partnership agreement of the Partnership, and (iv) all restrictions on
transfer imposed by applicable securities laws, (A) the LP Sellers hereby sell, assign, transfer, and deliver to Buyer the Limited Partner Interests and (B) Buyer hereby accepts such assignment and fully assumes 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 (LIMITED PARTNER INTERESTS) 

  

 1 

 and agrees to perform and discharge when due all of the obligations and liabilities of the LP Sellers under the
partnership agreement of the Partnership, with respect to the Limited Partner Interests or otherwise as a limited partner of the Partnership, except as otherwise contemplated by the Purchase and Sale Agreement, whether relating to periods of time
before or after the date hereof. 
 1.2. Purchase and Sale Agreement. This Agreement is subject to, in all respects, the terms and
conditions of the Purchase and Sale Agreement, and nothing contained herein is meant to enlarge, diminish or otherwise alter the terms and conditions of the Purchase and Sale Agreement or the parties’ duties and obligations contained therein.
To the extent there is a conflict between this Agreement and the Purchase and Sale Agreement, the terms of the Purchase and Sale Agreement shall control. It is expressly agreed that the exclusive representations and warranties made with respect to
the Limited Partner Interests are those made by Sellers in the Purchase and Sale Agreement and the exclusive remedies for a failure or breach of any such representation or warranty concerning the Limited Partner Interests are those provided in and
limited by the Purchase and Sale Agreement. All of the warranties and representations provided in the Purchase and Sale Agreement shall survive the execution and delivery of this Agreement, but all other warranties, express or implied, are hereby
disclaimed. 
 1.3. Limited Partnership Agreement Provisions. Each of the LP Sellers hereby (i) acknowledges that neither the
execution and delivery of this Agreement or the Purchase and Sale Agreement, nor the consummation of any transaction contemplated herein or therein, is intended to cause a dissolution of the Partnership under Delaware law or the partnership
agreement of the Partnership; and (ii) agrees that the Partnership will not be dissolved as a result of the execution and delivery of this Agreement or the Purchase and Sale Agreement, or the consummation of any transaction contemplated herein
or therein. 
 1.4. Governing Law. This Agreement will be governed by, and construed in accordance with, the Laws of the State of New
York without regard to the conflict of laws rules of such state. 
 1.5. Counterparts. This Agreement may be signed in any number of
counterparts, each of which will be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 [Remainder of Page Intentionally Left Blank] 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 (LIMITED PARTNER INTERESTS) 

  

 2 

 IN WITNESS WHEREOF, the LP Sellers and Buyer have executed this Agreement as of the date first written
above. 
  

							
	LP SELLERS:
	
	 HPL STORAGE LP,
 a Delaware limited
partnership

		
	By:	 	 HPL STORAGE, INC.,
 its general
partner

				
		 	By:	 	 	 	 
		 		 	Name: Ronald A. Erd
		 		 	Title: President
	
	AEP ENERGY SERVICES GAS HOLDING COMPANY II, L.L.C.
		
	By:	 	HPL Storage LP, its Sole Member
			
		 	By:	 	HPL Storage, Inc., its General Partner
				
		 	By:	 	 	 	 
		 		 	Name: Ronald A. Erd
		 		 	Title: President
	
	BUYER:
	
	 HP HOUSTON HOLDINGS, L.P.,
 a Delaware
limited partnership

		
	By:	 	 HPL Holdings GP, L.L.C.,
 its general partner

				
		 	By:	 	 	 	 
		 		 	Name:	 	 

							
		 		 	Title:	 	 

 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 (LIMITED PARTNER INTERESTS) 

 General Partner Consent 
 This Agreement, and the assignment of the Limited Partner Interests of the Partnership by the LP Sellers to Buyer hereunder, is hereby acknowledged and accepted in all respects, and the admission of Buyer as a limited
partner of the Partnership is hereby approved. 
  

			
	HPL HOLDINGS GP, L.L.C.
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 (LIMITED PARTNER INTERESTS) 
  

 General Partner Consent 

 EXHIBIT 2.4.1(E) 
 FORM OF OPTION AGREEMENT 
 OPTION AGREEMENT 
 This Option Agreement (this “Agreement”) is entered into to be effective as of the 26th day of January, 2005 (the “Effective Date”) by and between HPL Storage
LP, a Delaware limited partnership (“Storage LP”) and HP Houston Holdings, L.P., a Delaware limited partnership (“Buyer”). 
 RECITALS 
  

	A.	Pursuant to that certain Purchase and Sale Agreement among Storage LP and AEP Energy Services Gas Holding Company II, L.L.C. as Sellers and La Grange Acquisition, L.P. (“La
Grange”), as Buyer, dated as of January 26, 2005 (the “Purchase Agreement”) Sellers sold to La Grange, or its designee, general and limited partner interests in HPL Consolidation LP, a Delaware limited partnership
(“HPL Consolidation”). 

  

	B.	Storage LP retained a two percent (2%) limited partner interest in HPL Consolidation, as such interest may be diluted under the terms of HPL Consolidation’s partnership
agreement. The two percent (2%) retained limited partner interest owned by Storage LP in HPL Consolidation, as such interest may be diluted, is hereinafter referred to as the “Retained Interest”. Buyer has no rights or
obligations with respect to the Retained Interest except as expressly set forth herein. 

  

	C.	Storage LP and Buyer wish to set forth in this Agreement the terms and conditions under which Storage LP may consummate the sale of the Retained Interest. 

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

  

	1.	GRANT OF OPTION 

 Buyer hereby
grants to Storage LP the absolute and unconditional right and option (the “Option”) to require Buyer to purchase, on the terms and conditions hereinafter set forth, all, but not less than all, of the Retained Interest. This Option
shall commence on the one hundred and eighty first (181st) day following the
Effective Date of this Agreement and shall continue until terminated in accordance with Article 7 of this Agreement. This Option is solely Storage LP’s option to require Buyer to purchase the Retained Interest; Buyer has no other rights or
obligations with respect to the Retained Interest except as expressly set forth in this Agreement. 
  

	2.	PURCHASE PRICE AT GRANT 

 Upon the Effective Date of
this Agreement, Storage LP shall pay Buyer, as an Option premium (the “Option Premium”), an amount equal to Ten Thousand and No/100 Dollars ($10,000.00) in immediately available funds. The Option Premium shall be non-refundable and
shall under no circumstances offset the Purchase Price (as defined below). 
  

			
	Option Agreement	  	

	3.	EXERCISE OF OPTION 

 The Option granted herein may
be exercised by delivery of written notice to the Buyer by Storage LP and to the general partner of HPL Consolidation at least thirty (30) days prior to date on which Storage LP intends to exercise the Option. Storage LP’s written notice
shall include a statement that Storage LP intends to exercise the Option and the date on which Storage LP intends to close the Option transaction. 
  

	4.	GOVERNMENTAL APPROVAL 

 Upon the exercise of the
Option, Storage LP and Buyer shall, to the extent required by the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended (the “HSR Act”) cooperate in promptly filing with the Federal Trade Commission and the United States
Department of Justice, all reports and other documents required to be filed under the HSR Act concerning the exercise of the Option and promptly complying with any requests by the Federal Trade Commission or the United States Department of Justice
for additional information concerning such transactions. In addition, Storage LP and Buyer shall cooperate in giving required notice to the Office of the Attorney General of the State of Texas. The filing fees payable in connection with the filings
required by the HSR Act and notice to Office of the Attorney General of the State of Texas, if any, shall be borne equally by Storage LP, on the one hand, and Buyer, on the other hand. The purchase and sale of the Retained Interest under this
Agreement shall be contingent upon the satisfaction of any waiting period (and any extension thereof) applicable to the consummation of the transactions contemplated by the exercise of the Option and clearance under the HSR Act and the successful
resolution of any inquiry initiated by the Office of the Attorney General of the State of Texas. 
  

	5.	PURCHASE PRICE AT EXERCISE 

 The purchase price (the
“Purchase Price”) shall be Sixteen Million Five Hundred Sixty Thousand ($16,560,000). 
  

	6.	CLOSING 

  

	6.1.	The closing of the Option transaction (the “Closing”) shall occur at the principal offices of Buyer or such other place as mutually agreed to by the parties. The
closing date shall be the date specified in Storage LP’s notice pursuant to Article 3 hereof; provided; however, that in no event shall such Closing occur later than (i) forty-five (45) days following the date on which the exercise
notice is sent pursuant to Article 3 hereof or (ii) such longer period of time as is necessary for the consummation of the Option transaction to receive clearance under the HSR Act and to resolve any investigations or proceedings regarding the
Option transaction brought by the Office of the Attorney General of the State of Texas under Texas anti-trust law. 

  

	6.2.	At Closing, Storage LP and Buyer shall execute a Transfer and Assignment of Partner Interest substantially in the form attached hereto as Exhibit A (which is incorporated
herein by reference), the delivery of which will be a condition to Buyer’s obligations to close. 

  

			
	Option Agreement	  	Page 2

	6.3.	At Closing, Buyer shall remit to Storage LP, and it shall be a condition to Storage LP’s obligations to close, in immediately available funds, the Purchase Price.

  

	7.	TERMINATION 

 The Option shall
terminate on the last day of the 18th month following the Effective Date of this
Agreement. 
  

	8.	MISCELLANEOUS 

  

	8.1.	Non-Transferable. 

 The Option granted by this Agreement is
non-transferable in any manner whatsoever, and neither party may assign any of its rights, duties or obligations under this Agreement, provided, however; that Buyer may assign this Agreement in accordance with Section 8.2. 
  

	8.2.	Entire Agreement. 

 This Agreement constitutes the entire
agreement between the parties with respect to the subject matter hereof and no party shall be liable or bound to any party in any manner by any warranties, representations, or covenants except as specifically set forth in this Agreement. The terms
and conditions of this Agreement shall inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. This Agreement may not be assigned by either party hereto without the prior written consent of the
other party (such consent not to be unreasonably withheld); provided, however, that Buyer may assign this Agreement to any of its Affiliates without the consent of Storage LP. The assignment of this Agreement will not release Buyer from its
obligation hereunder as a primary obligor. 
  

	8.3.	Governing Law. 

 This Agreement shall be governed by and
construed under the laws of the State of New York applicable to agreements made and fully performable therein, without regard to principles of conflicts of laws. 
  

	8.4.	Modification; Waiver. 

 No modification or amendment of any
provision of this Agreement shall be effective unless in writing and approved by each of the parties hereto, and no consent or waiver of any provision of this Agreement or departure therefrom shall be effective unless in writing and executed by the
party against which such consent or waiver is effective. A waiver of one circumstance will not constitute a waiver of any other circumstance. 
 [Remainder of page intentionally left blank.] 
  

			
	Option Agreement	  	Page 3

 IN WITNESS WHEREOF, the parties have executed this Agreement to be effective the 26
th day of January, 2005. 
  

									
	STORAGE LP	 		 	BUYER
			
	HPL Storage LP	 		 	HP Houston Holdings, L.P.
					
	By:	 	HPL Storage, Inc.	 		 	By:	 	HPL Holdings GP, L.L.C.
	Its:	 	General Partner	 		 	Its:	 	General Partner

									
					
	By:	 	 	 		 	By:	 	 
	Name:	 	Ronald A. Erd	 		 	Name:	 	 
	Title:	 	President	 		 	Title:	 	 

  

			
	Option Agreement	  	Page S-1

 EXHIBIT A 
 FORM OF 
 TRANSFER AND ASSIGNMENT 
 OF PARTNER INTEREST 
 IN HPL CONSOLIDATION LP 
 This Transfer and Assignment of Partner Interest in HPL Consolidation LP (this “Assignment”) is made effective as of the
     day of                 , 200     (the “Effective Date”) by and between HPL Storage
LP, a Delaware limited partnership (“Assignor”) and HP Houston Holdings, L.P., a Delaware limited partnership (“Assignee”). Capitalized terms used herein and not otherwise defined shall have the meaning
set forth in that certain Amended & Restated Agreement of Limited Partnership of HPL Consolidation LP, dated January 26, 2005
                     (as amended, the “Partnership Agreement”). 
 RECITALS 
  

	A.	Assignor is a Limited Partner in HPL Consolidation LP (the “Partnership”). 

  

	B.	 Assignor wishes to transfer and assign to Assignee 100% of Assignor’s limited partnership interest in the Partnership (representing [2%]1 of the total partner interests in the Partnership) (the “Transferred
Interest”), and Assignee wishes to accept the transfer and assignment of the Transferred Interest and assume Assignor’s obligations under the Partnership Agreement with respect to such Transferred Interest.

  

	C.	No consent is required under the terms and conditions of the Partnership Agreement to consummate this Assignment. 

 In consideration of the mutual promises, representations, warranties, covenants, and conditions set forth in this Assignment, the parties to this
Assignment agree as follows: 
  

	1.	DEFINITIONS 

 As used in this Assignment, terms not
otherwise defined in this Assignment and defined in Exhibit 1 hereto have the meanings set forth therein. 
  

	2.	ASSIGNMENT AND CONSIDERATION 

  

	2.1.	Assignment and Assumption. 

 Assignor is a Limited Partner
in the Partnership. Assignor hereby transfers and assigns to Assignee, to have and to hold, the Transferred Interest and all appurtenances thereto in anywise belonging unto said Assignee, its representatives, successors and assigns forever, and
Assignor does hereby bind itself, its successors and assigns, to warrant and forever defend the Transferred Interest, including Assignor’s Capital Account, unto said Assignee, its representatives, successors and assigns forever against any
person whomsoever lawfully claiming or to claim the same. 
  

	1	This 2% may need to be updated at the closing of the option transaction if the LP Interest has been diluted. 

  

			
	Option Agreement	  	Exhibit A, Page 1

 This Assignment is made subject to (a) all conditions and restrictions imposed by the Partnership
Agreement upon the assignment contemplated hereby; (b) all conditions and restrictions imposed by the Partnership Agreement on the right of Assignee to become a partner in the Partnership or to exercise any rights under the Partnership
Agreement; (c) all of Assignor’s obligations to the Partnership and its partners under the Partnership Agreement and all liens or security interests created in the Partnership Agreement to secure the performance thereof; and (d) all
restrictions on transfer imposed by applicable securities laws. 
 By the acceptance of this Assignment, Assignee assumes and promises to keep
and perform each and every obligation of Assignor, now existing or arising hereafter, under the Partnership Agreement. 
 Upon the Effective
Date of this Assignment, Assignor shall cease to have any right, title or interest, including any rights or obligations under the Partnership Agreement with respect to the Transferred Interest and shall cease being a Partner in the Partnership.

  

	2.2.	Consideration. 

 In consideration for Assignor’s
transfer and assignment of the Transferred Interest to Assignee, Assignee shall pay Assignor, contemporaneous with the execution of this Assignment, total consideration equal to the Purchase Price (as defined in the Option Agreement between the
parties of even date herewith). 
  

	3.	PARTNERSHIP TO CLOSE BOOKS 

 As of the Effective
Date, the Partnership, for accounting purposes only, shall close its books to determine all items of Partnership income, gain, loss and deduction up to the date of such closing of the books. All items of Partnership income, gain, loss and deduction
allocable to the Transferred Interest up through the Effective Date shall be allocated to Assignor. The Partnership shall issue an IRS Form K-1 to Assignor to reflect that allocation of such income, gain, loss and deduction. All items of Partnership
income, gain, loss and deduction with respect to the Transferred Interest after the Effective Date shall be allocated to Assignee. 
  

			
	Option Agreement	  	Exhibit A, Page 2

	4.	WARRANTIES, REPRESENTATIONS AND COVENANTS OF ASSIGNOR 

 Assignor hereby warrants and represents to, and covenants with Assignee as follows: 
  

	4.1.	Warranty of Title. 

 Assignor has full legal and equitable
title to its Transferred Interest, free and clear of all liens and Encumbrances, and there are no restrictions on transfer and assignment of the Transferred Interest other than any Encumbrance securing any obligation of Assignee or any of its
Affiliates. 
  

	4.2.	No Conflict. 

 The execution and delivery of this
Assignment by Assignor will not, directly or indirectly (with or without notice or lapse of time): breach any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance
of, or payment under, or to cancel, terminate or modify, any indenture, mortgage, lease, note, or other material contract or other instrument to which such Assignor is a party or by which its properties may be bound. 
  

	4.3.	No Third Party Consents. 

 Assignor is not required to give
any notice to or obtain any consent, approval, permit, license, franchise, or other authorization, or a variance or exemption therefrom or waiver thereof from any Governmental Authority or other Person in connection with the execution and delivery
of this Assignment. 
  

	4.4.	Organization and Good Standing of Assignors. 

 Assignor is
duly formed, validly existing and in good standing, as applicable, under the laws of its state of formation, with full limited partnership power and authority to conduct its business as it is now being conducted, to own or use the properties and
assets that it purports to own or use, and to perform all its obligations under this Assignment and to otherwise undertake the transactions contemplated hereby. 
  

	4.5.	Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Assignors. 

 This Assignment constitutes the legal, valid, and binding obligation of Assignor, enforceable against it in accordance with its terms except as such
enforceability may be limited by General Exceptions to Enforceability. Neither the execution and delivery of this Assignment nor the consummation or performance of any of the transactions contemplated thereby by Assignor will breach (i) any
provision of any of the Governing Documents of Assignor or (ii) any resolution adopted by the equity holders or governing bodies of Assignor. 
 Assignor has the full right, power and authority to execute and deliver this Assignment, to perform its obligations under this Assignment, and to carry out the transactions contemplated thereby, and such actions have been duly authorized by
all necessary action by Assignor’s governing body and by Assignor’s equity holders. 
  

			
	Option Agreement	  	Exhibit A, Page 3

 Neither the execution and delivery of the this Assignment nor the consummation or performance of any of
the transactions contemplated thereby by Assignor will: 
  

	 	4.5.1. 	violate any Applicable Law to which Assignor is subject; or 

  

	 	4.5.2. 	result in the imposition or creation of any Encumbrance other than Permitted Encumbrances upon or with respect to any of the Transferred Interest to be sold by Assignor.

  

	4.6.	No Litigation Against Assignor. 

 There is no pending or,
to Assignor’s Knowledge, threatened Proceeding by or against Assignor or any of their Affiliates that challenges, or seeks to restrain, delay, or prohibit the transactions contemplated by this Assignment. To the Knowledge of Assignor, no event
has occurred or circumstance exists that is reasonably likely to give rise to or serve as a basis for the commencement of any such Proceeding. There is not in effect any order, judgment, or decree of any Governmental Authority enjoining, barring,
suspending, prohibiting, or otherwise limiting Assignor from undertaking the transactions contemplated by this Assignment. 
  

	5.	WARRANTIES, REPRESENTATIONS AND COVENANTS OF ASSIGNEE 

 Assignee hereby warrants and represents to, and covenants with, Assignor as follows: 
 Assignee is duly formed, validly existing and
in good standing, as applicable, under the laws of its state of formation, with full limited partnership power and authority to conduct its business as it is now being conducted, to own or use the properties and assets that it purports to own or
use, and to perform all its obligations under this Assignment. 
  

	6.	SURVIVAL OF COVENANTS, REPRESENTATIONS AND WARRANTIES 

 All covenants, agreements, representations, and warranties made hereunder or pursuant hereto or in connection with the transactions contemplated hereby shall survive the execution date of this Assignment for the applicable statute(s) of
limitations. 
  

	7.	INDEMNIFICATION 

  

	7.1.	Assignor Indemnification. 

 Assignor hereby agrees to
indemnify and hold Assignee harmless against any third party claims resulting in any loss, damage, or expense (including reasonable attorney’s fees, expenses and costs) resulting from (a) any breach in any material respect by Assignor of
the provisions of this Assignment; and (b) any breach in any material respect of any of the representations, warranties, or covenants made by Assignor herein. 
  

			
	Option Agreement	  	Exhibit A, Page 4

	7.2.	Assignee Indemnification. 

 Assignee hereby agrees to
indemnify and hold Assignor harmless against any third party claims resulting in any loss, damage, or expense (including reasonable attorney’s fees, expenses and costs) resulting from (a) any breach in any material respect by Assignee of
the provisions of this Assignment; and (b) any breach in any material respect of any of the representations, warranties, or covenants made by Assignee herein. 
  

	8.	MISCELLANEOUS 

  

	8.1.	Merger and Integration; Binding on Successors; No Third Party Beneficiaries. 

 This Assignment, together with the Option Agreement, sets out the entire understanding of the parties with respect to the matters it purports to cover and supercedes all prior communications, agreements and
understandings, whether written or oral, concerning such matters. No party will be liable or bound to any party in any manner by any warranties, representations, or covenants other than those set forth in this Assignment. The terms and conditions of
this Assignment will inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Assignment, express or implied, is intended to confer upon any third party any rights, remedies,
obligations, or liabilities under or by reason of this Assignment, except as expressly provided in this Assignment. 
  

	8.2.	Governing Law; Jurisdiction and Venue. 

 THE INTERPRETATION AND CONSTRUCTION OF THIS ASSIGNMENT AND THE RIGHTS OF
THE PARTIES HEREUNDER WILL BE INTERPRETED, CONSTRUED, AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS
OF LAW PRINCIPLES. EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE JURISDICTION OF THE COURTS OF SUCH
JURISDICTION IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT AGAINST IT RELATED
TO OR IN CONNECTION WITH THIS ASSIGNMENT HEREBY, AND TO THE EXTENT
PERMITTED BY APPLICABLE LAW (AND ASSUMING EFFECTIVE SERVICE OF PROCESS), EACH
PARTY HERETO HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF
MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION, OR
PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
JURISDICTION OF SUCH COURT, THAT THE SUIT, ACTION, OR PROCEEDING IS
BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION,
OR PROCEEDING IS IMPROPER, OR THAT THIS ASSIGNMENT MAY NOT BE
LITIGATED IN OR BY SUCH COURT. EACH PARTY HERETO AGREES THAT SERVICE
OF PROCESS MAY BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL
TO THE ADDRESS FOR ADMINISTRATIVE NOTICE SET FORTH HEREIN OR ANY
OTHER METHOD AUTHORIZED BY THE LAWS OF NEW YORK. 
  

			
	Option Agreement	  	Exhibit A, Page 5

	8.3.	Forbearance and Waiver. 

 Except where a specific time
period is provided hereunder for the exercise of a right or remedy, any party’s forbearance in the exercise or enforcement of any right or remedy under this Assignment will not constitute a waiver thereof, and a waiver under one circumstance
will not constitute a waiver under any other circumstance. 
  

	8.4.	Amendment. 

 No amendment to this Assignment will be valid
or binding unless and until reduced to writing and executed by each party’s authorized representative. 
  

	8.5.	Attorney’s Fees. 

 In the event of any suit, action,
or arbitration proceedings (whether based on contract, tort, or any other theory of liability) to enforce any provision of this Assignment, to recover damages for a breach hereof, or to secure or preserve the rights of any party against any other
party to any property which is the subject of this Assignment, the prevailing party will be entitled to recover reasonable attorney fees (other than fees computed on a contingency fee basis), court costs and expenses of arbitration and litigation
expended in the prosecution or defense thereof. 
  

	8.6.	Schedules and Exhibits. 

 All Schedules and Exhibits hereto
are incorporated herein by reference and made a part of this Assignment. Any fact or item which is disclosed in any part of any Schedule or Exhibit hereto or the notes thereto will be deemed to have been disclosed in every part of such Schedules and
Exhibit where it is reasonably apparent that such fact or item is relevant to the matters there under consideration, notwithstanding the omission of a reference or cross-reference thereto. 
  

	8.7.	Captions. 

 Captions are set forth herein merely for
convenience, and shall not be deemed dispositive in the construction of this instrument. 
  

	8.8.	Partial Invalidity. 

 Any invalidity, illegality or
unenforceability of any provision of this Assignment in any jurisdiction will not invalidate or render illegal or unenforceable the remaining provisions hereof in such jurisdiction and will not invalidate or render illegal or unenforceable such
provision in any other jurisdiction. 
  

			
	Option Agreement	  	Exhibit A, Page 6

	8.9.	Multiple Counterparts. 

 This Assignment may be executed by
the parties in multiple original counterparts, and each such counterpart will constitute an original hereof. 
 [SIGNATURE PAGES ATTACHED
HERETO] 
  

			
	Option Agreement	  	Exhibit A, Page 7

 IN WITNESS WHEREOF, this Assignment is entered into to be effective as of the Effective Date. 

 

			
	ASSIGNOR:
	
	HPL Storage LP
		
	By:	 	 HPL Storage, Inc.
 its general
partner

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

			
	
	ASSIGNEE:
	
	HP HOUSTON HOLDINGS, L.P.
		
	By:	 	 HPL HOLDINGS GP, L.L.C.
 its general
partner

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	Option Agreement	  	Page 8

 EXHIBIT 1 
 ADDITIONAL DEFINITIONS 
 Terms defined in this Exhibit 1 will have the meanings set forth in this Exhibit.

  

			
	 TERM
	  	 DEFINITION

		
	 1.      Affiliate
	  	An “Affiliate” of a Person is any Person directly or indirectly controlling, controlled by, or under common control with the first such Person. For the purposes of this definition,
“control,” when used with respect to any specified Person, means the power to direct the management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract, or otherwise; and the
terms “controlling” and “controlled” have meanings correlative to the foregoing.
		
	 2.      Applicable Law
	  	Any statute, law, ordinance, executive order, rule, or regulation (including a regulation that has been formally promulgated in a rule making proceeding but, pending final adoption, is in
proposed or temporary form having force of law); guideline or notice having force of law; or approval, permit, license, franchise, judgment, order, decree, injunction, or writ of any Governmental Authority applicable to a specified Person or
specified property, as in effect from time to time.
		
	 3.      Encumbrance
	  	Any lien, security interest, mortgage, pledge, hypothecation, assignment, easement, right-of-way, servitude, other encumbrance, equitable interest, charge, restrictive covenant, mineral
interest, community or other marital property interest, right of first refusal or similar restriction, option, contractual provision, provision of Governing Documents, provision of Applicable Law, or other restriction or matter affecting title to
the involved property or the freedom to dispose of any interest in or use the involved property or exercise voting rights associated therewith.
		
	 4.      General Exceptions to Enforceability
	  	Limitations on or exceptions to the enforceability of an agreement or instrument by (i) bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws affecting
creditors’ rights, or (ii) general principles of equity relating to the availability of equitable remedies (regardless of whether such agreement or instrument is sought to be enforced in a proceeding at law or in equity).

  

			
	Option Agreement	  	Page 9

			
	 5.      Governmental Authority
	  	Any federal, state, foreign, tribal, local, or municipal governmental body; and any governmental, regulatory, or administrative agency, commission, body, agency, instrumentality, or other
authority exercising or entitled to exercise any executive, judicial, legislative, administrative, regulatory, or taxing authority or power, including any court or other tribunal.
		
	 6.      Governing Documents
	  	With respect to a particular Person, (i) if a corporation, the articles or certificate of incorporation and the bylaws; (ii) if a general partnership, the partnership agreement and any statement
of partnership; (iii) if a limited partnership, the limited partnership agreement and the certificate of limited partnership; (iv) if a limited liability company, the articles of organization and operating agreement or regulations; (v) if another
type of Person, any other charter or similar document promulgated, adopted, or filed in connection with the creation, formation, or organization of the Person; (vi) all equityholders’ agreements, voting agreements, voting trust instruments,
joint venture agreements, registration rights agreements, or other agreements or documents relating to the organization, management, or operation of the Person or relating to the rights, duties, or obligations of the equityholders of the Person, and
(vii) any amendment or supplement to any of the foregoing.
		
	 7.      Knowledge
	  	As to Assignor, “Knowledge” means the actual knowledge of any of the individuals presently serving officer, member of the board of directors, or limited liability company
manager of Assignor or its general partner, and the knowledge that such individual would have obtained as a result of the proper operation of reporting procedure concerning the business of Assignor that was not grossly negligent.
		
	 8.      Permitted Encumbrance
	  	Any Encumbrance securing any obligation of Buyer or any of its Affiliates.
		
	 9.      Person
	  	Any individual, corporation, partnership, limited liability company, other business organization of any kind, association, trust, or governmental entity, agency, or
instrumentality.
		
	 10.    Proceeding
	  	Any action, arbitration proceeding, audit, hearing, investigation, inquiry, litigation, or suit (in each such case whether civil, criminal, administrative, judicial, or investigative and whether
formal or informal, public or private) commenced, brought, conducted, or heard by or before any Governmental Authority or arbitrator.

  

			
	Option Agreement	  	Page 10

 EXHIBIT 2.4.1(F) 
 FORM OF TRANSITION SERVICES AGREEMENT 
 TRANSITION SERVICES AGREEMENT 
 This Transition Services Agreement (this “Agreement”) is entered into as of January 26, 2005 (the “Effective
Date”), by and between AEP Energy Services, Inc. (“Provider”) and La Grange Acquisition, L.P. (“Company”). 
 RECITALS 
  

	A.	HPL Storage LP and AEP Energy Services Gas Holding Company II, L.L.C. (“Sellers”) are selling to Company all of the general partner interests and all but two
percent (2%) of the limited partner interests in HPL Consolidation LP (the “Purchased Interests”) pursuant to a certain Purchase and Sale Agreement (the “Purchase Agreement”) dated as of January 26, 2005,
between Sellers and Company. 

  

	B.	In connection with the sale and purchase of the Purchased Interests, each party hereto desires that Provider provide to Company (1) the services of certain employees,
(2) certain limited access to the computer, information, and communication systems and facilities of Provider, and (3) the use of certain articles of personal property and rights of occupancy of certain leased premises pending the
assignment of those leases. Provider has agreed to provide such services, access, and property rights to Company in accordance with the terms and conditions of this Agreement; and 

  

	C.	Under this Agreement, the parties desire to make arrangements for the Company’s purchase of the personal property described above and for the assignment of the above-described
leases to the Company. 

 AGREEMENTS 
 NOW, THEREFORE, in consideration of the foregoing, the parties hereto agree as follows: 
  

	1.	RULES OF CONSTRUCTION; DEFINITIONS 

  

	1.1.	Definitions. 

 As used in this Agreement, terms defined in
Exhibit 1.1 have the meanings set forth therein, and capitalized terms used herein or in Exhibit 1.1 not otherwise defined herein or in Exhibit 1.1 shall have the meanings set forth in the Purchase Agreement or, to the extent
they are accounting terms, they will have the meanings set forth in GAAP. 
  

	1.2.	Rules of Construction. 

 Unless the context of this
Agreement requires otherwise, the plural includes the singular, the singular includes the plural, and “including” has the inclusive meaning of “including without limitation.” The words “hereof,” “herein,”
“hereby,” “hereunder” and other similar terms of this Agreement refer to this Agreement as a whole and not exclusively to any particular provision of this Agreement. All pronouns and any 

  

			
	Transition Services Agreement	  	Page 1

 
variations thereof will be deemed to refer to masculine, feminine or neuter, singular or plural, as the identity of the Person or Persons may require. Unless
otherwise expressly provided, any agreement, instrument or Applicable Law defined or referred to herein means such agreement or instrument or Applicable Law as from time to time amended, modified or supplemented, including (in the case of agreements
or instruments) by waiver or consent and (in the case of Applicable Law) by succession of comparable successor law and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein.

  

	2.	EMPLOYEES; ACCESS; PROPERTIES 

  

	2.1.	Services of the Employees. 

 Subject to the provisions of
Section 5.2 hereof, Provider shall employ and pay the employees included in the Closing Workforce, which are identified on Schedule 2.1 attached hereto (each, an “Employee,” and, collectively, the “Employees”),
and Company or its Affiliates shall direct and manage the Employees to provide Company or its Affiliates with the services Company or its Affiliates desire the Employees to provide, which services shall not be substantially different from the
services as were provided by such Employees immediately prior to the Effective Date (the “Services”). Company shall not direct or manage the Employees in any manner that results in a violation of Applicable Law. 
 Provider will not charge for Employees to the extent that their services under this Agreement are devoted to services for the primary benefit of AEP or
its Affiliates. 
  

	2.2.	Access. 

 Provider shall provide or cause to be provided to
Company or its Affiliates the access to employees, computer systems, information systems, and communication systems and facilities set forth in Schedule 2.2 (the “Access”). Such Access will be limited to the employees, computer
systems, information systems, and communication systems and facilities expressly identified in Schedule 2.2 for purposes of conducting the Business after Closing, and all risks and costs resulting from such limitations will be borne by Company.
Except as required by this Agreement for the development and implementation of the Migration Plan, Provider will have no obligation to provide personnel who are trained in the Access except to the extent that such personnel were included in the
Closing Workforce and remain employed by Provider. 
  

	2.3.	Properties. 

 For a period of 100 days commencing on the
Effective Date, Provider shall, at its expense, use commercially reasonable efforts to (a) assign or cause to be assigned to Company certain licenses for computer software applications that are presently licensed to Provider or its Affiliates
in connection with the Business identified in Schedule 2.3 hereto, (b) at its election, assign or sublease existing leases of the personal property set forth on Schedule 2.3 hereto (and obtain all necessary consents for such assignment or
sublease) or purchase such personal property from third parties, 

  

			
	Transition Services Agreement	  	Page 2

 
and (c) at its election, assign or sublease all leases of real property set forth on Schedule 2.3 hereof (and obtain all necessary consents to such
assignment or sublease) (collectively, the “Properties”), in accordance with the timetable and prices set forth on such Schedule. 
 If Provider is unable to effect the assignment described in clause (a) above with respect to any such software application within the above-referenced 100 day period, Provider will obtain for Company or its designee at Provider’s
sole expense a license of the current release of that software application product, sufficient to support the use historically made of that application by the HPL Entities. Provider will have no obligation or liability to Company or any of its
Affiliates if Company is unable to effect the assignment or purchase of the personal property described in clause (b) above within the above-referenced 100 day period. 
 Subject to Section 2.3, in accordance with the timetable set forth on Schedule 2.3 hereof, Company shall (a) assume the software licenses set
forth on Schedule 2.3 hereof that are assigned to the Company, (b) assume or sublease the leases for the personal property set forth on Schedule 2.3 hereof that are assigned to the Company or purchase such personal property from Provider if
Provider purchases it, and (c) assume or sublease all leases of real property set forth on Schedule 2.3 hereof. 
  

	2.4.	Impracticability. 

 Provider shall not be required to
provide any Employee, Access, or Property to the extent that, and so long as, the provision of such Employee, Access, or Property (a) becomes impracticable, in a material respect, as a result of Force Majeure, (b) would require Provider to
violate any Applicable Laws, or (c) would result in the breach of any agreement or other applicable contract existing on the Effective Date. The Term of this Agreement shall not be extended by the amount of time such condition described in this
Section 2.4 exists. 
  

	2.5.	Information to be Furnished to Provider. 

 Company agrees
to provide Provider in a timely manner with responses to requests for decisions, information, and policy declarations necessary for, or reasonably requested by Provider to provide the Employees, Access, and Properties required to be provided by
Provider hereunder. Without limitation of the foregoing, Company agrees to provide Provider with all decisions, information, and policy declarations necessary to effect compliance with the Fair Labor Standards Act. Notwithstanding anything in this
Agreement to the contrary, Provider’s obligations hereunder shall be suspended to the extent that, and so long as, the performance thereof is prevented or hindered by Company’s failure to provide timely decisions, information, or policy
declarations and Provider has notified Company in writing of such failure. The Term of this Agreement shall not be extended by the amount of time such failure of Company described in this Section 2.5 exists. 
  

			
	Transition Services Agreement	  	Page 3

	2.6.	No Additional Resources. 

 In providing the Employees, the
Access, and the Properties, Provider shall not be obligated to (a) hire any additional employees (including to replace any Employee whose employment terminates for any reason during the Term of this Agreement), (b) maintain the employment
of any specific Employee, or (c) purchase, lease or license any additional equipment or materials. 
  

	3.	MIGRATION PLAN 

 Within 30 days
following the Effective Date, the parties will develop a written plan (the “Migration Plan”) that will (a) identify those elements of the AEP infrastructure that are presently used by the computer systems, information systems,
and communication systems used in the Business, (b) specify a procedure to migrate each such system off the AEP infrastructure, including a specification of any replacement infrastructure that is to be put in place or used, (c) for each
such system specify a deadline for the implementation of the migration1, and
(d) for each such system give a specification of what migration costs are to be borne by Provider, all other costs being borne by Company. The parties hereto agree that the migration costs to be borne by Provider with respect to any such system
will not exceed the costs that would be incurred to migrate that system into the present infrastructure of the HPL Entities, without significant interconnection to or integration with any other infrastructure. The parties agree to implement any
Migration Plan developed by mutual agreement. 
 If the parties do not complete a mutually agreed, written Migration Plan
within that 30 day period, or any extended period to which the parties may agree in writing, either party shall have the right on written notice to the other party to have the parties hereto jointly engage Insource Technology Corp. or another
mutually acceptable independent consulting firm to develop the Migration Plan. The costs of such consultant’s services will be paid  1/2 by Provider and  1/2 by Company. The parties agree to implement the Migration Plan as developed by the consulting firm. 
  

	4.	TERM AND TERMINATION 

  

	4.1.	Term. 

 Employees will be provided under Section 2.1
for 100 days following the Effective Date. Access will be provided under Section 2.2 to a particular item specified in Schedule 2.2 for the period set out in that Schedule or, if longer, until the deadline for the migration of that item off of
the AEP infrastructure in accordance with the Migration Plan (whether or not the migration is then complete, but taking into account any extensions of that deadline at Company’s election as a result of any breach of the Migration Plan by
Provider). 
  
  

	1
	 Because of the way the Migration Plan relates to the term of this Agreement, it will be appropriate to provide that the deadline for migration would be extended, at
Company’s election, for any delay caused by a breach of the Migration Plan by Provider. 

  

			
	Transition Services Agreement	  	Page 4

	4.2.	Termination. 

 This Agreement or the provision of any
particular Employee, Access, or Properties may be terminated by the mutual written consent of the parties at any time. Either party may terminate this Agreement if (a) the other party defaults under this Agreement in any material respect and
(b) such default is not cured within 30 days after such defaulting party receives written notice of such default. 
  

	5.	COMPENSATION 

  

	5.1.	Charges For Employees and Properties. 

 Except as otherwise
provided in this Agreement or in any Schedule to this Agreement with respect to any particular Employee, Company will reimburse Provider, as full consideration for the provision of any Employee, for all Employee Costs and reasonable out-of-pocket
expenses incurred by Provider (including expense reimbursements to employees in conformity with Company’s employee expense reimbursement plan) in providing such Employee after January 31, 2005. For purposes of this Agreement,
“Employee Costs” of a particular Employee shall be equal, on a per diem basis, to the following: 135% of that Employee’s actual annual compensation (as such compensation, including previously-scheduled increases in
compensation, has been previously disclosed to Company pursuant to the Purchase Agreement), divided by 2080, multiplied by 8. Company will purchase and pay for the Properties according to the prices set forth on Schedule 2.3 hereof. Company will
also pay any sales or excise taxes imposed on all transactions under this Agreement. 
  

	5.2.	Retention or Release of Employees. 

 At any time and from
time to time during the Term, and in accordance with the terms of the Purchase Agreement and Exhibit 5.3.1(a) thereto, Company shall determine, in its sole discretion, which Employees to whom it desires to make Offers of Employment. If Company makes
an Offer of Employment to an Employee, and such Employee accepts Company’s Offer of Employment, such Employee becomes a Transferred Employee under the Purchase Agreement. As of the Hire Date of such Transferred Employee, such Transferred
Employee will receive the compensation and other benefits set forth in Section 5.3 of the Purchase Agreement, and Company shall have no further obligation to pay to Provider the Employee Costs associated with such Employee. In the event that
Company desires to release from this Agreement any Employee, Company shall provide Provider written notice thereof in accordance with the Purchase Agreement. On the fifteenth day following the date of such written notice (such Employee’s
“Release Date”), such Employee shall be released from the operation of this Agreement, and Company shall no longer have any obligation to pay the Employee Costs associated with such Employee. In the event that an Employee terminates
his or her employment for any reason prior to his Hire Date or Release Date, upon the effective date of such termination (such Employee’s “Termination Date”), Company shall no longer have any obligation to pay the Employee
Costs associated with such Employee. Upon the Hire Date, Release Date, or Termination 

  

			
	Transition Services Agreement	  	Page 5

 
Date of any Employee, Provider shall no longer have an obligation to provide, and Company shall have no payment obligation to Provider hereunder for, such
Employee (or any substitute employee) or the Services or Access to the extent associated with such Employee. 
  

	5.3.	Charges for Access. 

 There will be no reimbursement by
Company to Provider associated with providing Access other than (a) reimbursement of Provider’s reasonable out-of-pocket costs, if any, incurred as a result of providing such Access and associated direct payroll costs for personnel not
included in Employees allocable to the provision of such Access under the cost allocation policies and practices historically used in allocating such costs to the Business before the Effective Date, and (b) reimbursement in accordance with, but
not in addition to payment obligations of the Company under, Section 5.1 for the provision of any Employees of Provider rendered in connection therewith. Notwithstanding anything to the contrary contained in this Agreement, in no event will
Company be responsible to Provider for any additional fees or other costs over Provider’s or its Affiliates’ current license or lease fees imposed by a licensor of the software systems identified on Schedule 2.2 hereof as a result of the
provision by Provider to Buyer of the Access to the software systems under this Agreement. 
  

	5.4.	Payment Terms. 

 Provider shall bill Company monthly for
all charges pursuant to this Agreement. Such bills shall be accompanied by reasonable documentation supporting such charges. Such invoices shall be paid within 10 days after receipt. Late payments shall bear interest at the Borrowing Rate. Provider
may suspend its performance of this Agreement at any time, and for such time, as undisputed charges due to such party remain outstanding more than 30 days after the receipt by Company of any such invoice. The Term of this Agreement shall not be
extended by the amount of time of any suspension under this Section 5.4. 
  

	6.	GENERAL OBLIGATIONS; STANDARD OF CARE 

  

	6.1.	Performance Standards. 

 Company shall have all right and
responsibility to direct and manage the activities of the Employees. Provider shall have no right or responsibility with regard to the Employee’s activities and shall have no obligation to ensure that any degree of care or skill is taken by the
Employees or with respect to their work product. 
  

	6.2.	DISCLAIMER OF WARRANTIES. 

 EXCEPT AS OTHERWISE
SET FORTH HEREIN OR IN THE PURCHASE AGREEMENT, PROVIDER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS, IMPLIED OR STATUTORY, INCLUDING BUT NOT LIMITED TO THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, WITH RESPECT
TO THE EMPLOYEES, THE PERFORMANCE OF THE EMPLOYEES, THE SERVICES, THE RESULTS OF THE SERVICES, THE PROPERTIES, OR PROVIDER’S PERFORMANCE HEREUNDER. 
  

			
	Transition Services Agreement	  	Page 6

	6.3.	Indemnification by Company. 

 Company shall defend,
indemnify, and hold Provider, its Affiliates and respective successors and permitted assigns, and their respective shareholders, members, partners (general and limited), officers, directors, managers, employees, agents, and representatives, and each
of their heirs, executors, successors, and assigns harmless from and against and in respect of any and all Damages incurred by such party which arise out of, or result from(a) a breach of this Agreement by Company, (b) the performance by
Provider of any of its duties, and the exercise of any of its rights, under Sections 2.1 or 2.2 hereof or Company’s use and occupancy of Properties, in each such case in accordance with the terms hereof in all material respects, (c) the
performance of any Services by the Employees, or (d) any claim of any Employee under Applicable Law arising out of Company’s direction or management of such Employee or out of Company’s operation of the Business, other than
liabilities arising from the gross negligence or willful misconduct of Provider or any of its Affiliates. 
  

	6.4.	Good Faith Cooperation. 

 The parties will use good faith
efforts to cooperate with each other in all matters relating to the provision and receipt of the Employees, Services, Access, and Properties. 
  

	7.	RELATIONSHIP BETWEEN THE PARTIES 

 The relationship
between the parties established under this Agreement with respect to Employees, Access, Properties, and Services is that of independent contractors, and neither party shall be deemed an employee, agent, partner, or joint venturer of or with the
other. Provider will, subject to reimbursement pursuant to Article 5, be solely responsible for the payment of any employment-related taxes, insurance premiums, or employment benefits in respect of the provision of the Employees under this
Agreement. 
  

	8.	FORCE MAJEURE 

 “Force Majeure”
means an event, cause, contingency, or circumstance that renders a party unable, wholly or in part, to perform its obligations under the applicable provisions of this Agreement, and that is beyond the reasonable control of the party (including
earthquake, hurricane, or other natural disaster or act of war or terrorism or the requirements of any order of a Governmental Authority of competent jurisdiction). A party seeking to have its obligations suspended because of Force Majeure shall
have the burden of proving the existence, duration, and adverse effect of such Force Majeure event. The party affected by Force majeure shall promptly notify the other party of the cessation of such Force Majeure event. The Term of this Agreement
shall not be extended by the amount of time such Force Majeure event described in this Article 8 exists. 
  

			
	Transition Services Agreement	  	Page 7

	9.	GENERAL PROVISIONS 

  

	9.1.	Notice Provisions. 

 Any notice that is required or
permitted under this Agreement may be given by personal delivery to the party entitled thereto, by facsimile transmission, by any courier service which guarantees overnight, receipted delivery, or by U.S. Certified or Registered Mail, return receipt
requested, addressed to the party entitled thereto, at: 
  

			
	If to Provider:	  	AEP Energy Services, Inc.
		  	Attention: Ronald A. Erd
		  	1 Riverside Plaza
		  	Columbus, Ohio 43215
		  	Facsimile No.: (614) 716-1452
		
	With copy to:	  	Clark, Thomas & Winters, P.C.
		  	Attention: C. Joseph Cain
		  	300 West 6th Street, 15
th Floor
		  	Austin, Texas 78701
		  	Facsimile No.: (512) 474-1129
		
	With copy to:	  	American Electric Power Company, Inc.
		  	Attention: Randy G. Ryan
		  	1 Riverside Plaza
		  	Columbus, Ohio 43215
		  	Facsimile No.: (614) 583-1603
		
	If to Company:	  	La Grange Acquisition, L.P.
		  	Attention: Jim LaBaure
		  	800 E. Sonterra Blvd., Suite 400
		  	San Antonio, Texas 78228
		  	Facsimile No.: (210) 403-7524
		
	With copy to:	  	Hunton & Williams LLP
		  	Attention: Joe A. Davis
		  	1601 Bryan Street, Suite 3000
		  	Dallas, Texas 75201
		  	Facsimile No.: 214-880-0011
		
	With copy to:	  	Energy Transfer Partners, L.P.
		  	Attention: Robert A. Burk
		  	8801 S. Yale, Suite 310
		  	Tulsa, Oklahoma 74137
		  	Facsimile No.: (918) 493-7290

  

			
	Transition Services Agreement	  	Page 8

 Any notices will be sent to the address or facsimile number when permitted, as specified in this
Agreement or at such other address or facsimile number for a party as it may specify in writing to the other parties from time to time. Any notice properly given to the proper address will be deemed to have been given when dispatched. 
  

	9.2.	Confidentiality. 

 Each of the parties hereby agrees,
except in order to comply with Applicable Law and any applicable stock exchange rules and regulations, not to disclose (or permit any of their Affiliates to disclose), in whole or in part, this Agreement or any information disclosed by one party to
the other parties during the period beginning on the effective date of the Confidentiality Agreement and ending on the Closing Date and which constituted or would constitute Confidential Information to any Person, other than an Affiliate of a party
who requires such Confidential Information in connection with the Services or the provision of the Employees, Access, or Properties, for a period of 2 years from the Closing Date without having first obtained the prior written consent of the
disclosing party. Additionally, each of the parties hereby agrees not to use (or permit any of their Affiliates to use) any of the Confidential Information for any purpose other than the exercise of that party’s rights and the performance of
its obligations under this Agreement and the Services and the provision of the Employees, Access, and Properties. Additionally, each of the parties agrees not to disclose, except in order to comply with Applicable Law and any applicable stock
exchange rules and regulations, or use (or permit any of their Affiliates to so disclose or use), for a period of 2 years from the Closing Date, any Business Information and to otherwise treat such information and documents as Confidential
Information for all purposes hereunder. Each of the parties further agrees to protect the Confidential Information by using the same degree of care, but not less than a reasonable degree of care, to prevent the unauthorized use, dissemination, or
publication of the Confidential Information as such party uses to protect its own confidential information of a like nature. The provisions of this Section 9.2 impose no obligation upon a party with respect to specific Confidential Information
which (a) except for Business Information in possession of Sellers, was in such party’s possession before receipt from the disclosing party as evidenced by written records; (b) is or becomes a matter of public knowledge through no
fault of such party; (c) except for Business Information in possession of Sellers, is rightfully obtained by such party from a third party who represents that it is free to pass on such information without a duty of confidentiality and the
receiving party has no knowledge of any such duty of confidentiality; (d) is disclosed by the disclosing party to a third party without a duty of confidentiality on the third party; or (e) except for Business Information in possession of
Sellers, is independently developed by such party as evidenced by written records. It is understood and agreed that “Confidential Information” as used in this Agreement also includes any Business Information disclosed or discovered during
the Term hereof. 
  

			
	Transition Services Agreement	  	Page 9

	9.3.	Schedules and Exhibits. 

 All Schedules and Exhibits hereto
are incorporated herein by reference and made a part of this Agreement. Any fact or item which is disclosed in any part of any Schedule or Exhibit hereto will be deemed to have been disclosed in every part of such Schedules and Exhibit where such
fact or item is relevant to the matters there under consideration, notwithstanding the omission of a reference or cross-reference thereto. 
  

	9.4.	Interest on Overdue Amounts. 

 Any amount due to a party
under this Agreement will earn interest accruing daily from the due date thereof until paid at the Borrowing Rate. 
  

	9.5.	Amendment. 

 No amendment to this Agreement will be valid
or binding unless and until reduced to writing and executed by each party’s authorized representative. 
  

	9.6.	Merger and Integration; Binding on Successors; No Third Party Beneficiaries; Assignment. 

 This Agreement, along with the Purchase Agreement, sets out the entire understanding of the parties with respect to the matters it purports to cover and supersedes all prior communications, agreements and
understandings, whether written or oral, concerning such matters. No party will be liable or bound to any party in any manner by any warranties, representations, or covenants other than those set forth in this Agreement, the Purchase Agreement, and
the instruments to be executed and delivered at Closing. The terms and conditions of this Agreement will inure to the benefit of and be binding upon the respective permitted successors and assigns of the parties. Nothing in this Agreement, express
or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. No party to this Agreement shall have the right to assign
this Agreement, or any of its rights or obligations hereunder, without the written consent of the other parties (such consent not to be unreasonably withheld); provided, however, that without the consent of the other parties, a party hereto
may assign this Agreement, and its rights and obligations hereunder, to an Affiliate of such party but, in such event, the assigning party will not be released from its obligations hereunder. 
  

	9.7.	Forbearance and Waiver. 

 Except where a specific time
period is provided hereunder for the exercise of a right or remedy, any party’s forbearance in the exercise or enforcement of any right or remedy under this Agreement will not constitute a waiver thereof, and a waiver under one circumstance
will not constitute a waiver under any other circumstance. 
  

			
	Transition Services Agreement	  	Page 10

	9.8. 	Partial Invalidity. 

 Any invalidity, illegality or
unenforceability of any provision of this Agreement in any jurisdiction will not invalidate or render illegal or unenforceable the remaining provisions hereof in such jurisdiction and will not invalidate or render illegal or unenforceable such
provision in any other jurisdiction. 
  

	9.9. 	Limitation on Damages 

 No party will be liable to any
other party under this Agreement for special, indirect, incidental, consequential, or punitive damages. 
  

	9.10.	  Attorney’s Fees. 

 In the event of any suit,
action, or arbitration proceedings (whether based on contract, tort, or any other theory of liability) to enforce any provision of this Agreement, to recover damages for a breach hereof, or to secure or preserve the rights of any party against any
other party to any property which is the subject of this Agreement, the prevailing party will be entitled to recover reasonable attorney fees (other than fees computed on a contingency fee basis), court costs and expenses of arbitration and
litigation expended in the prosecution or defense thereof. 
  

	9.11.	  Governing Law; Jurisdiction and Venue. 

 THE INTERPRETATION AND CONSTRUCTION OF THIS AGREEMENT AND THE RIGHTS OF
THE PARTIES HEREUNDER WILL BE INTERPRETED, CONSTRUED, AND GOVERNED BY THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS
OF LAW PRINCIPLES. EACH PARTY HERETO HEREBY IRREVOCABLY SUBMITS, FOR ITSELF
AND ITS PROPERTY, TO THE JURISDICTION OF THE COURTS OF SUCH
JURISDICTION IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT AGAINST IT RELATED
TO OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW (AND ASSUMING
EFFECTIVE SERVICE OF PROCESS), EACH PARTY HERETO HEREBY WAIVES AND AGREES
NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE
IN ANY SUCH SUIT, ACTION, OR PROCEEDING, ANY CLAIM THAT IT IS
NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT THE
SUIT, ACTION, OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT
THE VENUE OF THE SUIT, ACTION, OR PROCEEDING IS IMPROPER, OR THAT
THIS AGREEMENT OR ANY DOCUMENT OR INSTRUMENT REFERRED TO HEREIN OR
THE SUBJECT MATTER HEREOF MAY NOT BE LITIGATED IN OR BY SUCH
COURT. EACH PARTY HERETO AGREES THAT SERVICE OF PROCESS MAY BE MADE
UPON IT BY CERTIFIED OR REGISTERED MAIL TO THE ADDRESS FOR
ADMINISTRATIVE NOTICE SET FORTH HEREIN OR ANY OTHER METHOD AUTHORIZED BY
THE LAWS OF NEW YORK. 
  

			
	Transition Services Agreement	  	Page 11

	9.12.	  Waiver of Right to Jury Trial. 

 To the fullest
extent permitted by law, and as separately bargained-for-consideration, each party hereby waives any right to trial by jury in any action, suit, proceeding, or counterclaim of any kind arising out of or relating to this Agreement or Services or the
provision of Employees, Access, or Properties. 
  

	9.13.	  Construction. 

 This Agreement was prepared jointly
by the parties, and no rule that it be construed against the drafter will have any application in its construction or interpretation. 
  

	9.14.	  Multiple Counterparts. 

 This Agreement may be
executed by the parties in multiple original counterparts, and each such counterpart will constitute an original hereof. 
  

	9.15.	  Further Assurances. 

 Upon request from time to
time, Provider and Company shall execute or cause to be executed and delivered such other documents and instruments and do such other acts as may be reasonably necessary or appropriate with regard to the Services or to provide the Employees, Access,
or Properties. 
  

	9.16.	  Headings. 

 The headings used in this Agreement have
been inserted for convenience of reference only and do not define or limit the provisions hereof. 
 [The remainder of this page is
intentionally left blank. 
 The next page of this document is S-1] 
  

			
	Transition Services Agreement	  	Page 12

 IN WITNESS WHEREOF, the Parties have signed this Transition Services Agreement effective as of the
Effective Date. 
  

			
	AEP Energy Services, Inc.
		
	By:	 	 
	Name:	 	Ronald A. Erd
	Title:	 	Vice President
	
	La Grange Acquisition, L.P.
		
	By:	 	 LA GP, LLC,
 its general partner

			
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	Transition Services Agreement	  	Exhibit 1.1 - Page 1

 EXHIBIT 1.1 
 TO 
 TRANSITION SERVICES AGREEMENT 
 DEFINITIONS 
 Terms defined in this Exhibit 1.1 will have the meanings set forth in this
Exhibit. 
  

			
	 TERM
	  	 DEFINITION

		
	 1.      Access
	  	As defined in Section 2.1 of this Agreement.
		
	 2.      Agreement
	  	As defined in the first paragraph of this Agreement.
		
	 3.      Company
	  	As defined in the first paragraph of this Agreement.
		
	 4.      Effective Date
	  	As defined in the first paragraph of this Agreement.
		
	 5.      Employee
	  	As defined in Section 2.1 of this Agreement.
		
	 6.      Employee Costs
	  	As defined in Section 5.1 of this Agreement.
		
	 7.      Force Majeure
	  	As defined in Article 8 of this Agreement.
		
	 8.      Migration Plan
	  	As defined in Article 3 of this Agreement.
		
	 9.      Properties
	  	As defined in Section 2.3 of this Agreement.
		
	 10.    Provider
	  	As defined in the first paragraph of this Agreement.
		
	 11.    Purchase Agreement
	  	As defined in Recital A of this Agreement.
		
	 12.    Purchased Interests
	  	As defined in Recital A of this Agreement.
		
	 13.    Release Date
	  	As defined in Section 5.2 of this Agreement.
		
	 14.    Sellers
	  	As defined in Recital A of this Agreement.
		
	 15.    Services
	  	As defined in Section 2.1 of this Agreement.
		
	 16.    Term
	  	As defined in Section 4.1 of this Agreement.
		
	 17.    Termination Date
	  	As defined in Section 5.2 of this Agreement.

  

			
	Transition Services Agreement	  	Exhibit 1.1 - Page 1

 SCHEDULE 2.1 
 TO 
 TRANSITION SERVICES AGREEMENT 
 Employees 

 SCHEDULE 2.2 
 TO 
 TRANSITION SERVICES AGREEMENT 
 Access 
 These items are included in the Access, but only to the extent necessary to operate the
Business and may only be used by the Employees. 
  

			
	 1.
	  	SOFTWARE SYSTEMS
		
	 1.1.
	  	PGAS – Measurement system
		
	 1.2.
	  	GMS – Gas Management, Logistics and Scheduling system
		
	 1.3.
	  	RAFT – Credit system
		
	 1.4.
	  	Web Methods – Integration Framework that bridges data between Business systems (i.e. Tradeblotter to GMS)
		
	 1.5.
	  	OpenLink – Risk system
		
	 1.6.
	  	Tradeblotter – Trade Capture system - in house
		
	 1.7.
	  	CQG – Software that provides real time interactive information to traders
		
	 1.8.
	  	ICE – Intercontinental Exchange; Trading platform
		
	 1.9.
	  	Newsgrazer – Tool that provides real time news updates
		
	 1.10.
	  	PeopleSoft – A/R, A/P, G/L, Time reporting system
		
	 1.11.
	  	Nova – Expense reporting system
		
	 1.12.
	  	Lotus Notes – Email system
		
	 1.13.
	  	RightFax – Automated faxing software
		
	 1.14.
	  	Documentum – Document storage software
		
	 1.15.
	  	AutoCad, et al – Computer Aided Design / Drafting application
		
	 1.16.
	  	NICE Tape Retrieval – Phone recording retrieval system
		
	 1.17.
	  	Microsoft Project – Project planning software
		
	 1.18.
	  	Microsoft Office Products – Excel, Word, Access

  

			
	Transition Services Agreement	  	Schedule 2.2 - Page 1

			
	 1.19.
	  	Microsoft Windows 2000 server – License for Windows 2000 operating system
		
	 1.20.
	  	MS SQL Server 2000 Standard – License for MS SQL Server 2000 Standard operating system
		
	 1.21.
	  	Visio – Software used for creating diagrams
		
	 1.22.
	  	Visual Studio.Net developer – Programming tool used by developers
		
	 1.23.
	  	Nortel – VPN Communication Client that allows remote connectivity
		
	 1.24.
	  	Fiberlink – Tool that allows remote access
		
	 1.25.
	  	Black Ice – Workstation Anti virus
		
	 1.26.
	  	AIX (IBM Unix) OS – License for IBM AIX operating system
		
	 1.27.
	  	Landesk – Tool used to remote to another’s computer for break fix, training
		
	 1.28.
	  	PLSQL Developer – Developer query tool
		
	 1.29.
	  	EMC – Data Storage System
		
	 1.30.
	  	Microsoft Terminal Server – Applications accessed through terminal emulation
		
	 1.31.
	  	ETRALI – Phone recording system
		
	 1.32.
	  	TSM – Tivoli Storage Management system for tape backups
		
	 1.33.
	  	Oracle – Database licenses
		
	 1.34.
	  	All Microsoft products utilized in the business not listed above
		
	 1.35.
	  	FIS – Financial Interface System – Interface between GMS and PeopleSoft – in house
		
	 1.36.
	  	Docujet – CAD vendor application
		
	 1.37.
	  	Aries – CAD vendor application
		
	 1.38.
	  	PI Dwights Scout Express, et al – CAD vendor applications
		
	 1.39.
	  	ARCview, et al – CAD vendor application
		
	 1.40.
	  	Auto plant – CAD vendor application
		
	 1.41.
	  	CPDM – Engineering application
		
	 1.42.
	  	HTS Compress – Engineering application
		
	 1.43.
	  	MP2 – Engineering application

  

			
	Transition Services Agreement	  	Schedule 2.2 - Page 2

			
	 1.44.
	  	Plan – CAD vendor application
		
	 1.45.
	  	RSTRENG – Engineering application
		
	 1.46.
	  	Winflow Wintran – CAD vendor application
		
	 1.47.
	  	LPG almanac – CAD vendor application
		
	 1.48.
	  	HYSIS – CAD vendor application
		
	 1.49.
	  	PGAS Extract / Filter – Extract file sent to POPS – in house
		
	 1.50.
	  	Custom Invoices – in house
		
	 1.51.
	  	Custom Reports – in house
		
	 1.52.
	  	RTP/Deal Ticker – Real Time Position – in house
		
	 1.53.
	  	Gas Confirms – in house
		
	 1.54.
	  	Nomination Screen – in house
		
	 1.55.
	  	Gas Ops – Scheduling Logging tool – in house
		
	 1.56.
	  	IRIS – Reserve / supply queries – in house
		
	 1.57.
	  	TRRC – Regulatory application – in house
		
	 1.58.
	  	LawPack – Litigation tracking system
		
	 1.59.
	  	BMC – Monitoring
		
	 1.60.
	  	Data and voice communications systems presently used by the HPL Companies
		
	 2.
	  	PERSONAL PROPERTY AND LEASES
		
	 2.1.
	  	All items in Sections 2 and 3 of Schedule 2.3 hereto.

 Term: For each item other than item 1.10 above, the earlier of (a) 100 days after the Closing Date and
(b) the date such item is assigned to Company if such system is listed on Schedule 2.3 hereof. For item 1.10 above, through August 31, 2005; provided, however, that Company may extend such Term through December 31, 2005 upon
Provider’s written consent to such extension, which such consent shall not be unreasonably withheld. 
  

			
	Transition Services Agreement	  	Schedule 2.2 - Page 3

 SCHEDULE 2.3 
 TO 
 TRANSITION SERVICES AGREEMENT 
 Properties 
  

			
	 1.
	  	SOFTWARE LICENSES
		
	 1.1.
	  	PGAS – Measurement system
		
	 1.2.
	  	GMS – Gas Management, Logistics and Scheduling system
		
	 1.3.
	  	Web Methods – Integration Framework that bridges data between Business systems (i.e. Tradeblotter to GMS)
		
	 1.4.
	  	OpenLink – Risk system [may require 120-180 days to assign]
		
	 1.5.
	  	Tradeblotter – Trade Capture system
		
	 1.6.
	  	RightFax – Automated faxing software
		
	 1.7.
	  	Documentum – Document storage software
		
	 1.8.
	  	AutoCad – Computer Aided Design / Drafting application
		
	 1.9.
	  	NICE Tape Retrieval – Phone recording retrieval system
		
	 1.10.
	  	Microsoft Project – Project planning software
		
	 1.11.
	  	Microsoft Office Products – Excel, Word, Access
		
	 1.12.
	  	Microsoft Windows 2000 server – License for Windows 2000 operating system
		
	 1.13.
	  	MS SQL Server 2000 Standard – License for MS SQL Server 2000 Standard operating system
		
	 1.14.
	  	Visio – Software used for creating diagrams
		
	 1.15.
	  	Visual Studio.Net developer – Programming tool used by developers
		
	 1.16.
	  	Adobe Acrobat Writer – Software that converts documents to an unalterable state
		
	 1.17.
	  	Nortel – VPN Communication Client that allows remote connectivity
		
	 1.18.
	  	Fiberlink – Tool that allows remote access
		
	 1.19.
	  	Easy CD creator – Utility that burns CD

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 1

			
	 1.20.
	  	Black Ice – Workstation Anti virus
		
	 1.21.
	  	AIX (IBM Unix) OS – License for IBM AIX operating system
		
	 1.22.
	  	Landesk – Tool used to remote to another’s computer for break fix, training
		
	 1.23.
	  	PLSQL Developer – Developer query tool
		
	 1.24.
	  	EMC – Data Storage System
		
	 1.25.
	  	Microsoft Terminal Server - Applications accessed through terminal emulation
		
	 1.26.
	  	ETRALI – Phone recording system
		
	 1.27.
	  	TSM – Tivoli Storage Management system for tape backups
		
	 1.28.
	  	Oracle – Database licenses
		
	 1.29.
	  	All Microsoft products utilized in the business not listed above
		
	 1.30.
	  	FIS – Financial Interface System – Interface between GMS and PeopleSoft – in house
		
	 1.31.
	  	Docujet – CAD vendor application
		
	 1.32.
	  	Aries – CAD vendor application
		
	 1.33.
	  	PI Dwights Scout Express, et al – CAD vendor applications
		
	 1.34.
	  	ARCview, et al – CAD vendor application
		
	 1.35.
	  	Auto plant – CAD vendor application
		
	 1.36.
	  	CPDM – Engineering application
		
	 1.37.
	  	HTS Compress – Engineering application
		
	 1.38.
	  	MP2 – Engineering application
		
	 1.39.
	  	Plan – CAD vendor application
		
	 1.40.
	  	RSTRENG - Engineering application
		
	 1.41.
	  	Winflow Wintran – CAD vendor application
		
	 1.42.
	  	LPG almanac – CAD vendor application
		
	 1.43.
	  	HYSIS – CAD vendor application
		
	 1.44.
	  	PGAS Extract / Filter – Extract file sent to POPS – in house
		
	 1.45.
	  	Custom Invoices – in house

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 2

			
	 1.46.
	  	Custom Reports – in house
		
	 1.47.
	  	RTP/Deal Ticker – Real Time Position – in house
		
	 1.48.
	  	Gas Confirms – in house
		
	 1.49.
	  	Nomination Screen – in house
		
	 1.50.
	  	Gas Ops – Scheduling Logging tool – in house
		
	 1.51.
	  	IRIS – Reserve / supply queries – in house
		
	 1.52.
	  	TRRC – Regulatory application – in house
		
	 1.53.
	  	LawPack – Litigation tracking system
		
	 1.54.
	  	BMC – Monitoring
		
	 2.
	  	PERSONAL PROPERTY
		
	 2.1.
	  	Furniture in office space in Corpus Christi, Texas
		
	 2.2.
	  	Furniture in office space in Robstown, Texas
		
	 2.3.
	  	Vehicles

  

							
		 	 2.3.1.
	  	2002 Dodge Intrepid	  	VIN: 2B3HD46R02H265909
				
		 	 2.3.2.
	  	2002 Dodge Intrepid	  	VIN: 2B3HD46R92H265908
				
		 	 2.3.3.
	  	1999 Dodge Intrepid	  	VIN: 2B3HD46R5XH766785
				
		 	 2.3.4.
	  	2003 Dodge Durango 1/2 Ton 4X4	  	VIN: 1D8HS38N73F559448
				
		 	 2.3.5.
	  	2003 Ford Taurus	  	VIN: 1FAHP53U63A234366
				
		 	 2.3.6.
	  	2004 Chev 1/2 Ton 4X4	  	VIN: 1GCEK19V84Z290011
				
		 	 2.3.7.
	  	2004 Ford Taurus	  	VIN: 1FAHP53U44A190062
				
		 	 2.3.8.
	  	2003 Dodge Durango 4x4 1/2 Ton	  	VIN: 1D8HS38N33F559446
				
		 	 2.3.9.
	  	2002 Dodge Quad Cab 3/4 ton 2WD	  	VIN: 3B7KC23Z82M258790
				
		 	 2.3.10.
	  	2002 Dodge Quad Cab 3/4 ton 4X4	  	VIN: 3B7KF23732M258090
				
		 	 2.3.11.
	  	2002 Dodge Quad Cab 3/4 ton 4X4	  	VIN: 3B7KF23Z42M258809
				
		 	 2.3.12.
	  	1991 Ford F350 1 1/2 Ton 2WD	  	VIN: 2FDLF47G7MCA07687
				
		 	 2.3.13.
	  	1989 Chev 1T C-3500 2WD	  	VIN: 1GBJR33W3KF302107

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 3

							
		 	 2.3.14.
	  	2000 Dodge 3/4 Ton 2WD	  	VIN: 1B7KC23Z5YJ133154
				
		 	 2.3.15.
	  	1996 Dodge 1500 CC 4x4 1/2 Ton	  	VIN: 3B7HF13Y6TM179705
				
		 	 2.3.16.
	  	2003 Ford 1/2 Ton 4X4	  	VIN: 1FTRX18W13NB12802
				
		 	 2.3.17.
	  	1996 Ford PK 1/2 Ton 2WD	  	VIN: 1FTEX15N9TKA47645
				
		 	 2.3.18.
	  	1999 Dodge RAM 1500 4x2 1/2 Ton	  	VIN: 1B7HC13Y5XJ630621
				
		 	 2.3.19.
	  	2001 Dodge Ram 2500 Quad 4WD 3/4 Ton	  	VIN: 1B7KF23Z11J591366
				
		 	 2.3.20.
	  	2000 Dodge 3/4 Ton C’Cab 4X4	  	VIN: 1B7KF23Z8YJ162770
				
		 	 2.3.21.
	  	1999 Dodge Ram 1500 4x4 1/2 Ton	  	VIN: 3B7HF13Y4XG227027
				
		 	 2.3.22.
	  	1998 Ford Supercab 4x2 1/2 Ton	  	VIN: 1FTZX1762WNA14206
				
		 	 2.3.23.
	  	2002 Dodge 1/2 ton 4X4	  	VIN: 3D7HU18N62G191053
				
		 	 2.3.24.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23Z92M307101
				
		 	 2.3.25.
	  	2002 Dodge Quad Cab 1/2 ton 4X4	  	VIN: 1D7HU18N12J176183
				
		 	 2.3.26.
	  	1999 Dodge Ram 1500 4x2 1/2 Ton	  	VIN: 1B7HC13Z0XJ636254
				
		 	 2.3.27.
	  	2004 Chev 1/2 Ton 4X4	  	VIN: 1GCHK29U44E315049
				
		 	 2.3.28.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23Z72M307100
				
		 	 2.3.29.
	  	2001 Dodge Ram 1500 Quad 4x4 1/2 Ton	  	VIN: 1B7HF13YX1J601176
				
		 	 2.3.30.
	  	2003 Ford 1/2 Ton 4X4	  	VIN: 1FTRX18WX3NB12801
				
		 	 2.3.31.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23Z42M307104
				
		 	 2.3.32.
	  	2003 Ford 1/2 Ton 4X4	  	VIN: 1FTRX18W33NB12803
				
		 	 2.3.33.
	  	2003 Ford 1/2 Ton 4X4	  	VIN: 1FTRX18W73NB12805
				
		 	 2.3.34.
	  	1991 Ford F350 1Ton 2WD	  	VIN: 1FDKP37G7MNA54783
				
		 	 2.3.35.
	  	2002 Dodge Quad Cab 1/2 ton 4X4	  	VIN: 1D7HU18NX2J176182
				
		 	 2.3.36.
	  	2001 Dodge Ram 1500 Quad 2wd 1/2 Ton	  	VIN: 1B7HC13Y41J592936
				
		 	 2.3.37.
	  	2002 Dodge 1/2 ton 4X4	  	VIN: 3D7HU18NX2G191041
				
		 	 2.3.38.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23Z02M307102
				
		 	 2.3.39.
	  	2004 Chev 1/2 Ton 4X4	  	VIN: 1GCEK19V04Z286826

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 4

							
		 	 2.3.40.
	  	2003 Ford 1/2 Ton 4X2	  	VIN: 1FTRX17W73NB12806
				
		 	 2.3.41.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23Z62M307105
				
		 	 2.3.42.
	  	2004 Chev 1/2 Ton 4X4	  	VIN: 1GCEK19V74Z284264
				
		 	 2.3.43.
	  	2004 Chev 1/2 Ton 4X4	  	VIN: 1GCEC19V94Z282027
				
		 	 2.3.44.
	  	1998 Dodge Ram 2500 4x2 3/4 Ton	  	VIN: 2B7JB21ZOXK565994
				
		 	 2.3.45.
	  	2000 Dodge 2500 4x2  3/4 Ton	  	VIN: 1B7KC23Z2YJ158576
				
		 	 2.3.46.
	  	2004 Chev  1/2 Ton 4X4	  	VIN: 1GCEK19V74Z285835
				
		 	 2.3.47.
	  	1999  3/4 Ton Dodge 2WD	  	VIN: 1B7KC23Z5XJ615458
				
		 	 2.3.48.
	  	2002 Dodge Ram PU  3/4 Ton 4X4	  	VIN: 3B7KF23Z22M307103
				
		 	 2.3.49.
	  	2002 Dodge Quad Cab  1/2 ton 4X2	  	VIN: 1D7HA18N82J175587
				
		 	 2.3.50.
	  	2003 Ford  1/2 Ton 4X4	  	VIN: 1FTRX18W53NB12804
				
		 	 2.3.51.
	  	2004 Chev  1/2 Ton 4X4	  	VIN: 1GCEK19V44Z284710
				
		 	 2.3.52.
	  	2001 Dodge  1/2 ton 4x4	  	VIN: 1B7HF13Y81J601175
				
		 	 2.3.53.
	  	2004 Chev 1 Ton 4X4	  	VIN: 1GBJK34264E377781
				
		 	 2.3.54.
	  	2001 Dodge Ram  1/2 Ton 2WD	  	VIN: 3B7HC13Y41G726572
				
		 	 2.3.55.
	  	2003 Ford  3/4 Ton 4X4	  	VIN: 3FTNX21L83MB22726
				
		 	 2.3.56.
	  	2003 Ford  3/4 Ton 4X4	  	VIN: 3FTNX21LX3MB22727
				
		 	 2.3.57.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7KF23Z92M277386
				
		 	 2.3.58.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7KF23Z72M277385
				
		 	 2.3.59.
	  	1999 Dodge  3/4 Ton C’Cab 4X4	  	VIN: 1B7KF23Z8XJ610925
				
		 	 2.3.60.
	  	2002 Dodge Ram PU  3/4 Ton 4X4	  	VIN: 3B7KF23Z52M307113
				
		 	 2.3.61.
	  	2004 Chev  1/2 Ton 4X2	  	VIN: 1GCEK19V14Z287354
				
		 	 2.3.62.
	  	1996 Ford  3/4 Ton 4X4 S’Cab	  	VIN: 1FTHX26H5TEB80493
				
		 	 2.3.63.
	  	2004 Chev  1/2 Ton 4X4	  	VIN: 1GCEK19V54Z286613
				
		 	 2.3.64.
	  	2004 Chev  1/2 Ton 4X4	  	VIN: 1GECK19VX4Z266339
				
		 	 2.3.65.
	  	2004 Ford  3/4 Ton 4X4 S’Cab	  	VIN: 3FTNX21L04MA05109

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 5

							
		 	 2.3.66.
	  	2002 Dodge Ram PU  3/4 Ton 4X4	  	VIN: 3B7KF23Z12M307108
				
		 	 2.3.67.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7KF23ZX2M245529
				
		 	 2.3.68.
	  	2002 Dodge Quad Cab  1/2 ton 4X2	  	VIN: 1D7HA18N92J204255
				
		 	 2.3.69.
	  	2001 Dodge Ram 1500 Quad 2wd  1/2 Ton	  	VIN: 1B7HC13Y61J592937
				
		 	 2.3.70.
	  	2003 Ford  3/4 Ton 4X2	  	VIN: 3FTNX20LMB22884
				
		 	 2.3.71.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7JF23Z12M245533
				
		 	 2.3.72.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7KF23ZXZM245532
				
		 	 2.3.73.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7KF23Z62M245530
				
		 	 2.3.74.
	  	1998 Chevy  3/4 Ton X’Cab 4x4	  	VIN: 1GCGK29R1WE255709
				
		 	 2.3.75.
	  	2002 Dodge Quad Cab  3/4 ton 4X4	  	VIN: 3B7KF23Z82M245531
				
		 	 2.3.76.
	  	2004 Chev  3/4 Ton 4X4	  	VIN: 1GCHK29U24E276204
				
		 	 2.3.77.
	  	2003 Ford  3/4 Ton 4X4	  	VIN: 3FTNX21L63MB22885
				
		 	 2.3.78.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23ZX2M307107
				
		 	 2.3.79.
	  	2002 Dodge Ram PU 3/4 Ton 4X4	  	VIN: 3B7KF23Z82M307106
				
		 	 2.3.80.
	  	2001 Dodge Ram 1500 Quad 2wd 1/2 Ton	  	VIN: 1B7HC13Y81J592938
				
		 	 2.3.81.
	  	1998 Chevy Lumina	  	VIN: 2G1WL52M7W9297483
				
		 	 2.3.82.
	  	1998 Dodge Intrepid	  	VIN: 2B3HD46R8WH219573
				
		 	 2.3.83.
	  	2004 Ford Taurus	  	VIN: 1FAHP53U24A190061
				
		 	 2.3.84.
	  	2004 Ford Taurus	  	1FAHP53U64A190063
				
		 	 2.3.85.
	  	1998 Dodge Intrepid	  	VIN: 2B3HD46R5WH186290
				
		 	 2.3.86.
	  	2002 Dodge Ram PU  3/4 Ton 4X4	  	VIN: 3B7KF23Z42M307099
				
		 	 2.3.87.
	  	2004 Ford F350 1 Ton 4X4	  	VIN: 1FTWX33P14EC78978
				
		 	 2.3.88.
	  	2003 Dodge Durango 4X4  1/2 Ton	  	VIN: 1D8HS38N53F559447
				
		 	 2.3.89.
	  	1999 Ford Explorer  1/2 Ton	  	VIN: 1FMZU34X2XZA89978
				
		 	 2.3.90.
	  	1997 Ford (3/4 ton) 2WD	  	VIN: 1FTEX27L8VKC65757
				
		 	 2.3.91.
	  	1998 Dodge 2500 Ext Cab Long Bed  3/4 ton 2WD	  	VIN: 3B7KC22Z4WG163486

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 6

							
		 	 2.3.92.
	  	2004 Chev  3/4 Ton	  	VIN: 1GCHC29284E333632
				
		 	 2.3.93.
	  	2002 Dodge Ram PU 1 Ton 4X4	  	VIN: 3B7MF33632M307843
				
		 	 2.3.94.
	  	1999 Dodge 1 Ton w/ welding 2WD	  	VIN: 1B7MC3356XJ574592
				
		 	 2.3.95.
	  	2004 Ford F350 1 Ton 4X4	  	VIN: 1FTWX33PX4EC78977

  

	 	2.4.	Equipment 

  

					
		 	 2.4.1.
	  	911289 Big Tex 22
			
		 	 2.4.2.
	  	911306 Texas Brag
			
		 	 2.4.3.
	  	930346 2003 Perki
			
		 	 2.4.4.
	  	950577 2001 TCM d
			
		 	 2.4.5.
	  	950601 Tailift FD
			
		 	 2.4.6.
	  	960119 Caterpilla
			
		 	 2.4.7.
	  	960120 New Hollan
			
		 	 2.4.8.
	  	960121 2003 JOHN
			
		 	 2.4.9.
	  	980236 2002 POLAR
			
		 	 2.4.10.
	  	980237 2002 HONDA
			
		 	 2.4.11.
	  	980238 2002 HONDA
			
		 	 2.4.12.
	  	980269 New Hollan
			
		 	 2.4.13.
	  	980270 21 HP 48 i
			
		 	 2.4.14.
	  	980271 2003 SCAG
			
		 	 2.4.15.
	  	980284 Scag CTC48
			
		 	 2.4.16.
	  	980285 Kubota M90
			
		 	 2.4.17.
	  	980286 2004 Kawas
			
		 	 2.4.18.
	  	980294 2005 Rhino

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 7

			
	 3.
	 	 LEASES TO BE ASSIGNED

		
	 3.1.
	 	Lease for 11th Floor office space at 1201 Louisiana, Houston, Texas (to the extent such lease is not assigned prior to the Closing Date)
		
	 3.2.
	 	Sublease for 12th Floor office space at 1201 Louisiana, Houston, Texas (to the extent such sublease is not assigned prior to the Closing Date)
		
	 3.3.
	 	Lease for office space in Corpus Christi, Texas (to the extent such lease is not assigned prior to the Closing Date)
		
	 3.4.
	 	Lease for office space in Longview, Texas (to the extent such lease is not assigned prior to the Closing Date)
		
	 3.5.
	 	Lease for office space in Freer, Texas (to the extent such lease is not assigned prior to the Closing Date)
		
	 3.6.
	 	Lease for office space in Falfurrias, Texas (to the extent such lease is not assigned prior to the Closing Date)

  

			
	Transition Services Agreement	  	Schedule 2.3 - Page 8

 EXHIBIT 2.4.1(G) 
 FORM OF SELLERS’ LIMITED GUARANTY 
 SELLERS’ LIMITED GUARANTY 
 This Limited Guaranty (this “Guaranty”), dated as of January 26, 2005 (the “Effective Date”), is given by
American Electric Power Company, Inc., a New York corporation (“Guarantor”), in favor of La Grange Acquisition, L.P., a Texas limited partnership (“Buyer”) and the other Beneficiaries (as defined herein), and
executed and delivered in connection with (i) the Purchase and Sale Agreement dated as of the date hereof (hereinafter referred to as the “Purchase Agreement”) by and among HPL Storage LP, a Delaware limited partnership, and
AEP Energy Services Gas Holding Company II, L.L.C., a Delaware limited liability company, (each an “Obligor” and collectively the “Obligors”), as sellers, and Buyer, as buyer, and (ii) the Cushion Gas
Litigation Agreement dated as of the date hereof (hereinafter referred to as the “Cushion Gas Litigation Agreement”) by and among Obligors, Buyer, and AEP Asset Holdings LP, a Delaware limited partnership, AEP Leaseco LP, a Delaware
limited partnership, Houston Pipe Line Company LP, a Delaware limited partnership, and HPL Resources Company LP, a Delaware limited partnership (the latter four entities collectively referred to as the “HPL Companies”). The Purchase
Agreement and the Cushion Gas Litigation Agreement are collectively referred to herein as the “Guaranteed Agreements”. 
 RECITALS 
  

	A.	Buyer and Obligors are entering into the Purchase Agreement providing for the acquisition by Buyer of the Purchased Interests (as defined in the Purchase Agreement).

  

	B.	Buyer, Obligors, and the HPL Companies are entering into the Cushion Gas Litigation Agreement in connection with the Purchase Agreement. 

  

	C.	Obligors are direct or indirect wholly-owned subsidiaries of Guarantor, and Guarantor has agreed to provide this guaranty of Obligors’ obligations under the Guaranteed
Agreements as a material inducement to Buyer to execute and deliver the Guaranteed Agreements and to consummate the transactions contemplated thereby. 

 NOW, THEREFORE, in consideration of the mutual covenants set forth in the Guaranteed Agreements, Guarantor hereby agrees as follows: 
  

	1.	GUARANTY 

  

	1.1.	 Subject to the limitations contained herein, Guarantor hereby irrevocably, absolutely, and unconditionally guarantees to each Beneficiary and to its successors and
permitted assigns the full, prompt, and faithful payment of the Guaranteed Obligations due to such Beneficiary (including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11
U.S.C. § 362(a)) and without regard to any Applicable Law that would affect any of the rights of such Beneficiary to such payment. Upon any failure by any Obligor to pay Guaranteed Obligations, and upon the declaration of default by the
affected Beneficiary or Beneficiaries, Guarantor agrees that it will upon a written demand signed by a duly authorized officer of such Beneficiary or Beneficiaries certifying that such Obligor has 

  

			
	Sellers’ Limited Guaranty	  	

	 	 
failed to pay a Guaranteed Obligation, pay such Guaranteed Obligation to such Beneficiary or Beneficiaries. Subject to the limitations contained herein,
Guarantor hereby irrevocably and unconditionally covenants and agrees that it is liable for the Guaranteed Obligations as primary obligor, and that this Guaranty is a guaranty of payment and not of collection. Guarantor agrees that a separate action
or actions may be brought and prosecuted against Guarantor for any of the Guaranteed Obligations not otherwise paid by Obligors, whether action is brought against any Obligor or whether any Obligor is joined in any such action or actions (Guarantor
hereby waiving any right to require Beneficiary to first proceed against any Obligor). 

 Guarantor agrees that, subject to
Applicable Law, in the event of the dissolution or Bankruptcy of an Obligor or Guarantor, if such event shall occur at a time when any of the Guaranteed Obligations may not then be due and payable, Guarantor will pay each Beneficiary forthwith the
full amount which would be payable by the dissolved or bankrupt Obligor or Guarantor if all such Guaranteed Obligations to such Beneficiary were then due and payable. In case either of the Guaranteed Agreements shall be terminated as a result of the
rejection thereof by any trustee, receiver or liquidating agent of an Obligor or any of its properties in any Bankruptcy, insolvency, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar proceeding,
Guarantor’s obligations hereunder shall continue to the same extent as if such Guaranteed Agreement had not been so rejected. Guarantor agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, if at any
time payment to any Beneficiary of any Guaranteed Obligation or any part thereof is rescinded or must otherwise be returned upon the Bankruptcy of an Obligor, or otherwise, as though such payment to the Guaranty beneficiary had not been made.

 Notwithstanding anything contained herein to the contrary, Guarantor reserves the right to assert limitations of damages (including
thresholds and caps on recoveries, disclaimers of consequential, punitive, or exemplary damages, and limitations on the survival of representations and covenants or otherwise of the time within which claims may be asserted) which an Obligor may have
under the Guaranteed Agreements with respect to liability for payment of the Guaranteed Obligations other than defenses arising from the Bankruptcy, insolvency or similar proceeding of an Obligor and other defenses expressly waived hereby.

 Guarantor waives any rights against Obligors that arise from the existence, payment, performance, or enforcement of Guarantor’s
obligations under this Guaranty or the Guaranteed Agreements, including any right of subrogation, reimbursement, exoneration, contribution, or indemnification and any right to participate in any claim or remedy of any Beneficiary against Obligors,
until such time as all Guaranteed Obligations are fully and indefeasibly paid or discharged and the payment of all other obligations of Obligors owing to each Beneficiary under the Guaranteed Agreements shall have been indefeasibly paid in full or
discharged. If any amount shall be paid to Guarantor in violation of the preceding sentence at any time prior to the payment in full in cash of the Guaranteed Obligations, such amount shall be held in trust for the benefit of the affected
Beneficiary and shall forthwith be paid to such Beneficiary in accordance with the terms of the applicable Guaranteed Agreement or held as 

  

			
	Sellers’ Limited Guaranty	  	Page 2

 
collateral for any unsatisfied Guaranteed Obligations thereafter arising. Upon the full and indefeasible payment of all the Guaranteed Obligations, Guarantor
shall be subrogated to the rights of all Beneficiaries against Obligors and each Beneficiary will, at Guarantor’s request and expense, execute and deliver to Guarantor in a timely manner appropriate documents (without recourse and without
representation and warranty) to implement such subrogation. 
  

	1.2.	Any other provision of this Guaranty to the contrary notwithstanding, (i) the aggregate liability of Guarantor under this Guaranty for all Guaranteed Obligations shall not
exceed the Purchase Price as defined in and determined under the Purchase Agreement, and (ii) Guarantor shall have no obligation under this Guaranty with respect to any Guaranteed Obligation unless Guarantor receives a written demand of payment
under this Guaranty from the affected Beneficiary, describing such Guaranteed Obligations in reasonable detail, no later than the later to occur of (x) the eighth anniversary of the Effective Date or (y) the satisfaction of Sellers’
obligations under Section 4 or 5.2 of the Cushion Gas Litigation Agreement, as applicable. 

  

	2.	DEFINITIONS; RULES OF CONSTRUCTION 

  

	2.1.	As used in this Guaranty, terms defined in Exhibit 2.1 have the meanings set forth therein, and capitalized terms used herein or in Exhibit 2.1 not otherwise defined
herein or in Exhibit 2.1 shall have the meanings set forth in the Purchase Agreement. 

  

	2.2.	Rules of Construction. 

 Unless the context of this
Guaranty requires otherwise, the plural includes the singular, the singular includes the plural, and “including” has the inclusive meaning of “including without limitation.” The words “hereof,” “herein,”
“hereby,” “hereunder” and other similar terms of this Guaranty refer to this Guaranty as a whole and not exclusively to any particular provision of this Guaranty. All pronouns and any variations thereof will be deemed to refer to
masculine, feminine or neuter, singular or plural, as the identity of the Person or Persons may require. Unless otherwise expressly provided, any agreement, instrument or Applicable Law defined or referred to herein means such agreement or
instrument or Applicable Law as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of Applicable Law) by succession of comparable successor law and includes
(in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein. 
  

	3.	EVENTS NOT DISCHARGING GUARANTOR’S OBLIGATIONS 

 Guarantor hereby authorizes each Beneficiary, without notice and without affecting Guarantor’s liability hereunder, from time to time to: (a) renew, compromise, extend, accelerate, or otherwise change the terms of any Guaranteed
Obligation with the agreement of the Obligor thereunder or otherwise in accordance with the terms thereof; (b) enter into agreements with Obligors that settle, compromise, release, discharge, accept or refuse any offer of performance with
respect to, or substitutions 

  

			
	Sellers’ Limited Guaranty	  	Page 3

 
for, the Guaranteed Obligations; (c) request and accept other guarantees of the Guaranteed Obligations; (d) take, hold, waive, release, exchange,
compromise, subordinate, or modify, with or without consideration, any security for payment or performance of any Guaranteed Obligation, any other guarantees of any Guaranteed Obligation, or any other obligation of any Person with respect to any
Guaranteed Obligation; (e) enforce and apply such security and direct the order or manner of sale thereof as such Beneficiary in its discretion may determine; (f) delay in pursuing or decline to pursue rights or remedies against any
Obligor, Guarantor, or any other obligor in respect of the Guaranteed Obligations and (g) act or fail to act in any manner referred to in this Guaranty which may deprive Guarantor of its rights of subrogation (if any) against any Obligor to
recover full indemnity for any payments made pursuant to this Guaranty or of its right of contribution against any other party. 
 At any time
and from time to time, without terminating, affecting or impairing the validity of this Guaranty or the obligations of Guarantor hereunder, any Beneficiary may deal with any Obligor in the same manner and as fully and as if this Guaranty did not
exist and shall be entitled, among other things, to grant to any Obligor, without notice or demand and without affecting Guarantor’s liability hereunder, such extension or extensions of time to perform, renew, compromise, accelerate or
otherwise change the time for performance of the Guaranteed Agreements or otherwise change the terms of payment of any Guaranteed Obligation, or to waive any obligation of an Obligor to perform any act or acts as such Beneficiary may deem advisable.

  

	4.	ADDITIONAL WAIVERS 

 Any Beneficiary may resort to
Guarantor for payment of any of the Guaranteed Obligations, whether or not such Beneficiary shall have resorted to any collateral security or shall have proceeded against any other obligor principally or secondarily obligated with respect to any of
the Guaranteed Obligations. To the extent permitted by Applicable Law, and except as otherwise provided in the Cushion Gas Litigation Agreement, Guarantor hereby unconditionally and irrevocably waives and relinquishes all rights and remedies
accorded by Applicable Law to sureties or guarantors and agrees not to assert or take advantage of any such rights or remedies, including: 
  

	4.1.	any defense that may arise by reason of the incapacity or lack of authority of any Obligor, or which results from any disability of any Obligor or the cessation or stay of
enforcement from any cause related to such defenses against the liability of any Obligor; 

  

	4.2.	any defense based upon a statute or rule of law which provides that the obligations of a surety must be neither larger in amount nor in other respects more burdensome than those of
the principal; 

  

	4.3.	any duty on the part of any Beneficiary to disclose to Guarantor any facts that such Beneficiary may now or hereafter know about any Obligor, including the financial condition of
any Obligor or any other guarantor of the Guaranteed Obligations, or any change therein, or any other circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations; 

  

			
	Sellers’ Limited Guaranty	  	Page 4

	4.4.	except to the extent Guarantor has subordinated such rights to any Beneficiary, any right to subrogation, reimbursement, exoneration, or contribution or any other rights that would
result in Guarantor being deemed a creditor of any Obligor under the United States Bankruptcy Code or any other law, in each case arising from the existence or payment of any of the Guaranteed Obligations; 

  

	4.5.	any right to require any Beneficiary, as a condition of payment by Guarantor, to pursue any other remedy in the power of such Beneficiary to proceed against or exhaust any security
held by such Beneficiary; 

  

	4.6.	any circumstance that constitutes a legal or equitable discharge of a guarantor or surety, other than indefeasible payment of the Guaranteed Obligations; 

 

	4.7.	except as provided herein, notices, demands, presentments, protests, notices of protest, notices of dishonor, and notices of any action or inaction, including acceptance of this
Guaranty, notices of default under the Guaranteed Agreements, notices of any renewal, extension or modification of the Guaranteed Obligations or any agreement related thereto; 

  

	4.8.	any principles or provisions of law, statutory or otherwise, that are or might be in conflict with the terms of this Guaranty and any legal or equitable discharge of any of the
Guaranteed Obligations hereunder; 

  

	4.9.	any defense based on any offset against any amounts which may be owed by any Beneficiary or any Obligor to Guarantor for any reason whatsoever, or any defense, setoff, deduction,
abatement, suspension, deferment, diminution, recoupment, limitation, termination, or counterclaim which may at any time be available to or asserted by an Obligor against any Beneficiary under the Guaranteed Agreements (other than defense of payment
of the applicable amounts); and 

  

	4.10.  	any defense based upon the lack of validity or enforceability of the Guaranteed Agreements or any agreement or instrument relating thereto. 

  

	5.	REPRESENTATIONS AND WARRANTIES 

 Guarantor
represents and warrants to each Beneficiary as follows: 
  

	5.1.	Guarantor is a corporation, duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization, with full corporate power and authority to
conduct its business as it is now being conducted, to own or use the properties and assets that it purports to own or use, and to perform all of its obligations under this Guaranty. The execution, delivery, and performance of this Guaranty, and the
consummation of the transactions contemplated hereby, have been duly and validly authorized by all necessary corporate action required on the part of Guarantor, and no other corporate proceedings on the part of Guarantor are necessary to authorize
this Guaranty or to consummate the transactions contemplated hereby. 

  

			
	Sellers’ Limited Guaranty	  	Page 5

	5.2.	This Guaranty constitutes the valid and legally binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms, except as such enforceability may be
limited by General Exceptions to Enforceability. 

  

	5.3.	Neither the execution and delivery of this Guaranty, nor compliance with any provision hereof, nor the consummation of the transactions contemplated hereby will:

  

	 	5.3.1.  	violate, conflict with, or result in a breach of any provisions of the Governing Documents of Guarantor; 

  

	 	5.3.2.  	breach any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or payment under, or to
cancel, terminate or modify, any indenture, mortgage, lease, note, or other material contract or other instrument to which Guarantor is a party or by which its properties may be bound, except for such breaches, defaults (or rights of termination or
acceleration or other remedy) as to which requisite waivers or consents have been obtained or which would not, individually or in the aggregate, materially impair Guarantor’s authority, right or ability to perform its obligations under this
Guaranty; 

  

	 	5.3.3.  	violate any Applicable Law to which Guarantor is subject, except where such violations, individually or in the aggregate, would not materially impair Guarantor’s authority,
right or ability to perform its obligations under this Guaranty; or 

  

	 	5.3.4.  	require consent or approval of, filing with, or notice to any Person which, if not obtained, would prevent Guarantor from performing its obligations hereunder.

  

	5.4.	There are no bankruptcy, reorganization, or arrangement proceedings pending against, being contemplated by, or, to the knowledge of Guarantor, threatened against Guarantor.

  

	5.5.	As of the date hereof and after giving effect to the contingent obligations hereunder, Guarantor is solvent. 

  

	6.	NO IMPAIRMENT 

 Guarantor agrees and covenants that
it will not take any action that will impair Obligors’ ability to pay their respective obligations under the Guaranteed Obligations when due. 
  

			
	Sellers’ Limited Guaranty	  	Page 6

	7.	ASSIGNABILITY 

 This Guaranty is not assignable or
transferable by Guarantor or any Beneficiary without the prior written consent of Guarantor (in the case of an assignment by any Beneficiary) or of Buyer (in the case of an assignment by Guarantor). 
  

	8.	NOTICES 

 Any notice that is required or permitted
under this Guaranty may be given by personal delivery to the party entitled thereto, by facsimile transmission, by any courier service which guarantees overnight, receipted delivery, or by U.S. Certified or Registered Mail, return receipt requested,
addressed to the party entitled thereto, at: 
  

			
	 If to any Beneficiary:
	  	[Name of Beneficiary]
		  	c/o La Grange Acquisition, L.P.
		  	Attention: Clay Kutch
		  	2838 Woodside Street
		  	Dallas, Texas 75204
		  	Facsimile No.: 214-981-0703
		
	 With copy to:
	  	Energy Transfer Partners, L.P.
		  	Attention: Robert A. Burk
		  	8801 S. Yale, Suite 310
		  	Tulsa, Oklahoma 74137
		  	Facsimile No.: 918-493-7290
		
	 If to Guarantor:
	  	American Electric Power Company, Inc.
		  	Attention: Chief Financial Officer
		  	1 Riverside Plaza
		  	Columbus, Ohio 43215
		  	Facsimile No.: 614-716-1603
		
	 With copy to:
	  	American Electric Power Company, Inc.
		  	Attention: General Counsel
		  	1 Riverside Plaza
		  	Columbus, Ohio 43215
		  	Facsimile No.: 614-716-1603

 Any notices will be sent to the address or facsimile number when permitted, as specified in this
Guaranty or at such other address or facsimile number for a party as it may specify in writing to the other parties from time to time. Any notice properly given to the proper address will be deemed to have been given when dispatched. 
  

			
	Sellers’ Limited Guaranty	  	Page 7

	9.	OTHER PROVISIONS 

  

	9.1.	Rights Cumulative. The rights, powers and remedies given to Beneficiaries by this Guaranty are cumulative and shall be in addition to and independent of all rights, powers
and remedies given to Beneficiaries by virtue of any statute or rule of law or in the Guaranteed Agreements. Any forbearance or failure to exercise, and any delay by any Beneficiary in exercising, any right, power or remedy hereunder shall not
impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such right, power or remedy. 

  

	9.2.	Enforceability. In case any provision in this Guaranty is alleged to conflict with another provision of this Guaranty, such conflict shall be resolved in favor of the
provisions which impose the greater liability upon Guarantor, it being the intent of Guarantor that its obligations hereunder are absolute and unconditional, except as limited herein. 

  

	9.3.	Termination. Except as limited by the provision of Section 1.2 hereof, all obligations of Guarantor under this Guaranty shall continue in full force and effect until the
date the Guaranteed Obligations shall have been fully paid or otherwise extinguished, at which time this Guaranty and all obligations of this Guaranty shall terminate and expire. 

  

	9.4.	Interest on Overdue Amounts. Any amount due to any Beneficiary under this Guaranty will earn interest accruing daily from the due date thereof until paid at the Borrowing
Rate. 

  

	9.5.	Amendment. No amendment to this Guaranty will be valid or binding unless and until reduced to writing and executed by each party’s authorized representative.

  

	9.6.	Merger and Integration; Binding on Successors; No Third Party Beneficiaries. This Guaranty and the Guaranteed Agreements set out the entire understanding of the parties with
respect to the matters purportedly covered and supercede all prior communications, agreements and understandings, whether written or oral, concerning such matters. The terms and conditions of this Guaranty will inure to the benefit of and be binding
upon the respective permitted successors and assigns of the parties. Nothing in this Guaranty, express or implied, is intended to confer upon any third party any rights, remedies, obligations, or liabilities under or by reason of this Guaranty,
except as expressly provided in this Guaranty or in either Guaranteed Agreement. 

  

	9.7.	Forbearance and Waiver. Except where a specific time period is provided hereunder for the exercise of a right or remedy, any party’s forbearance in the exercise or
enforcement of any right or remedy under this Guaranty will not constitute a waiver thereof, and a waiver under one circumstance will not constitute a waiver under any other circumstance. 

  

	9.8.	Partial Invalidity. Any invalidity, illegality or unenforceability of any provision of this Guaranty in any jurisdiction will not invalidate or render illegal or
unenforceable the remaining provisions hereof in such jurisdiction and will not invalidate or render illegal or unenforceable such provision in any other jurisdiction. 

  

			
	Sellers’ Limited Guaranty	  	Page 8

	9.9.	Attorney’s Fees. In the event of any suit, action, or arbitration proceedings (whether based on contract, tort, or any other theory of liability) to enforce any
provision of this Guaranty, to recover damages for a breach hereof, or to secure or preserve the rights of any party against any other party to any property which is the subject of this Guaranty, the prevailing party will be entitled to recover
reasonable attorney fees (other than fees computed on a contingency fee basis), court costs and expenses of arbitration and litigation expended in the prosecution or defense thereof. 

  

	9.10.  	Governing Law; Jurisdiction and Venue. THE INTERPRETATION AND CONSTRUCTION OF
THIS GUARANTY AND THE RIGHTS OF THE PARTIES HEREUNDER WILL BE
INTERPRETED, CONSTRUED, AND GOVERNED BY THE LAWS OF THE STATE OF NEW
YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES. EACH PARTY
HERETO HEREBY IRREVOCABLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE
JURISDICTION OF THE COURTS OF SUCH JURISDICTION IN ANY ACTION, SUIT,
OR PROCEEDING BROUGHT AGAINST IT RELATED TO OR IN CONNECTION WITH
THIS GUARANTY OR THE TRANSACTIONS CONTEMPLATED HEREBY, AND TO THE EXTENT
PERMITTED BY APPLICABLE LAW (AND ASSUMING EFFECTIVE SERVICE OF PROCESS), EACH
PARTY HERETO HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF
MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION, OR
PROCEEDING, ANY CLAIM THAT IT IS NOT PERSONALLY SUBJECT TO THE
JURISDICTION OF SUCH COURT, THAT THE SUIT, ACTION, OR PROCEEDING IS
BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION,
OR PROCEEDING IS IMPROPER, OR THAT THIS GUARANTY OR ANY DOCUMENT OR
INSTRUMENT REFERRED TO HEREIN OR THE SUBJECT MATTER HEREOF MAY NOT BE
LITIGATED IN OR BY SUCH COURT. EACH PARTY HERETO AGREES THAT SERVICE
OF PROCESS MAY BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL
TO THE ADDRESS FOR ADMINISTRATIVE NOTICE SET FORTH HEREIN OR ANY
OTHER METHOD AUTHORIZED BY THE LAWS OF NEW YORK. 

  

	9.11.  	Waiver of Right to Jury Trial. To the fullest extent permitted by law, and as separately bargained-for-consideration, each party hereby waives any right to trial by jury in
any action, suit, proceeding, or counterclaim of any kind arising out of or relating to this Guaranty. 

  

	9.12.  	Construction. This Guaranty was prepared jointly by the parties, and no rule that it be construed against the drafter will have any application in its construction or
interpretation. 

  

	9.13.  	Multiple Counterparts. 

 This Guaranty may be
executed by the parties in multiple original counterparts, and each such counterpart will constitute an original hereof. 
  

			
	Sellers’ Limited Guaranty	  	Page 9

	9.14.  	Headings. 

 The headings used in this Guaranty have
been inserted for convenience and do not define or limit the provisions hereof. 
 [The remainder of this page is intentionally left blank.

 The next page of this document is S-1] 
  

			
	Sellers’ Limited Guaranty	  	Page 10

 IN WITNESS WHEREOF, Guarantor has executed this Guaranty as of the date first set forth above.

  

			
	American Electric Power Company, Inc.
		
	By:	 	 
	 Name:
	 	 Michael G. Morris

	 Title:
	 	Chairman, President and Chief Executive Officer

  

			
	Sellers’ Limited Guaranty	  	Page S-1

 EXHIBIT 2.1 
 DEFINITIONS 
 Terms defined in this Exhibit 2.1 will have the meanings set forth in this Exhibit. 

 

			
	 TERM
	  	 DEFINITION

		
	 1.      Bankruptcy
	  	With respect to any Person, a Voluntary Bankruptcy or an Involuntary Bankruptcy. A “Voluntary Bankruptcy” means, with respect to any Person, (i)(a) the inability of such
Person generally to pay its debts as such debts become due, (b) the failure of such Person generally to pay its debts as such debts become due or (c) an admission in writing by such Person of its inability to pay its debts generally or a general
assignment by such Person for the benefit of creditors; (ii) the filing of any petition or answer by such Person seeking to adjudicate it a bankrupt or insolvent, or seeking for itself any liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of such Person or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking, consenting to, or acquiescing in the entry of an order for relief or the
appointment of a receiver, trustee, custodian or other similar official for such Person or for any substantial part of its property; or (iii) corporate action taken by such Person to authorize any of the actions set forth above. An
“Involuntary Bankruptcy” means, with respect to any Person, without the consent or acquiescence of such Person, the entering of an order for relief or approving a petition for relief or reorganization or any other petition seeking
any reorganization, arrangement, composition, readjustment, liquidation, dissolution or other similar relief under any present or future bankruptcy, insolvency, or similar statute, law or regulation, or the filing of any such petition against such
Person which petition shall not be dismissed or stayed within sixty (60) days, or, without the consent or acquiescence of such Person, the entering of an order appointing a trustee, custodian, receiver or liquidator of such Person or of all or any
substantial part of the property of such Person which order shall not be dismissed or stayed within sixty (60) days.
		
	 2.      Beneficiaries
	  	Buyer and each of the HPL Companies to the extent that any of the same is or may become entitled to payment of any amount under any of the Guaranteed Obligations.

  

			
	Sellers’ Limited Guaranty, Exhibit 2.1	  	Page 1

			
	 3.      Cushion Gas Litigation Agreement
	  	As defined in the first paragraph of the Guaranty.
		
	 4.      Effective Date
	  	As defined in the first paragraph of the Guaranty.
		
	 5.      Guaranteed Agreements
	  	As defined in the first paragraph of the Guaranty.
		
	 6.      Guaranteed Obligation
	  	Each obligation of each Obligor to pay money under the Guaranteed Agreements, including any obligation to pay damages and amounts in the nature of indemnification.
		
	 7.      Guarantor
	  	As defined in the first paragraph of the Guaranty.
		
	 8.      Guaranty
	  	As defined in the first paragraph of the Guaranty.
		
	 9.      Obligor
	  	As defined in the first paragraph of the Guaranty.
		
	 10.    Purchase Agreement
	  	As defined in the first paragraph of the Guaranty.

  

			
	Sellers’ Limited Guaranty, Exhibit 2.1	  	Page 2

 EXHIBIT 2.4.2(H) 
 FORM OF BUYER’S LIMITED GUARANTY 
 CORPORATE GUARANTY 
 TO: HPL Storage LP, a Delaware limited partnership, and AEP Energy Services Holding Company II, L.L.C., a Delaware limited liability company (each a
“Beneficiary” and together with their affiliates, “Beneficiaries”). 
 FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency
of which are hereby acknowledged, and to induce Beneficiaries to do business with La Grange Acquisition, L.P., a Texas limited partnership (“Debtor”), the undersigned, Energy Transfer Partners, L.P. , a Delaware limited
partnership (“Guarantor”), hereby irrevocably, unconditionally, and absolutely guarantees to each of Beneficiaries and their successors and permitted assigns the full and prompt payment of any Damages (as such term and all other
capitalized terms used herein which are not otherwise defined shall be defined in the Purchase and Sale Agreement, dated as of the date hereof (hereinafter referred to as the “Purchase Agreement”), by and among the named Beneficiaries, as
sellers, and Debtor) incurred by Beneficiaries and resulting from or arising out of Debtor’s failure to perform its covenants and obligations under Section 5.6 of the Purchase Agreement with regard to substitutions of credit support in
accordance therewith (collectively, the “Obligations”), including amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a). GUARANTOR’S
OBLIGATION UNDER THIS CORPORATE GUARANTY (“GUARANTY”) IS A GUARANTY OF PAYMENT AND NOT OF COLLECTION. SHOULD ANY PRESENT OR FUTURE OBLIGATIONS INCURRED BY DEBTOR NOT BE PAID WHEN DUE, BENEFICIARY MAY PROCEED AGAINST GUARANTOR FOR SUCH
OBLIGATIONS AT ANY TIME, WITHOUT ANY PROCEEDING OR ACTION AGAINST DEBTOR. 
 Guarantor agrees that, subject to Applicable Law, in the event of the
dissolution or Bankruptcy of Debtor or Guarantor, if such event shall occur at a time when any of the Obligations may not then be due and payable, Guarantor will pay each Beneficiary forthwith the full amount which would be payable by the dissolved
or bankrupt Debtor or Guarantor if all such Obligations to such Beneficiary were then due and payable. In case the Purchase Agreement shall be terminated as a result of the rejection thereof by any trustee, receiver or liquidating agent of Debtor or
any of its properties in any Bankruptcy, insolvency, reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar proceeding, Guarantor’s obligations hereunder shall continue to the same extent as if the Purchase
Agreement had not been so rejected. Guarantor agrees that this Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time payment to Beneficiaries of any Obligation or any part thereof is rescinded or must otherwise
be returned upon the Bankruptcy of Debtor, or otherwise, as though such payment to the Guaranty beneficiary had not been made. 
 Guarantor hereby waives
notice of acceptance of this Guaranty, of the creation or existence of any of the guaranteed Obligations and of any action by Beneficiaries in reliance hereon or in connection herewith, notice of the transactions between Beneficiaries and Debtor,
notice of the execution and delivery, amendment, extension, renewal, assignment or assumption of any present or future instrument pertaining to Obligations, diligence, presentment, demand for payment, protest, notice of default by Debtor, and any
other notice not expressly required by this Guaranty. Guarantor further consents, without further notice, to any extension or extensions of 

 
the time or times of payment of said Obligations, or any portion thereof, to any change in form or amount, or renewal at any time, of such Obligations, or
any portion thereof and to any assignment or assumption of such Obligations or any portion thereof. 
 Guarantor’s obligations hereunder with respect to
the Obligations shall not be affected by the existence, validity, enforceability, perfection or extent of any collateral for such Obligations covered hereunder, nor by any extension, or the acceptance of any sum or sums on account of Debtor, or of
any note or draft of Debtor and/or any third party, or security from Debtor. Beneficiaries shall not be obligated to file any claim relating to the Obligations owing to it in the event that Debtor becomes subject to bankruptcy, insolvency,
reorganization, liquidation, dissolution, or similar proceedings affecting Debtor (whether voluntary or involuntary), and the failure of Beneficiaries to so file shall not affect Guarantor’s obligations hereunder. 
 Should any present or future Obligations incurred by Debtor not be paid when due or at the time to which the same may be extended, Beneficiaries may proceed against
Guarantor for such Obligations at any time, without any proceeding or action against Debtor. Guarantor agrees that Beneficiaries may resort to Guarantor for payment of any of the Obligations, whether or not Beneficiaries shall have resorted to any
collateral security, or shall have proceeded against any other debtor principally or secondarily obligated with respect to any of the Obligations or any other guarantor thereof. 
 Guarantor hereby authorizes each Beneficiary, without notice and without affecting Guarantor’s liability hereunder, from time to time to: (a) renew, compromise, extend, accelerate, or otherwise change the
terms of any Obligation with the agreement of Debtor thereunder or otherwise in accordance with the terms thereof; (b) enter into agreements with Debtor that settle, compromise, release, discharge, accept or refuse any offer of performance with
respect to, or substitutions for, the Obligations; (c) request and accept other guarantees of the Obligations; (d) take, hold, waive, release, exchange, compromise, subordinate, or modify, with or without consideration, any security for
payment or performance of any Obligation, any other guarantees of any Obligation, or any other obligation of any Person with respect to any Obligation; (e) enforce and apply such security and direct the order or manner of sale thereof as such
Seller in its discretion may determine; (f) delay in pursuing or decline to pursue rights or remedies against Debtor, Guarantor, or any other obligor in respect of the Obligations; and (g) act or fail to act in any manner referred to in
this Guaranty which may deprive Guarantor of its rights of subrogation (if any) against Debtor to recover full indemnity for any payments made pursuant to this Guaranty or of its right of contribution against any other party. Guarantor hereby
unconditionally and irrevocably waives and relinquishes all rights and remedies accorded by Applicable Law to sureties or guarantors and agrees not to assert or take advantage of any such rights or remedies, including any defense based on any offset
against any amounts which may be owed by either Beneficiary to Guarantor for any reason whatsoever, or any defense, setoff, deduction, abatement, suspension, deferment, diminution, recoupment, limitation, termination or counterclaim which may at any
time be available to or asserted by Debtor against either Beneficiary under the Purchase Agreement (other than defense of payment of the applicable amounts). 
  

 2 

 Guarantor shall not exercise any rights which it may have or acquire by way of subrogation until all of the Obligations
are paid in full to Beneficiaries. If any amounts are paid to Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of Beneficiaries and shall forthwith be paid to Beneficiaries by Guarantor to
reduce the amount of outstanding Obligations, whether matured or unmatured. Subject to the foregoing, upon payment of all of the Obligations to Beneficiaries and the expiration of the period during which Beneficiaries may seek indemnification under
the Purchase Agreement for Debtor’s default under Section 5.6 thereof, Guarantor shall be subrogated to the rights of Beneficiaries against Debtor, and Beneficiaries agree to take at Guarantor’s expense such actions as Guarantor may
reasonably require to implement such subrogation. 
 Except as otherwise provided herein, the obligations of Guarantor hereunder shall not be subject to any
counterclaim, setoff, deduction, abatement or defense based upon any claim Guarantor or the Debtor may have against Beneficiaries, unless provided for in the underlying agreements. 
 This Guaranty shall not be affected by any change in the entity status, ownership, control or business structure of Debtor. If Debtor’s assets or a major portion thereof are transferred to any other party or
parties otherwise than by operation of law, and if Beneficiaries enter into any transaction whereby such transferee or transferees become indebted to Beneficiaries, this Guaranty, subject to all the other terms hereof, shall apply to any Obligations
or balance of Obligations of such other transferee or transferees to Beneficiaries. 
 This Guaranty shall inure to and be binding upon the parties, their
representatives, successors and assigns, provided that Guarantor may not assign or otherwise transfer any of its rights or obligations under this Guaranty, whether by operation of law or otherwise, without the prior written consent of the named
Beneficiaries. 
 In the event any Beneficiary engages in litigation to enforce this Guaranty, Guarantor agrees to pay, in addition to any amounts of Debtor
which Guarantor has otherwise guaranteed to pay hereunder, any and all costs and expenses incurred by such Beneficiary (including reasonable attorneys’ fees) in enforcing this Guaranty; provided however, only if, and to the extent, such
Beneficiary is successful in such litigation. 
 Any amount due to Beneficiaries under this Guaranty will earn interest accruing daily from the due date
thereof until paid at the Borrowing Rate. 
 Guarantor represents and warrants that, at the time of execution and delivery of the Guaranty, nothing (whether
financial condition or any other condition or situation) exists to impair in any way the obligations and liabilities of Guarantor to Beneficiaries under this Guaranty. Guarantor further represents and warrants to Beneficiaries that: (a) it is a
limited partnership duly organized, validly existing and in good standing, as applicable, in its jurisdiction of formation, with full power and authority to make and deliver this Guaranty; (b) that the execution, delivery and performance of
this Guaranty by Guarantor have been duly authorized by all requisite action of Guarantor, and does not and will not violate provisions of any applicable law or Guarantor’s certificate of limited partnership or limited partnership agreement;
and (c) that the person signing this Guaranty on Guarantor’s behalf has been properly authorized by corporate action to do so. 
  

 3 

 This Guaranty constitutes the valid and legally binding obligation of Guarantor, enforceable against Guarantor in
accordance with its terms, except as such enforceability may be limited by General Exceptions to Enforceability. Neither the execution and delivery of this Guaranty, nor compliance with any provision hereof, nor the consummation of the transactions
contemplated hereby will (i) breach any provision of, or give any Person the right to declare a default or exercise any remedy under, or to accelerate the maturity or performance of, or payment under, or to cancel, terminate or modify, any
indenture, mortgage, lease, note, or other material contract or other instrument to which Guarantor is a party or by which its properties may be bound, except for such breaches, defaults (or rights of termination or acceleration or other remedy) as
to which requisite waivers or consents have been obtained or which would not, individually or in the aggregate, materially impair Guarantor’s authority, right or ability to perform its obligations under this Guaranty; and (ii) require
consent or approval of, filing with, or notice to any Person which, if not obtained, would prevent Guarantor from performing its obligations hereunder. There are no bankruptcy, reorganization, or arrangement proceedings pending against, being
contemplated by, or, to the knowledge of Guarantor, threatened against Guarantor. Guarantor agrees and covenants that it will not take any action that will impair Debtor’s ability to pay its obligations under the Obligations when due. Any
forbearance or failure to exercise, and any delay by Beneficiaries in exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy or be construed to be a waiver thereof, nor shall it preclude the further
exercise of any such right, power or remedy. 
 This Guaranty and the Purchase Agreement constitute the entire agreement among the parties and supersedes and
cancels any prior agreements, undertakings, declarations and representations, whether written or oral, regarding the subject matter of this Guaranty. If any provision of this Guaranty is found by a court of competent jurisdiction to be void, illegal
or otherwise unenforceable in that jurisdiction, such provision, to the extent of its invalidity, shall be severed from this Guaranty and be ineffective in that jurisdiction; provided, however, that such finding shall not affect the validity,
legality or enforceability of such provision in any other jurisdiction or the validity, legality or enforceability of any other provision of this Guaranty. 
 THE INTERPRETATION AND CONSTRUCTION OF THIS GUARANTY AND THE RIGHTS OF THE PARTIES HEREUNDER WILL BE INTERPRETED, CONSTRUED, AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ITS CONFLICTS OF LAW PRINCIPLES. EACH PARTY
HERETO HEREBY IRREVOCABLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE JURISDICTION OF THE COURTS OF SUCH JURISDICTION IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT AGAINST IT RELATED TO OR IN CONNECTION WITH THIS GUARANTY OR THE TRANSACTIONS
CONTEMPLATED HEREBY, AND TO THE EXTENT PERMITTED BY APPLICABLE LAW (AND ASSUMING EFFECTIVE SERVICE OF PROCESS), EACH PARTY HERETO HEREBY WAIVES AND AGREES NOT TO ASSERT BY WAY OF MOTION, AS A DEFENSE OR OTHERWISE IN ANY SUCH SUIT, ACTION OR
PROCEEDING, ANY CLAIM THAT IS NOT PERSONALLY SUBJECT TO THE JURISDICTION OF SUCH COURT, THAT THE SUIT, ACTION OR PROCEEDING IS BROUGHT IN AN INCONVENIENT FORUM, THAT THE VENUE OF THE SUIT, ACTION OR PROCEEDING IS IMPROPER, OR THAT THIS GUARANTY OR
ANY DOCUMENT 

  

 4 

 
OR INSTRUMENT REFERRED TO HEREIN OR THE SUBJECT MATTER HEREOF MAY NOT BE LITIGATED IN OR BY SUCH COURT. EACH PARTY HERETO AGREES THAT SERVICE OF PROCESS
MAY BE MADE UPON IT BY CERTIFIED OR REGISTERED MAIL TO THE ADDRESS FOR ADMINISTRATIVE NOTICE SET FORTH HEREIN OR ANY OTHER METHOD AUTHORIZED BY THE LAWS OF NEW YORK. TO THE FULLEST EXTENT PERMITTED BY LAW, AND AS SEPARATELY
BARGAINED-FOR-CONSIDERATION, EACH PARTY HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, PROCEEDING, OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATING TO THIS GUARANTY. 
 [Remainder of Page Intentionally Left Blank 
 Signature Page Follows]

  

 5 

 IN WITNESS WHEREOF, the Guarantor has duly executed this Guaranty on this 26th day of January, 2005. 
  

			
	ENERGY TRANSFER PARTNERS, L.P.
	
	By: U.S. Propane, L.P., its General Partner
	
	By: U.S. Propane, L.L.C, its General Partner
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

					
		  	6	  	

 EXHIBIT 2.4.2(I) 
 FORM OF SWAP AGREEMENT SCHEDULE AND ANNEX 
  

			
	Purchase and Sale Agreement, Exhibit 2.4.2(i)	  	Page 1

 EXECUTION APPROVAL SCHEDULE 
  

 

 
 International Swaps and Derivatives Association, Inc. 
 1994 ISDA CREDIT SUPPORT ANNEX 
 to the 
 Master Agreement 
 dated as of
January 26, 2005 
 between 
 AEP Energy Services, Inc. (“Party A”) 
 and 
 ETC Marketing, Ltd. (“Party B”) 
 Paragraph
13. Elections and Variables 
  

	(a)	Security Interest for “Obligations.” The term “Obligations” as used in this Annex includes the following additional obligations:

 With respect to Party A: None 
 With respect to Party B: None 
  

	(b)	Credit Support Obligations 

  

	 	(i)	Delivery Amount, Return Amount and Credit Support Amount 

  

	 	(A)	“Delivery Amount” has the meaning specified in Paragraph 3(a). 

  

	 	(B)	“Return Amount” has the meaning specified in Paragraph 3(b). 

  

	 	(C)	“Credit Support Amount” has the meaning specified in Paragraph 3. 

  

	 	(ii)	Eligible Collateral. The following items will qualify as “Eligible Collateral” for the party specified: 

  

										
	 	  	Party
A	 	 	Party
B	 	 	Valuation
Percentage	 
	 Cash (USD)
	  	[X	] 	 	[X	] 	 	100	% 

  

					
	 ISDA Credit Support Annex
	  	142	  	

 EXECUTION APPROVAL SCHEDULE 
  

	 	(iii)	Other Eligible Support. The following items will qualify as “Other Eligible Support” that the indicated party may post to secure its obligations
hereunder, as specified. 

 For Party A: Irrevocable letters of credit in the form of attached Exhibit A (or in such
other form approved by Party B, in its sole discretion, in writing) (“Letter of Credit”), duly completed and issued, naming Party B as the beneficiary, with expiry date not earlier than 30 days after the date of Transfer of the Letter of
Credit to Party B, the issuer of which is an “Eligible LC Bank” (as defined below) on the date of such Transfer. 
 For Party
B: Irrevocable letters of credit in the form of attached Exhibit A (or in such other form approved by Party A, in its sole discretion, in writing) (“Letter of Credit”), duly completed and issued, naming Party A as the beneficiary, with
expiry date not earlier than 30 days after the date of Transfer of the Letter of Credit to Party A, the issuer of which is an Eligible LC Bank on the date of such Transfer. 
 “Eligible LC Bank” at any time means a commercial bank, operating from an office in the continental United States, acceptable to the
party to whose benefit the Letter of Credit is issued, whose general long-term unsubordinated unsecured debt is at such time rated (i) at least “A-” by Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or an equivalent rating by any successor rating agency thereof (if any) (“S&P”), (ii) at least “A3” by Moody’s Investors Service, Inc. or an equivalent rating by any successor rating agency
thereof (if any) (“Moody’s”); (iii) at least A- by Fitch Ratings or an equivalent rating by any successor rating agency thereof (if any) (“Fitch”); in the event such a commercial bank is rated by only one of
S&P, Moody’s, or Fitch eligibility will be based on the available rating. 
  

	 	(iv)	Thresholds 

  

	 	(A)	“Independent Amount” means with respect to both Party A and Party B: for each Transaction at any time, zero. 

  

	 	(B)	“Threshold” means with respect to Party A: The lesser of USD 30,000,000 or 100% of the value of the Guaranty; and, 

 “Threshold” means with respect to Party B: The lesser USD 10,000,000 or 100% of the value of the Guaranty. 
  

	 	(C)	“Minimum Transfer Amount” means, with respect to both Party A and Party B, USD 1 ($one). 

  

	 	(D)	Rounding means that the Delivery Amount will, if a positive number, be rounded up to the nearest integral multiple of USD 250,000; and the Return Amount, if a positive
number, will be rounded down to the nearest integral multiple of USD 250,000 or to zero if the Return Amount is less than USD 250,000. 

  

					
	 ISDA Credit Support Annex
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	(c)	Valuation and Timing 

  

	 	(i)	“Valuation Agent” means Party A unless (i) Party A fails to perform its obligations as Valuation Agent under Paragraph 4(c) or Paragraph 6(d) in a
timely manner, or (ii) an Event of Default has occurred and is continuing with respect to Party A, in which case Party B is the Valuation Agent. 

  

	 	(ii)	“Valuation Date” means each Local Business Day designated as a Valuation Date by notice given by one party to the other no later than the Notification Time
on the Local Business Day before the Valuation Date so designated. 

  

	 	(iii)	“Valuation Time” means: 

  

	 	[    ]	the close of business in the city of the Valuation Agent on the Valuation Date (for purposes of Paragraph 3) or date of calculation (for purposes of Paragraph 6(d)), as applicable;

  

	 	[X]	the close of business in the city of the Valuation Agent on the Local Business Day in that city immediately preceding the Valuation Date (for purposes of Paragraph 3) or date of
calculation (for purposes of Paragraph 6(d)), as applicable; 

 provided, however that the
calculations of Value and Exposure will be made as of approximately the same time on the same date. 
  

	 	(iv)	“Notification Time” means 1:00 p.m., New York time, on a Local Business Day. 

  

	(d)	Conditions Precedent and Secured Party’s Rights and Remedies. For purposes of Paragraph 8(a) and Paragraph 8(b), each Termination Event will constitute a
“Specified Condition” with respect to a Pledgor or a Secured Party, respectively, if the Pledgor or Secured Party, respectively, fails to pay when due any amount payable by it in connection with an Early Termination Date
designated in connection with that Termination Event. For all other purposes of this Annex, each Termination Event specified below with respect to a party will be a “Specified Condition” for that party: 

  

							
	 	  	Party A	 	 	Party B	 
	 Illegality
	  	[X	] 	 	[X	] 
	 Tax Event
	  	[    	] 	 	[    	] 
	 Tax Event Upon Merger
	  	[X	] 	 	[X	] 
	 Credit Event Upon Merger
	  	[X	] 	 	[X	] 
	 Additional Termination Event(s)
	  	[X	] 	 	[X	] 

  

	(e)	Substitution 

  

	 	(i)	“Substitution Date” has the meaning specified in Paragraph 4(d)(ii). 

  

	 	(ii)	Consent. If specified here as applicable, then the Pledgor must obtain the Secured Party’s consent for any substitution pursuant to Paragraph 4(d)

 Applicable. 
  

					
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	(f)	Dispute Resolution 

  

	 	(i)	“Resolution Time” means 1:00 p.m. New York time on the Local Business Day following the date the Disputing Party gives notice of a dispute pursuant to
Paragraph 5. 

  

	 	(ii)	Value. For the purpose of Paragraphs 5(i)(C) and 5(ii), the value of Posted Credit Support will be calculated as follows: 

 Cash and Letters of Credit. For purposes of Paragraph 5, (i) the face value of cash collateral and (ii) for Letters of Credit, an
amount equal to the value as calculated in Paragraph 13(j)(i). 
  

	 	(iii)	Dispute Resolution. Paragraph 5(i)(B) of the Annex is amended by replacing the words: “then the Valuation Agent’s original calculations will be used;”
with the words: “the parties will appoint a mutually acceptable leading dealer that is not an Affiliate of either party in the relevant market to make such determination.” 

  

	 	(iv)	Alternative. The provisions of Paragraph 5 will apply, except to the following extent: pending the resolution of a dispute, Transfer of the undisputed Value of
Eligible Credit Support or Posted Credit Support involved in the relevant demand will be due as provided in Paragraph 5 if the demand is made at or before the Notification Time but will be due on the second Local Business Day after the demand if the
demand is made after the Notification Time. 

  

	(g)	Holding and Using Posted Collateral 

  

	 	(i)	Eligibility to Hold Posted Collateral; Custodians. Party A and its Custodian will be entitled to hold Posted Collateral pursuant to Paragraph 6(b); provided
that the following conditions applicable to it are satisfied: 

  

	 	(1)	Party A is not a Defaulting Party or an Affected Party in connection with a Specified Condition, neither a Specified Condition nor an Event of Default with respect to Party A
has led to the designation of an Early Termination Date; provided, however, that in the case of any such Specified Condition, the right to hold Posted Collateral will be reinstated immediately when the other party has verified that the Specified
Condition no longer exists, if an Early Termination Date has not been designated or, if an Early Termination Date has been designated in connection with the Specified Condition, once the Affected Party has discharged its payment obligations, if any
under Section 6 of this Agreement in connection with the early termination, if fewer than all Transactions are Affected Transactions. 

  

	 	(2)	Posted Collateral may be held only in the following jurisdiction(s): 

 continental United States of America 
  

	 	(3)	The Custodian for Party A: The unsecured and unsubordinated long-term debt or deposit obligations of the Custodian is rated at least “A-” by S&P or at least
“A3” by Moody’s. 

  

					
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 Initially, the Custodian for Party A is: Not applicable 
 Party B and its Custodian will be entitled to hold Posted Collateral pursuant to Paragraph 6(b); provided, however that the
following conditions applicable to it are satisfied: 
  

	 	(1)	Party B has a Credit Rating from either S&P, Moody’s or Fitch and the lowest Credit Rating for either the party or its Credit Support Provider, as the case may be, is BBB-
or higher from S&P or Fitch, and Baa3 or higher from Moody’s. Party B is not a Defaulting Party or an Affected Party in connection with a Specified Condition, neither a Specified Condition nor an Event of Default with respect to Party B has
led to the designation of an Early Termination Date; provided, however, that in the case of any such Specified Condition, the right to hold Posted Collateral will be reinstated immediately when the other party has verified that the Specified
Condition no longer exists, if an Early Termination Date has not been designated or, if an Early Termination Date has been designated in connection with the Specified Condition, once the Affected Party has discharged its payment obligations, if any
under Section 6 of this Agreement in connection with the early termination, if fewer than all Transactions are Affected Transactions. 

  

	 	(2)	Posted Collateral may be held only in the following jurisdiction(s): 

 continental United States of America 
  

	 	(3)	The Custodian for Party B: The unsecured and unsubordinated long-term debt or deposit obligations of the Custodian is rated at least “A-” by S&P or at least
“A3” by Moody’s. 

 Initially, the Custodian for Party B is: Not applicable 
  

	 	(ii)	Use of Posted Collateral 

 The provisions of
Paragraph 6(c) will apply to Party A and will not apply to Party B. 
  

	(h)	Distributions and Interest Amount 

  

	 	(i)	Interest Rate. The “Interest Rate” will be, for any day, the “Federal Funds (Effective)” rate in effect for such day, as published in
the most recent weekly statistical release designated as H.15(519), or any successor publication, published by the Board of Governors of the Federal Reserve System minus an interest rate spread of 0.25% per annum.

  

	 	(ii)	Transfer of Interest Amount. Upon the Pledgor’s written request as provided under Section 12, the Transfer of Interest Amount for the previous month will be
made on the following Local Business Day if notification is received prior to the Notification Time provided in Paragraph 13(c)(iv), or on the second Local Business Day if notification is received after the Notification Time provided in Paragraph
13(c)(iv), and on any Local Business Day that Posted Collateral in the form of Cash is Transferred to the Pledgor pursuant to Paragraph 3(b). 

  

					
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	 	(iii)	Alternative to Interest Amount. The provisions of Paragraph 6(d)(ii) will apply, unless otherwise specified here: 

 Delivery Amount. If Transfer of an Interest Amount (or any portion thereof) to a Pledgor on any day would result in or increase a Delivery Amount
(treating that day as a Valuation Date, as provided in Paragraph 6(d)(ii)) but the Pledgor would nonetheless have no obligation to make a Transfer pursuant to Paragraph 3(a) on that day if it were a Valuation Date (because the Delivery Amount is
lower than the Pledgor’s Minimum Transfer Amount or otherwise) the Secured Party will be required to Transfer that Interest Amount (or portion thereof) to the Pledgor, notwithstanding anything to the contrary in Paragraph 6(d)(ii). 

 

	(i)	Additional Representations. Party A and Party B represent to each other (which representations will be deemed to be repeated as of each date on which Party A or Party
B, as the Pledgor, Transfers Eligible Collateral) that their respective representations set forth in Section 3 of this Agreement are true and correct. 

  

	(j)	Other Eligible Support and Other Posted Support 

  

	 	(i)	“Value” with respect to Other Eligible Support and Other Posted Support at any time means, with respect to any Letter of Credit meeting the criteria set
forth in Paragraph 13(b)(iii), the amount then available to be drawn by the Secured Party under the Letter of Credit; provided, that the Value of the Letter of Credit shall be zero from and after the occurrence of a Letter of Credit Termination
Event as defined below. 

 A “Letter of Credit Termination Event” shall mean the occurrence of any of the following
events: 
  

	 	a)	the issuer of such Letter of Credit shall fail to maintain a Credit Rating of at least “A-” by S&P or Fitch or “A3” by Moody’s;

  

	 	b)	the issuer of such Letter of Credit disaffirms, disclaims, repudiates, or rejects in whole or in part, or challenges the validity of, such Letter of Credit;

  

	 	c)	the Letter of Credit expires or terminates or ceases to be in full force and effect at any time during the term of any outstanding Transaction; 

  

	 	d)	any event analogous to an event specified in Section 5(a)(vii) of this Agreement occurs with respect to the issuer of such Letter of Credit; or 

  

	 	e)	twenty (20) Local Business Days prior to the expiration or termination date of a Letter of Credit, such Letter of Credit is not extended or replaced with a Letter of Credit for
an amount at least equal to that of the Letter of Credit being replaced. 

  

					
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 “Credit Rating” means, with respect to a party or entity on any date of
determination, the corporate credit rating, or the respective rating then assigned to its unsecured and unsubordinated long-term debt or deposit obligations by either S&P, Fitch or Moody’s. If such ratings are assigned by S&P, Fitch and
Moody’s, then its Credit Rating will be the lowest of such ratings. 
  

	 	(ii)	“Transfer” with respect to Other Eligible Support and Other Posted Support means, with respect to Letters of Credit meeting the criteria set forth in
Paragraph 13(b)(iii), (a) for purposes of Paragraph 3(a), (i) delivery of the duly executed Letter of Credit to the Secured Party, at the address specified below, together with evidence of the authority, incumbency and specimen signature
of each person authorized to execute the Letter of Credit or any amendment thereto on behalf of its issuer, or (ii) delivery to the Secured Party of an amendment to such Letter of Credit, in form and substance satisfactory to the Secured Party,
extending the term or increasing the amount available to the Secured Party thereunder, but only if the issuer of the Letter of Credit is an Eligible LC Bank at the time of the amendment, and (b) for purposes of Paragraph 3(b), return of the
Letter of Credit by the Secured Party to the Pledgor, at the address specified below, or agreement by the Secured Party to an amendment of the Letter of Credit, in form and substance satisfactory to the Secured Party, reducing the amount available
to the Secured Party thereunder. 

  

	(k)	Demands and Notices. All demands, specifications and notices under this Annex will be made pursuant to Part 4 of the Schedule to this Agreement, unless otherwise
specified here: 

  

			
	 With respect to Party A:
	  	
		  	
	 Address:
	  	AEP Energy Services, Inc.
		  	155 W Nationwide Blvd, Ste 500
		  	Columbus, OH 43215
	 Attention:
	  	Credit Risk Management
	 Facsimile No.:
	  	(614) 583-1604
	 Telephone No.:
	  	(614) 583-6725

  

	(l)	Addresses for Transfers 

 Party A and Party
B: 
 Posted Collateral for a party (“X”) in the form of cash shall be delivered to the commercial bank or custodial institution
designated in a written notice from time to time by X to the other party. 
 With respect to Letters of Credit: As provided under the Demands
and Notices Section of this Paragraph 13. 
  

					
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	(m)	Other Provisions 

  

	 	(i)	Conditions Precedent. Paragraph 4(a) is hereby amended by deleting the words “Potential Event of Default” therefrom. 

  

	 	(ii)	Distributions. The following provisions shall be added to Paragraph 6(d) as follows: 

  

	 	(iii)	Certain Distributions Received. If a Secured Party receives or is deemed to receive Distributions on a day that is not a Local Business Day, or after its close of business on
a Local Business Day, it will Transfer the Distributions to the Pledgor on the following Local Business Day, subject to Paragraph 4(a), but only to the extent contemplated in Paragraph 6(d)(i) in connection with Distributions received or deemed
received on a Local Business Day. 

  

	 	(iv)	Transfer of Distributions. If Transfer of a Distribution (or any portion thereof) to a Pledgor on any day would result in, or increase, a Delivery Amount (treating that day
as a Valuation Date, as provided in Paragraph 6(d)(i)), but the Pledgor would nonetheless have no obligation to make a Transfer pursuant to Paragraph 3(a) on that day if it were a Valuation Date (because the Delivery Amount is lower than the
Pledgor’s Minimum Transfer Amount or otherwise) the Secured Party will be required to Transfer that Distribution (or portion thereof) to the Pledgor, notwithstanding anything to the contrary in Paragraph 6(d)(i). 

  

	 	(iii)	Modification of Paragraph 4(b) of the Annex. Paragraph 4(b) of the Annex is amended to read, in its entirety, as follows: 

  

	 	“(b)	Transfer Timing. Subject to Paragraphs 4(a) and 5 and unless otherwise specified, (i) if a demand for Transfer of Eligible Credit Support or Posted Credit Support
is made by the Notification Time, then the Transfer of Eligible Credit Support or Posted Credit Support will be completed prior to 6:00 p.m., New York time, on the Local Business Day following the Local Business Day on which the demand is made,
(ii) if a demand for Transfer of Eligible Credit Support or Posted Credit Support is made by the Notification Time with respect to a foreign currency exchange Transaction, such Transfer shall be completed prior to 6:00 p.m., New York time, on
the third (3rd) Local Business Day following the Local Business Day on which the demand is made and (iii) if a demand for Transfer of Eligible Credit Support or Posted Credit Support is made subsequent to the Notification Time, then the
relevant Transfer will be made in accordance with the rules provided in the immediately preceding subparagraphs (i) and (ii), except that the demand will be treated as if made on the Local Business Day following the day the demand was
actually made.” 

  

	 	(iv)	 Taxes in Connection with Amounts Paid Under the Credit Support Annex. Notwithstanding anything to the contrary in this Agreement, neither party makes any
Payer Tax Representation referred to in Section 3(e) of this Agreement with 

  

					
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 EXECUTION APPROVAL SCHEDULE 
  

	 	 
respect to any Interest Amount it is required to Transfer under this Annex, and neither party will be entitled to designate an Early Termination Date on the
ground of any Tax Event resulting from the party’s obligation to pay additional amounts in respect of Indemnifiable Taxes imposed with respect to any such Interest Amount, Distributions, or late payment fees. 

  

	 	(v)	Rights and Remedies under Paragraph 8(a). The Secured Party will be entitled to exercise the rights and remedies provided for in Paragraph 8(a) if the Pledgor fails to pay
when due any amount payable by it under Section 6 of this Agreement in connection with a Termination Event, even if the Pledgor is not the Affected Party. 

  

	 	(vi)	Set-off. For purposes of Paragraphs 2 and 8(a)(iii) of this Annex, the reference to any amount payable under Section 6 of this Agreement in the definition of
“Set-off” in this Agreement shall be deemed a reference to any amount payable with respect to any Obligation, as described in Paragraph 8(a)(iii) of this Annex. 

  

	 	(vii)	Additional Provisions Relating Primarily to Letters of Credit. 

  

	 	(1)	Failure to Transfer Other Eligible Support or Other Posted Support. 

 Paragraph 7(i) of this Annex is hereby modified to apply to failures to Transfer Other Eligible Support and Other Posted Support, as well as the items listed therein. 
  

	 	(2)	Drawings on Letters of Credit. The Secured Party shall have the right to draw on a Letter of Credit held by it as Other Posted Support in the event that at the time of such
draw there shall be satisfied the conditions specified in the form of Letter of Credit attached as Exhibit A (or, to the extent that the Letter of Credit is in a different form, in the event that the conditions to drawing specified in such Letter of
Credit are satisfied). If the Secured Party makes a draw on such a Letter of Credit, the Secured Party shall apply the proceeds of such draw consistent with the requirements, if any, set forth in the drawing documentation. 

 

	 	(3)	Event of Default. The word “or” at the end of subparagraph (ii) of Paragraph 7 shall be deleted, and the period at the end of subparagraph (iii) of
Paragraph 7 shall be deleted and replaced with a semicolon. Paragraph 7 is hereby amended by adding at the end thereof the following subparagraphs (iv) and (v): 

  

	 	(iv)	the issuer of a Letter of Credit provided by such party to the other party fails to honor a drawing under the Letter of Credit in accordance with its terms; or

  

	 	(v)	the issuer of the Letter of Credit provided by such party to the other party fails to comply with or perform its obligations under such Letter of Credit and such failure continues
after the lapse of any applicable grace period; 

  

					
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 provided, however, that (iv) and (v) shall not be an Event of Default with respect to a
Letter of Credit after the time such Letter of Credit is required to be canceled or returned to the party providing such Letter of Credit in accordance with the terms of this Annex or other Eligible Credit Support meeting the requirements of this
Agreement is provided to the other party. 
 IN WITNESS WHEREOF, the parties have executed this Credit Support Annex by their duly
authorized officers as of the date hereof. 
  

			
	AEP Energy Services, Inc.
		
	By:	 	 
	Name:	 	David C. Warner
	Title:	 	Authorized Agent
	Date:	 	January     , 2005

  

					
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	ETC Marketing, Ltd.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	January     , 2005

  

					
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 EXECUTION APPROVAL SCHEDULE 
  

 

 
 International Swaps and Derivatives Association, Inc. 
 SCHEDULE 
 to the 
 Master Agreement 
 (Multicurrency - Cross Border) 
 dated as of January 26, 2005 
 between 
 AEP Energy Services, Inc. and ETC Marketing, Ltd. 
 (“Party
A”)                                (“Party B”) 
 Part 1 
 Termination Provisions 

  

	(a)	“Specified Entity” means in relation to Party A and Party B for the purpose of: 

  

			
	 Section 5(a)(v),
	  	None
	 Section 5(a)(vi),
	  	None
	 Section 5(a)(vii),
	  	None
	 Section 5(b)(iv),
	  	None

  

	(b)	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement, except that such term is amended by adding in the eighth line after
“currency option” the words “, agreement for the purchase, sale or transfer of any Commodity or any other commodity trading transaction.” For this purpose, the term “Commodity” means any tangible or intangible commodity
of any type or description (including, without limitation, weather, coal, electric power, electric power capacity, petroleum, natural gas, natural gas liquids, and byproducts thereof). 

  

	(c)	The “Cross Default” provisions of Section 5(a)(vi), as amended, will apply to Party A and to Party B. 

 (1) Section 5(a)(vi) is amended by deleting in the seventh line thereof “, or becoming capable at such time of being declared,”.

 (2) The term “Cross Default” shall exclude any default that results solely from: (1) wire transfer difficulties; (2) an
administrative or operational error or omission (so long as sufficient funds are available); or (3) the general lack of availability, by reason of exchange controls or other similar government action, of the currency in which the 

  

					
	ISDA Schedule	  	153	  	

 EXECUTION APPROVAL SCHEDULE 
  

 
Specified Indebtedness is denominated. The preceding sentence shall apply only if (A) funds were available to such party, any Credit Support Provider of
such party, or any applicable Specified Entity of such party, as the case may be, to enable the party to make the relevant payment when due, and (B) the party makes the relevant payment within the earlier of three (3) Local Business Days
after such transfer difficulties have been corrected, the error or omission has been discovered, or such currency becomes available. 
  

	 	(3)	“Specified Indebtedness” shall have the meaning specified in Section 14 of this Agreement. 

  

	 	(4)	“Threshold Amount” means 

  

	 	(i)	USD 100,000,000 (or its equivalent in any other currencies) in relation to Party A’s Credit Support Provider; and 

  

	 	(ii)	USD 100,000,000 (or its equivalent in any other currencies) in relation to Party B’s Credit Support Provider. 

  

	(d)	The “Credit Event Upon Merger” provisions of Section 5(b)(iv), as amended herein, will apply to Party A and Party B. 

 Section 5(b)(iv) is deleted in its entirety and replaced with the following: 
 “Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule as applying to the party, such party
(“X”), any Credit Support Provider of X or any applicable Specified Entity of X: (1)(A) consolidates or amalgamates with, or merges with or into, or transfers all or substantially all its assets to, or reorganizes,
reincorporates, or reconstitutes into or as another entity or (B) enters into any agreement providing for any of the actions described in (A) and (2) such action described in (1)(A) or (1)(B) does
not constitute an event described in Section 5(a)(viii) but the creditworthiness of the resulting, surviving or transferee entity is materially weaker as determined by commercially reasonable judgment under then current market conditions
than that of X, such Credit Support Provider or such Specified Entity thereof, as the case may be, immediately prior to such action (and, in such event, X or its successor or transferee, as appropriate, will be the Affected Party);
provided, however, that the foregoing action or event shall not constitute a Termination Event (1) as to X, if after such action or event such resulting, surviving or transferee entity is X’s Credit Support Provider or is directly or
indirectly owned or controlled by X’s Credit Support Provider and the Credit Support Documents supporting X’s obligations remain in full force and effect, or (2) so long as in connection with or after such action or event X or its
successor or transferee provides (or causes to be provided) to the other party (“Y”) within two (2) Local Business Days of Y’s written demand therefor Eligible Credit Support in an amount satisfactory to Y in its sole discretion;
or” 
  

	(e)	The “Automatic Early Termination” provision of Section 6(a) will not apply to Party A or to Party B; provided, however, where the Event of Default specified in
Section 5(a)(vii)(1), (3), (4), (5), (6) or to the extent analogous thereto, or (8) is governed by a system of law which does not permit termination to take place after the occurrence of the relevant Event of Default, then the
Automatic Early Termination provision of Section 6(a) will apply to Party A and to Party B. 

  

					
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 EXECUTION APPROVAL SCHEDULE 
  

	(f)	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement: 

  

	 	(1)	Market Quotation will apply, and 

  

	 	(2)	the Second Method will apply. 

  

	(g)	“Termination Currency” means United States Dollars. 

  

	(h)	“Additional Termination Event”. None. 

 Part 2 
 Tax Representations 
  

	(a)	Payer Tax Representation. For the purpose of Section 3(e) of this Agreement, Party A and Party B make the following representation: 

 It is not required by any applicable law, as modified by the practice of any relevant governmental revenue authority, of any Relevant Jurisdiction to make
any deduction or withholding for or on account of any Tax from any payment (other than interest under Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this Agreement. In making this representation, it
may rely on: 
 (i) the accuracy of any representations made by the other party pursuant to Section 3(f) of this Agreement; 

(ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement and the accuracy and effectiveness of any
document provided by the other party pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement; and 
 (iii) the satisfaction of the
agreement of the other party contained in Section 4(d) of this Agreement; 
 provided, however, that it shall not be a
breach of this representation where reliance is placed on clause (ii) above, and the other party does not deliver a form or document under Section 4(a)(iii) by reason of material prejudice to its legal or commercial position. 

 

					
	ISDA Schedule	  	155	  	

 EXECUTION APPROVAL SCHEDULE 
  

	(b)	Payee Tax Representation. For the purposes of Section 3(f), Party A and Party B make the representations specified below: 

  

	 	(i)	The following representation will apply to Party A: 

 Party
A is a corporation created or organized under the laws of the State of Ohio. Party A is a U.S. person within the meaning of Section 7701 of the Internal Revenue Code and its U.S. taxpayer identification number is 31-1483731. 
  

	 	(ii)	The following representation will apply to Party B: 

 Party
B is a limited partnership created or organized under the laws of the State of Texas. Party B is a U.S. person within the meaning of Section 7701 of the Internal Revenue Code and its U.S. taxpayer identification number is 05-0532473.

 Part 3 
 Documents to
be delivered 
 For the purpose of Section 4(a): 
  

	 	(i)	Tax forms, documents, or certificates to be delivered: 

  

					
	 Party required to
 deliver document
	  	 Form/Document/Certificate
	  	 Date by which to be
 delivered

	 Party A and
 Party B
	  	Any document required or reasonably requested to allow the other party to make payments under the Agreement without any deduction or withholding for or on the account of any Tax or with such
deduction or withholding at a reduced rate.	  	Promptly after the earlier of (i) reasonable request by either party or (ii) learning that such form or document is required.

  

	 	(ii)	Other documents to be delivered are: 

  

							
	 Party required
 to deliver

 document
	  	 Form/Document/Certificate
	  	 Date by
 which to be
 delivered
	  	 Covered by
 Section 3(d)
 Representation

	Party A	  	A guaranty issued by Party A’s Credit Support Provider in favor of Party B.	  	As of the execution of this Agreement.	  	Yes

  

					
	ISDA Schedule	  	156	  	

 EXECUTION APPROVAL SCHEDULE 
  

							
	 Party required
 to
deliver
 document
	  	 Form/Document/Certificate
	  	 Date by
 which to be
 delivered
	  	 Covered by
 Section 3(d)
 Representation

	Party B	  	A guaranty issued by Party B’s Credit Support Provider in favor of Party A.	  	As of the execution of this Agreement.	  	Yes
				
	Party A and /or Party B	  	Certified copy of Certificate of Authority, Incumbency and Specimen Signatures and Resolutions adopted by the Board of Directors, or relevant committee of the Board of Directors, of the
Guarantor/Credit Support Provider(s) of Party A and/or Party B (as applicable) authorizing the execution and delivery of the guaranty.	  	As of the execution of this Agreement.	  	Yes
				
	 Party A and
 Party B
	  	Certified copy of Certificate of Authority, Incumbency and Specimen Signatures and Resolutions adopted by the Board of Directors, or relevant committee of the Board of Directors, of Party A or
Party B (as applicable), authorizing the execution, delivery and performance of this Agreement and the Transactions contemplated hereunder.	  	As of the execution of this Agreement.	  	Yes
				
	Party A and Party B	  	Annual Consolidated Financial Statements, most recent annual report and Form 10-K of American Electric Power Company, Inc. in the case of Party A, and, in the case of Party B, Party B and any
Credit Support Provider for Party B.	  	Promptly upon request after completion by Certified Public Accountant.	  	Yes
				
	Party A and Party B	  	Quarterly Consolidated Financial Statements, prepared in accordance with U.S. GAAP, of American Electric Power Company, Inc. in the case of Party A, and in the case of Party B, Party B and any
Credit Support Provider for Party B.	  	Promptly upon request after completion.	  	Yes
				
	Party A and Party B	  	Statement of Generic Risks Associated with Over-the-Counter Derivative Transactions	  	Upon the execution of this Agreement.	  	Yes

  

					
	ISDA Schedule	  	157	  	

 EXECUTION APPROVAL SCHEDULE 
  

 Part 4 
 Miscellaneous 
  

	(a)	Addresses for Notices. For the purposes of Section 12(a) of this Agreement: 

 Address for notices or communications to Party A for all purposes (other than Confirmations): 
  

			
	Address:	  	AEP Energy Services, Inc.
		  	155 W Nationwide Blvd, Ste 500
		  	Columbus, OH 43215
	Attention:	  	Financial Contract Administration
	Facsimile No.:	  	(614) 583-1606
	Telephone No.:	  	(614) 583-6114

 Confirmations: 
  

			
	Address:	  	AEP Energy Services, Inc.
		  	155 W Nationwide Blvd, Ste 500
		  	Columbus, OH 43215
	Attention:	  	Confirmations – 4th
Floor
	Facsimile No.:	  	(614) 583-1605
	Telephone No.:	  	(614) 583-6125

  

			
	 Wire Payment
 Instructions:
	  	AEP Energy Services, Inc.
		  	Citibank N.A.
		  	New York, NY
		  	ABA # 021-000-089
		  	Account # 4071-2918

 Address for notices or communications to Party B for all purposes: 
  

			
	Address:	  	ETC Marketing, Ltd.
		  	800 E. Sonterra Blvd. #400
		  	San Antonio, TX 78258
	Attention:	  	Pat O’Kane
	Facsimile No.:	  	(210) 403-7490
	Telephone No.:	  	(210) 403-7407

  

	(b)	Notices. Subparagraph (ii) of Section 12(a) of this Agreement shall not apply. 

  

	(c)	Process Agent. For the purpose of section 13(c): 

 Party A appoints as its Process Agent: Not applicable. 
 Party B appoints as its Process Agent: Not applicable. 
  

	(d)	Offices. The provisions of Section 10(a) will apply to this Agreement. 

  

	(e)	Multibranch Party. For the purpose of Section 10(c) of this Agreement. 

 Party A is not a Multibranch Party. 
 Party B is not a Multibranch Party. 
  

					
	ISDA Schedule	  	158	  	

 EXECUTION APPROVAL SCHEDULE 
  

	(f)	Calculation Agent. The Calculation Agent is Party A. 

  

	(g)	Credit Support Document. Details of any Credit Support Document. 

  

	 	(i)      Party A:	A Guaranty issued by American Electric Power Company, Inc. in favor of Party B as beneficiary, which Guaranty shall be a Credit Support Document in relation to Party A.

  

	 	(ii)     Party B:	A Guaranty issued by La Grange Acquisition, L.P. in favor of Party A as beneficiary, which Guaranty shall be a Credit Support Document in relation to Party B.

 (iii)    Party A and Party B: The ISDA Credit Support Annex attached hereto. 
  

	(h)	Credit Support Provider. 

  

	 	(i)     Party A:	American Electric Power Company, Inc., a New York corporation. 

  

	 	(ii)    Party B:	La Grange Acquisition, L.P., a Texas limited partnership. 

  

	(i)	GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAW OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE, BUT
GIVING EFFECT TO SECTIONS 5-1401 AND 5-1402 OF NEW YORK’S GENERAL OBLIGATIONS LAW. EACH PARTY EXPRESSLY ACKNOWLEDGES THAT NEW YORK LAW BEARS RELATION TO THIS AGREEMENT AND ALL TRANSACTIONS SUBJECT TO THIS AGREEMENT.

  

	(j)	Netting of Payments. Subparagraph (ii) of Section 2(c) of this Agreement will not apply. 

  

	(k)	“Affiliate” shall mean “None” with respect to Party A. 

 “Affiliate” shall have the meaning specified in Section 14 with respect to Party B. 
 Part 5 
 Other Provisions 
  

	(a)	Interpretation. 

  

	 	(1)	 This Agreement, each Confirmation, and each Transaction are subject to the 2000 ISDA Definitions (the “Swap Definitions”), the 1993 ISDA Commodity
Derivatives Definitions, and the 2000 Supplement thereto (the “Commodity Definitions”) each as published by the International Swaps and Derivatives Association, Inc. (collectively the “ISDA Definitions”). The ISDA Definitions are
incorporated by reference herein, and made part of, this Agreement and each Confirmation as if set forth in full in this Agreement and such Confirmations. Unless otherwise specified in a Confirmation, any capitalized terms used herein and not
otherwise defined herein shall have the respective meanings ascribed to 

  

					
	ISDA Schedule	  	159	  	

 EXECUTION APPROVAL SCHEDULE 
  

	 	 
them in the Swap Definitions, and the Commodity Definitions (except that references to “Swap Transactions” in the definitions will be deemed to be
references to “Transactions”). In the event of any inconsistency between the provisions of the Swap Definitions and the Commodity Definitions, the Commodity Definitions will prevail. In the event of any inconsistency between the provisions
of this Agreement and the ISDA Definitions, this Agreement will prevail. In the event of any inconsistency between the provisions of the Credit Support Documents, if any, and the ISDA Definitions, the Credit Support Documents will prevail. Subject
to Section 1(b) of this Agreement, in the event of any inconsistency between the provisions of any Confirmation and this Agreement or the ISDA Definitions, the Confirmation will prevail for the purpose of the relevant Transaction; provided
however, a Confirmation may not amend or conflict with any provisions of this Agreement regarding Events of Default, Termination Events or Disruption Fallbacks; except for the Disruption Fallbacks in respect of weather related financial transactions
which shall be governed by the fallback methodology provided in the Confirmation. 

  

	 	(2)	Existing Transactions. In the event that the parties have entered into Transactions prior to the date of this Agreement, the parties agree that all such Transaction shall be
deemed to have been entered into pursuant to this Agreement. To the extent the terms herein conflict with the terms of the Confirmations governing the prior Transactions, the terms of this Agreement shall apply. 

  

	(b)	Modifications to the Agreement. 

  

	 	(i)	Section 2(a)(iii)(1) is hereby amended by deleting the words “Potential Event of Default” therefrom. 

  

	 	(ii)	The condition precedent in Section 2(a)(iii)(1) does not apply to a payment and delivery owing by a party if the other party shall have satisfied in full all its payment
obligations under Section 2(a)(i) of this Agreement and shall at the relevant time have no future payment or delivery obligations, whether absolute or contingent, under Section 2(a)(i). 

  

	 	(iii)	Section 2(d)(i)(4) is hereby amended by adding the following subsection (C): 

 “, or (C) Y’s consolidation or amalgamation with, or merger with or into, or transfer of all or substantially all of its assets to, or reorganization, reincorporation, or reconstitution in or as,
another entity, or entering into any agreement providing for any of the actions described above.” 
  

	 	(iv)	Section 4(c) is hereby amended by replacing the words “to which it may be subject” with the words “to which it is subject.” 

  

	 	(v)	Section 5(a)(iii)(1) is hereby amended by adding after the words “Credit Support Document” the following: “including the breach by the party, or any Credit
Support Provider, of any representation, warranty or covenant set forth in any Credit Support Document.” 

  

					
	ISDA Schedule	  	160	  	

 EXECUTION APPROVAL SCHEDULE 
  

	 	(vi)	Section 5(a)(iii)(3) is hereby amended by adding in the first line thereof after the word “rejects,” the following: “or amends or modifies without the consent of
the other party,”. 

  

	 	(vii)	Section 5(a)(vii) is amended by deleting the word “or” at the end of Section 5(a)(vii), the period at the end of Section 5(a)(viii) is deleted and replaced
by “; or” and the following new Section 5(a)(ix) is added: 

 “Failure to Provide Adequate
Assurance”. The failure of either party (the “Failing Party”) to provide Adequate Assurance to the other party (the “Demanding Party”) within forty-eight (48) hours, but at least one (1) Business Day, of a
written request by the Demanding Party when the request is based on the Demanding Party’s good faith belief that the ability of the Failing Party to perform its obligations is materially impaired under this Agreement. 
 For purposes of this section, “Adequate Assurance” means any financial security in a form and amount commercially reasonably satisfactory
to the Demanding Party, provided further, that if such financial security is in a form which would qualify as Eligible Credit Support in the Credit Support Annex, if one exists, then upon receipt by Demanding Party, such financial security shall be
treated as if it is Posted Collateral or Posted Credit Support; provided, however, such Adequate Assurance shall not be included in the calculation of Delivery Amount or Return Amount as defined in Paragraph 3. 
  

	 	(viii) 	Section 5(a)(vii)(4) is hereby modified by deleting, following the word “liquidation” in line 9, the clause beginning with “and, in the case of” and ending
with the word “thereof” in line 13; and in clause (vii)(7): deleting, following the word “assets” in line 19, the clause beginning with “and such secured party” and ending with the word “thereafter” in line
21. 

  

	 	(ix)	The introductory paragraph of Section 5(a)(viii) is hereby amended by adding the words “or reorganizes, reincorporates or reconstitutes into or as,” in the third line
thereof after the words “its assets to,” and by adding the words “, reorganization, reincorporation, reconstitution” in the third line thereof after the word “merger.” 

  

	 	(x)	Section 5(b)(ii) is hereby deleted in its entirety and replaced with the following (italicized text reflects modifications from the ISDA Master Agreement):

 Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of competent jurisdiction, on
or after the date on which a Transaction is entered into (regardless of whether such action is taken or brought with respect to a party to this Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will, or there
is a substantial likelihood, in the written opinion of its counsel, that it will, on the next succeeding Scheduled Payment Date (1) be required to pay to the other party an additional amount in respect of an Indemnifiable Tax under
Section 2(d)(i)(4) 

  

					
	ISDA Schedule	  	161	  	

 EXECUTION APPROVAL SCHEDULE 
  

 
(except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from the other party or a Credit Support Provider
of such party from which an amount is required to be deducted or withheld for or on account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect of such Tax
under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B) or (C)); and neither party shall have any right to invoke this Section 5(b)(ii) based on any payments made or required to be made by a Credit Support
Provider of such party; 
  

	 	(xi)	Section 5(b)(iii) is hereby amended by adding the words “or (C)” in the sixth line thereof after the words “Section 2(d)(i)(4)(A) or (B)” and by adding the
words “or reorganizing, reincorporating, or reconstituting into or as,” in the eighth line thereof after the words “its assets to,”. 

  

	 	(xii)	Section 6(a) is hereby amended by adding the following after the last line thereof: 

 Notwithstanding the terms of Section 5 and 6 of this Agreement, if at any time and so long as one of the parties to this Agreement (“X”) shall have satisfied in full all of its payment and delivery
obligations under Section 2(a)(i) of this Agreement and shall at the time have no future payment or delivery obligation, whether absolute or contingent, under such Section, then unless the other party (“Y”) is required pursuant to
appropriate proceedings to return to X or otherwise returns to X upon demand of X any portion of any such payment or delivery, then (a) the occurrence of an event described in Section 5(a) of this Agreement with respect to X, any Credit
Support Provider of X or any Specified Entity of X shall not constitute an Event of Default with respect to X as the Defaulting Party and (b) Y shall be entitled to designate an Early Termination Date pursuant to Section 6 of this
Agreement only as a result of the occurrence of (i) an Event of Default set forth in Section 5(a)(v) of this Agreement with respect to X as the Defaulting Party or (ii) a Termination Event set forth in (A) either
Section 5(b)(i) or 5(b)(ii) of this Agreement with respect to Y as the Affected Party or (B) Section 5(b)(iii) of this Agreement with respect to Y as the Burdened Party. 
  

	 	(xiii) (Section	6(c) is amended by adding the following new paragraph (iii): 

 Notwithstanding the foregoing, the Non-defaulting Party shall not be obligated to terminate and liquidate Transactions to the extent that, in the good faith opinion of the Non-defaulting Party, (i) such termination and liquidation is
not permitted under applicable law or (ii) the Non-defaulting Party cannot enter into or liquidate offsetting transactions (including, without limitation, Specified Transactions) in a commercially reasonable manner or at commercially reasonable
prices. In addition, the Non-defaulting Party may, at its election, take a reasonable amount of time to complete any aspect of the termination and liquidation. 
  

					
	ISDA Schedule	  	162	  	

 EXECUTION APPROVAL SCHEDULE 
  

	 	(xiv) 	The definition of the term “Tax” in Section 14 is hereby amended by adding in the third line thereof after the word “Agreement” and before the word
“other” the words “or any Credit Support Document.” 

  

	 	(xv)	The definition of the term “Indemnifiable Tax” in Section 14 is hereby amended by adding in the second line thereof after the word “Agreement” and
before the word “but” the words “or any Credit Support Document.” 

  

	(c)	Additional Representations. Section 3 of the Agreement is hereby amended by adding at the end thereof the following subsections (g) through (l):

 (g) Eligible Swap Participant. It is an “eligible swap participant” within the meaning of 17 C.F.R.
Section 35.1(b)(2)(2000). 
 (h) Eligible Contract Participant/Eligible Commercial Entity. It is (i) an “eligible
contract participant” as defined in Section 1a(12) of the Commodity Exchange Act, as amended (7 U.S.C. § 1a(12) (2000)) and (ii) as to transactions to be entered into on “electronic trading facilities”, an
“eligible commercial entity” as defined as Section 101(11) of the Commodity Futures Modernization Act of 2000 (7 U.S.C.A. Section 1a(11)(West Supp. 2001). 
 (i) Relationship Between the Parties. Each party will be deemed to represent to the other party on the date on which it enters into a Transaction
that (absent a written agreement between the parties that expressly imposes affirmative obligations to the contrary for that Transaction): 
 (i) Non-Reliance. It is acting for its own account, and it has made its own independent decisions to enter into that Transaction and as to whether that Transaction is appropriate or proper for it based upon its own judgment and upon
advice from such advisers as it has deemed necessary. 
 (ii) Evaluating and Understanding. It is capable of assessing the merits of
and understanding (on its own behalf or through independent professional advice) and understands and accepts the terms, conditions and risks of that Transaction. It is also capable of assuming, and assumes, the risks of that Transaction. 

(iii) Status of Parties. The other party is not acting as a fiduciary for, or an advisor to it, with respect to that Transaction. 
 (j) Swap Agreement. The parties acknowledge and agree that all Transactions constitute “swap agreements” within the meaning of the United
States Bankruptcy Code. 
 (k) Forward Contract. The parties acknowledge and agree that all Transactions constitute
“forward contracts” and that each of the parties to this Agreement is a “forward contract merchant” within the meaning of the United States Bankruptcy Code. 
 (l) Standardization, Creditworthiness, and Transferability. The material economic terms of the Agreement, any Credit Support Document to which it
is a party, and each Transaction have been individually tailored and negotiated by it; it has received and 

  

					
	ISDA Schedule	  	163	  	

 EXECUTION APPROVAL SCHEDULE 
  

 
reviewed financial information concerning the other party and has had a reasonable opportunity to ask questions of and receive answers and information from
the other party concerning such other party, this Agreement, such Credit Support Document, and such Transaction; the creditworthiness of the other party was a material consideration in its entering into or determining the terms of this Agreement,
such Credit Support Document, and such Transaction; and the transferability of this Agreement, such Credit Support Document, and such Transaction is restricted as provided herein and therein. 
  

	(d)	Set-off. Any amount (the “Early Termination Amount”) payable to one party (the “Payee”) by the other party (the “Payer”) under
Section 6(e), in circumstances where there is a Defaulting Party under Section 5(a) or one Affected Party in the case where a Termination Event under Section 5(b)(iii), 5(b)(iv) or 5(b)(v) has occurred, will, at the option of the
party (“X”) other than the Defaulting Party or the Affected Party (and without prior notice to the Defaulting Party or the Affected Party), be reduced by its set-off against any amount(s) (the “Other Agreement Amount”) payable
(whether at such time or in the future or upon the occurrence of a contingency) by the Payee to the Payer (irrespective of the currency, place of payment or booking office of the obligation) under any other agreement(s) between the Payee and the
Payer or instrument(s) or undertaking(s) issued or executed by one party to, or in favor of, the other party (and the Other Agreement Amount will be discharged promptly and in all respects to the extent it is so set-off). X will give notice to the
other party of any set-off effected under this Set-off provision. 

 For this purpose, either the Early Termination Amount or
the Other Agreement Amount (or the relevant portion of such amounts) may be converted by X into the currency in which the other is denominated at the rate of exchange at which such party would be able, acting in a reasonable manner and in good
faith, to purchase the relevant amount of such currency. 
 If an obligation is unascertained, X may in good faith estimate that obligation
and set-off in respect of the estimate, subject to the relevant party accounting to the other when the obligation is ascertained. 
 Nothing
in this Set-off provision shall be effective to create a charge or other security interest. This Set-off provision shall be without prejudice and in addition to any right of set-off, combination of accounts, lien or other right to which any party is
at any time otherwise entitled (whether by operation of law, contract or otherwise). 
  

	(e)	 Confirmations. With respect to each Transaction entered into pursuant to this Agreement, Party A will promptly send to Party B a Confirmation in
substantially the form of the Exhibits to the ISDA Definitions. Party B shall accept the Confirmation within three (3) New York Business Days after receipt of such Confirmation or inform Party A of a bona fide error by providing Party A with
written notice (notice shall not be provided by a document reflecting the terms of the Transaction generated by Party B) of those terms of the Confirmation provided by Party A that are disputed by Party B. For all purposes of this Agreement, the
Confirmation shall be effective and binding upon the parties upon receipt by Party A of Party B’s acceptance of the Confirmation. If Party A does not receive from Party B either acceptance or notification of bona fide error within three
(3) New York Business Days after receipt of such Confirmation, Party B shall be 

  

					
	ISDA Schedule	  	164	  	

 EXECUTION APPROVAL SCHEDULE 
  

	 	 
deemed to have accepted the Confirmation. Any documentation provided by Party B as to the terms of a Transaction (including documents referenced or
identified as confirmations) shall not be a Confirmation and will not be binding between the parties as to the terms of a Transaction between the parties; unless however, if Party A fails to provide Party B a Confirmation within ten (10) Local
Business Days after the trade date of a Transaction, Party B may provide Party A with a Confirmation that meets the requirements of this provision. If within ten (10) Local Business Days after the trade date of a Transaction Party B has
provided Party A with documentation referenced as a Confirmation that meets the requirements of this provision and Party A has failed to provide Party B with a Confirmation, then Party B’s documentation shall be deemed accepted as the
Confirmation unless disputed by Party A by the fourteenth (14) Local Business Day after the trade date of the Transaction. 

  

	(f)	Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction in respect of any Transaction shall, as to such Transaction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of the Agreement or affecting the validity or enforceability of such provision as to any other jurisdiction or Transaction unless such
severance shall substantially impair the benefits of the remaining portions of this Agreement or changes the reciprocal obligations of the parties. The parties hereto shall endeavor in good faith negotiations to replace the prohibited or
unenforceable provision with a valid provision, the economic effect of which comes as close as possible to that of the prohibited or unenforceable provision. 

  

	(g)	Consent to Recordings. The parties hereto (i) agree that each may electronically monitor or record, at any time and from time to time, any and all communications between
them, (ii) waive any further notice of such monitoring or recording, (iii) agree to notify its officers and employees of such monitoring or recording, (iv) agree that any such monitoring or recording may be submitted into evidence in
any suit, trial, hearing, arbitration, or other proceeding, and (v) agree to furnish appropriately redacted copies of recordings to the other party within fifteen (15) days of the other party’s written request.

  

	(h)	Absence of Litigation. Section 3(c) of this Agreement is hereby amended by: (i) adding in the second line thereof after the word “governmental” the words
“or regulatory” and (ii) adding the words “in any material respect” immediately prior to the end of the section. 

  

	(i)	Alternative Dispute Resolution. To the fullest extent permitted by law, each of the parties hereto waives any right it may have to a trial in respect of any disputes directly
or indirectly arising out of, under or in connection with this Agreement. All disputes arising under or directly or indirectly connected with this Agreement and the Credit Support Documents are subject to the following sole and exclusive procedures;
provided, however, that any claim by either party related to such disputes shall be time-barred unless the asserting party commences an arbitration proceeding with respect to such claim within one year of the occurrence of the
event giving rise to the dispute; provided, further, that the asserting party must commence arbitration within one year of the Termination Date of the Transaction to which the claim relates: 

  

					
	ISDA Schedule	  	165	  	

 EXECUTION APPROVAL SCHEDULE 
  

	 	A.	MEDIATION WITH DESIGNATED NEUTRAL 

 The parties
shall endeavor to settle the dispute by mediation under the Center for Public Resources (“CPR”) Model Procedure for Mediation of Business Disputes in effect on the date of this Agreement. The parties, with the assistance of CPR, shall
select a mediator. In the event that the CPR becomes unwilling or unable to assist in the selection of a mediator, the parties have selected JAMS/Endispute as the alternate. If the matter has not been resolved by mediation within 30 days of the
originating party’s notice for mediation, or if the parties, within ten (10) Local Business Days of seeking the assistance of CPR, fail to select a mediator, then either party may initiate binding arbitration as set forth below.

  

	 	B.	ARBITRATION UNDER THE CPR RULES 

 Any unresolved
dispute arising out of or relating to this Agreement or the Credit Support Documents, or the breach, termination or validity thereof, shall be adjudicated by binding arbitration in accordance with the Center for Public Resources Rules for Non
Administered Arbitration of Business Disputes in effect on the date of this Agreement, by three independent and impartial arbitrators. Each party shall appoint one independent and impartial arbitrator within 5 Local Business Days after the
notification by a party of the initiation of binding arbitration. The third independent and impartial arbitrator shall be elected by the arbitrators chosen by each party within 10 days after they have both been appointed and this panel of
arbitrators will notify the parties within 10 days after the selection of the third arbitrator of the date of the scheduling conference. The parties shall have sixty (60) days from the appointment of the arbitrators to perform discovery and
present evidence and argument to the arbitrators. The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Sections 1-16, and judgment upon the award rendered by the arbitrator(s) may be entered by any court having
jurisdiction thereof. The place of arbitration shall be Columbus, Ohio. The arbitrator(s) are not empowered to award damages in excess of compensatory damages, and each party hereby irrevocably waives any right to recover such damages with respect
to any dispute resolved by arbitration. 
  

	(j)	LIMITATION OF LIABILITY. NO PARTY SHALL BE REQUIRED TO PAY OR BE LIABLE FOR SPECIAL, PUNITIVE, EXEMPLARY, INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES (WHETHER OR NOT
ARISING FROM ITS NEGLIGENCE) TO ANY OTHER PARTY; PROVIDED, HOWEVER, THAT NOTHING IN THIS PROVISION SHALL AFFECT THE ENFORCEABILITY OF SECTION 6(e) OF THIS AGREEMENT. IF AND TO THE EXTENT ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT AND
ANY CREDIT SUPPORT DOCUMENT IS DETERMINED TO CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT IS INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT
OF SUCH DAMAGES AND NOT A PENALTY. 

  

					
	ISDA Schedule	  	166	  	

 EXECUTION APPROVAL SCHEDULE 
  

	(k)	Annual Consolidated Financial Statement. “Annual Consolidated Financial Statement” means a copy of the annual report of the relevant person containing audited
consolidated financial statements for such party’s fiscal year certified by independent auditors and prepared in accordance with the generally accepted accounting principles of the United States (“U.S. GAAP”).

  

	(l)	Quarterly Consolidated Financial Statement. “Quarterly Consolidated Financial Statement” means a copy of the quarterly report of the relevant person containing
audited, or unaudited if audited financials are not available, for such party’s fiscal quarter prepared in accordance with U.S. GAAP. 

  

	(m)	No Third Party Beneficiaries. Except for transfers pursuant to Section 7, this Agreement is entered into solely for the benefit of Party A and Party B and not for the
benefit of any other persons or entities. No other persons or entities may enforce this Agreement for their benefit nor shall they have any claim or remedy for any breach thereof. 

  

	(n)	Construction of Contract. THE PARTIES ACKNOWLEDGE THAT EACH TERM,
PROVISION, AND CLAUSE OF THIS AGREEMENT HAS BEEN JOINTLY CONSTRUCTED, NEGOTIATED,
AND PREPARED BY THE COMBINED EFFORTS OF THE PARTIES TO THE EXCLUSION
OF NEITHER PARTY. THE PARTIES AGREE THAT THE TERMS, PROVISIONS, AND
CLAUSES OF THIS AGREEMENT SHOULD NOT BE INTERPRETED IN FAVOR OF ONE
PARTY AGAINST THE OTHER AS THE RESULT OF ANY CONSTRUCTION, NEGOTIATION,
OR PREPARATION THEREOF. 

  

	(o)	Local Business Days. For all purposes of this Agreement and all Transactions entered into hereunder, Local Business Days are days on which U.S. commercial banks are open for
business in New York, New York. 

  

	(p)	Preceding Business Day Convention. For pricing purposes Business Day shall be defined as the Commodity Business Day. If such day is not a Business Day, then the Preceding
Business Day Convention shall apply unless otherwise specifically provided for in a Confirmation. 

  

	(q)	Payment Failure Interest. Provided a party (“Y”) has not designated an Early Termination Date with respect to a failure by the other party (“X”) in the
performance of any payment obligation when due, and X subsequently remedies such failure, to the extent permitted by law, X shall be required to pay interest on the overdue amount to Y on demand in the same currency as such overdue amount for the
period from (and including) the original due date for payment to (but excluding) the date of actual payment, at the Default Rate. Such interest will be calculated on the basis of daily compounding and the actual number of days elapsed.

  

	(r)	Default Rate. The definition of Default Rate provided in Section 14 of the ISDA Master Agreement is deleted in its entirety and replaced with the following:

 “Interest of the unpaid portion shall accrue at a rate equal to the lower of (i) the then-effective prime rate of
interest published under “Money Rates” by The Wall Street Journal, plus two percent per annum from the date due until the date of payment; or (ii) the maximum non-usurious applicable lawful interest rate.” 
  

					
	ISDA Schedule	  	167	  	

 EXECUTION APPROVAL SCHEDULE 
  

	(s)	Rounding. For the purpose of calculating the Floating Price(s) all numbers shall be rounded as follows: Floating Price(s) relating to commodities quoted in
(i) gallons shall be rounded to four places; (ii) MMBtu’s shall be rounded to four places; (iii) barrels shall be rounded to three places and (iv) gigajoules shall be rounded to four places. If the number after the final
number is five (5) or greater then the final number shall be increased by one (1), and if the number after the final number is less than five (5) then the final number shall remain unchanged. 

  

	(t)	Reference Market-makers. The definition of “Reference Market-makers” in Section 14 of this Agreement is hereby amended by: (i) deleting “(a)”
from the second line thereof, (ii) deleting in the fourth line thereof after the word “credit” the words “and (b) to the extent practicable, from among such dealers having an office in the same city” and
(iii) replacing such words with the words “or who enter into transactions similar in nature to such Transactions.” 

  

	(u)	Confidentiality. This Agreement, all Transactions subject to this Agreement, all documents relating to this Agreement or any Transaction subject to this Agreement, and any
information made available by one party or its Advisors (as defined below) to the other party or its Advisors with respect to this Agreement or any Transaction subject to this Agreement, are confidential (collectively referred to hereafter as
“Confidential Information”). Each party shall at a minimum use the same efforts and standard of care with respect to Confidential Information provided by the other party that it uses to preserve its own Confidential Information.
Confidential Information shall not be disclosed by a party or its Advisors (defined below) to any third party (nor shall any public announcement relating to this Agreement be made by either party), except for such information (i) as may become
generally available to the public, (ii) as may be required or appropriate in response to any summons, subpoena, or otherwise in connection with any litigation or to comply with any applicable law, order, regulation, ruling, stock exchange
reporting requirement or accounting disclosure rule or standard, (iii) as may be obtained from a non-confidential source that disclosed such information in a manner that did not violate its obligations to the other party in making such
disclosure, (iv) as may be furnished to that party’s auditors, attorneys or advisors (collectively the “Advisors”) who shall be required to keep the information that is disclosed in confidence, or (v) relating to Transaction
information being provided to a third party who will use such Transaction information for the sole purpose of calculating a published index of pricing or reporting on other transaction information covering the industry as a whole, and provided
further that such third party shall have entered into a confidentiality agreement relating to the Transaction data with the party to this Agreement providing such Transaction information. This provision shall remain in effect two years following the
termination of this Agreement. 

  

	(v)	Cancellation. Either party may cancel this Agreement upon 30 days prior written notice to the other party in the manner provided in Section 12. Except as otherwise
specifically provided herein, cancellation of this Agreement shall not relieve the parties of any obligations incurred with respect to this Agreement prior to such cancellation. 

  

					
	ISDA Schedule	  	168	  	

 EXECUTION APPROVAL SCHEDULE 
  

 Part 6 
 Provisions for Commodity Derivative Transactions 
  

	(a)	Section 7.3 of the 1993 ISDA Commodity Derivatives Definitions is amended to read as follows: 

 Section 7.3. Corrections to Published Prices. For purposes of determining the Relevant Price for any day, if the price published or announced
on a given day and used or to be used by the Calculation Agent to determine a Relevant Price is subsequently corrected and the correction is published or announced by the person responsible for that publication or announcement within 30 calendar
days of the original publication or announcement, either party may notify the other party of (i) that correction and (ii) the amount (if any) that is payable as a result of that correction. If, not later than 30 calendar days after the
publication or announcement of that correction, a party gives notice that an amount is so payable, the party that originally either received or retained such amount will, no later than 3 Business Days after the effectiveness of that notice, pay
subject to any applicable conditions precedent, to the other party that amount, together with interest on that amount at the Default Rate for the period from and including the day on which a payment originally was (or was not) made to but excluding
the day of payment of the refund or payment resulting from that correction. 
  

	(b)	The “Market Disruption Events” specified in Section 7.4(d)(i) of the Commodity Definitions shall apply in addition to “Trading Limitation” in
Section 7.4(c)(viii). 

 “Trading Limitation” specified in Section 7.4(c)(viii) of the Commodity
Definitions is hereby amended by the addition of the following at the end thereof: 
 “For these purposes, a limitation of trading on any
Commodity Business Day shall be deemed to be material only if the relevant Exchange establishes limits on the range within which the price of the Futures Contract may fluctuate and the closing or settlement price of such Futures Contract on such day
is at the upper or lower limit of that range.” 
  

	(c)	“Additional Market Disruption Events” shall apply if so specified in the Confirmation. 

  

	(d)	The following “Disruption Fallbacks” defined in Section 7.5(c) of the Commodity Definitions shall apply, in the following order: 

  

	 	(1)	“Negotiated Fallback”; 

  

	 	(2)	“Fallback Reference Price”  

  

	 	(3)	“Postponement”; with three (3) Commodity Business Days as the Maximum Days of Disruption; or 

  

	 	(4)	“Fallback Reference Dealers.” 

  

					
	ISDA Schedule	  	169	  	

 EXECUTION APPROVAL SCHEDULE 
  

 IN WITNESS WHEREOF, the parties have executed this Schedule by their duly authorized officers
as of the date hereof. 
  

			
	AEP Energy Services, Inc.
		
	By:	 	 
	Name:	 	Ronald A. Erd
	Title:	 	Vice President
	Date:	 	January 26, 2005

  

					
	ISDA Schedule	  	170	  	

 EXECUTION APPROVAL SCHEDULE 
  

			
	ETC Marketing, Ltd.
		
	By:	 	 
	Name:	 	 
	Title:	 	 
	Date:	 	January 26, 2005

  

					
	ISDA Schedule	  	171	  	

 EXHIBIT 3.10 
 CERTAIN PERMITTED ENCUMBRANCES 
 Seven Oaks Lateral Pipeline is subject to a Lease and Operating Agreement dated
July 1, 1995, as amended by amendment dated November 1, 1998, which includes the right of the lessee to purchase a portion of the pipeline upon 90 days notice prior to July 1, 2010. 
  

			
	Purchase and Sale Agreement, Exhibit 3.10	  	Page 1

 EXHIBIT 5.13 
 CERTAIN REAL PROPERTY INTERESTS 
  

	1.	The rights of way and easements of the HPL Companies in which is located the pipeline described in Section 2.1.1(a) of Schedule 3.10 of Sellers’ Disclosure Schedules.

  

	2.	The fee title interest of the HPL Companies in the land under which is located the Bammel storage reservoir described in Section 2.1.2 of Schedule 3.10 of Sellers’
Disclosure Schedules. 

  

	3.	The rights of way and easements of the HPL Companies in which is located the pipeline described in Section 2.2.2 of Schedule 3.10 of Sellers’ Disclosure Schedules.

  

	4.	The rights of way and easements of the HPL Companies in which are located the pipelines described in Section 2.4 of Schedule 3.10 of Sellers’ Disclosure Schedules other
than the 300 miles of “A/S Line.” 

  

			
	Purchase and Sale Agreement, Exhibit 5.13	  	Page 1

 EXHIBIT 7.8 
 ALLOCATION OF PURCHASE PRICE 
  

			
	 Assets comprising the Bammel Facilities
	  	No less than $320,000,000, of which $10,000,000 is allocated to cushion gas of approximately 10.5 BCF
		
	 50% general partnership interest in MidTexas Pipeline Company
	  	$30,000,000
		
	 To all other tangible assets
	  	Residual purchase price

  

			
	Purchase and Sale Agreement, Exhibit 7.8	  	Page 1

 BUYER’S DISCLOSURE SCHEDULES 
 RELATING TO 
 PURCHASE AND SALE AGREEMENT 
 AMONG 
 HPL STORAGE LP,

 AND 
 AEP ENERGY
SERVICES GAS HOLDING COMPANY II, L.L.C. AS SELLERS 
 AND 
 LA GRANGE ACQUISITION, L.P. 
 AS BUYER 
 DATED AS OF JANUARY 26, 2005 
 Buyer’s Disclosure
Schedules 

 SCHEDULE 4.1 
 Organization and Good Standing of Buyer 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None. 
  

			
	Sellers’ Disclosure Schedules, Schedule 4.1	  	Page 1

 SCHEDULE 4.2 
 Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Buyer 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	In connection with the exercise of the option under the Option Agreement, the parties may be required to make a filing under and otherwise comply with the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended. 

  

	1.2.	In connection with the exercise of the option under the Option Agreement, notification to the Texas Attorney General may be appropriate. 

  

	1.3.	Post-Closing notice to Texas Railroad Commission. 

  

	1.4.	Post-Closing P-5 notice to Texas Railroad Commission. 

  

	1.5.	Post-Closing notice to FERC. 

  

	1.6.	See Section 3.1 of Schedule 3.11 (Contracts of the HPL Entities). 

  

	1.7.	FCC approval of license transfers. 

  

			
	Buyer’s Disclosure Schedules, Schedule 4.2	  	Page 1

 SCHEDULE 4.3 
 No Litigation Against Buyer 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None. 
  

			
	Buyer’s Disclosure Schedules, Schedule 4.3	  	Page 1

 SCHEDULE 4.4 
 Finders and Brokers 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None. 
  

			
	Buyer’s Disclosure Schedules, Schedule 4.4	  	Page 1

 SCHEDULE 4.5 
 Bankruptcy 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None. 
  

			
	Buyer’s Disclosure Schedules, Schedule for Exhibit 4.5	  	Page 1

 SELLERS’ DISCLOSURE SCHEDULES 
 RELATING TO 
 PURCHASE AND SALE AGREEMENT 
 AMONG 
 HPL STORAGE LP, AND 

 AEP ENERGY SERVICES GAS HOLDING COMPANY II, L.L.C. 
 AS SELLERS 
 AND 
 LA GRANGE ACQUISITION, L.P., 
 AS BUYER 
 DATED AS OF JANUARY 26, 2005 
  

			
	Sellers’ Disclosure Schedules	  	

 SCHEDULE 3.1 
 Organization and Good Standing of Sellers 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.1	  	Page 1

 SCHEDULE 3.2 
 Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Sellers 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	In connection with the exercise of the option under the Option Agreement, the parties may be required to make a filing under and otherwise comply with the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended. 

  

	1.2.	The parties have agreed that notice will be sent to the Texas Attorney General in connection with the exercise of the option under the Option Agreement. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.2	  	Page 1

 SCHEDULE 3.3 
 No Litigation Against Sellers 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.3	  	Page 1

 SCHEDULE 3.4 
 Organization and Good Standing of the HPL Companies 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	HPL Consolidation owns 100% of the membership interests of Storage GP and HPL GP and a 99% limited partner interest in Storage Holdings and Storage Leaseco and a 99.5% limited
partner interest in HPL Company LP, HPL Resources and Gas Marketing. 

  

	1.2.	Storage GP owns a 1% general partner interest in Storage Holdings and Storage Leaseco. 

  

	1.3.	HPL GP owns a 0.5% general partner interest in HPL Company LP, HPL Resources and Gas Marketing. 

  

	1.4.	HPL Company LP owns 100% of AEP Houston Pipe Line Company, LLC, a Delaware limited liability company, 50% of MidTexas Pipeline Company, a general partnership organized under the
laws of the State of Texas, an 80% tenant-in-common interest in the South Texas Pipeline, a 50% tenant-in-common interest in the Austin Pipeline, a 50% tenant-in-common interest in the Big Cowboy Pipeline, and a 50% tenant-in-common interest in the
A/S Pipeline. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.4	  	Page 1

 SCHEDULE 3.5 
 No Conflict, No Consent Requirements with respect to the HPL Companies 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	See Section 1.1 of Schedule 3.2 (Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Sellers). 

  

	1.2.	See Section 1.2 of Schedule 3.2 (Enforceability; Authority; No Conflict; No Consent Requirements with Respect to Sellers). 

  

	1.3.	Post-Closing notice to the Texas Railroad Commission to be provided by Buyer. 

  

	1.4.	Post-Closing notice to the FERC to be provided by Buyer. 

  

	1.5.	Notices to various Governmental Entities will likely be required at or after Closing, including a P-5 Notice to the Texas Railroad Commission to reflect the change in equity
ownership and in officers and directors of the HPL Entities. Additionally to the extent individuals who are designated as “contact” persons for various emergency responses and general questions are changed post-Closing, notification to the
appropriate Governmental Entities will need to be made by the HPL Entities. Similarly, if the name of the HPL Entities is changed post-Closing, various additional filings with Governmental Entities reflecting the name changes would likely be
required and notification of any such name change should be given to all counterparties of the HPL Entities. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.5	  	Page 1

 SCHEDULE 3.6 
 Capitalization of the HPL Companies; Sellers’ Title 
  

	1.	CAPITALIZATION OF THE HPL ENTITIES 

  

							
	 HPL Entity
	  	 General Partnership Interests
	  	 Limited Partnership Interests
	  	 Membership Interests

	HPL Consolidation	  	1% general partnership interest held by Storage LP	  	 36% limited partnership interest held by Storage LP
  
 63% limited partnership interest held by AEP Gas Holding II
	  	
				
	Storage GP	  		  		  	100% membership interest held by HPL Consolidation
				
	HPL GP	  		  		  	100% membership interest held by HPL Consolidation
				
	Storage Holdings	  	1% general partnership interest held by Storage GP	  	99% limited partnership interest held by HPL Consolidation	  	
				
	Storage Leaseco	  	1% general partnership interest held by Storage GP	  	99% limited partnership interest held by HPL Consolidation	  	
				
	HPL Company LP	  	0.5% general partnership interest held by HPL GP	  	99.5% limited partnership interest held by HPL Consolidation	  	
				
	HPL Resources	  	0.5% general partnership interest held by HPL GP	  	99.5% limited partnership interest held by HPL Consolidation	  	
				
	Gas Marketing	  	0.5% general partnership interest held by HPL GP	  	99.5% limited partnership interest held by HPL Consolidation	  	

  

	2.	CAPITALIZATION OF THE HPL ENTITY SUBSIDIARIES 

  

			
	 HPL Entity Subsidiary
	  	 Ownership Interests

	AEP Houston Pipe Line Company, LLC	  	100% membership interest held by HPL Company LP
		
	Mid Texas Pipeline Company	  	 50% general partnership interest held by HPL Company LP
  
 50% general partnership interest held by Duke Energy Guadalupe Pipeline, Inc.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.6	  	Page 1

	3.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES REGARDING SELLERS’ TITLE 

 None. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.6	  	Page 2

 SCHEDULE 3.7 
 Financial Statements of the HPL Entities 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 No
balance sheets, statements of income and expense, or other financial statements for HPL Consolidation have been delivered to Buyer. The financial condition and results of operations of HPL Consolidation are not shown on any financial statements that
were delivered to Buyer. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.7	  	Page 1

 SCHEDULE 3.8 
 No Material Adverse Change 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 On
December 15, 2004, HPL Company LP terminated the Asset Management Agreement with AEP Energy Services, Inc. (AEPES), which provided for the management of injections, withdrawals and storage of natural gas by AEPES in the Bammel storage facility.
Concurrent with this contract termination, HPL Company LP purchased 45,428,622 MMBtu of natural gas owned by AEPES in the Bammel storage facility on December 15 at the AEPES book value of $228,216,468. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.8	  	Page 1

 SCHEDULE 3.9 
 No Undisclosed Liabilities 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.9	  	Page 1

 SCHEDULE 3.10 
 Property and Leases of the HPL Companies 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	The right of the HPL Entities to use 55 bcf of cushion gas now in the Bammel facility under the Right to Use Agreement by and between BAM Lease Company and HPL Company LP, effective
May 31, 2001, is in controversy as part of the Cushion Gas Litigation. Sellers believe the counterparty to the Right to Use Agreement is in default. 

  

	1.2.	Reference is made to the other matters in controversy that are included in the Cushion Gas Litigation. 

  

	1.3.	Various AEP Affiliates have leased assets under various agreements which include vehicles and computer equipment used exclusively in the Business. 

  

	1.4.	The HPL Entities currently occupy approximately 49,000 square feet of leased office space in downtown Houston on the 11th and 12th floors of 1201 Louisiana Street. The sublease for
the 12th floor has been assigned to HPL Company LP, effective January 24, 2005. The lease for the 11th floor has been assigned to HPL Company LP, to be effective 30 days after notice was delivered to the landlord (which occurred on
January 25, 2005) pursuant to the terms of the lease, unless such landlord agrees to an earlier effective date. Until such time HPL Company LP will continue to occupy such space under the Transition Services Agreement. 

 

	1.5.	Seven Oaks Lateral Pipeline is subject to a Lease and Operating Agreement dated July 1, 1995, as amended by an amendment dated November 1, 1998, which includes the right
of the lessee to purchase a portion of the pipeline upon giving 90 days’ notice prior to July 1, 2010, the expiration date of the Lease and Operating Agreement. 

  

	2.	MATERIAL ASSETS 

  

	2.1.	Prime Lease Assets 

  

	 	2.1.1. 	Houston Loop and Texas City Loop Pipelines 

  

	 	(a)	Pipeline. The Houston Loop and Texas City Loop Pipelines are comprised of varying diameter steel pipelines designed to gather and transport natural gas under high pressure,
aggregating to the approximate lengths shown below: 

  

	 	(i)	113.5 miles of 30" pipe; 

  

	 	(ii)	137.1 miles of 24" pipe; 

  

	 	(iii)	19.2 miles of 20" pipe; 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 1

	 	(iv) 	108.9 miles of 18" pipe; 

  

	 	(v)	.4 miles of 17" pipe; 

  

	 	(vi)	69.2 miles of 16" pipe; 

  

	 	(vii)	.3 miles of 14" pipe; 

  

	 	(viii) 	81.1 miles of 12" pipe; 

  

	 	(ix)	13.2 miles of 10" pipe; 

  

	 	(x)	52.5 miles of 8" pipe; 

  

	 	(xi)	92.1 mils of 6" pipe; 

  

	 	(xii) 	89.6 miles of 4" pipe; 

  

	 	(xiii) 	15.1 miles of 3" pipe; and 7.5 miles of 2" pipe 

  

	 	(b)	Equipment-Generally. Supplementing the steel pipe are a variety of standard natural gas pipeline valve, tap, interconnect, and pressure regulation and safety fittings and
components, generally described as follows: 

  

	 	(i)	Mainline Valves: The Houston Loop and Texas City Loop Pipelines contain approximately 40 mainline valves and approximately 760 other valves. 

  

	 	(ii)	Separators: The Houston Loop and Texas City Loop Pipelines include eight crude oil/condensate and other entrained liquids separation stations. 

  

	 	(iii)	Pressure Regulators: The Houston Loop and Texas City Loop Pipelines include eleven installations of pressure regulation equipment to protect the integrity of downstream pipelines
with whom it is connected. 

  

	 	(iv)	Cathode Protection: The Houston Loop and Texas City Loop Pipelines are cathodically protected throughout the system so as to minimize the effects of soil corrosion on the pipeline.

  

	 	2.1.2. 	Bammel Storage Reservoir 

 The Bammel Storage Reservoir is
an underground natural gas storage reservoir and related facilities located in Harris County, Texas north of the city of Houston and bounded generally by Hwy 290, I-45, Beltway 8, and FM 1960. The Bammel Storage Reservoir’s surface equipment is
located 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 2

 
on approximately 1,000 acres of contiguous surface area and 17 non-contiguous lots, the underground reservoir comprising the Bammel Storage Reservoir is
located in the Bammel Sand covering approximately 7,000 acres located in Northwest Harris County, Texas, which facility and acreage is more particularly described and depicted in Exhibits “A” through “C” attached to that certain
Unit Agreement, Bammel Gas Unit, Harris County, Texas, a counterpart of which is recorded in Volume 1925, Page 283, of the Contract Records, Harris County, Texas, as amended by those certain Second and Third Amendments of the Unit Agreement, Bammel
Gas Unit, Harris County, Texas, counterparts of which are recorded in Volume 2119, Page 336 and Volume 2130, Page 516, respectively, of the Contract Records, Harris County, Texas. 
 The Bammel Storage Reservoir assets consist of the following wells, facilities and equipment: 
  

	 	(i)	15 dual purpose injection/withdrawal wells of approximately 6200 feet in depth, together with associated downhole and wellhead equipment, well piping, measurement and valves to
support both gas injection and withdrawal service; 

  

	 	(ii)	31 withdrawal wells, of approximately 6200 feet in depth, together with associated surface piping and facilities to support gas withdrawal service; 

  

	 	(iii)	A liquids handling system consisting of one salt water disposal well, a three phase separator, eight 400 barrel tanks and the associated valves and piping; 

 

	 	(iv)	3 central dehydration stations with rated capacities of 288, 432 and 576 MMCF per day, incorporating a total of 9 gas dehydration units and 7 vapor recovery units;

  

	 	(v)	Inlet filter separator, and inlet scrubber and gas regulation and control equipment at each dehydration station; 

  

	 	(vi)	33.774 miles of storage related pipe with diameters ranging from 4 to 24 inches and the associated valves necessary to move and control gas into and out of the storage wells and the
connecting HPL main pipeline. 

  

	2.2.	Sublease Owned Assets 

  

	 	2.2.1.	Bammel Storage Compressor Site 

 Being a 6.7733 acre site
extending over, through, along and across that certain tract of land being in Harris County, Texas and belonging to Houston Pipe Line Company and being further referred to as the Bammel Storage Reservoir. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 3

	 	2.2.2.	 Bammel Loop Pipeline 

 That approximately 12 mile,
30-inch outside diameter pipeline which begins at the existing Bammel Storage surface facilities owned by HPL in Harris County, Texas and extending in a south southwesterly direction to its terminus in HPL owned property located in the F. Fry
Survey, Abstract 268, in Harris County, Texas and the Debtors’ interest in the easements and other real estate interests held by the Debtors covering the right of way in which such pipeline is located. 
  

	 	2.2.3.	 Bammel Gas Fired Compressors 

 The idle Bammel gas
fired compressors consist of the following units: 
  

	 	(i)	6 Ingersoll Intergal Recips 412 KVSRA 2,400 horsepower units 

  

	 	(ii)	2 Superior W 62 Recip 6GT-825 750 horsepower units 

  

	 	(iii)	1 Joy WBF72HD Recip Waukesha 7042 750 horsepower unit 

  

	 	(iv)	3 Ingersoll Integral Recips 12 TVR 1,200 horsepower units 

  

	 	(v)	3 Ingersoll RDS Recips Superior 8GTLB 1,100 horsepower units 

  

	 	2.2.4.	 Electric Compressors 

  

	 	(i)	seven 7,000 horsepower reciprocating natural gas compressors powered by variable frequency drive electric motors, together with necessary unit valves, lead and service piping, lube
and gas cooling and unit control systems 

  

	 	(ii)	electrical substation, circuit switches, transformers and secondary switch gear, harmonic filters and power connection systems 

  

	 	(iii)	compressor building, power control room building, associated gravel roads to gain access to compressor site, fencing and safety related equipment required to house the electric
compressors and the portions of the power facilities required to be housed indoors. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 4

	2.3.	Gathering and Processing Assets 

 The following facilities,
including valves, dehydrators, meters, regulators, and other pipeline equipment associated therewith: 
  

							
	 Description
	  	Miles	  	 Diameter
	  	%
ownership
	Zapata Line which runs through Zapata, Webb, and
Jim Hogg Counties of Texas	  	25
 10
	  	 12"
 10"
	  	100%
 100%

				
	Thompsonville Line located in Webb and Duval Counties of Texas	  	100	  	12"	  	100%
				
	Edinburg Line located in Hidalgo, Brooks, Jim Wells, and Kleberg Counties of Texas	  	80
 30
	  	 24"
 16"
	  	100%
 100%

				
	Big Cowboy Line located in Webb and Duval Counties of Texas	  	45	  	16"	  	50%
				
	Dubose/Mission Valley Line located in Dewitt, Goliad, and Victoria Counties of Texas	  	89	  	12"	  	100%
		
		  	plus numerous smaller sections
				
		  		  		  	
				
	Southwest Speaks Line located in Lavaca and Jackson Counties of Texas	  	32	  	8" and 12"	  	100%
				
		  		  		  	
				
	Bonus/Spanish Camp Line located in Lavaca and Jackson Counties of Texas	  	37	  	6"	  	100%
				
		  		  		  	
				
	South Padre Island Line located offshore of Padre Island, Texas	  	70	  	20"	  	100%
				
		  		  		  	
				
	Valley Line located in Matagorda and Brazoria County	  	137	  	 combination
 of 8" , 12" , 16"
	  	100%
				
		  		  		  	
				
	McMullen/Three River Line1
	  	80	  	 combination
 of 6" and 12"
	  	100%
				
	Three Rivers Cryogenic Processing Plant located in Live Oak County, Texas (Not operational; being evaluated for relocation or sale)	  		  		  	

  

	1
	 A portion of this is a low pressure pipeline system that was originally installed with plastic pipe which was later determined by the manufacturer not to be
suitable for hydrocarbon use. Many segments of this system have been replaced and a quarterly monitoring process is in place. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 5

	2.4.	Mainlines 

 The following facilities, including valves, dehydrators,
meters, regulators, and other pipeline equipment associated therewith: 
  

							
	 Description
	  	Miles	  	 Diameter
	  	%
ownership
	South Texas Line which originates in Jim Hogg County, Texas and terminates in Caldwell County, Texas	  	193	  	24" and 30"	  	80%
				
	Austin Line which originates in Caldwell County, Texas and terminates in Travis County, Texas	  	18
 20
	  	 20"
 16"
	  	50%
 50%

				
	Partnership interest in MidTexas Pipeline Company, which owns the MidTexas Line, which originates in Gonzales County, Texas and terminates in Waller County, Texas (see Material
Contracts)	  	129
 10
	  	 30"
 12"
	  	50%
 50%

				
	Beeville to Texas City Line which originates in Live Oak, County Texas and terminates in Brazoria County, Texas	  	70
 115
	  	 18"
 24"
	  	100%
 100%

				
	A/S Line which originates in Nueces County, Texas and terminates in Newton County, Texas including compressor stations located in Texas Counties of Calhoun, Refugio, and San Patricio	  	300	  	30"	  	50%
				
	Texoma Line which originates in Lamar County, Texas and terminates in Hardin County, Texas	  	266	  	30"	  	100%
				
	Corpus Christi Loop, which serves the industrial markets in Corpus Christi, Texas area	  	90	  	12"	  	100%

  

	2.5.	Two compressors in Vidor, Texas. 

 Compressor skid package:

 Engine- Caterpillar G3606-Tale, rated for 1775 hp @1,000 rpms, 6 cylinder, w/ turbo-charger 
 Compressor- Ariel JGK-4 throw unit w/ 4- KMU 8.75 cylinders, rated speed 1,100 rpms 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 6

 Cooler- Air-X-Changer, model 156-EH, water and gas cooling, w/ louvers and hail guards 
 Unit Control panel- Murphy Millennium 
 Design
conditions: 
 Suction- 550 psig 
 Discharge- 1050 psig 
 Volume- 20 to 50 mmscf/d 
  

	2.6.	Treating Plants. 

 Jackalope Treating Plant near
Thompsonville in Jim Hogg County, Texas. 
 Designed to treat up to 115 MMcf/d of gas with 10% CO2 inlet and 2% or less outlet. 
 Dinn Treating Plants in Duval County, Texas. 
 Dinn #1 plant designed to treat up to 38 MMcf/d of gas with 12.5% CO2 inlet and 2% or less outlet. 
 Dinn #2 plant designed to treat up to 18 MMcf/d of gas
with 12.5% CO2 inlet and 2% or less outlet. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.10	  	Page 7

 SCHEDULE 3.11 
 Contracts of the HPL Companies 
  

	1.	DISCLOSED HPL CONTRACTS 

  

	1.1.	Unit Agreement 

 Unit Agreement re: Bammel Gas Unit, Harris
County Texas between HPL Resources, successor in interest to Houston Natural Gas Production Company (“Operator”) and other subscribers dated January 1, 1966 
  

	 	1.1.1. 	First Amendment of Unit Agreement, Bammel Gas Unit, Harris County, Texas dated effective November 22, 1966 

  

	 	1.1.2. 	Second Amendment of Unit Agreement, Bammel Gas Unit, Harris County, Texas dated effective November 1, 1966 

  

	 	1.1.3. 	Third Amendment of Unit Agreement, Bammel Gas Unit, Harris County, Texas dated effective January 1, 1968 

 Collateral Agreements 
  

	 	1.1.1. 	Collateral Agreement between Houston Natural Gas Production and the other parties thereto relating to Operator’s operation of certain leasehold interests in the Bammel Field
Area, Harris County, Texas dated 8/23/66 

  

	 	1.1.2. 	Supplemental Collateral Agreement to Bammel Unit Agreement dated 8/23/66 

  

	 	1.1.3. 	Collateral Agreement between Houston Natural Gas Production and the other parties thereto relating to Operator’s operation of certain leasehold interests in the Bammel Field
Area, Harris County, Texas dated 9/15/66 

  

	 	1.1.4. 	Supplemental Collateral Agreement to Bammel Unit Agreement dated 9/15/66 

  

	1.2.	EMS Measurement and Associated Services Agreement 

 Measurement and Associated Services Agreement between EMS Measurement Services Company L.P. (formerly Hanover Measurement Services Company, L.P.) and HPL Company LP dated May 31, 2001 
  

	 	1.2.1. 	Procurement, Repair and Construction Agreement between EMS Measurement Services Company L.P. (formerly Hanover Measurement Services Company, L.P.) and HPL Company LP dated
September 30, 1999 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 1

	 	1.2.2. 	Shared Use of Facilities Agreement between EMS Measurement Services Company L.P. (formerly Hanover Measurement Services Company, L.P.) and HPL Company LP dated October 1, 2001

  

	1.3.	Compression Management Agreement 

 Compression Management
Agreement between Contractor and HPL Company LP dated September 30, 1997, as amended by two amendments dated as of March 1, 1998 and three other amendments dated as of April 1, 1999, March 31, 2000 (Contractor I, II, II, IV)
and January 1, 2002 (not executed) 
  

	 	1.3.1. 	Purchase Agreement between Contractor and HPL Company LP dated September 29, 1997 (Contractor I) 

  

	 	1.3.2. 	Purchase Agreement between Contractor and HPL Company LP dated April 1, 1998 (Contractor II) 

  

	 	1.3.3. 	Purchase Agreement between Contractor and HPL Company LP dated June 29, 1999 (Contractor III) 

  

	 	1.3.4. 	Purchase Agreement between Contractor and HPL Company LP dated March 31, 2000 (Contractor IV) 

  

	1.4.	Joint Venture Agreements 

  

	 	1.4.1. 	MIDTEXAS PIPELINE COMPANY 

 Amended and
Restated General Partnership Agreement of MIDTEXAS PIPELINE COMPANY between Duke Energy Guadalupe Pipeline, Inc. (TECO Pipeline Company) and HPL Company LP dated August 19, 1994, as amended by Amendments effective June 30, 1998, May
[    ], 20012, and July 1, 2003 
 Operating Agreement between MIDTEXAS PIPELINE COMPANY and HPL Company LP dated effective December 15, 1995, as amended by Ratification of and
Amendment to Operating Agreement effective as of June 30, 1998 
  

	 	(a)	Interruptible Intrastate Gas Transportation Agreement between Duke Energy Guadalupe Pipeline, Inc. and HPL Company LP dated December 15, 1995 

  

	 	(b)	Interruptible NGPA Section 311 Gas Transportation Agreement Duke Energy Guadalupe Pipeline, Inc. and HPL Company LP dated December 15, 1995 

  

	2
	 The date in the agreement is blank. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 2

	 	(c)	Balancing Agreement between HPL Company LP and Duke Energy Guadalupe Pipeline, Inc. dated July 1, 2003 

  

	 	1.4.2. 	A/S PIPELINE 

 A/S Pipeline Operating Agreement between HPL
Company LP and Gulfterra Intrastate, L.P. (formerly Channel Industries Gas Company) dated January 1, 1997, as amended July 15, 1999, August 7, 2000, 
  

	 	(a)	A/S Pipeline Ownership Agreement between HPL Company LP and Gulfterra Intrastate, L.P. (formerly Channel Industries Gas Company) dated January 1, 1997 

 

	 	1.4.3. 	SOUTH TEXAS PIPELINE 

 Construction Operating and Tax
Agreement between KinderMorgan Tejas Pipeline, L.P. (formerly Intrastate Gathering Corporation) and HPL Company LP dated November 19, 1985, as amended May 1, 1990, July 16, 1990 
  

	 	(a)	Gas Exchange Agreement between KinderMorgan Tejas Pipeline, L.P. (formerly Intrastate Gas Corporation) and HPL Company LP referenced in 1.1.13 of the South Texas Agreement dated
November 19, 1985 

  

	 	(b)	Transportation Agreement between KinderMorgan Tejas Pipeline, L.P. (formerly Intrastate Gas Corporation) and HPL Company LP for Intrastate and 311 Gas referenced in 1.1.29 of the
South Texas Agreement dated November 19, 1985 

  

	 	1.4.4. 	AUSTIN PIPELINE 

 Construction and Operating Agreement for
the Austin Pipeline between KinderMorgan Tejas Pipeline, L.P. (formerly Intrastate Gas Corporation) and HPL Company LP dated September 19, 1986,as amended by 3 letters each dated September 19, 1986 for Gas Transportation, Compression and
Aid to Construction, letter dated December 2, 1988, rental claims re: compression charges 
  

	 	1.4.5. 	BIG COWBOY SYSTEM 

 Big Cowboy System Construction,
Ownership, Operation and Maintenance Agreement between KinderMorgan Tejas Pipeline LP (formerly Gulf Energy Pipeline Company) and HPL Company LP dated August 20, 1992, as amended August 26, 1994, October 1,
1995, November 30, 1995 and March 20, 1997 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 3

	 	(a)	Gas Transportation Agreement (Intrastate) between KinderMorgan Tejas Pipeline LP (formerly Gulf Energy Pipeline Company) and HPL Company LP referenced in 1.1.23 of above Agreement
dated August 20, 1992, as amended August 26, 1994 

  

	1.5.	Bammel Power Contract 

 AEP Account # 10250 being a
contract between AEP Retail Energy and HPL Reliant Compression (HPL Company LP) covering the provision of electric service (Centerpont Meter # 951512) at HPL Company LP's Bammel facility located at 15011 Kuykendahl, Houston, Texas (ESID
1008901000153270012100); such electric service being provided on a month to month basis terminable by either party upon not less than 30 days prior written notice to the other party 
 Reference is made to item 1.1 on Schedule 5.4. 
  

	1.6.	Processing Agreements - EXXONMOBIL 

  

	 	1.6.1. 	Project Agreement between ExxonMobil Corporation (formerly, Exxon Company U.S.A., a division of Exxon Corporation) (“Exxon Mobil”), Humble Gas Pipeline Company
(“Humble”), and HPL Company LP re: reservation of all of HPL Company LP’s capacity on the Edinburg Line, Southern Loma Blanca Line and HPL King Ranch Lateral for joint use of transport of rich Gas under this Agreement to Exxon
Mobil’s King Ranch Plant (Capacity in Edinburg Line subject to HPL/Mobil Natural Gas, Inc. Transport K) dated 10/4/96, as amended 10/1/98, 10/1/99, 4/29/03 

  

	 	(a)	Gas Liquifiables Purchase Agreement between ExxonMobil (as Buyer) HPL Company LP (as Seller and Transporter) dated 10/4/96 

 Exhibit C to the Gas Liquifiables Purchase Agreement is 4/1/96 Gas Purchase Contract between HPL Company LP (assignee of HPL Resources) and
Coastal Oil & Gas USA, L.P. (assignee of Suemaur Exploration, Inc.) re: Cage Ranch in Brooks County, Texas (“Cage Ranch Agreement”) 
 4/1/00 Amendment to Cage Ranch Agreement 
 4/28/00 Termination of HPL Company LP’s and
ExxonMobil’s obligations under Cage Ranch Agreement to buy and sell Natural Gas Liquifiables produced from Area I on Exhibit E 
  

	 	(b)	Capacity Lease And Operating Agreement between Humble and HPL Company LP dated 10/4/96, as amended 4/29/03 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 4

	 	(c)	Agreement To Interconnect And Operate Natural Gas Pipeline Facilities between HPL Company LP and Humble re: Humble/HPL Interconnects in Brooks and Kleberg Counties, Texas dated
10/4/96, as amended 10/1/99, 4/29/03 

  

	 	(i)	Facilities Agreement 

 4/29/00 HPL Company LP and Exxon
Mobil re: Church of the Brethren Way 
  

	 	(d)	HPL Transportation Agreements - HPL Company LP as Transporter and ExxonMobil as Shipper 

  

	 	(i)	10/4/96 Intrastate-Interruptible Gas Transportation Agreement (Kelsey Receipt Point – Intrastate Wet Gas) (Exhibit F1 to Project Agreement) 

 9/25/00 Partial Assignment of the Transport Agreement to Mobil Producing Texas & New Mexico to allow up to 7,000 MMBtu from Church of the
Brethren Well 
  

	 	(ii)	10/4/96 NGPA § 311 – Interruptible Gas Transportation Agreement (Kelsey Receipt Point – 311 Wet Gas) (Exhibit F-2 to Project Agreement) 

  

	 	(iii)	10/4/96 Intrastate – Interruptible Gas Transportation Agreement (Stratton Receipt Point – Phase One Dry Gas) (Exhibit G to Project Agreement) (deleted in Amendment 3 to
Project Agreement) 

  

	 	(e)	HGPC Header Transportation Agreements - Humble as Transporter and HPL Company LP (as assignee of HPL Resources) as Shipper (Header Transportation Agreement)

  

	 	(i)	10/4/96 Intrastate – Interruptible Gas Transportation Agreement (Exhibit I to Project Agreement) 

  

	 	(ii)	10/4/96 NGPA § 311 – Interruptible (Exhibit J to Project Agreement) 

  

	 	(iii)	10/1/98 Assignment of Humble Transportation Contracts from HPL Resources to HPL Company LP 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 5

	 	1.6.2. 	Processing Agreements between ExxonMobil Corporation (formerly, Exxon Company U.S.A., a division of Exxon Corporation) (“Exxon Mobil”) and HPL Company LP (assignee of HPL
Resources) 

  

	 	(a)	Processing Agreement re: McAllen Ranch Field, Brooks County, Texas dated July 23, 1997, as amended (Contract No. 96060465) 

  

	 	(b)	Transaction Agreement re: Processing gas from EOG’s Interests in Webb County, Texas dated October 30, 1997 (Contract No. 96061566) 

  

	 	(c)	Processing Agreement re: gas from LaEncantada Field, Brooks County, Texas and Four P Investments Inc. and Daunis Properties, L.P. (assignees of Saxet Energy, Ltd.) in Duval County,
Texas dated April 1, 1999, as amended (Contract No. 96060477) 

  

	 	(d)	Processing Agreement re: re: gas from 3 Rivers Area, Live Oak, Duval and McMullen Counties, Texas dated October 1, 1999 (Contract No. 96060485) 

 

	 	(e)	Processing Agreement gas from South Padre Island Pipeline System dated October 1, 2001, as amended (Contract No. 96081787) 

  

	 	(f)	Processing Agreement re: gas from Hanna Trad Well, Loma Blanca Field, Brooks County dated August 8, 2003 (Contract No. 97000491) 

  

	 	(g)	Amended and Restated Processing Agreement re: gas from Big Cowboy Pipeline System dated December 11, 2003 (Contract No. 96060464) 

  

	1.7.	Processing Agreements - DUKE 

  

	 	1.7.1. 	Processing Agreements between Duke Energy Field Services, LP and HPL Company LP 

  

	 	(a)	Gas Processing Agreement between Duke Energy Field Services, LP (Processor) and HPL Company LP (Supplier) (Port Arthur or West Beaumont Plants) dated September 1, 2001
(96081049) 

  

	 	(b)	Gas Processing Agreement between Duke Energy Field Services, LP (Processor) and HPL Company LP (Supplier) (Gulf Plains Plant, Nueces County) dated June 1, 1996, as amended
(96060450) 

  

	1.8.	Processing Agreements - HILCORP 

  

	 	1.8.1. 	Processing Agreements between Hilcorp Energy Company and HPL Company LP 

  

	 	(a)	10/1/02 Gas Processing Agreement between Hilcorp Energy Company (Processor) and HPL Company LP (Supplier) (Old Ocean Gas Plant, Brazoria County, Texas) dated October 1, 2002,
as amended (97000133) 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 6

	1.9.	Intercompany Lease Agreements (Prime and Sub) 

  

	 	1.9.1. 	Lease Agreement between Storage Holdings (assignee of ENA Asset Holdings L.P.), as Lessor, and Storage Leaseco (assignee of BAM Lease Company, assignee of HPL Company LP), as
Lessee, effective November 10, 1999 (Prime) 

 First Amendment to Lease Agreement dated May 30, 2001 
  

	 	1.9.2. 	Sublease Agreement between Storage Leaseco (assignee of BAM Lease Company), as Sublessor, and HPL Company LP, as Sublessee, effective May 31, 2001 

  

	1.10. 	Right to Use Agreement 

 Right to Use Agreement by and
between BAM Lease Company and HPL Company LP effective as of May 31, 2001 
  

	1.11. 	Consent and Acknowledgement 

 Consent and Acknowledgement
(Cushion Gas) by and among The Bank of New York, the Bammel Gas Trust, Bam Lease Company, HPL Asset Holdings L.P., HPL Company LP, Enron Corp., Enron North America Corp., HPL Resources, and Bank of America, N.A. dated May 30, 2001. 

 

	1.12. 	Enron Settlement Agreement 

  

	 	1.12.1. 	Settlement Agreement and Mutual Release among AEP Energy Services Gas Holding Company, HPL Company LP, HPL Resources, AEP Energy Services, Inc., AEP Resources, Inc. and American
Electric Power Company, Inc. and Enron Corp., Enron North America Corp., ENA Asset Holdings L.P., and BAM Lease Company dated as of April 2004 

 First Amendment to Settlement Agreement and Release dated August [__], 20043 
 Second Amendment to
Settlement Agreement and Mutual Release dated October 29, 2004 
  

	3
	 The date in the agreement is blank. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 7

 Bankruptcy Court Order Approving Settlement Agreement and Mutual Release dated September 30, 2004

  

	1.13. 	CO2 Treating Agreement 

 CO2 Treatment Agreement between
Contractor and HPL Company LP dated February 15, 1999 
  

	1.14. 	Purported Security Interest of Bank of America 

 Bank of
America claims a purported security interest in up to 55 Bcf of “Storage Gas” located in the Bammel storage facility. 
  

	1.15. 	HPL Guaranty of AEP Gas Marketing 

 Performance Agreement
between CenterPoint Energy Entex, a division of CenterPoint Energy Resources Corp. (formerly, Entex, a division of Noram Energy Corp), CenterPoint Energy Intrastate Pipelines, Inc. (formerly, Unit Gas Transmission Company) and HPL Company LP whereby
HPL Company LP guarantees the performance of Gas Marketing’s obligations under certain transaction agreements with Entex entities defined therein dated April 1, 1999. 
  

	2.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	2.1.	Intentionally blank. 

  

	2.2.	Various defaults and breaches of contractual obligations are the subject of certain litigation described in Schedule 3.13. 

  

	2.3.	One or more material breaches by the counterparty may exist under the Right to Use Agreement described in item 1.10 above in this Schedule. 

  

	2.4.	One or more material breaches by the counterparty may exist under the Consent and Acknowledgment described in item 1.11 above in this Schedule. 

  

	2.5.	One or more material breaches by the counterparty may exist under Master Firm Purchase/Sale Agreement For General Service Customers Houston, East Texas and Gulf Coast Divisions
dated April 1, 1999 between Gas Marketing (as assignee of Enron North America Corp. formerly Enron Capital & Trade Resources Corp.) and CenterPoint Energy Entex, a division of CenterPoint Energy Resources Corp. (successor to Entex, a
division of Noram Energy Corp.) as amended. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.11	  	Page 8

 SCHEDULE 3.12 
 Insurance Maintained by the HPL Companies 
  

	1.	BUSINESS INSURANCE POLICIES 

  

	1.1.	Environmental Site Liability Policy 

  

			
	Policy Numbers:	  	3725-37-46
	Carriers:	  	Chubb Custom Insurance Company
		
	Effective Dates:	  	12/20/01 - 12/20/06
		
	Limits:	  	$25,000,000 Per Occurrence
		  	$50,000,000 Aggregate
		
	Deductibles:	  	$1,500,000 each incident (Coverage A)
		  	$500,000 each incident (Coverage B)
		
	Premium:	  	$394,319

  

	*	Endorsement naming AEP and its subsidiaries as additional named insured will be added to policy 

  

	1.2.	Property Insurance - “All Risk” Corporate Program 

  

			
	Policy Numbers:	  	Various
	Carriers:	  	
	Primary:	  	Energy Insurance (Bermuda)
	Excess:  	  	Various carriers led by AEGIS
		
	Effective Dates:	  	7/1/04 - 7/1/05
		
	Limits:	  	$1,270,000,000
	HPL Deductible:	  	$250,000 per occurrence
		
	 HPL Annual
 Premium:
	  	$294,000
		
	Special HPL Provisions:	  	VALUATION: Value of replacement gas will be calculated at $6.00 per 1,000 cubic feet of gas

  

			
	Sellers’ Disclosure Schedules, Schedule 3.12	  	Page 1

	1.3.	Casualty - Excess Liability Program 

  

			
	Policy Numbers:	  	Various
	Carriers:	  	
	Primary:	  	Chubb/Energy Insurance (Bermuda)
	Excess:  	  	Various carriers led by AEGIS
		
	Effective Dates:	  	7/1/04 - 7/1/05
		
	Limits:	  	$450,000,000
	HPL Deductible:	  	$0 per occurrence
		
	HPL Annual Premium:	  	$350,000
		
	Special HPL Provisions:	  	Well Control and Exploration excluded
	
	Covers General Liability, Auto Liability, Rail Road, etc.

  

	1.4.	Workers Compensation 

  

			
	Policy Numbers:	  	Various
	Carriers:	  	
	Primary:	  	Texas Self Insured
	Excess:  	  	Various carriers led by EIB & AEGIS
		
	Effective Dates:	  	12/1/04 - 12/1/05
		
	Limits:	  	$150,000,000
	HPL Deductible:	  	$500,000 per occurrence
	HPL Annual Premium:	  	TBD
		
	Special HPL Provisions:	  	HPL workers are included in AEP Corporate Texas Self Insured WC bond

  

			
	Sellers’ Disclosure Schedules, Schedule 3.12	  	Page 2

	1.5.	D&O Liability 

  

			
	Policy Numbers:	  	Various
	Carriers:	  	
	Primary:	  	AEGIS
	Excess:  	  	Various
		
	Effective Dates:	  	1/1/05 - 3/15/06
		
	Limits:	  	$325,000,000
	HPL Deductible:	  	$0 per occurrence
		
	HPL Annual Premium:	  	$148,206
		
	Special HPL Provisions:	  	N/A

  

	1.6.	Fiduciary Insurance 

  

			
	Policy Numbers:	  	Various
	Carriers:	  	
	Primary:	  	XL
	Excess:  	  	Various
		
	Effective Dates:	  	7/1/04 - 7/1/05
		
	Limits:	  	$75,000,000
	HPL Deductible:	  	$0 per occurrence
	HPL Annual Premium:	  	$20,000
		
	Special HPL Provisions:	  	N/A

  

			
	Sellers’ Disclosure Schedules, Schedule 3.12	  	Page 3

	1.7.	Major lines of coverage noted, other various corporate insurance policies will also cancel coverage related to HPL Companies upon sale, and no HPL Company will be entitled to any
refund of premium as a result thereof. 

  

	2.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	2.1.	There are 8 open claims under liability and auto coverage with approximately $135,000 in open reserves. 

  

	2.2.	On-going Worker’s Comp claims made, dating from January 1, 2003 through and including December 31, 2004, as follows: 

  

																										
	 2003
	 		 		 		 		 		 			 			 			 			 		
											
	 Level 5
	 	 Claimant Name
	 	Date of
Injury	 	Status	 	Claim Type
Description	 	 Severity
Description
	 	Period
Indemnity
Paid	 	Period
Medical Paid	 	Period
Expenses
Paid	 	Period
Total Paid	 	Outstanding
Reserves
	Houston Pipeline	 	Clawson, Charlotte	 	15-Jul-03	 	Open	 	Indemnity	 	Temporary Total Disability	 	$	2,685.00	 	$	3,038.17	 	$	624.00	 	$	6,347.17	 	$	12,776.83
		 		 		 		 		 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Sum:
	 		 		 		 		 		 	$	2,685.00	 	$	3,919.04	 	$	624.00	 	$	7,228.04	 	$	12,776.83
		 		 		 		 		 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
											
	 2004
	 		 		 		 		 		 			 			 			 			 		
											
	 Level 5
	 	 Claimant Name
	 	Date of
Injury	 	Status	 	Claim Type
Description	 	 Severity
Description
	 	Period
Indemnity
Paid	 	Period
Medical Paid	 	Period
Expenses
Paid	 	Period
Total Paid	 	Outstanding
Reserves
	Houston Pipeline	 	Clawson, Charlotte	 	15-Jul-03	 	Open	 	Indemnity	 	Temporary Total Disability	 	$	5,640.00	 	$	2,936.99	 	$	0.00	 	$	8,576.99	 	$	4,699.84
	Houston Pipeline	 	Larkin, James	 	8-Jun-04	 	Open	 	Indemnity	 	Temporary Total Disability	 	$	0.00	 	$	321.70	 	$	0.00	 	$	321.70	 	$	178.30
		 		 		 		 		 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Sum:
	 		 		 		 		 		 	$	5,640.00	 	$	3,747.87	 	$	0.00	 	$	9,387.87	 	$	4,878.14
		 		 		 		 		 		 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.12	  	Page 4

 SCHEDULE 3.13 
 No Litigation Against the HPL Companies 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	The following matters, which are not Retained Matters but are covered by the Cushion Gas Litigation Agreement: 

  

	 	1.1.1. 	Bank of America, N.A., as Administrative Agent, and as Representative of Wilmington Trust Company, Trustee of the Bammel Gas Trust v. Houston Pipe Line Company LP, Cause
No. 2002-36488, in the 280th Judicial District Court, Harris County, Texas, on appeal to the Houston First Court of Appeals, C.A. No. 01-03-1263-CV. 

  

	 	1.1.2. 	AEP Energy Services Gas Holding Co., HPL, et al v. Bank of America, N.A., as “administrative Agent,” as “Master Swap Counterparty,” and as
“Purchaser,” Civil Action No. H-03-4973, in the U.S. District Court, Southern District of Texas, Houston Division (Section 2(e) Lawsuit). 

  

	 	1.1.3. 	In re: Enron Bankruptcy (Adversary Proceeding/Rejection Proceeding). 

  

	1.2.	The following matters and any and all claims related to such matters, all of which are Retained Matters: 

  

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	1.	  	In re Natural Gas Royalties Qui Tam Litigation, MDL Docket No. 1293 (D. Wyo.) (Grynberg II)	  	Federal qui tam action alleging intentional undermeasurement of gas produced from federal and Indian lands, and alleged affiliate underpayments. HPL Company LP is a defendant.
			
	2.	  	In re: Metricom, Inc. (Chapter 11); No. 01-53291-ASW, in the U.S. Bankruptcy Court, Northern District of California	  	HPL Company LP filed a proof of claim for $14,850.00 in unpaid tower lease rentals.
			
	3.	  	Houston Pipe Line Company v. Coastline Resources, Inc.; Cause No. 2001-17636, in the 125th Judicial District Court, Harris County, Texas	  	Retainage under a settlement agreement. Pursuant to a settlement agreement regarding an underlying offshore construction contract dispute executed 8/14/03 between HPL Company LP and Coastline,
$21,582.50 was reserved to pay claims by potential claimants Sprintank, Dinko’s and Circulation Tools, Inc. If none makes a claim by 3/31/07, Coastline is owed this amount.
			
	4.	  	Zapata County, et al. v. Rosalva Guerra, et al.; Cause No. 4828, in the 49th Judicial District Court, Zapata County, TX	  	Ad valorem tax suit arising out of the alleged undervaluation of gathering lines in Zapata County for the years 1998, 1999 and 2000, filed against HPL Company LP and numerous other defendants on
9/20/00.
			
	5.	  	In re Tuleta Site, Bee County, Texas, Operator Cleanup Program file no. 02-1261 (Informal response by HPL Company LP to Texas Railroad Commission request for
remediation)	  	Environmental remediation matter arising out of alleged contamination by HPL Company LP of the Tuleta site.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.13	  	Page 1

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	6.	  	Enforcement Action Against HPL Resources (Operator No. 407240) For Violations of Statewide Rules on the Magnolia City Plant (No. 0403569) Site, Nueces County, Texas, before the Texas Railroad
Commission	  	RRC environmental remediation enforcement action filed against HPL Resources arising out of the alleged contamination by HPL Resources of the Magnolia City site. Additionally, HPL Company LP has
received a November 8, 2004 letter on behalf of Tennessee Gas Pipeline Company, et al for a potential claim under the Settlement Agreement, Indemnity and Release between Houston Pipe Line Company, et al and Tennessee Gas Pipeline Company, dated
April 2000.
			
	7.	  	City of San Benito v. Tejas Gas Pipeline Company, et al.; Cause No. 2002-08-3596, in the 107th Judicial District Court, Cameron County, Texas	  	City street rental fee litigation.
			
	8.	  	In re: Texoma 30-inch Line Weld Analysis (unfiled)	  	Pre-suit investigation. On 8/21/04, HPL Company LP discovered that a tie-in weld at Site #13 on the Texoma 30-inch line as part of the Texoma Pipe Line Replacement Project had
failed.
			
	9.	  	Intentionally blank	  	
			
	10.	  	In re: Oak Grove Ventures, Ltd. Claim Against HPL Company LP (unfiled)	  	Oak Grove alleges it sustained approximately $220,000 in lost revenue as a result of an HPL Company LP line allegedly being outside of its easement, due to restrictions on Oak Grove’s
building project.
			
	11.	  	Ted Lumberton Development, Ltd. v. Houston Pipe Line Company LP; Cause No. 43,792, in the 356th Judicial District Court, Hardin County, Texas	  	Alleged breach of easement agreement and request for injunction. Plaintiff, a real estate developer, alleges that HPL Company LP failed to lower its pipeline in one or more
locations.
			
	12.	  	Daniel Pruneda v. Houston Pipe Line Company; Cause No. 03-06093-A, in the 28th Judicial District Court, Nueces County, Texas	  	Personal injury negligence action. Plaintiff alleges that he sustained permanent physical injuries on 8/20/03 when a chisel plow being pulled by a tractor driven by him struck HPL Company
LP’s line. A similar line strike occurred on 8/19/03 on another HPL Company LP line, involving a different tractor and chisel plow.
			
	13.	  	In re: Welder Exploration Claim Against HPL Company LP (unfiled)	  	Alleged breach of producer gas purchase agreement. By letter dated 6/3/04, Welder Exploration & Production, Inc. demanded payment of $36,800.01 from HPL Company LP, which HPL Company LP had
previously offset from Welder’s production.
			
	14.	  	In re: Solutia, Inc., et al.; C.A. No. 03-17949 (PCB), in the U.S. Bankruptcy Court, Southern District Court of New York	  	HPL Company LP sold substantial quantities of gas to Solutia pre-petition on a payment in advance basis, due to Solutia’s history of poor credit.
			
	15.	  	In re: Ofrelia Salazar Claim Against HPL Company LP (unfiled)	  	Easement dispute. By letter dated 8/26/02, an attorney for Salazar, the alleged landowner of a tract of land in Webb County, advised that HPL Company LP’s personnel had left a deep hole at
the entrance to a gate and that a horse valued at $2,000 had been lost. Salazar’s attorney advised that unless immediate steps were taken to prevent further damage and to compensate Mr. Salazar, Mr. Salazar would take “appropriate legal
action.”
			
	16.	  	In re: HPL Texoma 5/20/03 Rupture (unfiled)	  	On 5/20/03, there was a rupture and subsequent fire on the Texoma line adjacent to the Sunoil facility. All known claims were settled in late 2003.
			
	17.	  	In re: Duke Energy Trading & Marketing, LLC Claim Against HPL Company LP (unfiled)	  	By letter dated 4/29/02, Duke requested payment of $825,929.32 by 5/10/02 for physical gas deliveries.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.13	  	Page 2

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	18.	  	Houston Pipe Line Company LP v. Jonathan Scott Anderson, Individually and d/b/a The Boat Dock Seafood and Oyster Bar, et al.; Cause No. 2003-53005, in the 190th Judicial District Court
Harris County, Texas	  	Encroachment lawsuit. HPL Company LP sued the owners of The Boat Dock for negligence and breach of contract arising out of a 1/18/03 rupture of the Conroe 6-inch line. This case has been settled
and dismissed. The Boat Dock owes HPL Company LP indemnity if later pursued by CenterPoint, which made a $220,000 claim against HPL Company LP, or either of two potential personal injury plaintiffs. On 1/14/05, a Plaintiffs’ Original Petition
was filed by Ramon Sanchez and Andres Sanchez, naming as defendants American Electric Power Houston Pipe Line Company and American Electric Power Texas, Case No. 2005-03160, in the 165th Judicial District Court of Harris County, Texas. As of
1/20/05, no AEP entity had been served. The Sanchezes are believed to be the two personal injury plaintiffs earlier identified.
			
	19.	  	Houston Pipe Line Company LP v. Ensource Corporation; Cause No. 18,867, in the 1-A District Court, Tyler County, Texas	  	Negligence and breach of contract lawsuit arising out of the 5/24/03 Woodville fire. HPL Company LP seeks recovery of damages from Ensource, which provided third-party trucks, including a Gulf
Coast Vacuum truck at which the fire appears to have originated. HPL Company LP has a potential claim against a third party not joined in the suit.
			
	20.	  	 John and Heather Maher, et al. v. CenterPoint Energy, et al.; Cause No. 38075, in the 23rd Judicial District Court, Wharton County, Texas

 (see Weldon Johnson and Guy W. Sparks, et al. v. CenterPoint Energy, et al. below)
	  	Purported Texas-wide class action fraud suit alleging use of illegal “high/low” agreements by CenterPoint and others, including Gas Marketing, HPL Company LP, and HPL
GP.
			
	21..	  	 Weldon Johnson and Guy W. Sparks, et al. v. CenterPoint Energy, Inc., et al.; No. 04-327-2, in the Circuit Court of Miller County,
Arkansas
 (see John and Heather Maher, et al. v. CenterPoint Energy, et al., above)
	  	Maher copycat case. Purported nation-wide class action fraud suit against CenterPoint and others, including Gas Marketing, HPL Company LP and HPL GP.
			
	22.	  	The matters described in the Quarterly Report on Form 10-Q of American Electric Power Company, Inc. dated November 5, 2004, under the heading “Litigation–Energy Market
Investigations”	  	The matters described in the Quarterly Report on Form 10-Q of American Electric Power Company, Inc. dated November 5, 2004, under the heading “Litigation–Energy Market
Investigations.”
			
	22.	  	Anjinette Bordelon v. American Electric Power Service Corporation, EEOC Charge No. 36B-A4-00254, City of Corpus Christi Human Relations Charge No. 36B-A4-00254
	  	Alleged sexual discrimination.
			
	23.	  	In re HPL and HPL Compression Company for Texas Sales and Use Tax Refund	  	Request for refund of $271,678.27 for purchases of electricity prior to 6/2001; $196,186.80 for the period from 6/2001 through 12/2001; and $233,764.64 for the period from 1/2002 through 6/2003.
Also, HPL Company LP has a potential claim for sales tax refunds in the amount of $106,000 related to three Bammel projects performed in 2004.
			
	25.	  	In re SBC Claim Against HPL Company LP (Line Strike) (Unfiled)	  	10/14/02 alleged line strike by HPL Company LP employee of SBC fiber optic cable near 5535 Highway 6 North and Timber Creek. Received invoice for repairs from SBC for $8,068.11.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.13	  	Page 3

	1.3.	The following matters and any and all claims related to such matters, none of which is a Retained Matter: 

  

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	1.	  	In re Las Tiendas Site, Webb County, Texas, Operator Cleanup Program file no. 04-1256 (Informal response by HPL Company LP to Texas Railroad Commission request for
remediation)	  	RRC environmental remediation matter (no enforcement action filed). The RRC is pursuing HPL Company LP and Cerrito for site remediation. A settlement in principle has been reached between HPL
and Cerrito, pursuant to which HPL Company LP pays $35,000 and Cerrito agrees to take primary responsibility for site remediation.
			
	2.	  	In re Conoco HQ Site, Bee County, Texas, Operator Cleanup Program file no. 02-1259 (Informal Responses by HPL Company LP to Texas Railroad Commission requests for remediation) and Smith
Production Site, Aransas County, Texas, Operator Cleanup Program file no. 02-1252.	  	RRC environmental remediation matter (no enforcement action filed). HPL Company LP has agreed to monitor and sample these sites through 2005.
			
	3.	  	In re HPL Company LP Claim Against San Patricio/Aurora	  	Environmental remediation matter arising out of hydrocarbon releases by San Patricio and/or Aurora on O.M. Lander Lease, Victoria County, Texas. Aurora has since executed a settlement agreement
requiring it to assume sole responsibility for clean-up of the site. By letter dated 4/6/04, Aurora notified the RRC that it was assuming sole responsibility for site clean-up. Aurora has not, however, provided the pollution coverage certificate of
insurance required by the agreement.
			
	4.	  	In re Cannon and Kinder Morgan Dispute	  	Cannon has storage rights in Bammel. Cannon has given Kinder Morgan administrative authority to nominate gas on its behalf. Kinder Morgan has reportedly recently withheld payment to Cannon
because of insecurity over Cannon’s ability to provide storage for Kinder Morgan for the term required by Kinder Morgan.
			
	5.	  	Houston Pipe Line Company v. Kinney Fitzgerald, et al.; Cause No. 18378, in the 253rd Judicial District Court, Chambers County, Texas	  	Condemnation case arising out of construction and installation of a city gate facility in Chambers County.
			
	6.	  	 Mid-Texas Eminent Domain Cases
 Cusack Ranch
 Cusack Trust
 Walter Roy Wright, Jr.
 Walter Roy Wright, III
 Wilbert O. Dernehl, Jr.
	  	Five condemnation cases arising out of Mid-Texas pipeline project.
			
	7.	  	In re AEP Gas Marketing LP Claim Against CenterPoint	  	Unfiled potential claims for breaches of contract.
			
	8.	  	City of Corpus Christi, Texas v. Air Liquide America, LP, et al.; Cause No. 04-06556-A, in the 28th Judicial District Court, Nueces County, Texas	  	City street rental fee lawsuit. On 11/17/04, the City filed suit in Nueces County for a declaratory judgment action regarding a recently-enacted street rental franchise ordinance. HPL Company LP
and approximately 50 other pipelines and refiners were named.
			
	9.	  	City of Victoria v. Houston Pipe Line Company, et al.; Cause No. 03-6-59833-C, in the 267th Judicial District Court, Victoria County, Texas	  	City street rental fee litigation. On 6/3/03, the City of Victoria filed suit against various HPL entities for violation of the City’s street rental ordinance since its enactment in 1941 as
a result of (1) negligence per se as a result of such violation and (2) perpesture (encroachment on a public right-of-way). The City requests payment of actual damages in an unspecified amount, prejudgment interest, and attorneys’
fees.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.13	  	Page 4

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	10.	  	In re PHA Claim Against HPL Company LP (PHA Permitting Issue) (unfiled)	  	Annual permit fee dispute. Since 1998, HPL Company LP has declined to pay annual permit fees now aggregating approximately $275,000 to the Port of Houston Authority
(“PHA”).
			
	11.	  	In re Railroad Easement Disputes (unfiled)	  	Dispute over ability of the Railroad Management Company LLC (“RRMC”) to unilaterally escalate annual fees in underlying HPL/railroad company agreements.
			
	12.	  	In re HPL Company LP Claim Against Prestonwood PUD and Harris County (unfiled)	  	Potential claim. HPL Company LP seeks to prevent further loss of cover and undercutting of an HPL Company LP 6-inch line north of Cypresswood Drive. The cause appears to be water carried by
culverts installed under a nearby county road.
			
	13.	  	In re Welhausen Operating Company LP Claim Against HPL Company LP (unfiled)	  	Alleged anticompetitive pricing. By letter dated 11/12/04, Welhausen, a producer, has alleged that HPL Company LP engages in anticompetitive gas pricing, and demanded prices greatly in excess of
what HPL Company LP is willing to offer. By letter dated 12/1/04, HPL Company LP responded that its pricing was driven by, among other things, the off-spec nature of Welhausen’s gas.
			
	14.	  	In re HPL Company LP Claim Against Texas Department of Transportation and Zachry Construction (Line Strike) (unfiled)	  	On 7/16/04, a trackhoe struck and damaged HPL Company LP’s 20-inch Lake Jackson line. This was a Texas Department of Transportation construction project, and Zachry was one of its
subcontractors. HPL Company LP has reached agreement with TxDot to pay HPL Company LP for replacement of the pipe at issue, subject to submission of invoices.
			
	15.	  	In re HPL Claim Against Apache Telecom	  	Breach of contract. Apache Telecom reportedly inadvertently disposed of HPL Company LP property worth over $4,000.00.
			
	16.	  	In re Cliff Hoskins Verified Petition to Perpetuate Testimony to Investigate a Claim; Cause No. 2004-65559, in the 281st Judicial District Court, Harris County, Texas	  	Cliff Hoskins, a purported royalty owner, has filed this action to obtain records of gas purchases by HPL Company LP from Prize Energy, the operator. Hoskins will allegedly use these records to
determine whether production ceased for long enough to cause the lease to be cancelled and give Hoskins a claim against Prize.
			
	17.	  	In re HPL Resources Company LP claim for $31,358.43, dated 9/30/03, before the Comptroller of Public Accounts, Unclaimed Property Section	  	Claim for escheated funds.

  

	1.4.	The following, none of which is a Retained Matter, are matters in which no HPL Company is a party, but as a result of which an HPL Company (a) has been requested to provide
information to parties in the suit or (b) has been advised that a party to the suit has been requested to provide information that such HPL Company may consider confidential: 

  

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	1.	  	In re WD Energy Services, Inc. (Notice of Disclosure Letter)	  	By letter dated 6/9/04, WD notified HPL Company LP that it may produce confidential HPL Company LP documents in various lawsuits regarding natural gas sales and purchases within the state of
California and elsewhere. HPL Company LP is not a party to any of the underlying litigation.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.13	  	Page 5

					
	 No.
	  	 Case Style or
 Matter Description
	  	 Summary

			
	2.	  	Frank H. Migl, et al. v. Dominion Oklahoma Texas Exploration & Production, Inc.; Cause No. 03-06-19,472CV, in the 25th Judicial District Court, Lavaca County, Texas	  	Plaintiffs are royalty owners who seek damages from Dominion, the producer, for the failure to market their gas for a sufficiently high price. HPL Company LP is not a party. Pursuant to the
confidentiality order, Dominion has produced a copy of the HPL Company LP gas purchase agreement.
			
	3.	  	ExxonMobil Corporation v. United States of America; Civil Action Nos. 3-00-CV-0815-M (for the year 1976) and 03-02-CV-2010-M (for the years 1977 and 1978), in the U.S. District Court,
Northern District of Texas, Dallas Division	  	ExxonMobil has filed several tax refund cases against the United States for past production years. To make its case, ExxonMobil has subpoenaed files from pipeline companies such as HPL for
wellhead gas prices. HPL Company LP is not a party.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.13	  	Page 6

 SCHEDULE 3.14 
 Compliance by the HPL Entities with Applicable Law; Permits 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	See Schedule 3.2 item 1.1. 

  

	1.2.	See Schedule 3.2 item 1.2. 

  

	1.3.	HPL Company LP made the following FERC filings late: 

 Semi-Annual Storage Report for the period April 2001 through October 2001 — This was filed August 21, 2003. 
 Semi-Annual
Storage Report for the period November 2001 through March 2002 — This was filed August 21, 2003. 
 Semi-Annual Storage Report for
the period April 2002 through October 2002 — This was filed August 21, 2003. 
 Semi-Annual Storage Report for the period November
2002 through March 2003 — This was filed August 21, 2003. 
 Semi-Annual Storage Report for the period April 2003 through October
2003 — This was filed December 22, 2003. 
 These were all zero report filings. 
 Additionally, the 2002 Annual Report of Section 311 Transportation Service was refiled on October 8, 2004 (and is now reflected in the FERC Data
Base) because HPL Company LP’s original filing was not reflected in the FERC Data Base. HPL Company LP’s records indicated that the original filing was timely submitted. 
  

	1.4.	HPL Company LP previously filed certain storage reports with the Texas Railroad Commission that erroneously indicated a zero volume of native gas. 

  

	1.5.	Received Alleged Notices of Violations. 

  

	 	1.5.1. 	September 17, 2004 - Operations and Maintenance Procedures, Electrolytic conditions in casing. 

 Audits # 2004-11271_T, 2004-1272_T, 2004-11274_T, 2004-11274_T, 2004-11276_T, 2004-11277_T, 2004-11278_T, 2004-11279_T, 2004-1268_T, 2004-1269_T,
2004-1281_T, and 2004-1282_T. 
 HPL Company LP responses mailed on November 17, 2003 and October 13, 2004. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.14	  	Page 1

	 	1.5.2. 	September 17, 2004 - Cathodic Protection Survey Frequency. 

 Audit # 2004-11273_T. 
 HPL Company LP response mailed on October 12, 2004. 
  

	1.6.	HPL Company LP sent letters to certain interstate pipelines notifying them that the service being performed by the interstate for HPL Company LP was to be performed pursuant to the
provisions of Part 284, Subpart B of the FERC regulation where the transportation agreements in place indicated that the service being performed by the interstate was being performed pursuant to the provisions of Part 284, Subpart G.

  

	1.7.	HPL Company LP notified a shipper under a Firm 311 Backhaul agreement that its FERC Statement of Operating Conditions did not provide for such service and that no such service had
been provided for the shipper under that agreement nor would such service be provided in the future. 

  

	1.8.	AEP has reported certain energy market investigations in its quarterly reports on form 10-Q. In particular, the Federal Energy Regulatory Commission conducted an informal
investigation of American Electric Power Company, Inc. Pursuant to that informal investigation, the FERC scrutinized certain transport activities of the HPL Company LP in connection with an asset management agreement previously in place between the
HPL Company LP and an affiliate, which has been terminated. 

  

	2.	LIST OF PERMITS 

  

	2.1.	Since 1998, HPL Company LP has declined to pay annual permit fees now aggregating approximately $275,000 to the Port of Houston Authority (“PHA”). Despite that,
approximately every six months, the PHA unilaterally agrees to a six month extension of the old permits. HPL Company LP has joined with other pipelines in negotiations with the PHA to seek a reasonable permit fee and language.

  

	2.2.	The City of Houston notified all pipelines having facilities in the city that they needed to obtain a permit for the continued operation of their pipelines, and HPL Company LP made
its filing for such a permit. However, the City of Houston sent back the permit fee and indicated that the permit was not available for gas utility pipelines. HPL Company LP has joined with other pipelines in negotiations with the City of Houston as
to whether such permit is available. 

  

	2.3.	HPL Company LP has declined to pay the Railroad Management Company LLC (“RRMC”) annual fees which it unilaterally escalated under HPL Company LP/railroad company
agreements. HPL Company LP has by letter dated August 31, 2004 advised the RRMC that HPL Company LP would seek condemnation if and to the extent the RRMC seeks to terminate any of the agreements. HPL Company LP continues to make payment at the
old rates. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.14	  	Page 2

 SCHEDULE 3.15 
 Intellectual Property of the HPL Companies 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 The following items
are used by the HPL Companies, but the HPL Companies currently do not have licenses, leases, or title in their own names for the use of such items. 
  

	1.1.	PGAS – Measurement system 

  

	1.2.	GMS – Gas Management, Logistics and Scheduling system 

  

	1.3.	RAFT – Credit system 

  

	1.4.	Web Methods – Integration Framework that bridges data between Business systems (i.e.Tradeblotter to GMS) 

  

	1.5.	OpenLink – Risk system 

  

	1.6.	Tradeblotter – Trade Capture system - in house 

  

	1.7.	CQG – Software that provides real time interactive information to traders 

  

	1.8.	ICE – Intercontinental Exchange; Trading platform 

  

	1.9.	Newsgrazer – Tool that provides real time news updates 

  

	1.10. 	PeopleSoft – A/R, A/P, G/L, Time reporting system 

  

	1.11. 	Nova – Expense reporting system 

  

	1.12. 	Lotus Notes – Email system 

  

	1.13. 	RightFax – Automated faxing software 

  

	1.14. 	Documentum – Document storage software 

  

	1.15. 	AutoCad, et al – Computer Aided Design / Drafting application 

  

	1.16. 	NICE Tape Retrieval – Phone recording retrieval system 

  

	1.17. 	Microsoft Project – Project planning software 

  

	1.18. 	Microsoft Office Products – Excel, Word, Access 

  

	1.19. 	Microsoft Windows 2000 server – License for Windows 2000 operating system 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.15	  	Page 1

	1.20.	MS SQL Server 2000 Standard – License for MS SQL Server 2000 Standard operating system 

  

	1.21.	Visio – Software used for creating diagrams 

  

	1.22.	Visual Studio.Net developer – Programming tool used by developers 

  

	1.23.	Nortel – VPN Communication Client that allows remote connectivity 

  

	1.24.	Fiberlink – Tool that allows remote access 

  

	1.25.	Black Ice – Workstation Anti virus 

  

	1.26.	AIX (IBM Unix) OS – License for IBM AIX operating system 

  

	1.27.	Landesk – Tool used to remote to another’s computer for break fix, training 

  

	1.28.	PLSQL Developer – Developer query tool 

  

	1.29.	EMC – Data Storage System 

  

	1.30.	Microsoft Terminal Server – Applications accessed through terminal emulation 

  

	1.31.	ETRALI – Phone recording system 

  

	1.32.	TSM – Tivoli Storage Management system for tape backups 

  

	1.33.	Oracle – Database licenses 

  

	1.34.	All Microsoft products utilized in the business not listed above 

  

	1.35.	FIS – Financial Interface System – Interface between GMS and PeopleSoft – in house 

  

	1.36.	Docujet – CAD vendor application 

  

	1.37.	Aries – CAD vendor application 

  

	1.38.	PI Dwights Scout Express, et al – CAD vendor applications 

  

	1.39.	ARCview, et al – CAD vendor application 

  

	1.40.	Auto plant – CAD vendor application 

  

	1.41.	CPDM – Engineering application 

  

	1.42.	HTS Compress – Engineering application 

  

	1.43.	MP2 – Engineering application 

  

	1.44.	Plan – CAD vendor application 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.15	  	Page 2

	1.45.	RSTRENG – Engineering application 

  

	1.46.	Winflow Wintran – CAD vendor application 

  

	1.47.	LPG almanac – CAD vendor application 

  

	1.48.	HYSIS – CAD vendor application 

  

	1.49.	PGAS Extract / Filter – Extract file sent to POPS – in house 

  

	1.50.	Custom Invoices – in house 

  

	1.51.	Custom Reports – in house 

  

	1.52.	RTP/Deal Ticker – Real Time Position – in house 

  

	1.53.	Gas Confirms – in house 

  

	1.54.	Nomination Screen – in house 

  

	1.55.	Gas Ops – Scheduling Logging tool – in house 

  

	1.56.	IRIS – Reserve / supply queries – in house 

  

	1.57.	TRRC – Regulatory application – in house 

  

	1.58.	LawPack – Litigation tracking system 

  

	1.59.	BMC – Monitoring 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.15	  	Page 3

 SCHEDULE 3.16 
 Tax Matters 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	HPL Company LP is the in the process of reverse sales tax audits being conducted by Ryan and Company, Inc. for three periods. 

 The first period covers the period prior to June 2001. The Comptroller has approved this refund and HPL Company LP anticipates receiving the refund in the
first quarter 2005. 
  

				
	 Total refund:
	  	$	271,678.27
	 Less Ryan & Co payment:
	  	$	67,919.57
		  	 	 
	 Net refund:
	  	$	203,758.70

 The second refund (06/01-12/01) relates to the same electricity issue and is in the process of
being submitted to the state. Resolution is expected in the first or second quarter 2005. 
  

				
	 Refund in process of being filed:
	  	$	196,186.80
	 Less Ryan & Co payment:
	  	$	49,046.70
		  	 	 
	 Net refund:
	  	$	147,140.10

 The third refund (01/02-06/03) relates to the same electricity issue and is also in the process of
being submitted to the state. Resolution is expected in the first or second quarter 2005. 
  

				
	 Refund in process of being filed:
	  	$	233,764.69
	 Less Ryan & Co payment:
	  	$	58,441.17
		  	 	 
	 Net refund:
	  	$	175,323.52

 The electricity issue arises from the fact that Reliant Energy charged sales tax on sales of
electricity to HPL Company LP for use at the Bammel Facilities. AEP received a favorable ruling from the State citing Comptroller's rule 3.295 (c)(4), which provides that Gas and Electricity are exempted from the taxes imposed by this chapter when
sold for direct use in exploring for, producing, or transporting a material extracted from the earth. Ryan & Co became involving when certain procedural refund changes occurred in Texas and the State began requiring cancelled checks, proof
from Reliant Energy that HPL Company LP’s account was never credited, etc. 
 These refunds, net of amounts payable to Ryan and Company,
Inc., will be for the account of Sellers in accordance with Section 7.4 of the Agreement. 
 Both Houston Pipeline Company and HPL
Resources Company (for the period during which each was treated as a c-corporation for federal tax purposes) are under tax audit for the year 2001 as part of the American Electric Power Company consolidated tax return. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.16	  	Page 1

 SCHEDULE 3.17 
 Workforce Matters of the HPL Entities 
  

	1.	LABOR DISPUTES 

  

	1.1.	Exceptions to Representations and Warranties. 

 Reference
is made to Item 23 in Section 1.2 of Schedule 3.13. 
  

	2.	EMPLOYEE BENEFIT PLANS 

  

	2.1.	Benefit Plans 

  

	 	2.1.1. 	American Electric Power System Retirement Savings Plan 

  

	 	2.1.2. 	American Electric Power System Retirement Plan 

  

	 	2.1.3. 	American Electric Power System Comprehensive Medical Plan 

  

	 	2.1.4. 	American Electric Power System Long-Term Disability Plan 

  

	 	2.1.5. 	American Electric Power System Comprehensive Dental Plan 

  

	 	2.1.6. 	American Electric Power System Life & Accident Insurance Plan 

  

	 	2.1.7. 	American Electric Power Company, Inc. Long-Term Care Plan 

  

	 	2.1.8. 	American Electric Power System Pre-Tax Medical Contribution Plan 

  

	 	2.1.9. 	Hyatt Group Legal Plan 

  

	 	2.1.10. 	American Electric Power System Educational Assistance Plan 

  

	 	2.1.11. 	American Electric Power System Severance Plan 

  

	 	2.1.12. 	American Electric Power System Health Care Spending Account Plan 

  

	 	2.1.13. 	American Electric Power System Dependent Care Spending Account Plan 

  

	 	2.1.14. 	American Electric Power System Vision Insurance Plan 

  

	 	2.1.15. 	AEP Houston Pipe Line Company, LP 2004 Incentive Compensation Plan 

  

	 	2.1.16. 	American Electric Power System Excess Benefit Plan 

  

	 	2.1.17. 	American Electric Power System Supplemental Retirement Savings Plan 

  

	 	2.1.18. 	American Electric Power System Incentive Compensation Deferral Plan 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.17	  	Page 1

	 	2.1.19. 	American Electric Power System 2000 Long-Term Incentive Plan, and related Stock Option and Performance Share and other award agreements issued thereunder 

 

	2.2.	Exceptions to Representations and Warranties. 

  

	 	2.2.1. 	IRS Determination Letters 

  

	 	(a)	The American Electric Power System Retirement Savings Plan received an IRS determination letter, dated November 13, 1996. The IRS has since issued a determination letter dated
August 20, 2004 for that plan, that letter refers to incorrect dates for amendments on the face of the letter and fails to (A) acknowledge the amendments to which the IRS and AEP agreed in letters dated July 25, 2003 and
September 4, 2003 and (B) include an ESOP ruling on 4975(e)(7) requested via Form 5309. We expect that a corrected determination letter will be issued in due course for the plan. 

  

	 	(b)	The American Electric Power System Retirement Plan has received an IRS determination letter dated April 26, 1996. The plan has been amended subsequent to the issuance of that
determination letter. There is currently pending an application for a determination letter for the plan that would address changes made with respect to those matters for which the IRS is issuing such letters. We expect that a determination letter
will be issued in due course for the plan. 

  

	 	2.2.2. 	Pending or Threatened Employee Benefit Plans Litigation 

  

	 	(a)	Bridges v. American Electric Power, Suhayda v. American Electric Power Company, Inc. et al.; and Plentl v. American Electric Power – These are lawsuits that have been
consolidated and are currently pending against AEP, certain AEP executives and AEP’s ERISA Plan Administrator in federal District Court in Columbus, Ohio, alleging violations of the Employee Retirement Income Security Act in the selection of
AEP stock as a investment alternative and in the allocation of assets to AEP stock. The plaintiffs are seeking recovery of an unstated amount of compensatory damages, attorney fees and costs. AEP intends to vigorously defend against these actions.

  

	 	2.2.3. 	Pending or Threatened Employee Benefit Plan Claims 

  

	 	(a)	None. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.17	  	Page 2

	 	2.2.4. 	Withdrawal Liability/Funding Deficiency Liability 

  

	 	(a)	None. 

  

	 	2.2.5. 	Reference is made to item 9 on Schedule 5.2. 

  

	 	2.2.6. 	Reference is made to Item 23 in Section 1.2 of Schedule 3.13. 

  

	 	2.2.7. 	Sellers make no representation as to the compliance of any of the nonqualified deferred compensation plans listed in this Schedule 3.17 with the requirements of Section 409A of
the Internal Revenue Code, to the extent applicable. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.17	  	Page 3

 SCHEDULE 3.18 
 Environmental Matters 
  

	1.	DISCLOSED ENVIRONMENTAL MATTERS 

 Any and all violations or alleged
violations of Applicable Law, and any and all notices received, with respect to any of the following matters: 
 Retained AEP Projects 
  

			
	Magnolia City Gas Plant Site	  	See Item 1.2 on Schedule 3.13.
		
	Tuleta Gas Plant Site	  	See Item 1.2 on Schedule 3.13.

 Active HPL Projects 
  

			
	 Project Name
	  	 Comments

	Daggs #1 Dehydration Site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	Daggs #2 Dehydration Site	  	Groundwater contamination. Currently monitoring natural attenuation. Installed simple product recovery system.
		
	Franks #1 Dehydration Site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	Yougeen Dehydrator Site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	P. H. Robinson Power Plant Separation Site	  	Past remediation appear to be sufficient for No Further Action (NFA). Additional sampling is likely to confirm the basis for NFA.
		
	Panther Point Dehydrator Site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	Point Comfort 12” Pipeline Leak site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	Triton Dehydrator Site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	Fingers Farm Dehydrator Site	  	Groundwater contamination. Currently monitoring natural attenuation.
		
	Smith Production Site	  	Groundwater contamination. Currently monitoring natural attenuation. Periodically manually removing phase separated hydrocarbon from one well.
		
	Conoco Headquarters Dehydration Site	  	Groundwater contamination. Operating simple groundwater aeration system. Monitoring groundwater quality.

  

			
	Sellers’ Disclosure Schedules, Schedule 3.18	  	Page 1

 Active Projects Assumed or to be Assumed by Other Operators 
  

			
	San Patricio Dehydration Site	  	Aurora Resources has accepted liability for this site and relieved HPL Company LP of any liability. Aurora will work with the RRC to complete the remediation.
		
	Las Tiendas Dehydration Site	  	Groundwater contamination. Currently monitoring natural attenuation.4

 Previously Identified Sites/Projects 
  

			
	Nacogdoches Compressor Site	  	Sold by Enron Field Services Corp to Pinnacle Natural Gas Company effective September 28, 1999.
		
	Three Rivers Gas Plant Site	  	
		
	Lehman Dehydrator Site	  	
		
	Texaco/Kaiser Francis Compressor Site	  	Site leased to this third party operator.
		
	McMullen Gas Plant Site	  	
		
	Tilden Compressor Site	  	

 Remediated or Closed Matters 
  

			
	Woodville Fire Site	  	Fire resulted in hydrocarbon spill contaminating soil. Site remediated.
		
	Mercury Meter Evaluation, Remediation	  	In early 1990’s, HPL Company LP evaluated all meter sites where mercury-containing meters could have been used. Sites with contamination remediated.
		
	Victoria Gas Plant	  	Site closed, No Further Action Letter issued by RRC.
		
	Odem Compressor Station	  	Site closed, No Further Action Letter issued by RRC.
		
	Texana Field Site	  	Site closed, No Further Action Letter issued by RRC.
		
	Six Pigs Site	  	Hydrocarbon leak remediated.
		
	Mykawa 18” Pipeline Leak	  	Hydrocarbon leak remediated.
		
	Mission Valley Compressor Station	  	Site closed, No Further Action Letter issued by RRC.
		
	DuBose Gas Plant Site	  	Site closed, No Further Action Letter issued by RRC.
		
	Jackalope Gas Plant Site	  	Hydrocarbon leak remediated.
		
	Bammel Gas Plant Site	  	HPL Company LP submitted closure documentation to RRC in 10-31-96. RRC has yet to respond.
		
	Robstown Gas Plant Site	  	HPL Company LP has submitted closure documentation to RRC. RRC has yet to respond.
		
	Hughes & Hughes (Dougherty) Dehydration Site	  	HPL Company LP notified RRC of potential groundwater contamination at the site. Awaiting RRC response.
		
	A/S – Mt. Belvieu	  	Enterprise Products is operator and was responsible for cleanup and remediation of pipeline leak resulting in soil contamination.
		
	Ship Channel Loop Line Fluid (Account 3026)	  	Unidentified liquid found in pipeline right-of-way. Attempted to identify liquid and source. Liquid had high pH, but otherwise non-hazardous. Unable to identify liquid or source. Did determine
that liquid was not damaging the pipeline.

  

	4
	 Currently in the process of being assumed by third party. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.18	  	Page 2

	2.	ENVIRONMENTAL PERMITS 

  

							
	 Facility
	  	 Permit Type
	  	 Permit Number
	  	 Comments

	 AIR PERMITS

	Bammel	  	Title V	  	O-00117	  	Facility (Site) Permit
		  	PSD	  	TSD-TX-313-M1	  	South Dehys. & West Dehy.
		  	NSR	  	8345	  	South Dehys. & West Dehy.
		  	PBR	  	106.263	  	Maintenance, Startup & Shut down
		  	PBR	  	106.351	  	Saltwater Disposal
		  	PBR	  	106.352	  	Oil & Gas
		  	PBR	  	106.472	  	Storage Tanks
		  	Standard Exemption	  	SE-005	  	Emergency Generator
	Lehman	  	Standard Permit	  	116.620 (Reg # 52175)	  	Oil & Gas
		  	PBR (engine only)	  	106.512 (Reg # 48066)	  	Compressor Engine
	Jackalope Plant	  	PBR	  	106.352 (Reg # 45347)	  	Oil & Gas
		  	PBR	  	106.512 (Reg # 45347)	  	Engines
		  	PBR	  	106.511(Reg # 45347)	  	Stand-by Engines (Generator)
	Dinn Plant	  	PBR	  	106.352	  	Oil & Gas
		  		  	106.512	  	Engines
	Vidor	  	PBR	  	106.352 (Reg. # 73595)	  	Oil & Gas
		  	PBR	  	106.512 (Reg. # 73595)	  	Comp. Engines
	Three Rivers	  	GOP (Title V)	  	O-00208	  	Cancelled
		  	Standard Permit	  	116.620 (Reg#37568)	  	Oil and Gas

  

			
	Sellers’ Disclosure Schedules, Schedule 3.18	  	Page 3

							
		  	Standard Permit	  	116.620 (Reg#39434)	  	Oil and Gas
		  	Standard Exemption	  	SE-006	  	Compressor Engines
		  		  		  	
	All other Facilities	  	PBR	  	Various	  	Confirmed status in 2004
		  		  		  	
	WATER DISCHARGE	  		  		  	
	All facilities	  	PBR	  		  	
		  		  		  	
	Waste	  		  		  	
	Facility	  	One-time waste gen.	  		  	As needed
		  		  		  	

 PBR = Permit by Rule 
 PSD = Prevention of Significant Deterioration 
 NSR = New Source Review 
 Additionally, the HPL Companies hold Permits by Rule for specific small pipeline field facilities (dehydrators, tanks, etc.) such as 106.352 for Oil and Gas Operations including Pipeline Facilities. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.18	  	Page 4

 SCHEDULE 3.19 
 Regulatory Matters 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	The HPL Entities do make sales for resale under the blanket marketing certificate of limited jurisdiction issued by FERC under 18 C.F.R. Part 284, Subpart L.

  

	1.2.	Transportation of gas in interstate commerce is conducted by HPL Company LP pursuant to the safe harbors provided by Section 311(a)(ii) of the Natural Gas Policy Act of 1978,
as amended, and Section 284.227 of FERC’s regulations. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.19	  	Page 1

 SCHEDULE 3.20 
 Affiliate Transactions of the HPL Companies 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	The HPL Entities currently occupy approximately 49,000 square feet of leased office space in downtown Houston on the 11th and 12th floors of 1201 Louisiana Street. The sublease for
the 12th floor has been assigned to HPL Company LP, effective January 24, 2005. The lease for the 11th floor has been assigned to HPL Company LP, to be effective 30 days after notice was delivered to the landlord (which occurred on
January 25, 2005) pursuant to the terms of the lease, unless such landlord agrees to an earlier effective date. Until such time HPL Company LP will continue to occupy such space under the Transition Services Agreement. 

 

	1.2.	American Electric Power Company, Inc. has guaranteed the obligations of AEP Energy Services, Inc. as sublessee under its sublease of the 12th floor of 1201 Louisiana, Houston,
Texas. The guaranty unconditionally guarantees the payment of rent, additional rental, and all other payments to be made under the sublease and the full performance and observance of all the other terms, covenants, conditions, and agreements of
sublessee contained in the sublease. This guaranty will be terminated after the Closing Date. 

  

	1.3.	The HPL Entities currently occupy office space in the following cities: Corpus Christi, TX, Longview, TX, Freer, TX, and Falfurrias, TX. The owners of such office space are all AEP
Affiliates. The HPL Entities have an informal use arrangement with such AEP Affiliates for the Corpus Christi, Longview, Freer, and Falfurrias space. The use of this space post-Closing will be covered by the Transition Services Agreement.

  

	1.4.	HPL Company LP currently leases certain office space in Victoria, Texas to American Electric Power Service Corporation for use by one of its employees. The lease was effective on
July 1, 2004 for a one-year term, continuing from year to year thereafter until terminated (a) by HPL Company LP by providing at least 30 days’ prior written notice to American Electric Power Service Corporation or (b) by
American Electric Power Service Corporation by providing at least 7 day’s prior notice to HPL Company LP. The lease required a prepayment of rent of $1,184 for the entire one-year initial term. 

  

	1.5.	The HPL Entities currently use office furniture in Corpus Christi, TX and Robstown, TX that is owned by an AEP Affiliate. The disposition of this furniture will be covered by the
Transition Services Agreement. 

  

	1.6.	AEP Account # 10250 being a contract between AEP Retail Energy and HPL Reliant Compression (HPL Company LP) covering the provision of electric service (Centerpont Meter # 951512) at
HPL Company LP’s Bammel facility located at 15011 Kuykendahl, Houston, Texas (ESID 1008901000153270012100); such electric service being provided on a month to month basis terminable by either party upon not less than 30 days prior written
notice to the other party. 

 Reference is made to item 1.1 on Schedule 5.4. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.20	  	Page 1

 SCHEDULE 3.21 
 Finders and Brokers 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.21	  	Page 1

 SCHEDULE 3.22 
 Bankruptcy 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

 None. 
  

			
	Sellers’ Disclosure Schedules, Schedule 3.22	  	Page 1

 SCHEDULE 3.23 
 Sufficiency of Assets 
  

	1.	EXCEPTIONS TO REPRESENTATIONS AND WARRANTIES 

  

	1.1.	The Retained Marks and associated goodwill; and 

  

	1.2.	Rights to the cushion gas which are the subject of the Cushion Gas Litigation, to the extent such rights are affected by the Cushion Gas Litigation. 

  

			
	Sellers’ Disclosure Schedules, Schedule 3.23	  	Page 1

 SCHEDULE 5.2 
 Retained Matters 
  

					
	 Description of Retained Matter
	  	 HPL Entities’ Liability
	  	 Responsibility for
Prosecution, Defense,
and
Settlement

			
	 1.      Intentionally blank
	  		  	
			
	 2.      Intentionally blank
	  		  	
			
	 3.      Intentionally blank
	  		  	
			
	 4.      Intentionally blank
	  		  	
			
	 5.      Environmental Claims other than those listed on Schedule 3.18, provided that Sellers are given written
notice of such Environmental Claims before the first anniversary of the Closing Date describing, for each such Environmental Claim, the nature of the claim, the theory of liability or the nature of the relief sought and the material factual
assertions upon which the claim is based
	  	 100% up to $2,000,000 after insurance proceeds
  
 Next $5,000,000 after insurance proceeds: 50%, subject to Sellers’ Cap
  
 Next $5,000,000 after insurance proceeds: 33 2/3%, subject to Sellers’ Cap
  
 Any additional liability after insurance proceeds: 0%, subject to Sellers’ Cap
  
 The above limits apply in aggregate to all Damages for all Environmental Claims other than those listed on Schedule 3.18
	  	Buyer, except to the extent that a claim has been made under Section 6.2 of the Agreement, in which case the provisions of that Section 6.2 shall control
			
	 6.      Intentionally blank
	  		  	
			
	 7.      Docket Number IN02-10-001 before the FERC and Docket Number 2:03-cv-891 before the Commodity Futures
Trading Commission
	  	0%	  	Sellers
			
	 8.      Intentionally blank
	  		  	
			
	 9.      Benefits earned before Closing under the non-qualified deferred compensation plans as defined in
Section 3121(v)(2) of the Internal Revenue Code
	  	0%	  	Sellers

  

			
	Sellers’ Disclosure Schedules, Schedule 5.2	  	Page 1

					
	 10.    Those claims by and between HPL Company LP (as successor in interest to Houston Pipe Line Company) and Enron Corp.
(“Enron”) and HPL Company LP and various individual affiliates of Enron (“Enron Affiliates”) arising out of certain transactions which currently are the subject of proceedings in the United States Bankruptcy Court for the
Southern District of New York (the “Bankruptcy Court”) and are more fully described in Proofs of Claim filed by HPL Company LP against Enron and various Enron Affiliates in the Bankruptcy Court on October 15, 2002 (Proof of Claim No.
13805 in In re: Enron Gas Liquids, Inc., Case No. 01-16048 (AJG); Proof of Claim No. 13806 in In re: Enron Methanol Company, Case No. 02-11239 (AJG); Proof of Claim No. 13807 in In re: Enron North America Corp., Case No. 01-16035 (AJG) and Proof of
Claim No. 13808 filed by the HPL in In re: Enron Corp., Case No. 01-16034 (AJG).
	  	0%	  	Sellers
			
	 11.    Those items listed under item 1.2 of Schedule 3.13
	  	0%	  	Sellers
			
	 12.    Item 2.2.2 on Schedule 3.17
	  	0%	  	

  

			
	Sellers’ Disclosure Schedules, Schedule 5.2	  	Page 2

 SCHEDULE 5.4 
 Intercompany Transactions 
  

	1.1.	The following intercompany transactions will not be terminated as of Closing or as of the Valuation Time: 

  

																
	 Tradeblotter
 Ref
	  	Trade
Date	  	 Purchase/Sale
	  	Begin
Date	  	End
Date	  	Payment
Date	  	Volume	 	 	Contract Price
	JAP01824	  	10/11/04	  	HPL Company LP Sale	  	3/1/05	  	3/31/05	  	4/25/05	  	(155,000	) 	 	IF_TRANSCO_Z1
	JAP01824	  	10/11/04	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(140,000	) 	 	IF_TRANSCO_Z1
	DWR04649	  	1/20/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(140,000	) 	 	IF_TETCO_WEST_LA
	EWV29147	  	1/26/05	  	Gas Marketing Purch	  	2/1/05	  	2/28/05	  	3/25/05	  	10,780	  	 	GD_KATY
	JAP01755	  	9/22/04	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(155,204	) 	 	Last Day NYMEX less $0.30
per MMBtu
	JAP01755	  	9/22/04	  	HPL Company LP Sale	  	3/1/05	  	3/31/05	  	4/25/05	  	(171,833	) 	 	Last Day NYMEX less $0.30
per MMBtu
	EWV29057	  	1/24/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(36,400	) 	 	IF_TGP_TX_Z0
	DWR04647	  	1/20/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(308,000	) 	 	IF_TETCO_WEST_LA
	DWR04636	  	1/19/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(140,000	) 	 	IF_TETCO_WEST_LA
	CAC06488	  	10/21/04	  	Gas Marketing Purch	  	2/1/05	  	2/28/05	  	3/25/05	  	560,000	  	 	IF_HSC
	CAC06488	  	10/21/04	  	Gas Marketing Purch	  	3/1/05	  	3/31/05	  	4/25/05	  	620,000	  	 	IF_HSC
	CAC06481	  	10/14/04	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(600,796	) 	 	IF_TGP_TX_Z0
	CAC06481	  	10/14/04	  	HPL Company LP Sale	  	3/1/05	  	3/31/05	  	4/25/05	  	(665,167	) 	 	IF_TGP_TX_Z0
	JAP02249	  	1/24/05	  	Gas Marketing Purch	  	2/1/05	  	2/28/05	  	3/25/05	  	280,000	  	 	IF_TETCO_STX
	EWV29139	  	1/25/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(280,000	) 	 	Last Day NYMEX less $0.535
per MMBtu
	JSH37796	  	1/24/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(560,000	) 	 	Last Day NYMEX less $0.14
per MMBtu
	DWR04710	  	1/26/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(280,000	) 	 	Last Day NYMEX less $0.14
per MMBtu
	JAP02252	  	1/25/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(280,000	) 	 	Last Day NYMEX less $0.135
per MMBtu
	GHH31525	  	1/25/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(420,000	) 	 	GD_HSC
	JAP01821	  	10/11/04	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(126,000	) 	 	IF_TRANSCO_Z1
	JAP01821	  	10/11/04	  	HPL Company LP Sale	  	3/1/05	  	3/31/05	  	4/25/05	  	(139,500	) 	 	IF_TRANSCO_Z1
	EWV29060	  	1/24/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(2,156	) 	 	IF_TGP_TX_Z0
	GHH31528	  	1/25/05	  	Gas Marketing Purch	  	2/1/05	  	2/28/05	  	3/25/05	  	140,000	  	 	IF_HSC
	EWV29134	  	1/25/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(140,000	) 	 	Last Day NYMEX less $0.54
per MMBtu
	EWV29145	  	1/26/05	  	HPL Company LP Sale	  	2/1/05	  	2/28/05	  	3/25/05	  	(10,920	) 	 	GD_KATY

 Any financial transactions between AEP Energy Services, Inc. and the HPL Companies that are hedges of physical gas
inventory shall be terminated as of Closing. 
  

			
	Sellers’ Disclosure Schedules, Schedule 5.4	  	Page 1

	1.2.	Reference is made to items 1.1, 1.2, 1.3, 1.4, and 1.5 on Schedule 3.20. 

  

			
	Sellers’ Disclosure Schedules, Schedule 5.4	  	Page 2

 SCHEDULE 5.5 
 Terminating Insurance Coverages 
 The insurance policies identified in Sections 1.2, 1.3, 1.4, 1.5, 1.6 and 1.7 of
Schedule 3.12 (Insurance Maintained by the HPL Companies). 
  

			
	Sellers’ Disclosure Schedules, Schedule 5.5	  	Page 1

 SCHEDULE 5.6 
 Credit Support Arrangements 
  

	1.	SURETY BONDS 

  

																
	 TYPE OF BOND
	  	 ENTITY -
PRINCIPAL
	  	BOND #	  	 OBLIGEE
	  	EFF DATE	  	END
DATE	  	AMOUNT	  	SURETY
	License & Permit	  	AEP Houston Pipe Line Company, LLC	  	103912479	  	Railroad Commission of TX	  	2/21/2004	  	7/31/2005	  	$	25,000	  	Travelers
	Right of Way	  	Houston Pipe Line Company	  	13650401	  	Fort Bend County	  	5/19/2004	  	5/19/2005	  	$	2,000	  	St. Paul
	Right of Way	  	Houston Pipe Line Company LP	  	14022558	  	Harris County	  	5/9/2004	  	5/9/2005	  	$	400,000	  	Liberty
	License & Permit	  	Houston Pipe Line Company LP	  	103912485	  	City of Texas, Texas	  	5/23/2004	  	5/23/2005	  	$	75,000	  	Travelers
	Court	  	Houston Pipe Line Company LP	  	14024444	  	Hockley-290 J.V., ET AL	  	9/10/2004	  	9/10/2005	  	$	35,499	  	Liberty
	Court	  	Houston Pipe Line Company LP	  	14024445/81563583	  	Hockley-290 J.V., ET AL	  	9/10/2004	  	9/10/2005	  	$	35,499	  	Liberty
	Court	  	Houston Pipeline Company	  	14017934	  	La Mesa Land and Cattle	  	7/17/2004	  	7/17/2005	  	$	—  	  	Liberty
	Court	  	Houston Pipeline Company	  	14017935	  	La Mesa Land and Cattle	  	7/17/2004	  	7/17/2005	  	$	44,000	  	Liberty
	Court	  	Houston Pipeline Company	  	400KG9663	  	Kinney Fitzgerald, Luke Durdi	  	7/12/2004	  	7/12/2005	  	$	10,170	  	St. Paul
	License & Permit	  	Houston Pipeline Company	  	81543536	  	Railroad Commission of Texas	  	9/30/2004	  	9/30/2005	  	$	50,000	  	Federal
	License & Permit	  	Houston Pipeline Company	  	14018220	  	County of Hardin, Texas	  	6/1/2004	  	6/1/2005	  	$	10,000	  	Liberty
	License & Permit	  	Houston Pipeline Company	  	14018221	  	U.S. Department of the	  	6/1/2004	  	6/1/2005	  	$	100,000	  	Liberty
	License & Permit	  	Houston Pipeline Company	  	14018222	  	County of Jefferson, State	  	6/1/2004	  	6/1/2005	  	$	10,000	  	Liberty
	License & Permit	  	Houston Pipeline Company	  	14018223	  	County of Galveston, Texas	  	6/1/2004	  	6/1/2005	  	$	10,000	  	Liberty
	Performance	  	HPL Resources Company, LP	  	14022516	  	Railroad Commission of Texas	  	1/14/2004	  	6/30/2005	  	$	25,000	  	Liberty

 HPL (BU 240) WORKERS COMP BOND* 
 HPL Holdings, Inc., HPL Resources Co., AEP Houston Pipeline Company, LLC, Mid-Texas Pipeline Co. (50% to 240), AEP Gas Marketing LP 
  

	*	HPL is part of the Self-Insured Workers’ Comp program in Texas and the HPL employees are covered under an AEP Corporate WC Bond in Texas 

  

			
	Sellers’ Disclosure Schedules, Schedule 5.6	  	Page 1

	2.	AEP PARENT GUARANTEES 

  

													
	 Recipients
	  	 Beneficiaries
	  	 Products
	  	Effective Date	  	Expiry Date	  	Status	  	Guarantee Limit
	Adams Resources Marketing, Ltd.	  	HPL Company LP	  	Gas Physical	  	Jun 16 2004	  	Jun 30 2005	  	Active	  	3,000,000.00
	Anadarko Energy Services Company	  	HPL Company LP	  	Gas Physical	  	Mar 24 2004	  	Mar 31 2005	  	Active	  	20,000,000.00
	Apache Corporation	  	HPL Company LP	  	Gas Physical	  	Aug 6 2004	  	Jul 31 2005	  	Active	  	5,000,000.00
	BP Energy Company	  	HPL Company LP	  	Gas Physical	  	May 29 2002	  	Jun 30 2005	  	Active	  	10,000,000.00
	ChevronTexaco Natural Gas, a Division of Chevron U.S.A. Inc.	  	HPL Company LP	  	Gas Physical	  	May 27 2004	  	May 31 2006	  	Active	  	10,000,000.00
	Cross Timbers Energy Services, Inc., XTO Energy, Inc.	  	HPL Company LP	  	Gas Physical	  	Jun 10 2004	  	May 31 2005	  	Active	  	20,000,000.00
	Devon Canada Corporation , Devon Energy Production Company, L.P., Devon Gas Services, L.P., Devon Louisiana Corporation, Devon SFS Operating, Inc.	  	HPL Company LP	  	Gas Physical	  	Apr 5 2002	  	Jun 30 2005	  	Active	  	45,000,000.00
	Duke Energy Field Services Marketing, LP	  	HPL Company LP	  	Gas Physical	  	May 3 2004	  	Apr 30 2005	  	Active	  	35,000,000.00
	EAP Energy Services, LP	  	HPL Company LP	  	Gas Physical	  	Nov 13 2003	  	Jun 30 2005	  	Active	  	3,000,000.00
	El Paso Marketing, L.P.	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Apr 27 2001	  	Jul 31 2005	  	Active	  	40,000,000.00
	Enbridge Marketing (U.S.) L.P.	  	HPL Company LP	  	Gas Physical	  	Apr 2 2003	  	Jun 30 2005	  	Active	  	12,000,000.00
	Enogex Inc., OGE Energy Resources, Inc.	  	HPL Company LP	  	Gas Physical	  	Jul 12 2004	  	Jul 31 2005	  	Active	  	3,000,000.00
	EOG Resources, Inc.	  	HPL Company LP	  	Gas Physical	  	Oct 22 2004	  	Oct 31 2005	  	Active	  	20,000,000.00
	ETC Marketing, Ltd.	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Jan 8 2002	  	Mar 31 2005	  	Active	  	50,000,000.00
	ExxonMobil Gas & Power Marketing Company, a division of Exxon Mobil Corporation	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Oct 28 2004	  	Oct 31 2005	  	Active	  	8,000,000.00
	ExxonMobil Oil Corporation	  	HPL Company LP	  	Gas Physical	  	Dec 1 2000	  	Dec 31 2049	  	Active	  	5,000,000.00
	Florida Gas Transmission Company	  	Gas Marketing	  	Gas Physical, Regulated Transmission	  	Nov 1 2004	  	Oct 31 2005	  	Active	  	300,000.00
	GMT Energy Corp.	  	HPL Company LP	  	Gas Physical	  	Apr 19 2004	  	Apr 30 2005	  	Active	  	2,000,000.00
	Louis Dreyfus Corporation	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Nov 15 2004	  	Nov 30 2005	  	Active	  	5,000,000.00
	Moss Bluff Hub Partners, L.P., Texas Eastern Transmission, LP	  	HPL Company LP	  	Gas Physical, Regulated Transmission	  	Oct 8 2004	  	Oct 31 2005	  	Active	  	200,000.00
	Northern Natural Gas Company	  	Gas Marketing	  	Gas Physical, Regulated Transmission	  	Jan 3 2005	  	Dec 31 2005	  	Active	  	110,000.00
	ONEOK Energy Services Company, L.P.	  	HPL Company LP	  	Gas Physical	  	Aug 23 2004	  	Aug 31 2005	  	Active	  	5,000,000.00
	ONEOK Texas Energy Resources, L.P.	  	HPL Company LP	  	Gas Physical	  	Apr 16 2004	  	Apr 30 2005	  	Active	  	12,000,000.00
	Phoenix Hydrocarbons Operating Corp.	  	HPL Company LP	  	Gas Physical	  	Nov 17 2004	  	Nov 30 2005	  	Active	  	4,000,000.00
	Pioneer Natural Resources USA, Inc.	  	HPL Company LP	  	Gas Physical	  	Nov 17 2004	  	Nov 30 2005	  	Active	  	10,500,000.00
	PPM Energy, Inc.	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Jun 17 2004	  	Jun 30 2005	  	Active	  	10,000,000.00
	Prize Energy Resources LP	  	HPL Company LP	  	Gas Physical	  	Aug 18 2004	  	Aug 31 2005	  	Active	  	7,000,000.00
	Richardson Energy Marketing, LTD.	  	HPL Company LP	  	Gas Physical	  	Jun 1 2004	  	Sep 30 2005	  	Active	  	2,000,000.00

  

			
	Sellers’ Disclosure Schedules, Schedule 5.6	  	Page 2

													
	Samson Lone Star Limited Partnership	  	HPL Company LP	  	Gas Physical	  	Sep 12 2002	  	Sep 30 2005	  	Active	  	12,000,000.00
	Tennessee Gas Pipeline Company	  	Gas Marketing	  	Gas Physical	  	Jun 30 2004	  	Jun 30 2005	  	Active	  	150,000.00
	Total Gas & Power North America, Inc.	  	HPL Company LP	  	Gas Physical	  	Oct 5 2001	  	Mar 31 2005	  	Active	  	15,000,000.00
	TXU Portfolio Management Company LP	  	Gas Marketing	  	Gas Financial, Gas Physical	  	Feb 27 2001	  	Mar 1 2005	  	Active	  	20,000,000.00
	U.S. Minerals Management Service	  	Gas Marketing, HPL Company LP	  	Gas Physical	  	Oct 24 2002	  	Nov 30 2005	  	Active	  	18,000,000.00
	Vitol S.A., Inc.	  	HPL Company LP	  	Gas Physical	  	Sep 23 2004	  	Sep 30 2005	  	Active	  	20,000,000.00
	Walter Oil & Gas Corporation	  	HPL Company LP	  	Gas Physical	  	Aug 26 2004	  	Aug 31 2005	  	Active	  	2,000,000.00
	Western Gas Resources, Inc.	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Oct 6 2004	  	Oct 31 2005	  	Active	  	500,000.00
	Atmos Energy Marketing, LLC	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Oct 31 2002	  	Jun 30 2003	  	Expired	  	500,000.00
	CenterPoint Energy Gas Services, Inc.	  	HPL Company LP	  	Gas Financial, Gas Physical	  	Apr 9 2002	  	Mar 31 2003	  	Terminated	  	25,000,000.00
	Cinergy Marketing & Trading, LP	  	HPL Company LP	  	Gas Physical	  	Jul 17 2002	  	Jul 17 2004	  	Expired	  	2,000,000.00
	Crosstex CCNG Marketing Ltd., Crosstex Gulf Coast Marketing, Ltd.	  	HPL Company LP	  	Gas Physical	  	Jun 10 2004	  	Sep 30 2004	  	Expired	  	10,000,000.00
	Dominion Exploration & Production, Inc., Dominion Oklahoma Texas Exploration & Production, Inc.	  	HPL Company LP	  	Gas Physical	  	Nov 26 2002	  	Nov 30 2003	  	Terminated	  	26,000,000.00
	Dominion Exploration & Production, Inc., Newfield Exploration Company, Pioneer Natural Resources USA, Inc., Spinnaker Exploration Company, L.L.C., The Houston Exploration
Company	  	HPL Company LP	  	Gas Physical	  	Jun 21 2002	  	Mar 18 2003	  	Expired	  	35,000,000.00
	Dynegy Marketing & Trade	  	HPL Company LP	  	Gas Physical	  	Apr 16 2002	  	Apr 16 2003	  	Expired	  	5,000,000.00
	El Paso Industrial Energy, LP	  	HPL Company LP	  	Gas Physical	  	Aug 11 1998	  	Dec 31 2049	  	Terminated	  	7,500,000.00
	Texas Eastern Transmission, LP	  	HPL Company LP	  	Regulated Transmission	  	Aug 27 2002	  	May 31 2003	  	Expired	  	600,000.00

  

	3.	SUBLEASE GUARANTY 

 American Electric Power Company,
Inc. has guaranteed the obligations of AEP Energy Services, Inc. as sublessee under its sublease of the 12th floor of 1201 Louisiana, Houston, Texas. The guaranty unconditionally guarantees the payment of rent, additional rental, and all other
payments to be made under the sublease and the full performance and observance of all the other terms, covenants, conditions, and agreements of sublessee contained in the sublease. This guaranty will be terminated after the Closing Date. 

 

			
	Sellers’ Disclosure Schedules, Schedule 5.6	  	Page 3

 SCHEDULE FOR EXHIBIT 1.1-51 
 Sellers’ Knowledge Group 
 Ronald A. Erd 
 Edward D. Gottlob 
 Jim Deidiker 
 Stephen Schneider 
 James McKay 
 Mike Kelley 
 Sandi Braband 
  

			
	Sellers’ Disclosure Schedules, Schedule for Exhibit 1.1-51	  	Page 1Redemption Agreement

 Exhibit 10.3 
 REDEMPTION AGREEMENT 
 by and between 
 ENERGY TRANSFER PARTNERS, L.P. 
 and 
 CCE HOLDINGS, LLC 
 Dated as of 

 September 14, 2006 

 TABLE OF CONTENTS 
  

					
	 ARTICLE I DEFINITIONS
	  	2
			
	 Section 1.1
	  	Specific Definitions	  	2
		
	ARTICLE II REDEMPTION OF 50% CCE INTEREST	  	14
			
	 Section 2.1
	  	Agreement to Redeem 50% CCE Interest	  	14
	 Section 2.2
	  	Time and Place of Closing	  	14
	 Section 2.3
	  	Pre-Closing Matters.	  	15
	 Section 2.4
	  	Post-Closing Adjustment.	  	16
	 Section 2.5
	  	Deliveries by CCE at the Closing	  	17
	 Section 2.6
	  	Deliveries by ETP at the Closing	  	18
		
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF CCE	  	18
			
	 Section 3.1
	  	Organization; Qualification.	  	18
	 Section 3.2
	  	Authority Relative to this Agreement and the CCE Acquisition Agreement	  	19
	 Section 3.3
	  	TPC Interests.	  	20
	 Section 3.4
	  	Consents and Approvals	  	20
	 Section 3.5
	  	No Conflict or Violation	  	20
	 Section 3.6
	  	Financial Information	  	21
	 Section 3.7
	  	Contracts.	  	21
	 Section 3.8
	  	Compliance with Law	  	22
	 Section 3.9
	  	Permits	  	22
	 Section 3.10
	  	Litigation	  	22
	 Section 3.11
	  	Title to Properties	  	22
	 Section 3.12
	  	Employee Matters.	  	23
	 Section 3.13
	  	Labor Relations	  	26
	 Section 3.14
	  	Intellectual Property	  	26
	 Section 3.15
	  	Environmental Matters	  	27
	 Section 3.16
	  	Tax Matters.	  	28
	 Section 3.17
	  	Absence of Certain Changes or Events.	  	28
	 Section 3.18
	  	Absence of Undisclosed Liabilities	  	29
	 Section 3.19
	  	Brokerage and Finders’ Fees	  	29
	 Section 3.20
	  	Affiliated Transactions	  	29
	 Section 3.21
	  	Insurance.	  	29
	 Section 3.22
	  	Regulatory Matters.	  	29
	 Section 3.23
	  	Internal Controls.	  	30
	 Section 3.24
	  	Hedging	  	31
	 Section 3.25
	  	Bank Accounts; Powers of Attorney	  	31
	 Section 3.26
	  	Gas Imbalances	  	31
	 Section 3.27
	  	No Other Representations or Warranties	  	31
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF ETP	  	31
			
	 Section 4.1
	  	Corporate Organization; Qualification	  	31
	 Section 4.2
	  	Authority Relative to this Agreement	  	32
	 Section 4.3
	  	50% CCE Interest	  	32

  

 - i - 

					
	 Section 4.4
	  	Consents and Approvals	  	32
	 Section 4.5
	  	No Conflict or Violation	  	33
	 Section 4.6
	  	Litigation	  	33
	 Section 4.7
	  	Availability of Funds	  	33
	 Section 4.8
	  	Brokerage and Finders’ Fees	  	33
	 Section 4.9
	  	Investment Representations.	  	33
	 Section 4.10
	  	No Other Representations or Warranties	  	34
		
	ARTICLE V COVENANTS OF THE PARTIES	  	34
			
	 Section 5.1
	  	Conduct of Business.	  	34
	 Section 5.2
	  	Access to Properties and Records.	  	37
	 Section 5.3
	  	Consents and Approvals.	  	38
	 Section 5.4
	  	Further Assurances	  	39
	 Section 5.5
	  	Employee Matters.	  	39
	 Section 5.6
	  	Tax Covenants.	  	45
	 Section 5.7
	  	Control of Administrative and Regulatory Proceedings	  	50
	 Section 5.8
	  	Maintenance of Insurance Policies.	  	50
	 Section 5.9
	  	Preservation of Records	  	51
	 Section 5.10
	  	Public Statements	  	51
	 Section 5.11
	  	Assignment of Trademarks.	  	52
	 Section 5.12
	  	Commercially Reasonable Efforts	  	52
	 Section 5.13
	  	Financial Statements; Financial Records of CCE.	  	52
	 Section 5.14
	  	Covenants Regarding the 50% CCE Interest.	  	54
	 Section 5.15
	  	No-Hire/Non-Solicitation	  	54
	 Section 5.16
	  	CCE Executive Committee	  	55
	 Section 5.17
	  	Directors’ and Officers’ Indemnification	  	55
	 Section 5.18
	  	TPC Notes	  	55
		
	ARTICLE VI CONDITIONS	  	55
			
	 Section 6.1
	  	Mutual Conditions to the Closing	  	55
	 Section 6.2
	  	ETP’s Conditions to the Closing	  	56
	 Section 6.3
	  	CCE’s Conditions to the Closing	  	57
		
	ARTICLE VII TERMINATION AND ABANDONMENT	  	58
			
	 Section 7.1
	  	Termination	  	58
	 Section 7.2
	  	Effect of Termination	  	59
		
	ARTICLE VIII SURVIVAL; INDEMNIFICATION	  	59
			
	 Section 8.1
	  	Survival.	  	59
	 Section 8.2
	  	Indemnification.	  	60
	 Section 8.3
	  	Calculation of Damages	  	63
	 Section 8.4
	  	Procedures for Third-Party Claims.	  	63
	 Section 8.5
	  	Procedures for Inter-Party Claims	  	64
		
	ARTICLE IX MISCELLANEOUS PROVISIONS	  	64
			
	 Section 9.1
	  	Interpretation	  	64
	 Section 9.2
	  	Disclosure Letters	  	65

  

 - ii - 

					
	 Section 9.3
	  	Payments	  	65
	 Section 9.4
	  	Expenses	  	65
	 Section 9.5
	  	Choice of Law	  	65
	 Section 9.6
	  	Assignment	  	65
	 Section 9.7
	  	Notices	  	65
	 Section 9.8
	  	Consent to Jurisdiction	  	67
	 Section 9.9
	  	No Right of Setoff	  	67
	 Section 9.10
	  	Time is of the Essence	  	67
	 Section 9.11
	  	Specific Performance	  	67
	 Section 9.12
	  	Entire Agreement	  	67
	 Section 9.13
	  	Third Party Beneficiaries	  	67
	 Section 9.14
	  	Counterparts	  	67
	 Section 9.15
	  	Severability	  	68
	 Section 9.16
	  	Headings	  	68
	 Section 9.17
	  	Waiver	  	68
	 Section 9.18
	  	Amendment	  	68

 EXHIBITS 
  

	 	A	CCE Disclosure Letter 

  

	 	B	Terms of TPC Transition Services Agreement 

  

	 	C	Form of Second Amended and Restated LLC Agreement 

  

	 	D	Resolutions of CCE Executive Committee 

  

 - iii - 

 REDEMPTION AGREEMENT 
 This REDEMPTION AGREEMENT, dated as of September 14, 2006 (this “Agreement”), is made and entered into by and between Energy Transfer Partners, L.P., a Delaware limited partnership
(“ETP”), and CCE Holdings, LLC, a Delaware limited liability company (“CCE”). 
 W I T N E S S E T H:

 WHEREAS, CCE, through its subsidiaries, owns and operates a network of natural gas pipelines and is engaged in the business of the
interstate transportation of natural gas; 
 WHEREAS, an indirect Subsidiary of CCE owns all of the issued and outstanding membership
interests of Transwestern Pipeline Company, LLC, a Delaware limited liability company (“TPC”); 
 WHEREAS, EFS-PA, LLC, a
Delaware limited liability company, CDPQ Investments (U.S.) Inc., a Delaware corporation, Lake Bluff Inc., a Delaware corporation, Merrill Lynch Ventures, L.P. 2001, a Delaware limited partnership, and Kings Road Holdings I LLC, a Delaware limited
liability company (collectively, the “Other CCE Owners”) own Class B membership interests in CCE that collectively represent 50% of the outstanding membership interests in CCE (the “50% CCE Interest”); 

WHEREAS, concurrently with the execution and delivery of this Agreement, ETP has entered into a Purchase and Sale Agreement, dated as of
September 14, 2006, with the Other CCE Owners pursuant to which ETP has agreed, subject to the terms and conditions thereof, to purchase the 50% CCE Interest from the Other CCE Owners (the “CCE Acquisition Agreement”);

 WHEREAS, subject to the terms and conditions of this Agreement, CCE desires to redeem the 50% CCE Interest that ETP proposes to acquire
pursuant to the CCE Acquisition Agreement by transferring to ETP all of the membership interests in TPC (the “TPC Interests”) as a redemption payment; 
 WHEREAS, in connection with CCE’s redemption of the 50% CCE Interest to be owned by ETP, CCE intends to cause (i) CrossCountry Energy, LLC, a Delaware limited liability company that is wholly-owned by CCE
(“CC Energy”), or one of its affiliates, to borrow from lenders that are not Affiliates of CCE an amount sufficient to enable CC Energy or such affiliate, after paying expenses related to the incurrence of such debt, to contribute
to TW Holdings an amount necessary to repay all of the outstanding TW Holdings Debt (the “TW Debt Payoff Amount”) plus the Cash Redemption Amount (as defined in Section 1.1 hereof) (the “CC Energy Debt Proceeds
Amount”), (ii) CC Energy to contribute the TW Debt Payoff Amount to Transwestern Holding Company, LLC, a Delaware limited liability company that is wholly-owned by CC Energy (“TW Holdings”), and (iii) cause TW
Holdings to repay all of its existing debt, in each case prior to the redemption of the 50% CCE Interest, described in the preceding recital; 
  

 1 

 WHEREAS, each of the Boards of Directors or other governing body of each of CCE and ETP has approved, and
deems it advisable and in the best interests of their respective shareholders, partners and members to consummate the transactions contemplated by, this Agreement upon the terms and subject to the conditions set forth herein; 
 NOW, THEREFORE, for and in consideration of the foregoing and the representations, warranties, covenants and agreements set forth herein, CCE and ETP,
intending to be legally bound hereby, hereby agree as follows: 
 ARTICLE I 
 DEFINITIONS 
 Section 1.1 Specific Definitions. For purposes of this
Agreement, the following terms shall have the meanings set forth below: 
 “Action” shall mean any administrative,
regulatory, judicial or other formal proceeding, action, Claim, suit, investigation or inquiry by or before any Governmental Authority, arbitrator or mediator. 
 “Adjustment Amount” shall mean $14,400,000. 
 “Affected Employees” shall
mean the TPC Employees on the Closing Date, including Transferring Shared Service Employees who become TPC Employees on the date immediately prior to the Closing Date pursuant to the provisions of Section 5.5(g). 
 “Affiliate” shall have the meaning set forth in Rule 12b-2 of the General Rules and Regulations under the Exchange Act. 
 “Agreement” shall mean this Redemption Agreement, together with the CCE Disclosure Letter and the Exhibits hereto, as the same may be
amended or supplemented from time to time in accordance with the provisions hereof. 
 “Applicable Law” shall mean any
statute, law, ordinance, executive order, rule or regulation (including a regulation that has been formally promulgated in a rule-making proceeding but, pending final adoption, is in proposed or temporary form having the force of law); guideline or
notice having the force of law; or approval, permit, license, franchise, judgment, order, decree, injunction or writ of any Governmental Authority applicable to a specified Person or specified property, as in effect from time to time. 
 “Auditor” shall have the meaning set forth in Section 2.4(b). 
 “Base Compensation” shall have the meaning set forth in Section 5.5(f). 
 “Base Debt Amount” shall mean $520,000,000. 
 “Base Pro Forma Net Working Capital Amount” shall mean zero dollars. 
 “Benefit
Programs or Agreements” shall have the meaning set forth in Section 3.12(b). 
  

 2 

 “Burdensome Condition” shall have the meaning set forth in Section 5.3(b).

 “Business Day” shall mean a day other than a Saturday, Sunday or other day on which banks located in New York City are
authorized or required by law to close. 
 “Cap Amount” shall have the meaning set forth in Section 8.2(d). 

“Cash Flow” shall have the meaning set forth in the Second Amended and Restated LLC Agreement, calculated without duplication on a
combined basis for CCE and its Subsidiaries. 
 “Cash Redemption Amount” shall have the meaning set forth in
Section 2.3(d)(iv) hereof. 
 “Casualty Insurance Claims” shall have the meaning set forth in Section 5.9(a).

 “CC Energy” shall have the meaning set forth in the Recitals to this Agreement. 
 “CC Energy Debt Proceeds Amount” shall have the meaning set forth in the Recitals to this Agreement. 
 “CCE” shall have the meaning set forth in the Recitals to this Agreement. 
 “CCEA LLC” shall mean CCE Acquisition LLC, a Delaware limited liability company. 
 “CCEA Corp.” shall mean CCEA Corp., a Delaware corporation. 
 “CCE Acquisition” shall mean the acquisition of the 50% CCE Interest from the Other CCE Owners pursuant to the terms and conditions of
the CCE Acquisition Agreement. 
 “CCE Acquisition Agreement” shall have the meaning set forth in the Recitals to this
Agreement. 
 “CCE Adjustment” shall have the meaning set forth in Section 2.4(c). 
 “CCE Annual Financial Statements” shall mean the audited balance sheets at December 31, 2004 and 2005 and the statements of income,
statements of members’ equity and statements of cash flow of CCE for the years ended December 31, 2004 and 2005. 
 “CCE
Cash Flow Amount” shall mean the amount of Cash Flow of CCE for the period from the date of the CCE Acquisition until the Closing Date (for purposes of this definition of CCE Cash Flow Amount, the CCE Cash Flow Amount shall be deemed to
include without duplication the amount of Citrus Corp. cash dividends paid after the Closing Date but relating to any portion of the period from the date of the CCE Acquisition until the Closing Date; provided, however, that if no dividends are paid
by Citrus Corp. relating to such period, then the CCE Cash Flow Amount shall be deemed to include without duplication 50% (i.e., CCE’s share) of Citrus Corp. net income for such period). 
 “CCE Defined Contribution Plan” shall have the meaning set forth in Section 5.5(i). 
  

 3 

 “CCE Disclosure Letter” means the letter dated September 14, 2006 from CCE to ETP
in the form attached as Exhibit A to this Agreement. 
 “CCE FAS 106 Report” shall mean the Southern Union Company
Postretirement Medical and Death Benefits for CrossCountry Energy Employees Application of Statement of Financial Accounting Standards Nos. 106 and 132(R) to the Fiscal Year Ending December 31, 2005. 
 “CCE Financial Statements” means the CCE Annual Financial Statements, the CCE Six Month Interim Financial Statements, the CCE Nine Month
Interim Financial Statements and the CCE 2006 Financial Statements. 
 “CCE Flex Plans” shall have the meaning set forth in
Section 5.5(h). 
 “CCE Indemnified Parties” shall have the meaning set forth in Section 8.2(b). 
 “CCE Medicare Eligible SPD” shall mean the Summary Plan Description Options PPO Plan for CrossCountry Energy (Medicare Eligible Retired
Employees). 
 “CCE Nine Month Interim Financial Statements” shall mean the unaudited balance sheets, statements of income,
statements of members’ equity and statements of cash flow for CCE as of, and for the nine months ended, September 30, 2005 and 2006. 
 “CCE Six Month Interim Financial Statements” shall mean the unaudited balance sheets, statements of income, statements of members’ equity and statements of cash flow for CCE as of, and for the six months ended,
June 30, 2005 and 2006. 
 “CCE LLC Agreement” means the Amended and Restated Limited Liability Company Agreement of
CCE, dated as of November 5, 2004, as amended by the First Amendment thereto, dated as of December 2, 2004. 
 “CCE
Returns” shall have the meaning set forth in Section 5.6(a)(i). 
 “CCE Stub Period Income Statements” means
the unaudited income statements for CCE for the three months ended December 31, 2005 and for the one month periods ended December 31, 2004 and 2005. 
 “CCE S-X Financial Statements” shall mean the CCE Financial Statements, as modified pursuant to the provisions of Section 5.13(b). 
 “CCE Under Age 65 SPD” shall mean the Summary Plan Description Options PPO Plan for CrossCountry Energy (Retired Employees under age
65). 
 “CCE 2006 Financial Statements” shall mean the audited balance sheet, statement of income, statement of
members’ equity and statement of cash flow of CCE as of, and for the year ended, December 31, 2006. 
 “CCES”
shall mean CrossCountry Energy Services, LLC. 
  

 4 

 “Citrus” shall mean CrossCountry Citrus, LLC, a Delaware limited liability company.

 “Citrus S-X Financial Statements” shall mean the Citrus Financial Statements, as modified pursuant to the provisions of
Section 5.13(b). 
 “Citrus 2006 Financial Statements” shall mean the audited balance sheet, statement of income,
statement of member’s equity and statement of cash flow of Citrus as of, and for the year ended, December 31, 2006. 
 “Citrus Annual Financial Statements” shall mean the audited balance sheets at December 31, 2004 and 2005 and the statements of income, statements of member’s equity and statements of cash flow of Citrus for the
years ended December 31, 2004 and 2005. 
 “Citrus Financial Statements” means the Citrus Annual Financial Statements,
the Citrus Six Month Interim Financial Statements, the Citrus Nine Month Interim Financial Statements, and the Citrus 2006 Financial Statements. 
 “Citrus Nine Month Interim Financial Statements” shall mean the unaudited balance sheets, statements of income, statements of member’s equity and statements of cash flow for Citrus as of, and for the nine months ended,
September 30, 2005 and 2006. 
 “Citrus Six Month Interim Financial Statements” shall mean the unaudited balance
sheets, statements of income, statements of member’s equity and statements of cash flow for Citrus as of, and for the six months ended, June 30, 2005 and 2006. 
 “Citrus Stub Period Income Statements” means the unaudited income statements for Citrus for the three months ended December 31, 2005 and for the one month periods ended December 31, 2004 and
2005. 
 “Claims” shall mean any and all claims, lawsuits, demands, causes of action, investigations and other proceedings
(whether or not before a Governmental Authority). 
 “Closing Adjustment Amount” shall have the meaning set forth in
Section 2.3(c). 
 “Closing Balance Sheet” shall have the meaning set forth in Section 2.4(a). 
 “Closing Date” shall have the meaning set forth in Section 2.2. 
 “Closing” shall have the meaning set forth in Section 2.2. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended. 
 “Confidentiality Agreement” shall mean the confidentiality agreement entered into by and between ETP and Southern Union, dated
July 25, 2006. 
 “Consolidated Income Tax Return” shall have the meaning set forth in Section 5.6(a)(ix) hereof.

 “Continuation Period” shall have the meaning set forth in Section 5.5(f). 
  

 5 

 “Damages” shall mean all demands, Claims, causes of action, suits, judgments, damages,
amounts paid in settlement (with the approval of the Indemnifying Party where applicable), penalties, Liabilities, losses or deficiencies, costs and expenses, including reasonable attorney’s fees, court costs, expenses of arbitration or
mediation, and other out-of-pocket expenses incurred in investigating or preparing the foregoing. “Damages” does not include incidental, indirect or consequential damages, damages for lost profits or other special damages or punitive or
exemplary damages; provided, however, that in the case of Third-Party Claims, “Damages” shall be deemed to include all forms of relief, monetary and otherwise, asserted therein, without any of the foregoing exceptions. 
 “Determination Date” shall have the meaning set forth in Section 2.4(b). 
 “Employee Benefit Plans” shall have the meaning set forth in Section 3.12(b). 
 “Encumbrances” shall mean any Claims, Liens, conditional and installment sale agreements or other title retention agreements, activity
and use limitations, easements, deed restrictions, title defects, reservations, encumbrances and charges of any kind, options, subordination agreements or adverse claim of any kind. 
 “Enron Inactive Medical Plan” shall mean the Enron Corp. Medical Plan for Inactive Participants. 
 “Enron Plan” shall mean any “employee benefit plan,” as defined in Section 3(3) of ERISA, or any policy, plan,
agreement or arrangement providing for employment terms, change in control benefits, severance benefits, retention benefits, insurance coverage (including any self-insured arrangements), workers’ compensation, disability benefits, supplemental
unemployment benefits, vacation benefits, retirement benefits, deferred compensation, profit-sharing, bonuses, or other forms of incentive compensation, or post-retirement insurance, compensation or benefits (whether or not an ERISA plan) entered
into, sponsored, maintained, or contributed to by Enron Corp. or any of its ERISA Affiliates, current or former, specifically including the Enron Corp. Cash Balance Plan (formerly the Enron Corp. Retirement Plan), the Enron Corp. Savings Plan
(formerly the Enron Corp. Savings Plan and Enron Corp. Employee Stock Ownership Plan, which were merged in August 2002), the Enron Prisma Energy Savings Plan, the Portland General Electric Company Pension Plan and the Enron Inactive Medical Plan.
 
 “Enron VEBA” shall mean the Enron Gas Pipelines Employee Benefit Trust, as it may be amended, which as of the
date of this Agreement, is the subject of the Enron VEBA Motion. 
 “Enron VEBA Motion” shall mean the Amended and Restated
Motion of Enron Corp., et al, for an Order Pursuant to Sections 105 and 363 of the Bankruptcy Code, Authorizing Termination of Employee Benefits Trust and Distribution of Trust Assets, dated June 17, 2005, as it may be amended, which motion is
currently pending in the United States Bankruptcy Court for the Southern District of New York. 
 “Environmental Claim”
means any claim, loss, cost, expense, liability, penalty or Damages arising, incurred or otherwise asserted pursuant to any Environmental Law. 
  

 6 

 “Environmental Laws” shall mean all foreign, federal, state and local laws, regulations,
rules and ordinances relating to pollution or protection of human health or the environment, including laws relating to releases or threatened releases of Hazardous Substances into the environment (including ambient air, surface water, groundwater,
land, surface and subsurface strata). 
 “Environmental Permit” shall mean any Permit, formal exemption, identification
number or other authorization issued by a Governmental Authority pursuant to an applicable Environmental Law. 
 “ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder. 
 “ERISA
Affiliate” shall mean, with respect to any Person, any corporation, trade, business, or entity under common control with such Person, within the meaning of Section 414(b), (c) or (m) of the Code or Section 4001 of ERISA.

 “ERISA Plans” shall have the meaning set forth in Section 3.12(a). 
 “Estimated SUG Expansion Project Expenses” shall have the meaning set forth in Section 2.3(a). 
 “ETP” shall have the meaning set forth in the recitals to this Agreement. 
 “ETP 401(k) Plan” shall have the meaning set forth in Section 5.5(i). 
 “ETP Adjustment” shall have the meaning set forth in Section 2.4(c). 
 “ETP Indemnified Parties” shall have the meaning set forth in Section 8.2(a). 
 “ETP Plans” shall have the meaning set forth in Section 5.5(c). 
 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the Regulations promulgated thereunder. 
 “Existing TPC Debt” shall mean the existing indebtedness of TPC pursuant to (x) those certain $270,000,000 5.39% Senior Unsecured
Notes due November 17, 2014 and $250,000,000 5.54% Senior Unsecured Notes due November 17, 2016 and (y) that certain $230,000,000 Amended and Restated Credit Agreement dated as of December 21, 2005 among TPC and the Lenders,
Administrative Agent and Issuing Bank, Syndication Agent, Co-Documentation Agents and Arrangers parties thereto. 
 “Existing TW
Holdings Debt” shall mean the existing indebtedness of TW Holdings pursuant to (x) those certain $125,000,000 5.64% Senior Unsecured Notes due November 17, 2014, and $100,000,000 5.79% Senior Unsecured Notes due November 17,
2016, and (y) that certain $230,000,000 Amended and Restated Credit Agreement among TW Holdings, CrossCountry Citrus, LLC, as guarantor, and the Lenders, Administrative Agent, Syndication Agent, Co-Documentation Agents, and Arrangers parties
thereto. 
  

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 “FCC” means the Federal Communication Commission. 
 “FERC” shall mean the Federal Energy Regulatory Commission including any individual office or department within FERC. 
 “For Cause” shall have the meaning set forth in Section 5.5(f). 
 “GAAP” shall mean United States generally accepted accounting principles as in effect from time to time, applied on a consistent basis.

 “Governmental Authority” shall mean any executive, legislative, judicial, tribal, regulatory, taxing or administrative
agency, body, commission, department, board, court, tribunal, arbitrating body or authority of the United States or any foreign country, or any state, local or other governmental subdivision thereof. 
 “Hazardous Substances” shall mean any chemicals, materials or substances defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials”, “hazardous constituents”, “restricted hazardous materials”, “extremely hazardous substances”, “toxic substances”,
“contaminants”, “pollutants”, “toxic pollutants”, or words of similar meaning and regulatory effect under any applicable Environmental Law. 
 “HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations promulgated thereunder. 
 “Indemnified Party” shall have the meaning set forth in Section 8.2(c). 
 “Indemnifying Party” shall have the meaning set forth in Section 8.2(c). 
 “Initial Termination Date” shall have the meaning set forth in Section 7.1(b). 
 “Insurance Policies” shall have the meaning set forth in Section 3.21(a). 
 “IRS” shall mean the Internal Revenue Service. 
 “June 30 TPC Expansion Project Expenses” shall mean $7,750,000. 
 “Knowledge” shall mean, as to CCE, the actual knowledge, after due inquiry, of the persons listed on Section 1.1(a) of the CCE Disclosure Letter, or any Person who replaces any of such listed persons between the date
of this Agreement and the Closing Date. 
 “Liabilities” shall mean any and all debts, liabilities, commitments and
obligations, whether or not fixed, contingent or absolute, matured or unmatured, liquidated or unliquidated, accrued or unaccrued, known or unknown, whether or not required by GAAP to be reflected in financial statements or disclosed in the notes
thereto. 
 “Liens” shall mean any lien, mortgage, pledge, charge, claim, assignment by way of security or similar security
interest. 
 “LIBOR” shall mean the London Interbank Offer Rate. 
  

 8 

 “Make-Whole Amount” shall have the meaning set forth in the TW Holdings Note Purchase
Agreement. 
 “Material Adverse Effect” shall mean any change or effect that is materially adverse to the business,
financial condition or assets of the business of TPC; provided, however, that Material Adverse Effect shall exclude any change or effect due to (a) the negotiation, execution, announcement and consummation of this Agreement and the transactions
contemplated hereby, including the impact thereof on relationships, contractual or otherwise, with customers, suppliers, distributors, partners, joint owners or venturers, or employees, (b) any action taken by CCE, ETP or any of their
respective representatives or Affiliates or other action required or permitted by the terms of this Agreement or necessary to consummate the transactions contemplated by this Agreement, (c) the general state of the industries in which TPC
operates (including (i) pricing levels, (ii) changes in the international, national, regional or local wholesale or retail markets for natural gas, (iii) changes in the North American, national, regional or local interstate natural
gas pipeline systems, and (iv) rules, regulations or decisions of the FERC or the courts affecting the interstate natural gas transmission industry as a whole, or rate orders, motions, complaints or other actions affecting TPC), except, in all
cases for such effects which disproportionately impact TPC, (d) general legal, regulatory, political, business, economic, capital market and financial market conditions (including prevailing interest rate levels), or conditions otherwise
generally affecting the industries in which TPC operates, except, in all cases, for such effects which disproportionately impact TPC and (e) any condition set forth in the CCE Disclosure Letter (but only to the extent set forth therein).

 “Material Contract” shall have the meaning set forth in Section 3.7(a). 
 “Minimum Claim Amount” shall have the meaning set forth in Section 8.2(d). 
 “Net Working Capital Amount” as of a particular date shall mean (a) the current assets of TPC as of such date minus (b) the
current liabilities of TPC as of such date, with both current assets and current liabilities determined in accordance with GAAP, applied in a manner consistent with the preparation of the Pro Forma Adjusted Balance Sheet (subject to the exceptions
from GAAP relating to the adjustments reflected on the Pro Forma Adjusted Balance Sheet). 
 “NGA” shall have the meaning
set forth in Section 3.22. 
 “NGPA” shall have the meaning set forth in Section 3.22. 
 “Organizational Documents” shall mean certificates of incorporation, by-laws, certificates of formation, limited liability company
operating agreements, partnership or limited partnership agreements or other formation or governing documents of a particular entity. 
 “Other CCE Owners” shall have the meaning set forth in the Recitals of this Agreement. 
 “PBGC”
shall mean the Pension Benefit Guaranty Corporation. 
  

 9 

 “PEPL” shall mean Panhandle Eastern Pipe Line Company, LP, a Delaware limited
partnership. 
 “Permitted Encumbrances” shall mean (a) zoning, planning and building codes and other applicable laws
regulating the use, development and occupancy of real property and permits, consents and rules under such laws; (b) encumbrances, easements, rights-of-way, covenants, conditions, restrictions and other matters affecting title to real property
(other than Liens) which do not materially detract from the value of such real property or materially restrict the use of such real property; (c) leases and subleases of real property; (d) all easements, encumbrances or other matters that
are necessary for utilities and other similar services on real property; (e) Liens to secure indebtedness reflected on the TPC Financial Statements, (f) Liens to secure indebtedness incurred after the date thereof, to the extent permitted
pursuant to Section 5.1(b)(xii), (g) Liens for Taxes and other governmental levies not yet due and payable or, if due, (i) not delinquent or (ii) being contested in good faith by appropriate proceedings during which collection or
enforcement against the property is stayed and with respect to which adequate reserves have been established on the books of TPC and are being maintained to the extent required by GAAP, (h) mechanics’, workmen’s, repairmen’s,
materialmen’s, warehousemen’s, carriers’ or other similar Liens, including all statutory Liens, arising or incurred in the ordinary course of business; (i) original purchase price conditional sales contracts and equipment leases
with third parties entered into in the ordinary course of business, (j) Liens that do not materially interfere with or materially affect the value or use of the respective underlying asset to which such Liens relate, (k) Encumbrances that
are capable of being cured through condemnation procedures under the NGA at a total cost to TPC of less than $1,000,000 and (l) Encumbrances that are reflected in any Material Contract. 
 “Person” shall mean any natural person, corporation, company, general partnership, limited partnership, limited liability partnership,
joint venture, proprietorship, limited liability company, or other entity or business organization or vehicle, trust, unincorporated organization or Governmental Authority or any department or agency thereof. 
 “Post-Closing Adjustment Amount” shall have the meaning set forth in Section 2.4(a). 
 “Post-Closing Taxes” shall have the meaning set forth in Section 5.6(a)(iv). 
 “Pre-Closing Taxes” shall have the meaning set forth in Section 5.6(a)(iv). 
 “Pro Forma Adjusted Balance Sheet” shall mean the pro forma balance sheet of TPC as of June 30, 2006 derived from the TPC Interim
Balance Sheet, adjusted to: 
 (a) reflect, among the other matters reflected in the adjustments set forth in
Section 1.1(b) of the CCE Disclosure Letter, that current liabilities shall exclude short term debt and current portions of long term debt; and 
 (b) reflect as a reduction in cash the payment of a $22,000,000 cash distribution to the sole member of TPC to be made prior to the Closing. 
 The Pro Forma Adjusted Balance Sheet, reflecting the adjustments listed above, is set forth in Section 1.1(b) of the CCE Disclosure Letter.

  

 10 

 “Real Property” shall have the meaning set forth in Section 3.11. 
 “Regulation” shall mean any rule or regulation of any Governmental Authority having the effect of Law or of any rule or regulation of
any self-regulatory organization, such as the New York Stock Exchange. 
 “Release” means any depositing, spilling, leaking,
pumping, pouring, placing, emitting, discarding, abandoning, emptying, discharging, migrating, injecting, escaping, leaching, dumping, or disposing. 
 “Rights-Of-Way” shall have the meaning set forth in Section 3.11. 
 “Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002 and the Regulations promulgated thereunder. 
 “SEC” means the Securities and Exchange Commission. 
 “Second Amended and Restated LLC Agreement”
shall mean that certain Second Amended and Restated Limited Liability Company Agreement of CCE, in the form attached hereto as Exhibit D to be entered into by and among ETP, CCEA LLC and CCEA Corp. as of the date of the CCE Acquisition.

 “Securities Act” shall mean the Securities Act of 1933, as amended, and the Regulations promulgated thereunder.

 “Severance Benefits” shall have the meaning set forth in Section 5.5(f). 
 “Shared Service Employees” shall have the meaning set forth in Section 5.5(g). 
 “Southern Union” shall mean Southern Union Company, a Delaware corporation. 
 “Straddle Period” shall have the meaning set forth in Section 5.6(a)(ii). 
 “Straddle Period Return(s)” shall have the meaning set forth in Section 5.6(a)(ii). 
 “Straddle Statement” shall have the meaning set forth in Section 5.6(a)(ii). 
 “Subsidiary” of any entity means, at any date, any Person (a) the accounts of which would be consolidated with and into those of
the applicable entity in such entity’s consolidated financial statements if such financial statements were prepared in accordance with GAAP as of such date or (b) of which securities or other ownership interests representing more than
fifty percent (50%) of the equity or more than fifty percent (50%) of the ordinary voting power or, in the case of a partnership, more than fifty percent (50%) of the general partnership interests or more than fifty percent
(50%) of the profits or losses of which are, as of such date, owned, controlled or held by the applicable entity or one or more subsidiaries of such entity. 
 “SUG Expansion Project Expenses” shall mean all expenditures incurred at any time prior to the Closing Date by Affiliates of TPC (other than TPC), including Southern Union, Valley Pipeline Company, LP
and PEPL, in connection with the TPC Expansion Projects that have not been reimbursed by TPC on or prior to the Closing Date. 
  

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 “Survival Period” shall have the meaning set forth in Section 8.1(c). 

“Tax Claim” shall have the meaning set forth in Section 5.6(d)(i). 
 “Tax Indemnified Party” shall have the meaning set forth in Section 5.6(d)(i). 
 “Tax Indemnifying Party” shall have the meaning set forth in Section 5.6(d)(i). 
 “Tax Return” shall mean any report, return, declaration, or other information required to be supplied to a Governmental Authority in
connection with Taxes including any claim for refund or amended return. 
 “Taxes” shall mean all taxes, levies or other
like assessments, including net income, gross income, gross receipts, capital gains, profits, environmental, excise, value added, ad valorem, real or personal property, withholding, asset, sales, use, transfer, registration, license, payroll,
transaction, capital, business, occupation, corporation, employment, withholding, wage, net worth, franchise, minimum, alternative minimum, and estimated taxes, or other governmental taxes imposed by or payable to any foreign, Federal, state or
local taxing authority, whether computed on a separate, consolidated, unitary, combined or any other basis; and in each instance such term shall include any interest, penalties or additions to tax attributable to any such Tax. 
 “Third-Party Claim” shall have the meaning set forth in Section 8.4(a). 
 “Threshold Amount” shall have the meaning set forth in Section 8.2(d). 
 “Total Debt” shall mean all short-term and long-term indebtedness of TPC as reflected on its balance sheet, prepared in accordance with
GAAP, of TPC as of a particular date. 
 “TPC” shall have the meaning set forth in the Recitals of this Agreement.

 “TPC 2006 Financial Statements” shall mean the audited balance sheet, statement of income, statement of members’
equity and statement of cash flow of TPC as of, and for the period ended, December 31, 2006. 
 “TPC Annual Financial
Statements” shall mean the audited balance sheets at December 31, 2004 and 2005 and the statements of income, statements of members’ interests and statements of cash flow for the years ended December 31, 2004 and 2005, in
each case for TPC. 
 “TPC Cash Flow Amount” shall mean the amount of cash flow of TPC included in the CCE Cash Flow Amount
for the period from the date of the CCE Acquisition until the Closing Date. 
 “TPC Employees” shall mean all employees
employed by TPC, including employees absent due to vacation, illness or similar circumstance, workers’ compensation, short-term 
  

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 disability, military leave, maternity leave or paternity leave, leave under the Family and Medical Leave Act of 1993 and
other approved leaves of absence from active employment. When the term “TPC Employees” is used herein in reference to a specific date, “TPC Employees” shall include the employees of TPC referenced in the preceding sentence as of
such date. 
 “TPC Expansion Project Expenses” shall mean all expenditures incurred at any time prior to the Closing Date
(including amounts properly accrued in accordance with GAAP and included on the Closing Balance Sheet) by TPC in connection with the TPC Expansion Projects, including reimbursed SUG Expansion Project Expenses. 
 “TPC Expansion Projects” shall mean the Phoenix and San Juan expansion projects as approved by the Executive Committee of CCE by written
consent on September 14, 2006. 
 “TPC Financial Statements” shall mean the TPC Annual Financial Statements, the TPC
Six Month Interim Financial Statements, the TPC Nine Month Interim Financial Statements and the TPC 2006 Financial Statements. 
 “TPC Interests” shall have the meaning set forth in the Recitals of this Agreement. 
 “TPC Interests
Assignment” means the assignment of the TPC Interests in a form to be agreed to by ETP and CCE prior to the Closing Date. 
 “TPC Interim Balance Sheet” shall mean the balance sheet as of June 30, 2006 included in the TPC Six Month Interim Financial Statements. 
 “TPC Marks” shall have the meaning set forth in Section 5.12. 
 “TPC Nine
Month Interim Financial Statements” shall mean the unaudited balance sheets, statements of income, statements of members’ equity and statements of cash flow of TPC as of, and for the nine months ended, September 30, 2005 and 2006.

 “TPC Note Purchase Agreement” shall mean the note purchase agreement, dated as of November 17, 2004, between TPC and
the note purchasers listed therein. 
 “TPC Permits” shall have the meaning set forth in Section 3.9. 
 “TPC Rate Case” shall mean the Natural Gas Act Section 4 rate case which TPC is required to file pursuant to the terms and
conditions of TPC’s rate settlement in FERC Docket Nos. RP95-271, et al., together with any proceeding consolidated with or ancillary thereto. 
 “TPC Severance Plan” shall mean the Transwestern Pipeline Company Severance Pay Plan. 
 “TPC S-X Financial Statements” shall mean the TPC Financial Statements, as modified pursuant to the provisions of Section 5.13(b). 
  

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 “TPC Six Month Interim Financial Statements” shall mean the unaudited balance sheets,
statements of income, statements of members’ equity and statements of cash flow of TPC as of, and for the six months ended, June 30, 2005 and 2006. 
 “TPC Stub Period Income Statements” means the unaudited income statements for TPC for the three months ended December 31, 2005 and for the one month periods ended December 31, 2004 and 2005.

 “TPC Transition Services Agreement” shall mean a Transition Services Agreement to be agreed to by CCE, PEPL and ETP prior
to the Closing Date, which shall include the terms and conditions set forth on Exhibit B to this Agreement. 
 “TPC
VEBA” shall mean the Transwestern Pipeline Company, LLC VEBA to Provide for Retiree Health Care and Other Benefits. 
 “Transfer Tax(es)” shall have the meaning set forth in Section 5.6(e). 
 “Transferring Shared Service
Employees” shall have the meaning set forth in Section 5.5(g). 
 “Treasury Regulation” shall mean the income
Tax regulations, including temporary and proposed regulations, promulgated under the Code, as amended. 
 “TW Holdings”
shall have the meaning set forth in the Recitals of this Agreement. 
 “TW Holdings Note Purchase Agreement” shall mean the
Note Purchase Agreement, dated November 17, 2004, among TW Holdings and the note purchasers named therein. 
 “50% CCE
Interest” shall have the meaning set forth in the Recitals of this Agreement. 
 “50% CCE Interest Assignment”
means the assignment of the 50% CCE Interest in a form to be agreed to by ETP and CCE prior to the Closing Date. 
 ARTICLE II

 REDEMPTION OF 50% CCE INTEREST 
 Section 2.1 Agreement to Redeem 50% CCE Interest. Subject to the terms and conditions of this Agreement, at the Closing, (i) CCE shall cause TW Holdings to convey, assign, transfer and deliver to ETP
the TPC Interests, free and clear of all Encumbrances, and (ii) ETP shall convey, assign, transfer and deliver to CCE the 50% CCE Interest. At the Closing, if the Cash Redemption Amount is positive, CCE shall pay to ETP the Cash Redemption
Amount by wire transfer of immediately available funds to an account designated in writing by ETP or, in the event that the Cash Redemption Amount is negative, then ETP shall pay to CCE the absolute value of the Cash Redemption Amount by wire
transfer of immediately available funds to an account designated in writing by CCE. 
 Section 2.2 Time and Place of Closing.
Upon the terms and subject to the satisfaction of the conditions contained in this Agreement, the closing of the transactions contemplated by 
  

 14 

 this Agreement (the “Closing”) shall take place at the offices of Vinson & Elkins L.L.P., 1001
Fannin Street, 2300 First City Tower, Houston, Texas, at 10:00 a.m., local time, on the next Business Day that is both the first Business Day of a calendar month and at least five (5) Business Days after the date on which all of the conditions
to the Closing specified in Article VI hereof (other than the deliveries specified in Section 2.5 and Section 2.6, which deliveries shall be made at the Closing) have been satisfied or waived, or at such other place or time as ETP and CCE
may mutually agree in writing. The Closing shall be effective as of 12:01 a.m. The date and time at which the Closing actually occurs is hereinafter referred to as the “Closing Date.” 
 Section 2.3 Pre-Closing Matters. 
 (a) At least three (3) Business Days prior to the Closing Date, CCE shall deliver to ETP its good faith estimate of the amount of the SUG Expansion Project Expenses (the “Estimated SUG Expansion Project Expenses”),
together with reasonably detailed support for such estimate. 
 (b) CCE shall deliver to ETP its calculations of the Closing Adjustment
Amount (as defined in Section 2.3(c)) within three (3) Business Days prior to the Closing Date and shall provide, upon reasonable advance notice, ETP and ETP’s accountants prompt and full reasonable access during normal business hours
to the personnel, accountants and books and records of CCE, to the extent reasonably related to the preparation of the Closing Adjustment Amount (and the elements of such calculation). ETP and CCE shall in good faith attempt to resolve any
objections of ETP to such calculation of the Closing Adjustment Amount; if ETP and CCE are in disagreement with respect to the calculation of the Closing Adjustment Amount as of the Closing Date, the Closing Adjustment Amount delivered by CCE to ETP
pursuant to this Section 2.3, as adjusted to reflect any changes to the Closing Adjustment Amount agreed to by the parties, prior to the Closing Date shall be utilized for purposes of determining the Cash Redemption Amount payable at the
Closing. 
 (c) The “Closing Adjustment Amount” shall mean an amount equal to (i) the Estimated SUG Expansion Project
Expenses plus (ii) 50% of the June 30 TPC Expansion Project Expenses plus (iii) 50% of the Make-Whole Amount actually paid by TW Holdings pursuant to the TW Holdings Note Purchase Agreement plus (iv) the Adjustment Amount.

 (d) Prior to the Closing Date, CCE shall cause (i) CC Energy or one of its affiliates (such entity to be reasonably determined by
CCE) to incur debt in an amount equal to the CC Energy Debt Proceeds Amount plus the amount necessary for the payment of expenses related to the incurrence of such debt, (ii) CC Energy to contribute to TW Holdings the CC Energy Debt Proceeds
Amount, (iii) TW Holdings to repay all of the outstanding TW Holdings Debt, (iv) CC Energy to distribute to CCE an amount equal to $30,000,000 (Thirty Million Dollars) less the Closing Adjustment Amount (the difference between $30,000,000
(Thirty Million Dollars) and the Closing Adjustment Amount is referred to herein as the “Cash Redemption Amount”), (v) TW Holdings to distribute the TPC Interests to CC Energy, and (vi) CC Energy to distribute the TPC
Interests to CCE. 
  

 15 

 Section 2.4 Post-Closing Adjustment. 
 (a) No later than 60 days after the Closing Date, CCE shall prepare and deliver to ETP (i) a balance sheet of TPC as of the close of business on the
date immediately prior to the Closing Date (the “Closing Balance Sheet”), and (ii) a calculation of the “Post-Closing Adjustment Amount,” which shall mean the amount equal to (w) 50% of the difference
obtained by subtracting (A) the sum of the Base Pro Forma Net Working Capital Amount, the Total Debt as of the Closing Date, and the June 30 TPC Expansion Project Expenses from (B) the sum of the Net Working Capital Amount as of the
Closing Date, as reflected on the Closing Balance Sheet, the Base Debt Amount, and the TPC Expansion Project Expenses, calculated as of the Closing Date, minus (x) 50% of the difference obtained by subtracting the TPC Cash Flow Amount from the
CCE Cash Flow Amount plus (y) the SUG Expansion Project Expenses as of the Closing Date minus (z) the Estimated SUG Expansion Project Expenses, which calculation may result in an amount that is positive or negative (together with
reasonable back-up information providing the basis for such balance sheet and other calculations). In order for CCE to prepare the Closing Balance Sheet and calculate the Post-Closing Adjustment Amount, ETP will provide to CCE and CCE’s
accountants prompt and full access to the personnel, accountants and books and records of TPC (and shall provide copies of the applicable portions of such books and records as may be reasonably requested), to the extent reasonably related to the
preparation of the Closing Balance Sheet and the calculation of the Post-Closing Adjustment Amount (and the elements of such calculation). In order for ETP to review the Closing Balance Sheet and the calculation of the Post-Closing Adjustment
Amount, CCE will provide to ETP and ETP’s accountants prompt and full access to the personnel, accountants and books and records of CCE and its Subsidiaries used by CCE (and shall provide copies of the applicable portions of such books and
records as may be reasonably requested), to the extent reasonably related to the preparation of the Closing Balance Sheet and the calculation of the Post-Closing Adjustment Amount (and the elements of such calculation). The Closing Balance Sheet and
the calculation of the Post-Closing Adjustment Amount relating to TPC shall be prepared in a manner consistent with the preparation of the Pro Forma Adjusted Balance Sheet (subject to, in the case of the Closing Balance Sheet, the exceptions from
GAAP relating to the adjustments reflected on the Pro Forma Adjusted Balance Sheet). 
 (b) Disputes. If ETP disagrees with the
calculation of the Post-Closing Adjustment Amount, it shall notify CCE of such disagreement in writing within thirty (30) days after its receipt of the last item to be received by ETP pursuant to the first sentence of Section 2.4(a), which
notice shall set forth in detail the particulars of such disagreement. In the event that ETP does not provide such a notice of disagreement within such thirty (30) day period, ETP shall be deemed to have accepted the Closing Balance Sheet and
the calculation of the Post-Closing Adjustment Amount (and each element of such calculation) delivered by CCE, which shall be final, binding and conclusive for all purposes hereunder. In the event any such notice of disagreement is timely provided
by ETP, then ETP and CCE shall use their commercially reasonable efforts for a period of thirty (30) days (or such longer period as they may mutually agree) to resolve any disagreements with respect to the calculation of the Post-Closing
Adjustment Amount (or any element thereof). If, at the end of such period, they are unable to resolve such disagreements, then, upon the written request of either party, an independent accounting firm (not providing services to ETP or CCE)
acceptable to ETP and CCE (the “Auditor”) shall resolve any remaining disagreements. The Auditor shall determine as promptly 
  

 16 

 as practicable (but in any event within sixty (60) days) following the date on which such dispute is referred to the
Auditor, based solely on written submissions, which shall be forwarded by ETP and CCE to the Auditor within thirty (30) days following the Auditor’s selection, whether the Closing Balance Sheet was prepared in accordance with the standards
set forth in this Section 2.4 with respect to any items identified as disputed in the notice of disagreement and not previously resolved by ETP and CCE, and if not, whether and to what extent (if any) the Post-Closing Adjustment Amount (or any
element thereof) requires adjustment. Each party shall bear its own expenses and the fees and expenses of its own representatives and experts in connection with the preparation, review, dispute (if any) and final determination of the Closing Balance
Sheet and the Post-Closing Adjustment Amount. The parties shall share the costs, expenses and fees of the Auditor in inverse proportion to the extent to which their respective positions are sustained (e.g., if CCE’s position is one hundred
percent (100%) sustained, it shall bear none of such costs, expenses, and fees of the Auditor). The determination of the Auditor shall be final, conclusive and binding on the parties. The Auditor’s determination of the amount of the
Post-Closing Adjustment Amount shall then be deemed to be the Post-Closing Adjustment Amount for purposes of this Section 2.4. The date on which such items are accepted or finally determined in accordance with this Section 2.4 is referred
as to the “Determination Date.” As used in this Agreement, the term “commercially reasonable efforts” shall not include efforts which require the performing party (i) to do any act that is unreasonable under the
circumstances, (ii) to make any capital contribution not expressly contemplated hereunder, (iii) to amend or waive any rights under this Agreement, or (iv) to incur or expend any funds other than reasonable out-of-pocket expenses
incurred in satisfying its obligations hereunder, including the reasonable fees, expenses and disbursements of accountants, counsel and other professionals. 
 (c) ETP and CCE Adjustments. If the Post-Closing Adjustment Amount is positive, then ETP shall pay to CCE an amount equal to the Post-Closing Adjustment Amount (the “ETP Adjustment”), and if
the Post-Closing Adjustment Amount is negative, then CCE shall pay to ETP an amount equal to the absolute value of the Post-Closing Adjustment Amount (the “CCE Adjustment”). The CCE Adjustment, if any, and the ETP Adjustment, if
any, shall bear simple interest at a rate equal to daily average one month LIBOR plus one percent (1%) per annum measured from the Closing Date to the date of such payment. Amounts owing by CCE, if any, pursuant to this Section 2.4 shall
be paid by CCE within five (5) Business Days after the Determination Date by delivery of immediately available funds to an account designated by ETP. Amounts owing by ETP, if any, pursuant to this Section 2.4 shall be paid by ETP within
five (5) Business Days after the Determination Date by delivery of immediately available funds to an account designated by CCE. 
 (d)
CCE Capital Contributions. ETP shall have no obligation to make any capital contributions pursuant to the CCE LLC Agreement as the owner of the 50% CCE Interest following the consummation of the transactions contemplated by the CCE
Acquisition Agreement unless this Agreement is terminated in accordance with Article VII hereof. 
 Section 2.5 Deliveries by CCE at
the Closing. At the Closing, CCE shall deliver, or cause its appropriate Affiliates to deliver, to ETP: 
 (a) an executed copy of the TPC
Interests Assignment; 
  

 17 

 (b) a cross-receipt acknowledging receipt of the 50% CCE Interest Assignment; 
 (c) a certificate from an authorized officer of CCE, dated as of the Closing Date, to the effect that the conditions set forth in Section 2.3(d),
Section 6.2(a), Section 6.2(c), Section 6.2(g) and Section 6.2(i) of this Agreement have been satisfied; 
 (d) all other
previously undelivered documents required by this Agreement to be delivered by CCE or its Affiliates to ETP at or prior to the Closing; 
 (e) resignations of each of the managers and officers (or persons acting in similar capacities) of TPC who are not employees of TPC; 
 (f) the TPC Transition Services Agreement, duly executed by CCE and PEPL; and 
 (g) all such other instruments of sale, assignment,
conveyance and transfer and releases, consents and waivers as in the reasonable opinion of ETP may be necessary to effect the sale, transfer, assignment, conveyance and delivery of the TPC Interests to ETP in accordance with this Agreement, in each
case, as is necessary to effect the transactions contemplated by this Agreement. 
 Section 2.6 Deliveries by ETP at the Closing.
At the Closing, ETP shall deliver to CCE: 
 (a) an executed copy of the 50% CCE Interest Assignment; 
 (b) a cross-receipt acknowledging receipt of the TPC Interests Assignment; 
 (c) a certificate from an authorized officer of ETP, dated as of the Closing Date, to the effect that the conditions set forth in
Section 6.3(a) and Section 6.3(c) of this Agreement have been satisfied; 
 (d) the TPC Transition Services Agreement, duly
executed by ETP; and 
 (e) all other previously undelivered documents required by this Agreement to be delivered by ETP or
its Affiliates to CCE at or prior to the Closing. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF CCE 
 CCE hereby represents and warrants to
ETP as follows: 
 Section 3.1 Organization; Qualification. 
 (a) CCE is a limited liability company duly organized, validly existing and duly qualified or licensed and in good standing under the laws of the state or
jurisdiction of its formation and has all requisite corporate power to own, lease and operate its properties and to 
  

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 carry on its business as currently conducted. CCE is duly qualified or licensed to do business as a foreign limited
liability company, and is, and has been, in good standing in each jurisdiction in which the nature of its business or the property it owns, leases or operates requires it to so qualify, be licensed or be in good standing, except for such failures to
be qualified, licensed or in good standing that would not have a Material Adverse Effect. The CCE LLC Agreement is a legal, valid and binding agreement of the parties specified as parties thereto, enforceable against the parties thereto in
accordance with its terms, except that such enforceability may be limited by applicable bankruptcy, insolvency, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally or general principles of
equity. 
 (b) CC Energy, TW Holdings and TPC are limited liability companies duly organized, validly existing and duly qualified or licensed
and in good standing under the laws of the state or jurisdiction of their respective formation and have all requisite limited liability company power, as applicable, to own, lease and operate their respective properties and to carry on their
respective businesses as currently conducted. True and correct copies of the Organizational Documents of TPC with all amendments thereto to the date hereof, have been made available by CCE to ETP or its representatives. CC Energy, TW Holdings and
TPC are each duly qualified or licensed to do business as foreign limited liability companies and are, and have been, in good standing in each jurisdiction in which the nature of the respective businesses conducted by them or the property they own,
lease or operate requires them to so qualify, be licensed or be in good standing except where the failure to be so authorized, qualified or licensed and in good standing would not have a Material Adverse Effect. Section 3.1(b) of the CCE
Disclosure Letter sets forth all of the jurisdictions in which TPC is qualified to do business. 
 Section 3.2 Authority Relative to
this Agreement and the CCE Acquisition Agreement. CCE has full limited liability company power and authority to execute and deliver this Agreement and the other agreements, documents and instruments to be executed and delivered by it in
connection with this Agreement, and to consummate the transactions contemplated hereby and thereby. Except as set forth in Section 3.2 of the CCE Disclosure Letter, the execution, delivery and performance of this Agreement and the other
agreements, documents and instruments to be executed and delivered in connection with this Agreement and the consummation of the transactions contemplated hereby and thereby have been duly and validly authorized by all the necessary action on the
part of CCE, and no other corporate or other proceedings on the part of CCE or its members are necessary to authorize this Agreement and the other agreements, documents and instruments to be executed and delivered in connection with this Agreement,
to consummate the transactions contemplated hereby and thereby or to consummate the transactions contemplated hereby or thereby. The resolutions attached hereto as Exhibit D have been duly approved and adopted by all of the members of the
Executive Committee of CCE in accordance with the terms of the CCE LLC Agreement. This Agreement has been, and the other agreements, documents and instruments to be executed and delivered in connection with this Agreement as of the Closing Date will
be, duly and validly executed and delivered by CCE, and assuming that this Agreement and the other agreements, documents and instruments to be executed and delivered in connection with this Agreement constitute legal, valid and binding agreements of
each of the other parties hereto and thereto, are (in the case of this Agreement) or will be as of the Closing Date (in the case of the other agreements, documents and instruments to be executed and delivered in connection with this Agreement)
enforceable against CCE in accordance with their respective terms, except that such enforceability may be limited by applicable bankruptcy, insolvency, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights
generally or general principles of equity. 
  

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 Section 3.3 TPC Interests. 
 (a) The TPC Interests are duly authorized, validly issued, fully paid membership interests of TPC and were not issued in violation of any preemptive
rights. Except as set forth in Section 3.3(a) of the CCE Disclosure Letter, (i) there are no membership interests of TPC authorized, issued or outstanding or reserved for any purpose other than the TPC Interests, and (ii) there are no
(A) existing options, warrants, calls, rights of first refusal, preemptive rights, subscriptions or other rights, agreements, arrangements or commitments of any character, relating to the TPC Interests, obligating CCE, TPC or any of their
respective Affiliates to issue, transfer or sell, or cause to be issued, transferred or sold, any of the TPC Interests, (B) outstanding securities of CCE, TPC or any of their respective Affiliates that are convertible into or exchangeable or
exercisable for any of the TPC Interests, (C) options, warrants or other rights to purchase from CCE, TPC or any of their respective Affiliates any such convertible or exchangeable securities or (D) other than this Agreement, contracts,
agreements or arrangements of any kind relating to the issuance of any of the TPC Interests, or any such options, warrants or rights, pursuant to which, in any of the foregoing cases, CCE, TPC or any of their respective Affiliates are subject or
bound. 
 (b) Except as set forth in Section 3.3(b) of the CCE Disclosure Letter, TW Holdings owns all of the issued and outstanding TPC
Interests and has good and valid title to the TPC Interests, free and clear of all Encumbrances or other defects in title, and the TPC Interests have not been pledged or assigned to any Person. At the Closing, the TPC Interests will be transferred
to ETP free and clear of all Encumbrances. The TPC Interests are not subject to any restrictions on transferability or voting agreements other than those imposed by this Agreement and by applicable securities laws. 
 (c) Except as set forth in Section 3.3(c) of the CCE Disclosure Letter, TPC does not have any subsidiaries or any stock or other equity interest
(controlling or otherwise) in any corporation, limited liability company, partnership, joint venture or other entity. 
 Section 3.4
Consents and Approvals. Except as set forth in Section 3.4 of the CCE Disclosure Letter, neither CCE nor any of its Affiliates requires any consent, approval or authorization of, or filing, registration or qualification with, any
Governmental Authority, or any other Person, as a condition to the execution and delivery of this Agreement or the performance of its obligations hereunder, except where the failure to obtain such consent, approval or authorization of, or filing of,
registration or qualification with, any Governmental Authority, or any other Person would not materially and adversely impact the operations of TPC as currently conducted. 
 Section 3.5 No Conflict or Violation. Except as set forth in Section 3.5 of the CCE Disclosure Letter, the execution, delivery and
performance by CCE of this Agreement does not: 
 (a) violate or conflict with any provision of the Organizational Documents of CCE or TPC;

  

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 (b) violate any applicable provision of a law, statute, judgment, order, writ, injunction, decree, award,
rule or regulation of any Governmental Authority, except where such violation would not have a Material Adverse Effect; or 
 (c) violate,
result in a breach of, constitute (with due notice or lapse of time or both) a default or cause any obligation, penalty or premium to arise or accrue under any Material Contract, lease, loan, mortgage, security agreement, trust indenture or other
material agreement or instrument to which TPC is a party or by which it is bound or to which any of its properties or assets is subject, except as would not have a Material Adverse Effect. 
 Section 3.6 Financial Information. The CCE Annual Financial Statements and the CCE Six Month Interim Financial Statements present fairly in
all material respects, in accordance with GAAP consistently applied, the financial condition and results of operation of CCE as of the dates thereof and for the periods set forth therein, subject, in the case of the CCE Six Month Interim Financial
Statements, to normal recurring year-end adjustments that are not material, either individually or in the aggregate, and the absence of full footnote disclosure. The Citrus Annual Financial Statements and the Citrus Six Month Interim Financial
Statements present fairly in all material respects, in accordance with GAAP consistently applied, the financial condition and results of operation of Citrus as of the dates thereof and for the periods set forth therein, subject, in the case of the
Citrus Six Month Interim Financial Statements, to normal recurring year-end adjustments that are not material, either individually or in the aggregate, and the absence of full footnote disclosure. The TPC Annual Financial Statements and the TPC Six
Month Interim Financial Statements present fairly in all material respects, in accordance with GAAP consistently applied, the financial condition and results of operation of TPC as of the dates thereof and for the periods set forth therein, subject,
in the case of the TPC Six Month Interim Financial Statements, to normal recurring year-end adjustments that are not material, either individually or in the aggregate, and the absence of full footnote disclosure. 
 Section 3.7 Contracts. 
 (a)
Section 3.7(a) of the CCE Disclosure Letter sets forth a list, as of the date hereof, of each contract and lease to which TPC is a party that is material to TPC (each contract set forth in Section 3.7(a) of the CCE Disclosure Letter being
referred to herein as a “Material Contract”); provided, however, that any purchase or sale order arising in the ordinary course of business and any contract reasonably expected to involve the payment or receipt of an
aggregate amount of less than $2,000,000 during its term remaining after the date of this Agreement shall not be deemed to be a Material Contract. 
 (b) Section 3.7(b) of the CCE Disclosure Letter sets forth a list, as of the date hereof, of each contract that TPC has with an Affiliate, other than with respect to any purchases and sales arising in the ordinary course of business.

 (c) Except as set forth in Section 3.7(c) of the CCE Disclosure Letter, each Material Contract is a valid and binding agreement of
TPC and, to the Knowledge of CCE, is in full force and effect. 
  

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 (d) Except as set forth in Section 3.7(d) of the CCE Disclosure Letter, CCE has no Knowledge of any
default under any Material Contract, other than defaults that have been cured or that would not have a Material Adverse Effect. TPC and, to CCE’s Knowledge, the other parties to any Material Contract, have performed in all respects all
obligations required to be performed by them under any Material Contract, except where the failure so to perform would not have a Material Adverse Effect. CCE has made available to ETP or its representatives true and complete originals or copies of
all the Material Contracts. 
 Section 3.8 Compliance with Law. Except for Environmental Laws and Tax Laws, which are the subject
of Section 3.15 and Section 3.16, respectively, and except as set forth in Section 3.8 of the CCE Disclosure Letter, since November 17, 2004, TPC has complied with all federal, state, local or foreign laws, statutes, ordinances,
rules, regulations, judgments, orders, writs, injunctions or decrees of any Governmental Authority applicable to its properties, assets and business, except where such noncompliance would not have a Material Adverse Effect. TPC has not received
written notice of any material violation of any such law, license, regulation, order or other legal requirement or, to the Knowledge of CCE, is in material default with respect to any order, writ, judgment, award, injunction or decree of any
Governmental Authority, applicable to TPC or any of its assets, properties or operations. 
 Section 3.9 Permits. Except as set
forth in Section 3.9(a) of the CCE Disclosure Letter, TPC has all permits, licenses, certificates of authority, orders and approvals of, and has made all filings, applications and registrations with, Governmental Authorities necessary for the
conduct of the business operations of TPC as presently conducted (collectively, the “TPC Permits”), except for those Permits the absence of which would not, individually or in the aggregate, have a Material Adverse Effect. Set forth
on Section 3.9(b) of the CCE Disclosure Letter is a list of the material TPC Permits. 
 Section 3.10 Litigation. Except as
identified in Section 3.10 of the CCE Disclosure Letter, there are no lawsuits, actions, proceedings or investigations, pending, or, to CCE’s Knowledge, threatened, against CCE or any of its Affiliates or any executive officer, manager or
director thereof relating to the transactions contemplated hereby or the assets or business of TPC, except, in the case of lawsuits, actions, proceedings, investigations relating to the assets or business of TPC, as would not, individually or in the
aggregate, have a Material Adverse Effect. CCE and its Affiliates are not subject to any outstanding judgment, order, writ, injunction, decree or award entered in an Action to which CCE or any of its Affiliates was a named party relating to the
transactions contemplated hereby or the assets or business of TPC, except, in the case of lawsuits, actions, proceedings, investigations relating to the assets or business of TPC, as would not, individually or in the aggregate, have a Material
Adverse Effect. 
 Section 3.11 Title to Properties. TPC has good and valid title to all of the tangible assets and properties
that are reflected in the TPC Interim Balance Sheet (except for assets and properties sold, consumed or otherwise disposed of in the ordinary course of business since the date of the TPC Interim Balance Sheet), and such tangible assets and
properties are owned free and clear of all Encumbrances, except for (a) Encumbrances listed in Section 3.11 of the CCE Disclosure Letter, (b) Permitted Encumbrances, and (c) Encumbrances which will be discharged on or before the
Closing Date. To the Knowledge of CCE, except as set forth in Section 3.11 of the CCE Disclosure Letter, TPC owns valid and defeasible fee title to, or holds a valid leasehold 
  

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 interest in, or a valid right-of-way or easement (all such rights-of-way and easements collectively, the
“Rights-Of-Way”) through, all real property (“Real Property”) used or necessary for the conduct of business of TPC as presently conducted, and all such Real Property (other than Rights-Of-Way) is owned or leased
free and clear of all Encumbrances, in each case except for (a) Encumbrances listed in Section 3.11 of the CCE Disclosure Letter, (b) Permitted Encumbrances and (c) Encumbrances that will be discharged on or before the Closing
Date. 
 Section 3.12 Employee Matters. 
 (a) Except as set forth in Section 3.12(a) of the CCE Disclosure Letter, none of TPC, CCE or their respective ERISA Affiliates sponsors, maintains, contributes to or has an obligation to contribute to, any
“employee benefit plan,” as defined in Section 3(3) of ERISA, in which any current or former TPC Employee is or has been eligible to participate since November 17, 2004 (“ERISA Plans”). For the avoidance of
doubt, (1) the term “ERISA Plans” does not include any Enron Plan, (2) November 17, 2004 is the date of the closing of the acquisition by CCE of indirect ownership of TPC from Enron Corp. and certain of its affiliates, and
(3) CCE was formed on May 14, 2004, in connection with such acquisition. 
 (b) Except as set forth in Section 3.12(b) of the
CCE Disclosure Letter, none of TPC, CCE or any of their respective ERISA Affiliates has established, sponsors, maintains, or contributes to any policy, plan, agreement or arrangement that is not set forth in Section 3.12(a) of the CCE
Disclosure Letter providing for employment terms, change in control benefits, severance benefits, retention benefits, insurance coverage (including any self-insured arrangements), workers’ compensation, disability benefits, supplemental
unemployment benefits, vacation benefits, retirement benefits, deferred compensation, profit-sharing, bonuses, or other forms of incentive compensation, or post-retirement insurance, compensation or benefits (whether or not an ERISA Plan) that
(i) is entered into, sponsored, maintained, or contributed to, as the case may be, by TPC, or (ii) has covered any current or former TPC Employee or independent contractor to TPC since November 17, 2004. The policies, plans,
agreements, and arrangements described in this Section 3.12(b) are hereinafter referred to as the “Benefit Programs or Agreements.” For the avoidance of doubt, the term “Benefit Programs or Agreements” does not
include any Enron Plan. The Benefit Programs and Agreements and the ERISA Plans are hereinafter referred to collectively as the “Employee Benefit Plans.” 
 (c) True, correct, and complete copies of each of the ERISA Plans sponsored, maintained or contributed to on behalf of the TPC Employees or in which such employees are otherwise eligible to participate, and related
trusts, if applicable, including all amendments thereto, have been furnished to ETP. There has also been furnished to ETP, with respect to each ERISA Plan required to file such report and description, the most recent report on Form 5500, the summary
plan description and any summaries of material modifications thereto, all actuarial reports or valuations relating to each ERISA Plan subject to Title IV of ERISA or required to be accounted for pursuant to Statements of Financial Accounting
Standard Nos. 106 and 132(R), if any, and the most recent determination letter, if any, issued by the IRS with respect to any ERISA Plan intended to be qualified under Section 401 of the Code. True, correct, and complete copies or descriptions
of all Benefit Programs and Agreements have also been furnished to ETP. 
  

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 (d) Except as set forth in Section 3.12(e)(vii) of the CCE Disclosure Letter or described in
Section 5.5(e), with respect to retiree medical benefits, none of TPC, CCE or any of CCE’s ERISA Affiliates has any legal commitment to create, incur liability with respect to or cause to exist any other employee benefit plan, program or
arrangement for the benefit of any current or former TPC Employee or to enter into any contract or agreement to provide compensation or benefits to any former or current TPC Employee. 
 (e) Except as set forth in Section 3.12(e) of the CCE Disclosure Letter, with respect to each Employee Benefit Plan: 
 (i) the applicable reporting, disclosure and other requirements of ERISA (and other Applicable Law) have been complied with in all material respects;

 (ii) there is no act or omission of TPC or any of its ERISA Affiliates that would (a) constitute a breach of fiduciary duty under
Section 404 of ERISA or a transaction (including the transactions contemplated by this Agreement) intended to evade liability under Section 4069 of ERISA, in either case that would subject TPC to a liability, or (b) constitute a
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code that would subject TPC or any plan fiduciary, directly or indirectly (through indemnification obligations or otherwise), to an excise Tax or civil penalty under
Section 4975 of the Code or Section 502(i) of ERISA in an amount that would be material; 
 (iii) no ERISA Plan is subject to
Title IV of ERISA; 
 (iv) all contributions or payments required to be made under each ERISA Plan by reason of Part 3 of Subtitle B of
Title I of ERISA, Section 412 of the Code, or otherwise prior to the Closing Date have been and will be timely made; 
 (v) there are
no pending or, to CCE’s Knowledge, threatened actions, suits or claims pending (other than routine claims for benefits); 
 (vi) to
CCE’s Knowledge, there is no matter pending (other than routine qualification determination filings) with respect to any Employee Benefit Plan before the IRS, the Department of Labor, the PBGC, or any other Governmental Authority; 

(vii) except to the extent required under Section 601 of ERISA or Section 4980 of the Code, TPC has no present or future obligation to make
any payment to or with respect to any former or current TPC Employee or any dependent of any such former or current TPC Employee under any retiree medical benefit plan or other retiree welfare benefit plan; 
 (viii) there is no Employee Benefit Plan covering any former or current TPC Employee that provides for the payment by TPC of any amount that is or is
reasonably likely to be (a) not deductible as a result of Section 162(a)(1) or 404 of the Code, (b) an “excess parachute payment” pursuant to Section 280G of the Code or (c) subject to the additional tax pursuant
to Section 409A of the Code; 
  

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 (ix) except as otherwise provided in this Agreement, neither the execution of this Agreement nor the
consummation of the transactions contemplated hereby will (a) entitle any TPC Employee to severance, retention or change in control payments or benefits to which such employee was not previously entitled, or any increase in severance retention
or change in control payments or benefits upon a termination of employment or consummation of the transactions contemplated by this Agreement, (b) require CCE, TPC or any of their respective ERISA Affiliates to make a larger contribution to,
pay greater benefits under, or provide any additional vesting, service credit or other rights under any Employee Benefit Plan than it otherwise would, whether or not some subsequent action or event would be required to cause such payment or
provision to be triggered or (c) trigger any other material obligation pursuant to the Employee Benefit Plans that would be a liability of ETP or TPC after the Closing Date; 
 (x) each ERISA Plan intended to qualify under Section 401(a) of the Code has been determined to be so qualified by the IRS and, to the Knowledge of
CCE, nothing has occurred which has resulted or is likely to result in the revocation of such determination or which requires or is reasonably likely to require action under the compliance resolution programs of the IRS to preserve such
qualification; 
 (xi) as to any ERISA Plan intended to be qualified under Section 401(a) of the Code, there has been no termination or
partial termination of any ERISA Plan within the meaning of Section 411(d)(3) of the Code; 
 (xii) all contributions required to be
made to or with respect to the Employee Benefit Plans pursuant to their terms and the provisions of ERISA, the Code, or any other Applicable Law have been timely made; 
 (xiii) each trust funding an Employee Benefit Plan, which trust is intended to be exempt from federal income taxation pursuant to Section 501(c)(9) of the Code, satisfies the requirements of such section and has
received a favorable determination letter from the IRS regarding such exempt status and has not, since receipt of the most recent favorable determination letter, been amended or operated in a way which would adversely affect such exempt status;

 (xiv) except as set forth in Section 3.12(e)(vii) of the CCE Disclosure Letter or described in Section 5.5(e), each ERISA Plan
which is an “employee welfare benefit plan,” as such term is defined in Section 3(1) of ERISA, may be unilaterally amended or terminated in its entirety without liability except as to benefits accrued thereunder prior to such
amendment or termination; and 
 (xv) except as set forth in Section 3.12(e)(vii) of the CCE Disclosure Letter or described in
Section 5.5(e), no Employee Benefit Plan provides retiree medical or retiree life insurance benefits to any Person and TPC is not contractually or otherwise obligated (whether or not in writing) to provide any Person with life insurance or
medical benefits upon retirement or termination of employment, other than as required by the provisions of Sections 601 through 608 of ERISA and Section 4980B of the Code. 
  

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 (f) None of TPC or any of its ERISA Affiliates contributes to or has an obligation to contribute to, and
has not at any time within six years prior to the Closing Date contributed to or had an obligation to contribute to, a multiemployer plan (as defined in Section 4001(a)(3) of ERISA), on behalf of a present or former TPC Employee; 
 (g) No current circumstance has arisen or future circumstance could arise that would lead TPC or, after the transaction contemplated by this Agreement,
ETP, to incur any ERISA Title IV liability or suffer the imposition of any Lien on any of their assets with respect to liabilities relating to any ERISA Plan or any employee benefit plan subject to Title IV of ERISA that was sponsored, maintained or
contributed to by (A) CCE, (B) an ERISA Affiliate of CCE, or (C) any corporation, trade, business or entity under common control with CCE or an ERISA Affiliate of CCE, within the meaning of Section 414(b), (c) or (m) of
the Code or Section 4001 of ERISA, within the six (6) years prior to the Closing Date, or to which any of them had an obligation to contribute during such period; and 
 (h) With respect to circumstances not addressed in Section 3.12(g), except as set forth in Section 3.12(e)(vii) of the CCE Disclosure Letter or
described in Section 5.5(e), no current circumstance has arisen or future circumstance could arise that would lead TPC or, after the transaction contemplated by this Agreement, ETP, to incur any liability directly or indirectly (through
indemnification or otherwise), or suffer the imposition of a Lien on any of their assets, relating to or arising from the participation of the TPC employees or former employees in any of the Enron Plans or the status of TPC, during the period
preceding November 17, 2004, as an ERISA Affiliate of Enron Corp. 
 Section 3.13 Labor Relations. TPC is not a party to any
labor or collective bargaining agreements, and there are no labor or collective bargaining agreements which pertain to any employees of TPC. Within the preceding eighteen (18) months, there have been no representation or certification
proceedings, or petitions seeking a representation proceeding, pending or, to the Knowledge of CCE, threatened in writing to be brought or filed with the National Labor Relations Board or any other labor relations tribunal or authority with respect
to TPC. Within the preceding eighteen (18) months, to the Knowledge of CCE, there have been no organizing activities involving TPC with respect to any group of its employees. Since May 1, 2006, neither TPC nor any Affiliate of TPC has
terminated the employment of any TPC Employee or any employee of any of its Affiliates who provides services in connection with TPC’s business for reasons other than misconduct or failure to perform the employee’s duties and no
circumstance has occurred that would give rise to a requirement that TPC give notice under the Worker Adjustment and Retraining Notification Act or any similar state law. As of the date of this Agreement, no TPC Employee or Shared Service Employee
has a legal or contractual right to reinstatement with TPC or any Affiliate of TPC. 
 Section 3.14 Intellectual Property. Except
as set forth in Section 3.14 of the CCE Disclosure Letter, on the Closing Date TPC will, either in its own name or by operation of the TPC Transition Services Agreement, own or possess licenses or other legally enforceable rights to use all
patents, copyrights (including any copyrights in proprietary software), trademarks, 
  

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 service marks, trade names, logos, and other intellectual property rights, software object and source code as are
necessary to conduct its business as currently conducted, except those the lack of which would not materially and adversely affect the operations of TPC as currently conducted; and to CCE’s Knowledge, there is no conflict by CCE or TPC with the
rights of others therein that would materially and adversely affect the operations of TPC as currently conducted. 
 Section 3.15
Environmental Matters. Except as set forth in Section 3.15 of the CCE Disclosure Letter: 
 (a) TPC and its properties and
operations are, and to CCE’s Knowledge, during the relevant time periods specified in all applicable statutes of limitation, have been, in compliance with all applicable Environmental Laws, except for such noncompliance as would not,
individually or in the aggregate, have a Material Adverse Effect; 
 (b) TPC possesses all Environmental Permits required in order to conduct
its operations as presently conducted or, where such Environmental Permits have expired, has applied for a renewal of such Environmental Permits in a timely fashion and, to CCE’s knowledge, all such Environmental Permits are in the name of the
proper entity and will remain in full force and effect immediately following the Closing, except where the failure to possess an Environmental Permit or to have applied for a renewal of an Environmental Permit would not, individually or in the
aggregate, have a Material Adverse Effect; 
 (c) TPC and its properties and operations are not subject to any pending or, to CCE’s
Knowledge, threatened Environmental Claims, nor has TPC received any notice of violation, noncompliance, or enforcement or any notice of investigation or remediation from any Governmental Authority pursuant to Environmental Laws, except for such
matters as would not, individually or in the aggregate, have a Material Adverse Effect; 
 (d) Since November 17, 2004, there has been
no, and to CCE’s Knowledge, prior to November 17, 2004, there has been no, Release of Hazardous Substances on or from the properties of TPC or from or in connection with the operations of TPC in violation of any Environmental Laws or in a
manner that could give rise to any remedial or corrective action obligations pursuant to Environmental Laws, except such as would not, individually or in the aggregate, have a Material Adverse Effect; 
 (e) Since November 17, 2004, there has been no, and, to CCE’s Knowledge, prior to November 17, 2004, there has been no exposure of any
Person or property to any Hazardous Substances in connection with the business, properties or operations of TPC that could reasonably be expected to form the basis for an Environmental Claim or any other claim for Damages or compensation, except for
such Environmental Claims or other claims for Damages as would not, individually or in the aggregate, have a Material Adverse Effect; and 
 (f) CCE has made available for inspection by ETP complete and correct copies of all environmental assessment and audit reports and studies completed since January 1, 2003, addressing potentially material environmental matters and all
correspondence completed since January 1, 2003 addressing potentially material Environmental Claims relating to TPC that are in the possession of CCE or TPC, except for any such materials as CCE reasonably believes are subject to the
attorney-client privilege. 
  

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 The representations and warranties set forth in this Section 3.15 are CCE’s sole and exclusive representations
and warranties relating to environmental matters. 
 Section 3.16 Tax Matters. 
 (a) Except as set forth in Section 3.16(a) of the CCE Disclosure Letter or as would not have a Material Adverse Effect, all federal, state and local
Tax Returns required to be filed by or on behalf of TPC, and each consolidated, combined, unitary, affiliated or aggregate group of which TPC is a member, has been timely filed (taking into account applicable extensions), and all Taxes shown as due
on such Tax Returns have been paid, or adequate reserves therefor have been established. 
 (b) Except as set forth in Section 3.16(b)
of the CCE Disclosure Letter or as would not have a Material Adverse Effect, there is no deficiency, proposed adjustment, or matter in controversy that has been asserted or assessed in writing with respect to any Taxes due and owing by TPC that has
not been paid or settled in full. 
 (c) Except as would not have a Material Adverse Effect, TPC has timely withheld and timely paid all
Taxes required to be withheld by them in connection with any amounts paid or owing to any employee, creditor, independent contractor or other third party. 
 (d) Except as would not have a Material Adverse Effect, there are no liens for Taxes upon any of the assets of TPC except for liens for Taxes not yet due and payable. 
 (e) Except as would not have a Material Adverse Effect, no property of TPC is required to be treated as “tax-exempt use property” within the
meaning of Code Section 168(h), and no property of TPC is subject to a tax benefit transfer lease subject to the provisions of former Section 168(f)(8) of the Code. 
 (f) At all times since its formation, CCE has been treated as a partnership for federal tax purposes pursuant to Treasury Regulation
Section 301.7701-3. 
 (g) At all times since their formation, each of CC Energy, TW Holdings and TPC have been disregarded as separate
entities for federal tax purposes pursuant to Treasury Regulation Section 301.7701-3. 
 (h) CCE has made or will make a valid election
under Section 754 of the Code that will be in effect at the time of the CCE Acquisition. 
 Section 3.17 Absence of Certain
Changes or Events. 
 (a) Except as set forth in Section 3.17(a) of the CCE Disclosure Letter, since December 31, 2005, TPC has
conducted its business in the ordinary course of business, consistent with past practice (as such practice existed during the period of CCE’s ownership of TPC). 
  

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 (b) Except as set forth in Section 3.17(b) of the CCE Disclosure Letter, since December 31,
2005, there has not been with respect to TPC any event or development or change which has resulted or would reasonably be expected to result in a Material Adverse Effect. 
 (c) Except as set forth in Section 3.17(c) of the CCE Disclosure Letter, since June 30, 2006, TPC has not taken any action that would have been prohibited had Section 5.1(b) been in effect from and
after June 30, 2006. 
 Section 3.18 Absence of Undisclosed Liabilities. Since June 30, 2006, TPC has incurred no
Liabilities (whether absolute, accrued, contingent or otherwise) that would be required by GAAP to be included in the financial statements of TPC, except those Liabilities (a) disclosed and reserved against in the TPC Interim Balance Sheet,
(b) set forth in Section 3.18 of the CCE Disclosure Letter, (c) incurred in the ordinary course of business since June 30, 2006 and (d) that have not resulted in a Material Adverse Effect. 
 Section 3.19 Brokerage and Finders’ Fees. None of CCE, TPC or any of their Affiliates or their respective stockholders, partners,
managers, directors, officers or employees, has incurred, or will incur any brokerage, finders’ or similar fee in connection with the transactions contemplated by this Agreement. 
 Section 3.20 Affiliated Transactions. Except as described in Section 3.20 of the CCE Disclosure Letter, and except for trade payables
and receivables arising in the ordinary course of business for purchases and sales of goods or services consistent with past practice, TPC has not been a party over the past twelve (12) months to any material transaction or agreement with CCE
or any Affiliate of CCE (other than TPC) and no director or officer of CCE or its Affiliates (other than TPC), has, directly or indirectly, any material interest in any of the assets or properties of TPC. 
 Section 3.21 Insurance. 
 (a)
Section 3.21 of the CCE Disclosure Letter sets forth a true and complete list of all current policies of all material property and casualty insurance, insuring the properties, assets, employees and/or operations of TPC (collectively, the
“Insurance Policies”). To the Knowledge of CCE, all premiums payable under the Insurance Policies have been paid in a timely manner and TPC has complied in all material respects with the terms and conditions of all such Insurance
Policies. 
 (b) As of the date hereof, CCE has not received any written notification of the failure of any of the Insurance Policies to be
in full force and effect. To the Knowledge of CCE, TPC is not in default under any provision of the Insurance Policies, and except as set forth in Section 3.21 of the CCE Disclosure Letter, there is no claim by TPC or any other Person pending
under any of the Insurance Policies as to which coverage has been denied or disputed by the underwriters or issuers thereof. 
 Section 3.22
Regulatory Matters. 
 (a) TPC is a “natural gas company” as that term is defined in Section 2 of the Natural Gas Act
(“NGA”). TPC is in compliance in all material respects with the provisions of 
  

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 the NGA, the Natural Gas Policy Act of 1978 (“NGPA”), the Pipeline Safety Improvement Act of 2002, and
the rules and regulations promulgated by FERC pursuant thereto. TPC is in compliance in all material respects with the terms and conditions of all tariff provisions, FERC rate and certificate orders, and other orders and authorizations issued by
FERC, in each case as applicable to TPC. No approval by FERC under the NGA or the Federal Power Act is required in connection with the execution and delivery of this Agreement by CCE or the consummation of the transactions contemplated hereby.
Except as identified in Section 3.22 of the CCE Disclosure Schedule, the Form No. 2 Annual Reports filed by TPC with FERC for the years ended December 31, 2004 and December 31, 2005 were true and correct in all material respects
as of the dates thereof, and since January 1, 2005, TPC has not become subject to any proceeding under Section 5 of the NGA or, except as otherwise permitted by Section 5.1, any general rate case proceeding commenced under
Section 4 of the NGA by reason of a filing made with the FERC after January 1, 2005. 
 (b) Except as identified in
Section 3.22 of the CCE Disclosure Letter and except for general industry proceedings including audits or reviews of individual companies arising from general industry proceedings such as Order 2004, there are no pending or, to CCE’s
Knowledge, reasonably anticipated FERC administrative or regulatory proceedings, including without limitation any rate proceeding under Section 4 or Section 5 of the NGA or any NGA Section 7 certificate proceeding, investigation,
complaint, audit, or show cause proceedings to which TPC is a party. CCE acknowledges that, as a result of a rate settlement in FERC Docket Nos. RP95-271, et al., TPC is obligated to prepare and file the TPC Rate Case for rates to be effective
November 1, 2006. 
 Section 3.23 Internal Controls. 
 (a) The system of internal accounting controls that is applicable to TPC is sufficient to provide reasonable assurance that: (i) transactions are
executed in accordance with management’s general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP and to maintain asset accountability,
(iii) access to assets is permitted only in accordance with management’s general or specific authorization and (iv) the recorded accountability for physical assets is compared with the existing physical assets at reasonable intervals
and appropriate actions are taken with respect to any differences. 
 (b) Since November 17, 2004, neither TPC nor, to CCE’s
Knowledge, any director, manager, officer, employee, auditor, accountant or representative of TPC, has received or otherwise had or obtained knowledge of any complaint, allegation, assertion or claim, whether written or oral, regarding the
accounting or auditing practices, procedures, methodologies or internal accounting controls of or for TPC, including any complaint, allegation, assertion or claim that TPC has engaged in fraudulent accounting or auditing practices. Since
November 17, 2004, no attorney representing TPC, whether or not employed by TPC, has reported evidence of a violation of securities laws, breach of fiduciary duty or similar violation by TPC or any of its officers, directors, managers,
employees or agents to TPC’s board of managers (or comparable managing body) or any committee thereof or to any manager or officer of TPC. 
  

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 (c) Except as disclosed in Section 3.23(c) of the CCE Disclosure Letter, there are no off-balance
sheet structures or off-balance sheet transactions with respect to TPC or that would be required to be reported or set forth in the periodic reports filed by a reporting company under the Exchange Act. 
 Section 3.24 Hedging. Except as set forth on Section 3.24 of the CCE Disclosure Letter, TPC is not engaged in any natural gas or other
futures or options trading in respect of which it has any material future liability, or is a party to any swaps, hedges, futures or similar instruments. 
 Section 3.25 Bank Accounts; Powers of Attorney. Section 3.25 of the CCE Disclosure Letter sets forth (a) the name of each financial institution with which TPC has borrowing or investment
agreements, deposit or checking accounts or safe deposit boxes, (b) the types of those arrangements and accounts including the names in which the accounts or boxes are held, the account or box numbers and the name of each Person authorized to
draw thereon or have access thereto and (c) the names of all Persons, if any, holding powers of attorney (other than powers of attorney incidental to commercial relationships entered into in the ordinary course of business) from TPC and a
summary statement of the terms thereof. No Contract to which TPC is a party provides for the payment by the counterparty to any bank account other than those set forth on Section 3.25 of the CCE Disclosure Letter. 
 Section 3.26 Gas Imbalances. Section 3.26 of the CCE Disclosure Letter sets forth all gas imbalances on TPC’s pipeline system as of
June 30, 2006. All gas imbalances on TPC’s pipeline system (whether as of June 30, 2006 or thereafter) are resolved pursuant to the terms of Operational Balancing Agreements (“OBAs”). The majority of OBAs follow the
valuation methodology described in TPC’s tariff, which calls for imbalances to be resolved using a Monthly Index Price as calculated under Section 27 of the tariff’s General Terms and Conditions and Section 5(c) of the
tariff’s Operator Balancing Agreement – Form N. TPC has certain grandfathered volumetric OBAs that do not follow Form N and for which the revaluation of outstanding volumetric imbalances impacts TPC’s monthly income statement.
Volumetric imbalances are noted in Section 3.26 of the CCE Disclosure Letter. The values of gas imbalances as determined pursuant to the imbalance resolution methodology set forth in the OBAs are used in preparing each balance sheet included in
the TPC Annual Financial Statements and the TPC Six Month Interim Financial Statements. 
 Section 3.27 No Other Representations or
Warranties. Except for the representations and warranties contained in this Article III, neither CCE nor any other Person makes any other express or implied representation or warranty on behalf of CCE. 
 ARTICLE IV 
 REPRESENTATIONS AND
WARRANTIES OF ETP 
 ETP hereby represents and warrants to CCE as follows: 
 Section 4.1 Corporate Organization; Qualification. ETP is a limited partnership duly organized, validly existing and duly qualified or
licensed and in good standing under the laws of the state or jurisdiction of its formation and has all requisite limited partnership power to own, 
  

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 lease and operate its properties and to carry on its business as currently conducted. ETP is duly qualified or licensed
to do business as a foreign limited partnership and is, and has been, in good standing in each jurisdiction in which the nature of the business conducted by it or the property it owns, leases or operates requires it to so qualify, be licensed or be
in good standing, except for such failures to be qualified, licensed or in good standing that would not materially affect the consummation of the transactions contemplated by this Agreement. 
 Section 4.2 Authority Relative to this Agreement. ETP has full limited partnership power and authority to execute and deliver this Agreement
and the other agreements, documents and instruments to be executed and delivered by it in connection with this Agreement, including the CCE Acquisition Agreement, and to consummate the transactions contemplated hereby and thereby. The execution,
delivery and performance of this Agreement and the other agreements, documents and instruments to be executed and delivered in connection with this Agreement (including the CCE Acquisition Agreement) and the consummation of the transactions
contemplated hereby and thereby have been duly and validly authorized by all the necessary action on the part of ETP, and no other proceedings on the part of ETP are necessary to authorize this Agreement and the other agreements, documents and
instruments to be executed and delivered in connection with this Agreement (including the CCE Acquisition Agreement) or to consummate the transactions contemplated hereby and thereby. This Agreement and the CCE Acquisition Agreement each have been,
and the other agreements, documents and instruments to be executed and delivered in connection with this Agreement as of the Closing Date will be, duly and validly executed and delivered by ETP, and assuming that this Agreement, the CCE Acquisition
Agreement and the other agreements, documents and instruments to be executed and delivered in connection with this Agreement and the CCE Acquisition Agreement constitute legal, valid and binding agreements of the other parties thereto are (in the
case of this Agreement) or will be as of the Closing Date (in the case of the other agreements, documents and instruments to be executed and delivered in connection with this Agreement), enforceable against ETP in accordance with their respective
terms, except that such enforceability may be limited by applicable bankruptcy, insolvency, moratorium or other similar laws affecting or relating to enforcement of creditors’ rights generally or general principles of equity. 
 Section 4.3 50% CCE Interest. Effective as of the closing of the transactions under the CCE Acquisition Agreement, ETP will own all of the
issued and outstanding 50% CCE Interest and will have good, valid and marketable title to the 50% CCE Interest, free and clear of all Encumbrances or other defects in title, and the 50% CCE Interest will not have not been pledged or assigned to any
Person. At the Closing, the 50% CCE Interest will be transferred by ETP to CCE free and clear of all Encumbrances. Effective as of the closing of the transactions under the CCE Acquisition Agreement, the 50% CCE Interest will not be subject to any
restrictions on transferability or voting agreements other than those imposed by this Agreement, the limited liability company agreement of CCE and applicable securities laws. 
 Section 4.4 Consents and Approvals. Except for any approvals of the transactions contemplated by the CCE Acquisition Agreement (or expiration
of waiting periods) under the HSR Act and except for approvals required from the FCC, ETP does not require any consent, approval or authorization of, or filing, registration or qualification with, any Governmental Authority, or any other Person as a
condition to the execution and delivery of this Agreement or the performance of the obligations hereunder, except where the failure to obtain such consent, 
  

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 approval or authorization of, or filing of, registration or qualification with, any Governmental Authority, or any other
Person would not materially affect the consummation of the transactions contemplated by this Agreement. 
 Section 4.5 No Conflict or
Violation. The execution, delivery and performance by ETP of this Agreement does not: 
 (a) violate or conflict with any provision of the
Organizational Documents of ETP; 
 (b) violate any applicable provision of a law, statute, judgment, order, writ, injunction, decree, award,
rule or regulation of any Governmental Authority; or 
 (c) violate, result in a breach of, constitute (with due notice or lapse of time or
both) a default or cause any material obligation, penalty or premium to arise or accrue under any material contract, lease, loan, agreement, mortgage, security agreement, trust indenture or other material agreement or instrument to which ETP is a
party or by which it is bound or to which any of its properties or assets is subject. 
 Section 4.6 Litigation. There are no
lawsuits, actions, proceedings, or, to ETP’s knowledge, any investigations, pending or, to ETP’s knowledge, threatened, against ETP or any of its Subsidiaries or any executive officer or director thereof which would prohibit or impair ETP
from undertaking any of the transactions contemplated by this Agreement, except as would not materially affect the consummation of the transactions contemplated by this Agreement. ETP is not subject to any outstanding judgment, order, writ,
injunction, decree or award entered in an Action to which ETP was a named party which would prohibit or impair ETP from undertaking any of the transactions contemplated by this Agreement, except as would not materially affect the consummation of the
transactions contemplated by this Agreement. 
 Section 4.7 Availability of Funds. ETP will have sufficient funds available to
pay the purchase price under the CCE Acquisition Agreement on the closing date thereof and to consummate the transactions contemplated hereby. The ability of ETP to consummate the transactions contemplated under the CCE Acquisition Agreement and
this Agreement is not subject to any condition or contingency with respect to financing. 
 Section 4.8 Brokerage and Finders’
Fees. Except for Credit Suisse Securities (USA) LLC, whose fees will be paid by ETP, none of ETP, any of its Affiliates, or its partners, directors, officers or employees, has incurred, or will incur any brokerage, finders’ or similar fee
in connection with the transactions contemplated by this Agreement. 
 Section 4.9 Investment Representations. 
 (a) ETP is acquiring the TPC Interests to be acquired by it hereunder for its own account, solely for the purpose of investment and not with a view to, or
for sale in connection with, any distribution thereof in violation of the federal securities laws or any applicable foreign or state securities law. 
  

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 (b) ETP is an “accredited investor” as defined in Rule 501(a) promulgated under the Securities
Act. 
 (c) ETP understands that the acquisition of the TPC Interests to be acquired by it pursuant to the terms of this Agreement involves
substantial risk. ETP and its officers have experience as an investor in securities and equity interests of companies such as the ones being transferred pursuant to this Agreement and ETP acknowledges that it can bear the economic risk of its
investment and has such knowledge and experience in financial or business matters that ETP is capable of evaluating the merits and risks of its investment in the TPC Interests to be acquired by it pursuant to the transactions contemplated hereby.

 (d) ETP understands that the TPC Interests to be acquired by it hereunder have not been registered under the Securities Act on the basis
that the sale provided for in this Agreement is exempt from the registration provisions thereof. ETP acknowledges that such securities may not be transferred or sold except pursuant to the registration and other provisions of applicable securities
laws or pursuant to an applicable exemption therefrom. 
 (e) ETP acknowledges that the offer and sale of the TPC Interests to be acquired by
it in the transactions contemplated hereby has not been accomplished by the publication of any advertisement. 
 Section 4.10 No
Other Representations or Warranties. Except for the representations and warranties contained in this Article IV, neither ETP nor any other Person makes any other express or implied representation or warranty on behalf of ETP. 
 ARTICLE V 
 COVENANTS OF THE PARTIES

 Section 5.1 Conduct of Business. 
 (a) Except as expressly provided in this Agreement or as set forth in Section 5.1(a) of the CCE Disclosure Letter, from and after the date of this Agreement and until the Closing Date, CCE shall use commercially
reasonable efforts to cause TPC to conduct and maintain its business in the ordinary course of business, consistent with past practice. 
 (b) Except as contemplated by this Agreement or as set forth in Section 5.1(b) of the CCE Disclosure Letter, prior to the Closing Date, without the prior written consent of ETP (which consent shall not be unreasonably withheld or
delayed), CCE shall cause TPC not to: 
 (i) Amend its organizational documents or governance documents; 
 (ii) Issue, sell, pledge, dispose of or encumber, or authorize or propose the issuance, sale, pledge, disposition or encumbrance of, any
shares of, or securities convertible or exchangeable for, or options, puts, warrants, calls, commitments or rights of any kind to acquire, any of its membership or ownership interests or subdivide or in any way reclassify any membership or ownership
interests or change or agree to change in any manner the rights of its outstanding membership or ownership interests; 
  

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 (iii) (A) Except for the payment of a distribution of $22,000,000 to the sole member
of TPC, as necessary to meet debt covenants under the Existing TW Holdings Debt or for the payment of a distribution to the sole member of TPC in order to make the distributions contemplated by Section 5.1(c) hereof, declare, set aside or pay
any dividend or other distribution with respect to any shares of any class or series of equity interests of TPC; (B) split, combine or reclassify any shares of any class or series of capital stock of TPC; or (C) redeem, purchase or
otherwise acquire directly or indirectly any shares of any class or series of equity interests of TPC, or any instrument or security which consists of or includes a right to acquire such equity interests; 
 (iv) Except as may be required by agreements or arrangements identified in Section 5.1(b)(iv) of the CCE Disclosure Letter:

 A. grant any severance or termination payments; 
 B. enter into or extend or amend any employment, consulting, severance or other compensation agreement with, or otherwise increase the
compensation or benefits provided to any of its officers or other employees, either individually or as part of a class of similarly situated employees other than in the ordinary course of business, consistent with past practice; 
 C. except as required by Applicable Law, amend or take any other actions, including, but not limited to, acceleration of vesting and
waiver of performance criteria, with respect to any Employee Benefit Plan; or 
 D. terminate any TPC Employee other than for
cause; 
 (v) Sell, lease, license, mortgage or otherwise dispose of any properties or assets material to its business, other
than (A) sales made in the ordinary course of business consistent with past practice or (B) sales of obsolete or other assets not presently utilized in its business; 
 (vi) Merge with or into or consolidate with any other Person; 
 (vii) Make any change in its accounting principles, practices, estimates or methods, other than as may be required by GAAP, Applicable Law
or any Governmental Authority; 
 (viii) Organize any new Subsidiary or acquire any capital stock of, or equity or ownership
interest in, any other Person; 
 (ix) Materially modify or amend or terminate any Material Contract or waive, release or
assign any material rights or Claims under a Material Contract, except in the ordinary course of business; 
 (x) Pay,
repurchase, discharge or satisfy any of its Claims, Liabilities or obligations (absolute, accrued, asserted or unasserted, contingent or otherwise), other than in the ordinary course of business and consistent with past practice; 
  

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 (xi) Enter into any contract or transaction relating to the purchase of assets material
to TPC, other than in the ordinary course of business consistent with past practice; 
 (xii) (A) Incur or assume any
short-term debt or long-term debt except for debt incurred to pay for any TPC Expansion Project Expense, any SUG Expansion Project Expense, any budgeted capital expenditure or the distributions contemplated by Section 5.1(c) hereof,
(B) modify the terms of any indebtedness or other liability, other than modifications of short-term debt in the ordinary course of business, consistent with past practice; (C) assume, guarantee, endorse or otherwise become liable or
responsible (whether directly, contingently or otherwise) for the obligations of any other Person, except as described in Section 5.1(b)(xii)(C) of the CCE Disclosure Letter; 
 (xiii) Adopt a plan of complete or partial liquidation, dissolution, restructuring, recapitalization or other reorganization; 

(xiv) Make or change any material election in respect of Taxes, adopt or request permission of any Taxing authority to change any
material accounting method in respect of Taxes, or enter into any closing agreement in respect of Taxes that would increase the Tax liability of ETP, without ETP’s written consent, which consent shall not be unreasonably withheld; 

(xv) Other than routine compliance filings, make any filings or submit any documents or information to FERC without prior consultation
with ETP; 
 (xvi) Enter into any settlement agreement related to FERC-regulated tariff rates without ETP’s written
consent, which consent shall not be unreasonably withheld; 
 (xvii) Fail to use commercially reasonable efforts to pursue the
TPC Expansion Projects; or 
 (xviii) Fail to use commercially reasonable efforts to prepare, file and defend the TPC Rate
Case; or 
 (xix) Authorize any of, or commit or agree to take any of, the actions referred to in the paragraphs
(i) through (xviii) above. 
 (c) On or prior to the Closing Date, CCE shall make cash distributions in the aggregate amount of
$50.0 million plus all Cash Flow for the period beginning July 1, 2006 until the date of the closing of the CCE Acquisition, of which $25.0 million shall be distributed to ETP, $25.0 million shall be distributed to the Class A Members (as
defined in the Second Amended and Restated LLC Agreement) and the balance of such Cash Flow which shall be distributed one-half to ETP and one-half to the Class A Members (for purposes of this definition of Cash Flow, Cash Flow shall be deemed
to include without duplication the amount of Citrus Corp. cash dividends actually paid with respect to the period from July 1, 2006 until September 30, 2006 and an estimated amount of Citrus Corp. cash dividends with respect to the period
from October 1, 2006 until the date of the closing of the CCE Acquisition using for such estimate 50% (i.e., CCE’s share) of Citrus Corp. net income for such period). 
  

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 (d) CCE shall, or shall cause TPC to, provide to ETP copies of any filings made with any Governmental
Entities after the date of this Agreement and prior to the Closing Date. 
 (e) CCE shall use its commercially reasonable efforts to cause
TPC to have a Net Working Capital Amount as of the Closing Date that is greater than zero but it shall not be a condition to closing that this covenant be satisfied. 
 (f) From the date of this Agreement until the Closing Date, CCE shall not make any cash distributions to its members except as specified in Section 5.1(c) or as specified in the Second Amended and Restated LLC
Agreement. 
 Section 5.2 Access to Properties and Records. 
 (a) CCE shall, and shall cause TPC to, afford to ETP and ETP’s accountants, counsel and representatives full reasonable access during normal business
hours throughout the period prior to the Closing Date (or the earlier termination of this Agreement pursuant to Article VII hereof) to all of the properties, books, contracts, commitments and records (including all environmental studies, reports and
other environmental records and all pipeline cost-of-service and rate-related studies, reports and records related to TPC and, during such period, shall furnish to ETP all information concerning the business, properties, Liabilities and personnel
related to TPC as ETP may request, provided, however, that no investigation or receipt of information pursuant to this Section 5.2 shall affect any representation or warranty of CCE or the conditions to the obligations of ETP. To
the extent not located at the offices or properties of TPC as of the Closing Date, as promptly as practicable thereafter, CCE shall deliver, or cause its appropriate Affiliates to deliver to ETP all of the books of accounts, minute books, record
books and other records (including safety, health, environmental, maintenance and engineering records and drawings) pertaining to the business operations of TPC and all financial and accounting records related to TPC. Such delivery shall include all
work papers, pleadings, testimony, exhibits, spread sheets, research, drafts, memoranda, correspondence and other documents related to the TPC Rate Case (“TPC Rate Case Work Product”). TPC Rate Case Work Product has been and will be
prepared in contemplation of litigation, and the use of TPC Rate Case Work Product has been and will be under the control of TPC’s attorneys. Notwithstanding anything to the contrary contained in this Agreement, CCE shall not be obligated to
provide to ETP any documents or records relating to litigation and regulatory matters in which TPC is involved to the extent that CCE reasonably believes such documents or records are subject to the attorney-client or other applicable privilege
in circumstances in which TPC is not the sole client unless the parties entitled to such attorney-client or other applicable privilege shall consent thereto and enter into an appropriate joint defense agreement for the purpose of
preservation of such attorney-client or other applicable privilege. 
 (b) The information contained herein, in the CCE Disclosure
Letter or heretofore or hereafter delivered to ETP or its authorized representatives in connection with the transactions contemplated by this Agreement shall be held in confidence by ETP and its 
  

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 representatives in accordance with the Confidentiality Agreement until the Closing Date with respect to information
relating to TPC. Following the Closing Date, CCE shall keep confidential all information related to the business and properties of TPC to the same extent as ETP is obligated to keep such information confidential in accordance with the terms of the
Confidentiality Agreement (without regard to the preceding sentence) prior to the Closing Date. 
 Section 5.3 Consents and Approvals.

 (a) Upon the terms and subject to the conditions of this Agreement, each of the parties hereto agrees to use, and will cause its Affiliates
to use its commercially reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary or advisable under Applicable Law and regulations to consummate and make effective the transactions
contemplated by this Agreement as promptly as practicable including the preparation and filing of all forms, registrations and notices required to be filed by such party in order to consummate the transactions contemplated by this Agreement, the
taking of all appropriate action necessary, proper or advisable to satisfy each of the conditions to Closing that are to be satisfied by that party or any of its Affiliates and the taking of such actions as are necessary to obtain any approvals,
consents, orders, exemptions or waivers of Governmental Authorities and any other Person required to be obtained by such party in order to consummate the transactions contemplated by this Agreement. 
 (b) Each party shall, and shall cause their respective Affiliates to, with respect to a threatened or pending preliminary or permanent injunction or
other order, decree or ruling or statute, rule, regulation or executive order that would adversely affect the ability of any party to this Agreement to consummate the transactions contemplated hereby or those contemplated by the CCE Acquisition
Agreement, use their respective commercially reasonable best efforts to prevent the entry, enactment or promulgation thereof, as the case may be (including by pursuing any available appeal process). Each of ETP and CCE shall use its respective
commercially reasonable best efforts to, and shall cause their respective Affiliates to use their commercially reasonable best efforts to, promptly take or cause to be taken all actions necessary to comply with any requests made, or conditions set,
by a Governmental Authority to consummate the transactions contemplated by this Agreement or the CCE Acquisition Agreement. Each party agrees to use its commercially reasonable best efforts to procure any third-party consents required in the
preceding sentence. Notwithstanding the foregoing, in no event shall the term “commercially reasonable best efforts” require a party to agree to any divestiture, agreement, condition, restriction or requirement requested by any
Governmental Entity to avoid the entry, enactment or promulgation of any threatened preliminary or permanent injunction or other order, decree or ruling or statute, rule, regulation or executive order that would constitute a material adverse effect
on the financial condition, results of operations or prospects of such party and its Affiliates (including, with respect to ETP, TPC), taken as a whole (a “Burdensome Condition”). All cooperation shall be conducted in such a manner
so as to preserve all applicable privileges. 
 (c) By the later of (i) the seventh Business Day after the date hereof and (ii) the
fifth Business Day after the approval by the FCC of the transfer of control contemplated by the CCE Acquisition Agreement, CCE and ETP shall file applications with the FCC for consent to the transfer of control of CCE and its Affiliates as
contemplated by this Agreement. 
  

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 (d) For purposes of this Section 5.3, each party shall require their respective counsel to cooperate
to the same extent as each party is required to cooperate with the other party. 
 (e) Without limiting the generality of the undertakings
pursuant to this Section 5.3 and subject to appropriate confidentiality protections and limitations set forth in Section 5.3(b) above, CCE, ETP and their respective Affiliates shall each furnish to the parties to this Agreement such
necessary information and reasonable assistance a party may request in connection with the foregoing and, upon reasonable request shall each provide counsel for the other party with copies of all filings made by such party or such Affiliate, and all
correspondence between such party or such Affiliate (and its advisors) with any Governmental Authority and any other information supplied by such party and such party’s Affiliates to a Governmental Authority in connection with this Agreement
and the transactions contemplated hereby, provided, however, that materials may be redacted (i) to remove references concerning the valuation of TPC, (ii) as necessary to comply with contractual arrangements and (iii) to remove
information that is proprietary; and provided further, that information protected by the attorney client, work product privilege, or any other applicable privilege, shall be exchanged in a manner so as to preserve any such privilege. CCE and
ETP agree to inform each other of all communications with any Governmental Authority. 
 Section 5.4 Further Assurances. On and
after the Closing Date, CCE and ETP shall cooperate and use their respective commercially reasonable efforts to take or cause to be taken all appropriate actions and do, or cause to be done, all things necessary or appropriate to consummate and make
effective the transactions contemplated hereby, including the execution of any additional documents or instruments of any kind, the obtaining of consents which may be reasonably necessary or appropriate to carry out any of the provisions hereof and
the taking of all such other actions as such party may reasonably be requested to take by the other party hereto from time to time, consistent with the terms of this Agreement, in order to effectuate the provisions and purposes of this Agreement and
the transactions contemplated hereby. 
 Section 5.5 Employee Matters. 
 (a) Except as provided in the following sentence, on the Closing Date, CCE shall terminate the active participation of the Affected Employees in all of
the Employee Benefit Plans listed in Sections 3.12(a) and 3.12(b) of the CCE Disclosure Letter, except for (i) the Benefit Programs and Agreements listed as Items 5 and 6 in Section 3.12(b) of the CCE Disclosure Letter, (ii) the TPC
VEBA and (iii) the life and long term disability insurance coverage contemplated by Section 5.5(b). Prior to the Closing Date, CCE shall, or shall cause TPC to, terminate the TPC Severance Plan. CCE shall notify Affected Employees of the
termination of such active participation and the termination of the TPC Severance Plan prior to the Closing Date. Subject to the provisions of this Agreement, after the Closing Date, TPC shall be solely responsible for all obligations and
Liabilities with respect to the Benefit Programs and Agreements listed as Items 5 and 6 in Section 3.12(b) of the CCE Disclosure Letter, the TPC VEBA, the retiree medical benefits addressed in Section 5.5(e), the accrued vacation days
addressed in Section 5.5(c), the flexible benefit plan accounts addressed in Section 5.5(h), and each employee benefit policy, plan, agreement or arrangement that TPC, ETP or an Affiliate of either establishes, maintains or contributes to
with respect to the TPC Employees, on or after the 
  

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 Closing Date, and no such obligations or Liabilities shall be assumed or retained by CCE or its Affiliates. ETP shall, or
shall cause TPC to, honor any continuing pay or salary obligations and any applicable legal or contractual rights to reinstatement with respect to all Affected Employees. Except as provided in the preceding provisions of this Section 5.5(a) and
in Section 5.5(e), CCE shall retain all obligations or Liabilities and assets with respect to current and former TPC Employees and any Shared Service Employees who do not become Transferring Shared Service Employees in accordance with
Section 5.5(g) or otherwise under all of the Employee Benefit Plans listed in Sections 3.12(a) and 3.12(b) of the CCE Disclosure Letter and all other employee benefit plans, policies and arrangements of CCE and its ERISA Affiliates, and no such
obligations or Liabilities shall be assumed or retained by ETP or its Affiliates, including after the transactions contemplated hereby, TPC. 
 (b) Any Affected Employee who is unable to report to work with TPC as of the Closing Date due to disability shall continue to be eligible for any applicable long-term disability and life insurance coverage pursuant to CCE’s or
PEPL’s long-term disability and life insurance plans until such time, if any, as such Affected Employee returns to active employment with TPC; provided, however, that in order to be eligible for such benefits, each such Affected Employee,
pending approval for long-term disability benefits or return to active employment, must continue to pay all applicable long-term disability and life insurance premiums due following the Closing Date for such coverage. ETP shall, or shall cause TPC
to, pay Affected Employees who are on short-term disability as of the Closing Date the short-term disability benefits that apply under the short-term disability program that covers the TPC Employees as of the date of this Agreement. Any Affected
Employees who are on short-term disability as of the Closing Date but who subsequently transition to long-term disability shall be eligible for, and covered by, CCE’s or PEPL’s, as applicable, long-term disability and life insurance
coverages but not ETP’s long-term disability and life insurance coverages, subject to the provisions of this Section 5.5(b). 
 (c)
For no less than one year following the Closing Date, ETP shall, and shall cause TPC to, provide to Affected Employees those employee benefits that are provided by ETP to its similarly situated employees except with respect to short-term disability
benefits, as provided in Section 5.5(b). With respect to those employee benefit plans of TPC, ETP or their Affiliates in which Affected Employees may participate on or after the Closing Date (“ETP Plans”), ETP shall cause the
ETP Plans to credit prior service of the Affected Employees with TPC, PEPL and the Affiliates of either, past or present, for purposes of eligibility and vesting under ETP Plans and for all purposes with respect to any vacation, sick days, severance
and post-retirement medical benefits; provided, however, that such service need not be credited to the extent it would result in a duplication of benefits. Following the Closing Date, ETP shall, or shall cause TPC to, honor the accrued vacation days
of the Affected Employees that remain unused as of the Closing Date to the extent such accruals are shown, either as accruals for TPC Employees or full-time equivalent employees providing services to TPC, on the Closing Balance Sheet. Affected
Employees shall also be given credit for any deductible or co-insurance payment amounts payable in respect of the ETP Plan year in which the Closing Date occurs, to the extent that, following the Closing Date, they participate in any ETP Plan during
such plan year for which deductibles or co-payments are required. Any preexisting condition restrictions and waiting period limitations that were deemed satisfied with respect to a particular person under 
  

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 any Employee Benefit Plan or any other benefit plan that covered a Transferring Shared Service Employee immediately prior
to the Closing Date shall be deemed satisfied by ETP and its Affiliates under ETP Plans with respect to such person on and after the Closing Date. The provisions of this Section 5.5(c) and Section 5.5(f) shall not alter the status of the
Affected Employees as at-will employees of TPC or its Affiliates. Except as otherwise contemplated by this Agreement, the provisions of this Section 5.5(c) and Section 5.5(f) shall not affect the right of TPC, ETP or any of their
Affiliates to amend or terminate any of their employee benefit plans, programs or arrangements with respect to ETP employees generally. 
 (d) ETP shall be responsible for all Liabilities and obligations under the Worker Adjustment and Retraining Notification Act and similar foreign, state and local rules, statutes and ordinances resulting from the actions of ETP or TPC after
the Closing Date. ETP agrees to hold CCE harmless in accordance with Article VIII for any breach of such responsibility and ETP’s indemnification of CCE in this regard specifically includes any Claim by the Affected Employees for back pay,
front pay, benefits or compensatory or punitive damages, any Claim by any Governmental Authority for penalties regarding any issue of prior notification (or lack thereof) of any plant closing or mass layoff occurring after the Closing Date and
CCE’s costs, including reasonable attorney’s fees, in defending any such Claims. 
 (e) TPC has established the TPC VEBA, the
assets and liabilities of which will be retained by TPC as of the Closing Date. TPC is or will be responsible for those post-retirement medical benefits described in Section 3.12(e)(vii) of the CCE Disclosure Letter or described in and/or
valued under the CCE FAS 106 Report. In addition to the CCE FAS 106 Report, the Enron Inactive Medical Plan sets forth eligibility requirements relating to post-retirement medical benefits available to eligible current and former employees and
retirees of TPC (and their eligible spouses, surviving spouses and dependents). The post-retirement medical benefits that TPC currently provides to eligible retirees (and their eligible spouses, surviving spouses and dependents) are described in the
CCE Under Age 65 SPD and the CCE Medicare Eligible SPD. The employer subsidies that TPC currently makes available under cost sharing arrangements with respect to post-retirement medical benefits are described in the CCE FAS 106 Report as well as in
a November 9, 2005 letter to then current TPC employees who had satisfied applicable age, service and hire date eligibility requirements. Both the CCE FAS 106 Report and the November 9, 2005 letter describe fixed dollar per year of service
employer subsidies for eligible post-1989 retirees (and their eligible spouses, surviving spouses and dependents). The CCE FAS 106 Report describes a 60 percent employer subsidy for eligible pre-1990 retirees (and their eligible spouses, surviving
spouses and dependents). True and complete copies of the CCE FAS 106 Report, the Enron Inactive Medical Plan, the CCE Under Age 65 SPD and the CCE Medicare Eligible SPD, as well as the November 9, 2005 letter have been provided to ETP.
Effective as of the Closing Date, ETP shall, or shall cause TPC to, establish a plan to provide post-retirement medical benefits to eligible current and former employees and retirees of TPC (and their eligible spouses, surviving spouses and
dependents). The eligibility requirements and employer subsidies under such plan shall be as described in the CCE FAS 106 Report and/or the Enron Inactive Medical Plan, and such eligibility requirements and employer subsidies shall be applied to all
Affected Employees, including all Transferring Shared Service Employees, with such Transferring Shared Service Employees receiving prior service credit in accordance with the provisions of Section 5.5(c). Any provision of this 
  

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 Agreement to the contrary notwithstanding, TPC shall, and ETP shall cause TPC to, take all actions with respect to the
partition and distribution of assets and liabilities associated with the Enron VEBA as may be required of TPC by, or contemplated with respect to TPC under, any order of the Bankruptcy Court relating to the Enron VEBA Motion or any order of any
other court of competent jurisdiction relating to the partition of assets held under the Enron VEBA and/or the distribution of liabilities associated with the Enron VEBA. For the avoidance of doubt, pursuant to the preceding sentence, TPC shall
assume liabilities and the TPC VEBA shall receive certain allocated assets with respect to current and former employees and retirees of TPC, former employees and retirees of former affiliates of TPC who provided services to TPC, and their respective
eligible spouses, surviving spouses and dependents, all in accordance with the terms of an order relating to the Enron VEBA Motion or any other order of a court of competent jurisdiction relating to the partition and distribution of assets and
liabilities under the Enron VEBA, and all such individuals shall be eligible to participate in the post-retirement medical benefits plan established by TPC or ETP under this Section 5.5(e). Except as otherwise indicated in
Section 3.12(e)(vii) of the CCE Disclosure Letter or as otherwise required by Applicable Law or the provisions of a final order entered in connection with the Enron VEBA Motion or by another court of competent jurisdiction relating to the
partition and distribution of assets and liabilities under the Enron VEBA, nothing in this Agreement shall prohibit TPC or CCE from exercising their respective rights as the sponsor of TPC’s post-retirement medical benefits program to amend,
modify or terminate the benefits provided thereunder, whether before or after the Closing Date; provided, however, that between the date hereof and the Closing Date, CCE shall not amend its post-retirement medical benefits program to increase the
benefits provided thereunder, reduce retiree contribution or premium rates for coverage thereunder or expand eligibility under such programs. 
 (f) In the event that, on the Closing Date or during the Continuation Period, (i) the employment of an Affected Employee is terminated by TPC, ETP or an Affiliate of either other than For Cause, (ii) TPC, ETP or an Affiliate of
either fails to provide an Affected Employee with at least the same level of Base Compensation as was in effect immediately prior to the Closing Date, or (iii) without the consent of an Affected Employee, TPC, ETP or an Affiliate of either
changes the primary work location of such Affected Employee to a location that is more than 50 miles away from the Affected Employee’s primary work location immediately prior to the Closing Date, ETP shall be responsible for and shall pay to
such Affected Employee, in a lump sum payment, not later than sixty (60) days following the date of the Affected Employee’s termination of employment, the following severance benefits (the “Severance Benefits”): two
(2) weeks of the Affected Employee’s Base Compensation for each full or partial year of service measured from the Affected Employee’s date of hire reflected in Section 5.5(g) of the CCE Disclosure Letter, not to exceed fifty-two
(52) weeks of such Base Compensation; provided, however, that in no event shall such Severance Benefits be less than eight (8) weeks of such Base Compensation. The costs incurred directly or indirectly in connection with the termination of
employment of any Affected Employee on or after the Closing Date shall be borne exclusively by ETP. ETP’s obligation to provide the Severance Benefits shall be subject to the Affected Employee’s execution of a release of all claims against
TPC, ETP and the Affiliates of either, and CCE, PEPL and the Affiliates of either, in a form reasonably satisfactory to ETP and CCE. For purposes of this Section 5.5(f), “Continuation Period” shall mean the one-year period
following the Closing Date. For purposes of this Section 5.5, 
  

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 “For Cause” shall mean (i) the commission by the Affected Employee of a criminal or other act that
causes or is reasonably likely to cause substantial economic damage to TPC or substantial injury to the business reputation of TPC, (ii) the commission by the Affected Employee of an act of fraud, theft or financial dishonesty in the
performance of the Affected Employee’s duties on behalf of TPC, (iii) the continuing failure or continuing refusal of the Affected Employee to satisfactorily perform the duties of the Affected Employee to TPC, (iv) the material
disregard or violation by the Affected Employee of the legal rights of any employees of TPC or of TPC’s written policies regarding harassment or discrimination, or (v) any other conduct materially detrimental to TPC’s business. For
purposes of this Section 5.5(f), “Base Compensation” shall mean an Affected Employee’s base hourly wages or base salary, as applicable, at termination of employment; provided, however, that in no event shall an Affected
Employee’s Base Compensation for purposes of calculating the Severance Benefits provided for under this Section 5.5(f) be less than such Affected Employee’s base hourly wages or base salary, as applicable, in effect as of the date of
this Agreement. For the avoidance of doubt, two weeks of each Affected Employee’s Base Compensation as of the date of this Agreement is reflected in the “BiWkly Salary” columns in Section 5.5(g) of the CCE Disclosure Letter.

 (g) Section 5.5(g) of the CCE Disclosure Letter sets forth a list of the TPC Employees as of the date hereof, including each such TPC
Employee’s current annual base compensation, annual bonus, job title, work location, hire date, and vacation balance as of the date of this Agreement, as well as two weeks of each such TPC Employee’s Base Compensation as of the date of
this Agreement, as reflected in the “BiWkly Salary” columns, for purposes of Section 5.5(f). Also listed in Section 5.5(g) of the CCE Disclosure Letter, as it may be amended as contemplated by this Section 5.5(g), are
employees of CCES or PEPL on the date of this Agreement, who provide services to TPC, and who are being made available for transfer to TPC on the date immediately preceding the Closing Date pursuant to the provisions of this Section 5.5(g)
(“Shared Service Employees”). With respect to each Shared Service Employee, Section 5.5(g) of the CCE Disclosure Letter sets forth, as of the date hereof, such Shared Service Employee’s current annual base compensation,
annual bonus, job title, work location, hire date, and vacation balance as of the date of this Agreement, as well as two weeks of each such Shared Service Employee’s Base Compensation as of the date of this Agreement, as reflected in the
“BiWkly Salary” columns, for purposes of Section 5.5(f). In the event that CCE or ETP requests that the list of Shared Service Employees be amended, by adding an employee to the list or deleting an employee from the list within the
first thirty (30) days following the execution of this Agreement, the parties agree to negotiate in good faith to determine if such request can be accommodated. Not later than thirty (30) days following the execution of this Agreement, ETP
may identify to CCE, in writing, not more than five (5) Shared Service Employees who shall not be transferred to TPC. Each Shared Service Employee not so identified by ETP shall be considered a “Transferring Shared Service
Employee” under this Agreement. All of the Transferring Shared Service Employees shall be transferred to TPC, and become employees of TPC, on the date preceding the Closing Date. CCE shall pay, or CCE shall cause CCES or PEPL, as
applicable, to pay any severance costs relating to any Shared Service Employees who do not become Transferring Shared Service Employees under the preceding provisions of this Section 5.5(g). In accordance with the provisions of
Section 5.5(f), ETP shall pay the Severance Benefits, if any, relating to any Shared Service Employees who become Transferring Shared Service Employees under the preceding provisions of this Section 5.5(g). ETP shall, or shall 

 

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 cause TPC to, pay each Affected Employee a base hourly wage or base salary, as applicable, that is not less than his or
her base hourly wage or base salary, as applicable, in effect with TPC, CCES or PEPL, as applicable, immediately prior to the Closing Date. CCE agrees that, within the thirty (30) day period following the execution of this Agreement, neither
CCES nor PEPL shall terminate the employment of any Shared Service Employee other than For Cause, without the written consent of ETP. CCE further agrees that, prior to the Closing Date, neither CCES nor PEPL shall terminate the employment of any
Transferring Shared Service Employee other than For Cause, without the written consent of ETP. 
 (h) As soon as administratively feasible
after the Closing Date, CCE and PEPL shall transfer to ETP’s flexible benefits plan, an amount, in cash, equal to any health care and dependent care balances standing to the credit of Affected Employees under the CCE and PEPL flexible benefit
plans (the “CCE Flex Plans”) as of the day immediately preceding the Closing Date, and ETP shall, or shall cause TPC to, reimburse Affected Employees for all eligible health and dependent care expenses that would otherwise be
payable under the terms of the CCE Flex Plans on or after the Closing Date. As soon as administratively feasible after the Closing Date, CCE shall provide to ETP a list of those Affected Employees who have participated in the health or dependent
care reimbursement accounts under the CCE Flex Plans, together with their elections made prior to the Closing Date with respect to such accounts, and balances standing to their credit as of the day immediately prior to the Closing Date. 

(i) Affected Employees will be eligible to participate in the Energy Transfer Partners Profit Sharing and 401(k) Plan (the “ETP 401(k)
Plan”) following the Closing Date. ETP shall take reasonable measures designed to facilitate the ETP 401(k) Plan’s acceptance from any Affected Employee of a rollover or direct rollover of all of his or her account balances under the
CrossCountry Energy Savings Plan 001, the CrossCountry Energy Savings Plan 002 and/or the Southern Union Savings Plan (each a “CCE Defined Contribution Plan”), including his or her loan balances and related loan documentation under
the CCE Defined Contribution Plan(s); provided that an Affected Employee shall only be permitted to roll over his or her loan balances and related loan documentation if the Affected Employee makes a rollover or direct rollover of all of his or her
account balances under the CCE Defined Contribution Plan or Plans which include the Affected Employee’s outstanding loan balances. The trustee or recordkeeper of CCE’s Defined Contribution Plans shall transfer to the trustee or
recordkeeper of the ETP 401(k) Plan any loan documentation for loans to be rolled over or transferred to the ETP 401(k) Plan pursuant to the provisions of this Section 5.5(i). The provisions of this Section 5.5(i) shall not be construed to
require that any Affected Employee roll over or otherwise transfer his or her account balances under a CCE Defined Contribution Plan to the ETP 401(k) Plan. CCE shall, or shall cause PEPL to, fully vest the account balances of all Affected Employees
under the CCE Defined Contribution Plans. 
 (j) Notwithstanding any provisions of the Southern Union Company Annual Incentive Plan (the
“Annual Incentive Plan”) to the contrary, no payment for the 2006 Plan Year (as defined in the Annual Incentive Plan) shall be made to any Affected Employee, and including any accelerated payment pursuant to Section VI of the Annual
Incentive Plan), except as provided in this Section 5.5(j). On or before March 15, 2007, ETP shall, or shall cause TPC to, pay to the Affected Employees the amount determined by multiplying, the sum of the total of 
  

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 the amounts reflected in the “Amount at Midpt” column for the TPC Employees as set forth in Section 5.5(g)
of the CCE Disclosure Letter plus the total of the amounts reflected in the “Amount at Midpt” column for the Shared Service Employees who become Affected Employees as set forth in Section 5.5(g) of the CCE Disclosure Letter (as it may
be amended pursuant to Section 5.5(g)), by a fraction, the numerator of which is the number of completed calendar months in 2006 occurring on or before the Closing Date, and the denominator of which is twelve (12). Each such Affected Employee
who is employed by ETP, TPC or an affiliate of either on the date that the amount determined under the preceding sentence is paid shall receive a percentage, that is not less than nor greater than the percentage reflected in the individual Affected
Employee’s “Target Bonus Range,” of such Affected Employee’s “Annual Salary” as reflected in Section 5.5(g) of the CCE Disclosure Letter (as it may be amended pursuant to Section 5.5(g)), multiplied by a
fraction, the numerator of which is the number of completed calendar months in 2006 occurring on or before the Closing Date, and the denominator of which is twelve (12). Notwithstanding the foregoing provisions of this Section 5.5(j), no
payments for the 2006 Plan Year under the Annual Incentive Plan shall be made to the extent that they are not accrued for the Annual Incentive Plan on the Closing Balance Sheet. 
 (k) Until the Closing Date, CCE shall provide ETP an opportunity to participate with TPC as a participating employer in discussions regarding the Enron
VEBA Motion, including the allocation of assets and liabilities to TPC thereunder, and in settlement negotiations, if any, relating to any proceeding in another court of competent jurisdiction relating to the partition and distribution of assets and
liabilities under the Enron VEBA. 
 Section 5.6 Tax Covenants. 
 (a) Tax Return Filings, Refunds, and Credits. 
 (i) CCE shall timely prepare and file (or cause such preparation and filing) with the appropriate Tax authorities all Tax Returns (including any Consolidated Income Tax Returns) due on or before the 30th day following
the Closing Date required to be filed by or on behalf of TPC (and make all elections with respect to such Tax Returns) for Tax periods that end on or before the Closing Date, and CCE may timely prepare and file (or cause such preparation and filing)
with the appropriate Tax authorities all other Tax Returns (including any Consolidated Income Tax Returns) required to be filed by or on behalf of TPC (and make all elections with respect to such Tax Returns) for Tax periods that end on or before
the Closing Date (all such returns required to be prepared and filed or actually prepared and filed by CCE, the “CCE Returns”). 
 (ii) ETP shall timely prepare and file (or cause such preparation and filing) with the appropriate Tax authorities all Tax Returns (the “Straddle Period Returns”) required to be filed by or on behalf
of TPC (and make all elections with respect to such Tax Returns) for all Tax periods ending after the Closing Date that include the Closing Date (the “Straddle Period”), and ETP shall timely prepare and file (or cause such
preparation and filing) with the appropriate Tax authorities all Tax Returns required to be filed by or on behalf of TPC (and make all elections with respect to such Tax Returns) for Tax periods that end on or before the Closing Date, other than CCE

  

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 Returns (all such returns required to be prepared and filed by ETP, the “ETP Returns”).
All ETP Returns shall be prepared in accordance with past practice to the extent consistent with applicable law and the operations of TPC. ETP shall provide CCE with copies of any ETP Returns at least forty-five (45) days prior to the due date
thereof (giving effect to any extensions thereto), accompanied by a statement (the “Straddle Statement”) setting forth and calculating in reasonable detail the Pre-Closing Taxes as defined below. If CCE agrees with the ETP Return
and Straddle Statement, the amount of Pre-Closing Taxes shall be as shown thereon. If, within fifteen (15) days of the receipt of the ETP Return and Straddle Statement, CCE notifies ETP that it disputes the manner of preparation of the ETP
Return or the amount calculated in the Straddle Statement, and provides ETP its proposed form of ETP Return, a statement setting forth and calculating in reasonable detail the Pre-Closing Taxes, and a written or oral explanation of the reasons for
its adjustment, then ETP and CCE shall attempt to resolve their disagreement within the five (5) days following CCE’s notification or ETP of such disagreement. If ETP and CCE are unable to resolve their disagreement, the dispute shall be
submitted to a mutually agreed upon nationally recognized independent accounting firm, whose expense shall be borne equally by ETP and CCE, for resolution within twenty (20) days of such submission. The decision of such accounting firm with
respect to such dispute shall be binding upon ETP and CCE. 
 (iii) From and after the Closing Date, ETP and its Affiliates
(including TPC) will not file any amended Tax Return, carryback claim or other adjustment request by or on behalf of TPC for any Tax period that includes or ends on or before the Closing Date unless CCE consents in writing. 
 (iv) For purposes of this Agreement, in the case of any Taxes of TPC that are payable with respect to any Straddle Period, the portion of
any such Taxes that constitutes “Pre-Closing Taxes” shall be the excess of (A) (i) in the case of Taxes that are either (x) based upon or related to income or receipts or (y) imposed in connection with any sale,
transfer or assignment or any deemed sale, transfer or assignment of property (real or personal, tangible or intangible) be deemed equal to the amount that would be payable if the Tax period ended at the close of business on the Closing Date and
(ii) in the case of Taxes (other than those described in clause (i)) imposed on a periodic basis with respect to the business or assets of TPC, be deemed to be the amount of such Taxes for the entire Straddle Period (or, in the case of such
Taxes determined on an arrears basis, the amount of such Taxes for the immediately preceding Tax period) multiplied by a fraction the numerator of which is the number of calendar days in the portion of the Straddle Period ending on and including the
Closing Date and the denominator of which is the number of calendar days in the entire Straddle Period over (B) any prepayment or advances of Taxes or any payments of estimated Taxes with respect to the Straddle Period. For purposes of clause
(i) of the preceding sentence, any exemption, deduction, credit or other item that is calculated on an annual basis shall be allocated to the portion of the Straddle Period ending on the Closing Date on a pro rata basis determined by
multiplying the total amount of such item allocated to the Straddle Period by a fraction, the numerator of which is the number of calendar days in the portion of the Straddle Period ending on the Closing Date and the denominator of which is the
number of calendar days in the entire Straddle Period. In the case of any Tax based upon 
  

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 or measured by capital (including net worth or long-term debt) or intangibles, any amount thereof
required to be allocated under this Section 5.6(a)(iv) shall be computed by reference to the level of such items at the close of business on the Closing Date. The parties hereto will, to the extent permitted by Applicable Law, elect with the
relevant Tax authority to treat a portion of any Straddle Period as a short taxable period ending as of the close of business on the Closing Date. For purposes of this Agreement, “Post-Closing Taxes” shall include any Taxes of TPC
that are payable with respect to a Straddle Period, except for the portion of any such Taxes that constitutes Pre-Closing Taxes. For purposes of this Agreement, the Texas corporate franchise tax determined based on the income or capital of any
entity for the year during which the Closing Date occurs shall be considered to be a Tax due with respect to the Straddle Period. 
 (v) CCE and ETP shall reasonably cooperate in preparing and filing all Tax Returns required to be filed by or on behalf of TPC, including maintaining and making available to each other all records reasonably necessary in connection with
Taxes of TPC and in resolving all disputes and audits with respect to all Tax periods relating to Taxes of TPC. 
 (vi) For a
period of six (6) years after the Closing Date, CCE and its representatives shall have reasonable access to the books and records (including the right to make extracts thereof) of TPC to the extent that such books and records relate to Taxes
and to the extent that such access may reasonably be required by CCE in connection with matters relating to or affected by the operation of TPC prior to the Closing Date. Such access shall be afforded by ETP upon receipt of reasonable advance notice
and during normal business hours. If ETP shall desire to dispose of any of such books and records prior to the expiration of such six-year period, ETP shall, prior to such disposition, give CCE a reasonable opportunity, at CCE’s expense, to
segregate and remove such books and records as CCE may select. 
 (vii) If a Tax Indemnified Party receives a refund or credit
or other reimbursement with respect to Taxes for which it was indemnified under this Agreement, the Tax Indemnified Party shall pay over such refund or credit or other reimbursement to the Tax Indemnifying Party. 
 (viii) ETP shall not, and shall cause TPC to not, make, amend or revoke any Tax election if such action would adversely affect any of CCE
or its Affiliates with respect to any Tax period ending on or before the Closing Date or for the Pre-Closing Period or any Tax refund with respect thereto unless ETP and its Affiliates indemnify and make CCE and its Affiliates whole for any
detriment or cost incurred (or to be incurred) by them as a result of such action. 
 (ix) For purposes of this Agreement a
“Consolidated Income Tax Return” is any income Tax Return filed with respect to any consolidated, combined, affiliated or unified group provided for under Section 1501 of the Code and the Treasury regulations under
Section 1502 of the Code, or any comparable provisions of state or local law, other than any income Tax Return that includes only TPC. 
  

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 (b) Indemnity for Taxes. 
 (i) CCE hereby agrees to indemnify ETP and its affiliates against and hold them harmless from and against all liability for (A) all
Taxes that are attributable to CCE or any member of an affiliated, consolidated, combined or unitary Tax group of which TPC (or any direct or indirect predecessor(s) of TPC) was a member at any time on or prior to the Closing Date and not after the
Closing Date that is imposed under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign Tax law), except to the extent reflected on the TPC Six Month Interim Financial Statements, (B) any Taxes of TPC
incurred as a transferee or a successor relating to any full or partial Tax period ending on or before the Closing Date, except to the extent reflected on the TPC Six Month Interim Financial Statements, (C) CCE’s portion of Transfer Taxes
pursuant to Section 5.6(f), and (D) any Damages arising out of, resulting from, or incurred in connection with any breach or inaccuracy of any representation or warranty set forth in Section 3.16; provided, however, that the
determination of whether such a breach or inaccuracy of Section 3.16(c), (d), or (e) occurred will be made without the Material Adverse Effect qualifications contained therein. 
 (ii) ETP hereby agrees to indemnify CCE and its Affiliates against and hold them harmless from all liability for (A) all Taxes of TPC
with respect to all Tax periods beginning after the Closing Date, (B) Post-Closing Taxes with respect to any Straddle Period, (C) ETP’s portion of Transfer Taxes pursuant to Section 5.6(f), (D) all Taxes imposed on TPC with
respect to Tax periods ending on or before the Closing Date, and (E) Pre-Closing Taxes with respect to any Straddle Period. 
 (iii) The obligation of CCE to indemnify and hold harmless ETP, on the one hand, and the obligations of ETP to indemnify and hold harmless CCE, on the other hand, pursuant to this Section 5.6, shall terminate upon the expiration of the
applicable statutes of limitations with respect to the Tax Liabilities in question (giving effect to any waiver, mitigation or extension thereof) or if a Claim is brought with respect thereto, until such time as such Claim is resolved. 

(c) Certain Payments. ETP and CCE agree to treat (and cause their Affiliates to treat) any payment by CCE under Section 5.6(b) as an
adjustment to the property distributed by CCE to ETP in redemption of the 50% CCE Interest for all Tax purposes. 
 (d) Contests.

 (i) After the Closing Date, CCE and ETP each shall notify the other party in writing within ten (10) days of the
commencement of any Tax audit or administrative or judicial proceeding affecting the Taxes of TPC that, if determined adversely to the taxpayer (the “Tax Indemnified Party”) or after the lapse of time would be grounds for
indemnification under this Section 5.6 by the other party (the “Tax Indemnifying Party” and a “Tax Claim”). Such notice shall contain factual information describing any asserted Tax liability in reasonable
detail and shall include copies of any notice or other document received from any Tax authority in respect of any such asserted Tax liability. Failure to give such notification shall not affect the indemnification 
  

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 provided in this Section 5.6 except to the extent the Tax Indemnifying Party shall have been
prejudiced as a result of such failure (except that the Tax Indemnifying Party shall not be liable for any expenses incurred during the period in which the Tax Indemnified Party failed to give such notice). Thereafter, the Tax Indemnified Party
shall deliver to the Tax Indemnifying Party, as promptly as possible but in no event later than ten (10) days after the Tax Indemnified Party’s receipt thereof, copies of all relevant notices and documents (including court papers) received
by the Tax Indemnified Party. 
 (ii) In the case of an audit or administrative or judicial proceeding involving any asserted
liability for Taxes relating to any Taxable years or periods ending on or before the Closing Date, CCE shall have the right, at its expense, to control the conduct of such audit or proceeding; provided, however, that if CCE does not timely
take control of such audit or proceeding, ETP may, at its expense, control the conduct of the audit or proceeding. In the case of an audit or administrative or judicial proceeding involving any asserted liability for Taxes relating to any Straddle
Period, ETP shall have the right, at its expense, to control the conduct of such audit or proceeding; provided, however, that (A) ETP shall keep CCE reasonably informed with respect to the status of such audit or proceeding and provide
CCE with copies of all written correspondence with respect to such audit or proceeding in a timely manner and (B) if such audit or proceeding would be reasonably expected to result in a material increase in Tax liability of TPC for which CCE
would be liable under this Section 5.6, CCE may participate in the conduct of such audit or proceeding at its own expense. 
 (iii) In the case of an audit or administrative or judicial proceeding involving any asserted liability for Taxes relating to any Taxable years or periods beginning after the Closing Date, ETP shall have the right, at its expense, to
control the conduct of such audit or proceeding. 
 (iv) ETP and CCE shall reasonably cooperate in connection with any Tax
Claim, and such cooperation shall include the provision to the Tax Indemnifying Party of records and information that are reasonably relevant to such Tax Claim and making employees available on a mutually convenient basis to provide additional
information and explanation of any material provided hereunder. 
 (e) Transfer and Similar Taxes. Notwithstanding any other
provisions of this Agreement to the contrary, all sales, use, transfer, gains, stamp, duties, recording and similar Taxes, but not including any Federal or state income taxes (collectively, “Transfer Taxes”) incurred in connection
with the transactions contemplated by this Agreement shall be borne equally by ETP and CCE, and CCE shall accurately file all necessary Tax Returns and other documentation with respect to Transfer Taxes and timely pay all such Transfer Taxes. If
required by Applicable Law, ETP will join in the execution of any such Return. CCE shall provide copies of any Tax Returns with respect to Transfer Taxes to ETP no later than five (5) days after the due dates of such Tax Returns. 
 (f) Termination of Tax Sharing Agreements. On or prior to the Closing Date, CCE shall cause all Tax sharing agreements between CCE or any of its
Affiliates (as determined immediately after the Closing Date) on the one hand, and TPC on the other hand, to be terminated, and all obligations thereunder shall be settled, and no additional payments shall be made under any provisions thereof after
the Closing Date. 
  

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 Section 5.7 Control of Administrative and Regulatory Proceedings. CCE and ETP agree and
acknowledge that, up to the Closing Date, CCE shall be entitled to control, defend and otherwise conduct any administrative or regulatory proceeding involving TPC. CCE will use commercially reasonable efforts to, and will cause TPC to, conduct any
administrative or regulatory proceeding in a manner that is intended to maximize the value of TPC on and after the Closing Date. The Parties agree and acknowledge that, prior to the Closing Date, ETP shall be entitled to participate at its expense
in any administrative or regulatory proceeding, meeting, or settlement conference, in administrative or regulatory proceedings involving or affecting TPC. The Parties agree and acknowledge that, after the Closing Date, ETP will assume control of any
administrative or regulatory proceeding involving or affecting TPC subject to the terms of the TPC Transition Services Agreement. 
 Section 5.8 Maintenance of Insurance Policies. 
 (a) CCE and ETP agree that to the extent the Insurance Policies provide
coverage, CCE will process the Casualty Insurance Claims relating to the business of TPC (including reported claims and including incurred but not reported claims) and that such Casualty Insurance Claims shall remain with TPC following the Closing.
For purposes hereof, “Casualty Insurance Claims” shall mean workers’ compensation, auto liability, general liability and products liability claims and claims for damages caused to the facilities of TPC generally insured under
all risk, real property, boiler and mechanical breakdown insurance coverage all with dates of occurrence prior to the date of Closing. The Casualty Insurance Claims are subject to the provisions of the Insurance Policies with insurance carriers and
contractual arrangements with insurance adjusters maintained by CCE or its Affiliates prior to the Closing. With respect to the Casualty Insurance Claims where coverage is available under the Insurance Policies, the following procedures shall apply:
(i) CCE or its Affiliates shall continue to administer, adjust, settle and pay, on behalf of TPC, all Casualty Insurance Claims; provided, however, that CCE will obtain the consent of ETP prior to adjusting, settling or paying any Casualty
Insurance Claim of an amount greater than $100,000 and provided further, that CCE shall permit ETP to join CCE in any settlement negotiations with claimants, insurers, or insurance adjusters and (ii) CCE shall invoice TPC at the end of each
month for Casualty Insurance Claims paid on behalf of TPC. ETP shall cause TPC to pay the invoice within thirty (30) days of its date. In the event that TPC does not pay CCE within thirty (30) days of such invoice, interest at the rate of
ten percent (10%) per annum shall accrue on the amount of such invoice. Casualty Insurance Claims to be paid by CCE hereunder shall include all costs necessary to settle claims including compensatory, medical, legal and other allocated
expenses, net of insurance proceeds. In the event that any Casualty Insurance Claims exceeds a deductible or self-insured retention under the Insurance Policies, CCE shall be entitled to the benefit of any insurance proceeds that may be available to
discharge any portion of such Casualty Insurance Claim. 
 (b) After the Closing, ETP shall be responsible for, and neither CCE nor any of
its Affiliates shall have any responsibility for, the payment of any deductible amounts or underlying limits attributable to the Insurance Policies for Casualty Insurance Claims relating to TPC. ETP acknowledges that certain of the Insurance
Policies may require CCE or any of its 
  

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 Affiliates to provide an indemnity to the insurance carrier for deductible amounts and to provide collateral to secure
such indemnity obligations. ETP hereby agrees to indemnify and hold harmless CCE or any of its Affiliates (as applicable) for any and all of the costs of maintaining such collateral and for any charges made against such collateral or indemnification
payments in connection with claims arising or alleged to arise from the operations of TPC required to be paid by CCE of any of its Affiliates (as applicable) under or with respect to such Insurance Policies from and after the Closing Date.

 (c) Other than as set forth in Section 3.21 hereof, CCE makes no representation or warranty with respect to the applicability,
validity or adequacy of any Insurance Policies, and CCE shall not be responsible to ETP or any of its Affiliates for the failure of any insurer to pay under any such Insurance Policy. 
 (d) Nothing in this Agreement is intended to provide or shall be construed as providing a benefit or release to any insurer or claims service
organization of any obligation under any Insurance Policies. CCE and ETP confirm that the sole intention of this Section 5.8 is to divide and allocate the benefits and obligations under the Insurance Policies between them as of the Closing Date
and not to affect, enhance or diminish the rights and obligations of any insurer or claims service organization thereunder. Nothing herein shall be construed as creating or permitting any insurer or claims service organization the right of
subrogation against CCE or ETP or any of their Affiliates in respect of payments made by one to the other under any Insurance Policy. 
 (e)
If ETP requests a copy of an Insurance Policy relating to a pending or threatened Casualty Insurance Claim, CCE shall provide a copy of all relevant insurance policies which insure such Casualty Insurance Claims within five (5) Business Days,
provided, however, that if CCE cannot provide such policy within five (5) Business Days after exercising commercially reasonable efforts to locate such policy, CCE shall continue to exercise its commercially reasonable efforts to provide such
policy to ETP as soon as possible thereafter. 
 (f) Except to the extent specified in this Section 5.8, TPC shall not participate in
any insurance policy or program of CCE or any of its Affiliates following the Closing. 
 Section 5.9 Preservation of Records.
ETP agrees that it shall, at its own expense, preserve and keep the records held by it relating to the business of TPC that could reasonably be required after the Closing by CCE for as long as may be required for such categories of records by the
time periods required by Applicable Law and in accordance with CCE’s document retention practices. In addition, ETP shall make such records available to CCE as may reasonably be required by CCE in connection with, among other things, any
insurance claim, legal proceeding or governmental investigation relating to the respective businesses of CCE and its Affiliates, including TPC. 
 Section 5.10 Public Statements. Neither party shall, nor shall permit its Affiliates to, issue or cause the publication of any press release or other announcement with respect to this Agreement or the transactions contemplated
hereby without the consent of the other party hereto, unless such disclosure is required by Applicable Law, or by obligations pursuant to any agreement with any national securities exchange; provided, however, that the party intending to

  

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 make such release shall give the other parties prior notice and shall use its commercially reasonable efforts consistent
with such Applicable Law or obligation to consult with the other parties with respect to the text thereof. 
 Section 5.11 Assignment
of Trademarks. 
 (a) Effective upon the Closing Date, CCE shall assign or cause to be assigned to TPC, the trademarks, service marks, and
trade names listed on Section 5.11 of the CCE Disclosure Letter, together with all slogans, logotypes, designs and trade dress associated therewith, including all applications and registrations therefor, which are, in each case, in existence on
the Closing Date and currently being used in the conduct of the business of TPC (collectively, the “TPC Marks”). 
 (b) CCE
shall use commercially reasonable efforts to assist ETP in protecting and maintaining the rights of TPC in connection with use of the TPC Marks by TPC, including preparation and execution of documents necessary or appropriate in the ordinary course
to register TPC Marks and/or record this Agreement. As between the parties, ETP shall have the sole right to, and in its sole discretion may, commence, prosecute or defend, and control any action concerning the TPC Marks. 
 Section 5.12 Commercially Reasonable Efforts. Upon the terms and subject to the conditions of this Agreement, each of the parties hereto will
use, and will cause their respective Affiliates to use, all commercially reasonable efforts to take, or cause to be taken, all action, and to do, or cause to be done, all things necessary, proper or advisable consistent with Applicable Law to
consummate and make effective in the most expeditious manner practicable the transactions contemplated hereby. 
 Section 5.13
Financial Statements; Financial Records of CCE. 
 (a) If Closing does not occur on or prior to September 30, 2006, then CCE shall
(i) no later than November 15, 2006, prepare and deliver to ETP the CCE Nine Month Interim Financial Statements, (ii) no later than November 15, 2006, cause TPC to prepare and deliver to ETP the TPC Nine Month Interim Financial
Statements and (iii) no later than December 1, 2006, cause Citrus to prepare and deliver to ETP the Citrus Nine Month Interim Financial Statements, and CCE shall cause the financial statements referred to in clauses (i), (ii) and
(iii) of this sentence to present fairly in all material respects, in accordance with GAAP consistently applied, the financial condition and results of operation of CCE, Citrus and TPC, respectively, as of and for the periods set forth therein,
subject, in the case of the CCE Nine Month Interim Financial Statements, the Citrus Nine Month Interim Financial Statements and the TPC Nine Month Interim Financial Statements, to normal recurring year-end adjustments that are not material, either
individually or in the aggregate, and the absence of full footnote disclosure. If Closing does not occur on or prior to December 31, 2006, then CCE (w) no later than March 1, 2007, shall prepare and deliver to ETP the CCE 2006
Financial Statements and the Citrus 2006 Financial Statements, and (x) no later than March 1, 2007, cause TPC to prepare and deliver to ETP the TPC 2006 Financial Statements. CCE shall cause the financial statements referred to in clauses
(w) and (x) of the preceding sentence to present fairly in all material respects, in accordance with GAAP consistently applied, the financial condition and results of 
  

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 operation of CCE, Citrus and TPC, respectively, as of and for the periods set forth therein. No later than
(y) November 1, 2006, CCE shall prepare and deliver to ETP the CCE Stub Period Income Statements and (z) November 1, 2006, cause TPC and Citrus to prepare and deliver to ETP the TPC Stub Period Financial Statements and the Citrus
Stub Period Financial Statements, respectively. CCE shall cause the financial statements for three month periods referred to in clauses (y) and (z) of the preceding sentence to fairly present in all material respects, in accordance with
GAAP consistently applied, subject to normal recurring year-end adjustments that are not material, either individually or in the aggregate, and the absence of full footnote disclosure, and shall cause the financial statements for one month periods
referred to in clauses (y) and (z) of the preceding sentence to be prepared in a manner not inconsistent with the financial statements for the quarterly period from which such one month financial statements were taken. 
 (b) CCE shall use commercially reasonable efforts, at ETP’s expense, to (i) cause the CCE Financial Statements, the Citrus Financial Statements
and the TPC Financial Statements to be modified so that the CCE Financial Statements, the Citrus Financial Statements and the TPC Financial Statements comply in all material respects with the requirements of Regulation S-X, as adopted by the SEC,
and (ii) deliver such modified financial statements to ETP (A) no later than November 1, 2006 in the case of the CCE Annual Financial Statements, the Citrus Annual Financial Statements, the TPC Annual Financial Statements, the CCE Six
Month Interim Financial Statements, the Citrus Six Month Interim Financial Statements and the TPC Six Month Interim Financial Statements, (B) no later than December 15, 2006 in the case of the CCE Nine Month Interim Financial Statements,
the Citrus Nine Month Interim Financial Statements and the TPC Nine Month Interim Financial Statements, (C) no later than March 1, 2007 in the case of the CCE 2006 Financial Statements and the Citrus 2006 Financial Statements and
(D) no later than March 15, 2007 in the case of the TPC 2006 Financial Statements; provided, however, that notwithstanding the foregoing, such modified financial statements shall only be required to be delivered by CCE to ETP to the extent
that the corresponding non-modified financial statements contemplated by Section 5.13(a) are required to be delivered by CCE to ETP. 
 (c) CCE consents to the inclusion or incorporation by reference of the CCE S-X Financial Statements, the Citrus S-X Financial Statements and the TPC S-X Financial Statements in any registration statement, report or other document of ETP or
any of its Affiliates to be filed with the SEC in which ETP or such Affiliates reasonably determines that the CCE S-X Financial Statements, the Citrus S-X Financial Statements and/or the TPC S-X Financial Statements are required to be included or
incorporated by reference to satisfy any rule or regulation of the SEC or to satisfy relevant disclosure obligations under the Securities Act or the Exchange Act. CCE shall use commercially reasonable efforts to cause PricewaterhouseCoopers LLP to
consent to the inclusion or incorporation by reference of its audit opinion with respect to the CCE 2006 Financial Statements, the CCE Annual Financial Statements, the TPC 2006 Financial Statements, the TPC Annual Financial Statements, the Citrus
2006 Financial Statements and the Citrus Annual Financial Statements in any such registration statement, report or other document. CCE shall execute and deliver to PricewaterhouseCoopers LLP such representation letters, in form and substance
customary for representation letters provided to external audit firms by management of the company whose financial statements are the subject of an audit or are subject of a review pursuant to Statement of Accounting Standards 100 
  

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 (Interim Financial Information) (or any successor statement related to the topic of accountants’ comfort letters),
as may be reasonably requested by PricewaterhouseCoopers LLP, with respect to the CCE S-X Financial Statements, the Citrus S-X Financial Statements and the TPC S-X Financial Statements. CCE shall use commercially reasonable efforts to cause
PricewaterhouseCoopers to deliver a comfort letter in form and substance customary with respect to offerings of securities registered under the Securities Act with respect to the CCE S-X Financial Statements, the Citrus S-X Financial Statements, the
TPC S-X Financial Statements and financial information related to CCE, Citrus and/or TPC that is included in a prospectus or offering memorandum related to an offering of securities of the type for which comfort letters are customarily provided to
the underwriters or initial purchasers in connection therewith. Any costs related to any of the foregoing described in Sections 5.13(b) and (c), including the preparation of such S-X financial statements, SAS 100 reviews, obtaining any consent of,
or comfort letters from, PricewaterhouseCoopers LLP, shall be borne by ETP. 
 (d) CCE shall, and shall cause its Subsidiaries to, afford to
ETP and any of its Affiliates, and their respective accountants, counsel and representatives full reasonable access during normal business hours for three years following the Closing Date to all financial and accounting records, and contracts and
other documentation reasonably related thereto, of CCE and its Subsidiaries, including Citrus, to the extent (i) such records and other information are not part of the books and records of TPC delivered to ETP pursuant to Section 5.2(a)
hereof and (ii) such records and other information is reasonably necessary for ETP and any of its Affiliates in connection with (A) the preparation of pro forma financial statements related to the transactions contemplated by this
Agreement, (B) the preparation of any report or other filing required for compliance with federal or state securities laws, including prospectuses or offering memoranda relating to securities offerings, by ETP or any of its Affiliates,
(C) a subsequent audit of the financial statements of CCE or TPC in connection with a change in external audit firms, (D) a subsequent restatement of the financial statements of the financial statements of CCE, Citrus or TPC or
(E) any inquiry, investigation or legal proceeding by any Governmental Authority related to the financial statements of CCE, Citrus or TPC. 
 Section 5.14 Covenants Regarding the 50% CCE Interest. 
 (a) From and after the date of this Agreement until the closing
of the transactions contemplated by the CCE Acquisition Agreement, ETP shall undertake its commercially reasonable efforts to consummate the transactions contemplated by the CCE Acquisition Agreement. 
 (b) From and after the closing of the transactions contemplated by the CCE Acquisition Agreement until Closing, ETP shall not cause or permit the 50% CCE
Interest to be subject to any Encumbrances. 
 Section 5.15 No-Hire/Non-Solicitation. For a period of twelve (12) months
following the Closing Date, neither ETP, TPC nor any of their Affiliates shall, directly or indirectly, hire or solicit (with the exception of any general solicitation of employment through any general advertising medium in the ordinary course of
business for employment as an employee or consultant), any employee of CCE or any of its Affiliates, unless such employee’s employment is or has been terminated by CCE and its Affiliates. 
  

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 Section 5.16 CCE Executive Committee. On or immediately prior to the Closing Date, ETP shall
cause any members of the executive committee of CCE designated by ETP to have (a) agreed to the appointment of successor members to such executive committee as designated by CCE to take office upon the Closing and (b) submitted their
resignations as members of such executive committee effective upon the Closing. 
 Section 5.17 Directors’ and Officers’
Indemnification. For a period of not less than six (6) years after the Closing Date, ETP shall cause the certificate of formation and limited liability company or other organizational documents of TPC to continue to include the same
provisions concerning the exculpation, indemnification, advancement of expenses to and holding harmless of, all past and present employees, officers, agents, managers and directors of TPC for acts or omissions occurring at or prior to the Closing as
are contained in such documents as of the date of execution of this Agreement, and ETP shall cause TPC to honor all such provisions, including making any indemnification payments and expense advancements thereunder. In the event that any
indemnifiable claim is asserted or made within such six (6) year period, all rights to indemnification and advancement of expenses in respect of such claim shall continue to the extent currently permitted under TPC’s certificate of
formation and limited liability company agreement or other organizational documents until such claim is disposed of or all orders in connection with such claim are fully satisfied. CCE agrees to submit any such claims for indemnification for acts or
omissions that occurred at or prior to the Closing by any such person to any of its applicable directors’ and officers’ insurance policy covering the matters that give rise to any such claim and CCE shall use reasonable efforts to obtain
such pre-closing insurance coverage on behalf of TPC, if available. CCE makes no representation or warranty with respect to the applicability, validity or adequacy of any directors’ and officers’ insurance policy covering the matters
specified in this Section 5.17 and CCE shall not be responsible to ETP or any of its Affiliates for the failure of any insurer to pay under any such directors’ and officers’ insurance policy. 
 Section 5.18 TPC Notes. If any of TPC’s $270,000,000 5.39% Senior Unsecured Notes due November 17, 2014 or $250,000,000 5.54%
Senior Unsecured Notes due November 17, 2016 are required to be prepaid in accordance with the terms of the TPC Note Purchase Agreement due to a Change of Control (as defined therein) of TPC (as a result of either the transactions contemplated
by this Agreement or the CCE Acquisition Agreement), ETP shall use its commercially reasonable best efforts to facilitate TPC’s refinancing of such notes (with the cooperation of CCE) and ETP shall bear all costs and expenses (including legal
fees) associated with (i) any consent solicitation for amendments to, or waivers under, the TPC Note Purchase Agreement and (ii) any credit facility, bond offering or other financing transaction that is effected to raise funds for the
repayment of such notes. 
 ARTICLE VI 
 CONDITIONS 
 Section 6.1 Mutual Conditions to the Closing. The respective obligations of
each party to consummate the transactions contemplated by this Agreement shall be subject to the satisfaction or waiver of each of the following conditions at or prior to the Closing Date: 
  

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 (a) All waiting periods applicable to the transactions contemplated by this Agreement under any
applicable law shall have expired or been terminated, and all filings required by law to be made prior to Closing by CCE or ETP with, and all consents, approvals and authorizations required by law to be obtained prior to Closing by CCE or by ETP
from, any Governmental Authority under any law in order to consummate the transactions contemplated by this Agreement shall have been made or obtained (as the case may be), except where the failure to make such filings, or to obtain any such
authorizations, individually or in the aggregate, would not have a Material Adverse Effect; provided, however, if any consent, approval or authorization from any Governmental Authority the absence of which would not have a Material Adverse
Effect is not obtained prior to or at the Closing and, as a result, the transfer of one or more assets, rights or interests is prevented at the Closing, from and after the Closing, CCE and ETP shall continue to use their commercially reasonable
efforts to obtain such requisite consent, approval or authorization; 
 (b) No court of competent jurisdiction or other competent
Governmental Authority shall have issued a statute, rule, regulation, order, decree or injunction or taken any other action that has the effect of restraining or enjoining the consummation of the transactions contemplated hereby or imposing a
Burdensome Condition; and 
 (c) The FCC shall have granted its consent to the transfer of control contemplated by this Agreement.

 Section 6.2 ETP’s Conditions to the Closing. The obligations of ETP to consummate the transactions contemplated by this
Agreement shall be subject to the satisfaction or waiver of each of the following conditions at or prior to the Closing Date: 
 (a) The
representations and warranties of CCE contained in this Agreement (A) if subject to any limitations as to “materiality” or “Material Adverse Effect” shall be true and correct at and as of the Closing Date as if made at and
as of such time (except to the extent expressly made as of an earlier date, in which case as of such earlier date), and (B) if not subject to any limitations as to “materiality” or “Material Adverse Effect,” shall be true
and correct at and as of the Closing Date as if made at and as of such time (except to the extent expressly made as of an earlier date, in which case as of such earlier date) except where the failure of such representations and warranties to be true
and correct would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; 
 (b) CCE and its
Affiliates shall have made all deliveries required under Section 2.5; 
 (c) CCE shall have performed in all material respects all of
its obligations required to be performed by it under this Agreement at or prior to the Closing Date, and ETP shall have received a certificate to such effect executed by an officer of CCE; 
 (d) ETP shall have received a properly executed statement of CCE dated as of the Closing Date and conforming to the requirements of Treasury Regulation
Section 1.1445-2(b)(2); 
  

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 (e) TPC shall have been fully and unconditionally released as a guarantor of any obligations of CCE or
any of its Affiliates (other than TPC); 
 (f) ETP shall have acquired the 50% CCE Interest pursuant to the CCE Acquisition Agreement;

 (g) CCE shall have made the cash distributions as specified in Section 5.1(c); 
 (h) CCE and PEPL shall have executed and delivered to ETP the TPC Transition Services Agreement; and 
 (i) all of the Existing TW Holdings Debt, including all unpaid interest and premiums, if any, shall have been repaid. 
 Section 6.3 CCE’s Conditions to the Closing. The obligations of CCE to consummate the transactions contemplated by this Agreement shall
be subject to the satisfaction or waiver of each of the following conditions at or prior to the Closing Date: 
 (a) The representations and
warranties of ETP contained in this Agreement (A) if subject to any limitations as to “materiality” or “Material Adverse Effect,” shall be true and correct at and as of the Closing Date as if made at and as of such time
(except to the extent expressly made as of an earlier date, in which case as of such earlier date), and (B) if not subject to any limitations as to “materiality” or “Material Adverse Effect,” shall be true and correct at and
as of the Closing Date as if made at and as of such time (except to the extent expressly made as of an earlier date, in which case as of such earlier date) except where the failure of such representations and warranties to be true and correct would
not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of ETP to consummate the transactions contemplated by this Agreement; 
 (b) ETP shall have made all deliveries required under Section 2.6; 
 (c) ETP shall have performed in all material respects all of its obligations required to be performed by it under this Agreement at or prior to the Closing Date, and CCE shall have received a certificate to such
effect executed by an officer of ETP; 
 (d) CCE shall have received a properly executed statement of ETP dated as of the Closing Date and
conforming to the requirements of Treasury Regulation Section 1.1445-2(b)(2); 
 (e) CCE shall have obtained all approvals, consents and
releases that are listed in Section 6.3(e) of the CCE Disclosure Letter; 
 (f) ETP shall have acquired the 50% CCE Interest pursuant to
the CCE Acquisition Agreement; and 
 (g) CCE shall have made the cash distributions as specified in Section 5.1(c); 
  

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 ARTICLE VII 
 TERMINATION AND ABANDONMENT 
 Section 7.1 Termination. This Agreement may be terminated
at any time prior to the Closing Date by: 
 (a) mutual written consent of the parties; 
 (b) by either ETP or CCE, upon written notice to the other parties, if the Closing shall not have occurred on or before February 1, 2007 (the
“Initial Termination Date”); provided, however, that if on the Initial Termination Date the conditions to closing set forth in Section 6.1(a) and Section 6.1(b) shall not have been fulfilled but are reasonably
capable of being fulfilled no later than March 1, 2007, then, if a written notice requesting an extension of the termination date has been delivered by either ETP to CCE, or by CCE to ETP, at any time during the ten business day period ending
on the Initial Termination Date, the termination date shall be extended to March 1, 2007; 
 (c) by either ETP or CCE upon written
notice to the other party, if any of the mutual conditions to the Closing set forth in Section 6.1 shall have become incapable of fulfillment by February 1, 2007 or March 1, 2007, as the case may be, and shall not have been waived in
writing by the other party; 
 (d) by ETP, so long as ETP is not then in breach of its obligations under this Agreement, upon a breach of any
covenant or agreement on the part of CCE set forth in this Agreement, or if any representation or warranty of CCE shall have been or become untrue, in each case such that the conditions set forth in Section 6.2 would not be satisfied;
provided, however, that ETP may not terminate this Agreement if such breach or untruth is capable of being cured by CCE by not later than February 1, 2007 or March 1, 2007, as the case may be, through the exercise of its
commercially reasonable efforts, so long as CCE continues to exercise such commercially reasonable efforts (until February 1, 2007 or March 1, 2007, as the case may be); 
 (e) by CCE, so long as CCE is not then in breach of its obligations under this Agreement, upon a breach of any covenant or agreement on the part of ETP
set forth in this Agreement, or if any representation or warranty of ETP shall have been or become untrue, in each case such that the conditions set forth in Section 6.3 would not be satisfied; provided, however, that CCE may not
terminate this Agreement if such breach or untruth is capable of being cured by ETP by not later than February 1, 2007 or March 1, 2007, as the case may be, through the exercise of its commercially reasonable efforts, so long as ETP
continues to exercise such commercially reasonable efforts (until February 1, 2007 or March 1, 2007, as the case may be); and 
 (f) by either CCE or ETP if any Governmental Authority shall have issued an order, decree or ruling or taken any other action, which permanently restrains, enjoins or otherwise prohibits the transactions contemplated by this Agreement or
the CCE Acquisition Agreement and which order, decree, ruling or other action is not subject to appeal; unless failure to consummate closing because of such action by the Governmental Authority is due to the failure of the party seeking to terminate
to have fulfilled its obligations under Section 5.3 and Section 5.4. 
  

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 The right of any party hereto to terminate this Agreement pursuant to this Section 7.1 shall remain
operative and in full force and effect regardless of any investigation made by or on behalf of any party hereto, any Person controlling any such party or any of their respective officers, directors, representatives or agents, whether prior to or
after the execution of this Agreement. 
 Section 7.2 Effect of Termination. If this Agreement is terminated pursuant to
Section 7.1, this Agreement (but not the Confidentiality Agreement) shall become void and of no effect with no liability on the part of any party (or any member, stockholder or representative of such party) to the other party hereto;
provided, however, that, if such termination shall result from the willful (i) failure of a party to fulfill a condition to the performance of the obligations of the other parties, (ii) failure of a party to perform a material
covenant hereof or (iii) breach by a party hereto of any representation or warranty or agreement contained herein, such party shall be fully liable for any and all liabilities and damages incurred or suffered by the other parties as a result of
such willful failure or breach; and provided further, that notwithstanding the foregoing or anything else in this Agreement to the contrary, the provisions of this Section 7.2 and Article IX shall survive any termination hereof.

 ARTICLE VIII 
 SURVIVAL; INDEMNIFICATION 
 Section 8.1 Survival. 
 (a) The representations and warranties provided for in this Agreement shall survive the Closing and remain in full force and effect until the twelve-month
(12) anniversary of this Agreement; provided however, that the representations and warranties set forth in Section 3.2 (Authority Relative to this Agreement), Section 3.3 (TPC Interests), Section 3.19 (Brokerage and
Finders’ Fees), Section 4.2 (Authority Relative to this Agreement), Section 4.3 (50% CCE Interests) and Section 4.8 (Brokerage and Finders’ Fees) shall survive indefinitely, the representations and warranties set forth in
Section 3.16 (Tax Matters) shall survive for a period equal to the applicable statute of limitations for each Tax and taxable year, the representations and warranties set forth in Section 3.15 (Environmental Matters) shall survive until
the second (2nd) anniversary of the Closing Date, and the representations and warranties set forth in Section 3.12 (Employee Matters) shall survive for a period equal to the applicable statutes of limitations with respect to the matters
described therein. Each covenant and agreement of CCE and ETP contained in this Agreement that by its terms requires performance after the Closing Date shall survive the Closing and shall remain in full force and effect until such covenant or
agreement is fully performed. 
 (b) No Claim for damages or other relief of any kind (including a Claim for indemnification under
Section 8.2 hereof) arising against an Indemnified Party out of or relating to this Agreement or the transactions contemplated hereby, whether sounding in contract, tort, breach of warranty, securities law, other statutory cause of action,
deceptive trade practice, strict liability, product liability or other cause of action or theory of liability (except, in all cases 
  

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 Claims alleging fraud, intentional misrepresentation or intentional misconduct), may be brought unless suit thereon is
filed, or a written notice describing the nature of that Claim, the theory of liability, the nature of the relief sought and the material factual assertions upon which the Claim is based is given to the other party, before the termination of the
Survival Period. 
 (c) The survival period of each representation or warranty as provided in this Section 8.1 is referred to herein as
the “Survival Period.” Notwithstanding the foregoing, any representation or warranty that would otherwise terminate shall survive with respect to Damages which respect to which suit thereon is filed or of which notice describing the
nature of that Claim, the theory of liability, the nature of the relief sought and the material factual assertions upon which the Claim is based is given pursuant to this Agreement prior to the end of the Survival Period, until the matter is finally
resolved and any related Damages are paid. 
 Section 8.2 Indemnification. 
 (a) Subject to the limitations set forth in this Article VIII, subsequent to the Closing, CCE shall indemnify, defend, save and hold harmless, ETP, TPC,
their respective successors and permitted assigns, and their shareholders, members, partners (general and limited), officers, directors, managers, trustees, incorporators, employees, agents, attorneys, consultants and representatives, and each of
their heirs, executors, successors and assigns (collectively, the “ETP Indemnified Parties”), against and in respect of any and all Damages to the extent incurred by the ETP Indemnified Party arising out of, resulting from or
incurred in connection with: 
 (i) any breach or inaccuracy of any representation or warranty of CCE contained in this
Agreement; 
 (ii) any breach by CCE of any covenant or agreement contained in this Agreement; and 
 (iii) any Third Party Claim against ETP arising out of or resulting from ETP’s indirect ownership interests in CrossCountry Citrus,
LLC, Citrus Corp. or any Subsidiaries of Citrus Corp. other than for actions authorized, or intentional acts of omission, by ETP in its capacity as the Class B Member or by any Class B Executive Committee Member under, and as defined in, the CCE LLC
Agreement. 
 (b) Subject to the limitations set forth in this Article VIII, subsequent to the Closing, ETP shall indemnify, defend, save and
hold harmless, CCE and its Affiliates, their respective successors and permitted assigns, and their shareholders, members, partners (general and limited), officers, directors, managers, trustees, incorporators, employees, agents, attorneys,
consultants and representatives, and each of their heirs, executors, successors and assigns (collectively, the “CCE Indemnified Parties”) against and in respect of any and all Damages to the extent incurred by the CCE Indemnified
Party arising out of, resulting from or incurred in connection with: 
 (i) any breach or inaccuracy of any representation or
warranty of ETP contained in this Agreement; 
  

 60 

 (ii) any breach by ETP of any covenant or agreement contained in this Agreement; and

 (iii) any liability or obligation of TPC, whether arising before or after Closing, to the extent such liability or
obligation (x) cannot be properly asserted against CCE under Section 8.2(a) or otherwise by ETP, except to the extent such liability or obligation cannot be properly asserted against CCE because of limitations under Section 8.2(d),
and (y) do not arise as a result of any other obligation of CCE to any ETP Indemnified Party arising under this Agreement. 
 (c) Any
Person providing indemnification pursuant to the provisions of this Section 8.2 is referred to herein as an “Indemnifying Party,” and any Person entitled to be indemnified pursuant to the provisions of this Section 8.2 is
referred to herein as an “Indemnified Party.” 
 (d) CCE’s indemnification obligations contained in
Section 8.2(a)(i) shall not apply to any Claim for Damages until the aggregate of all such Damages total $15,000,000 (the “Threshold Amount”), in which event CCE’s indemnity obligation contained in Section 8.2(a)(i)
shall apply to all Claims for Damages in excess of the Threshold Amount, subject to a maximum liability to all Indemnified Parties, in the aggregate, of $75,000,000 (the “Cap Amount”) for all Claims under Section 8.2(a)(i) in
the aggregate; provided, however, that the limitations set forth in this sentence shall not apply with respect to CCE’s indemnification obligations related to breaches of the representations and warranties contained in Section 3.2
(Authority Relative to this Agreement) or Section 3.3 (TPC Interests); and provided further that, notwithstanding anything in this Agreement to the contrary, claims for indemnification relating to the representations and warranties contained in
Section 3.12(g) will not be subject to the Threshold Amount or the Cap Amount and shall be independently determined without regard to such limitations. Damages relating to any single breach or series of related breaches of CCE’s
representations and warranties shall not constitute Damages, and therefore shall not be applied towards the Threshold Amount or be indemnifiable hereunder, unless such Damages relating to any single breach or series of related breaches exceed
$300,000 (the “Minimum Claim Amount”). 
 (e) ETP’s indemnification obligations contained in Section 8.2(b)(i)
shall not apply to any Claim for Damages until the aggregate of all such Damages equals the Threshold Amount, in which event ETP’s indemnification obligation contained in Section 8.2(b)(i) shall apply to all Claims for Damages in excess of
the Threshold Amount, subject to a maximum liability to all Indemnified Parties, in the aggregate, of the Cap Amount for all Claims under Section 8.2(b)(i) in the aggregate; provided, however, that the limitations set forth in this
sentence shall not apply with respect to ETP’s indemnification obligations related to breaches of the representations and warranties contained in Section 4.2 (Authority Relative to this Agreement) or Section 4.3 (50% CCE Interests).
Damages relating to any single breach or series of related breaches of ETP’s representations and warranties shall not constitute Damages, and therefore shall not be applied towards the Threshold Amount or be indemnifiable hereunder, unless such
Damages relating to any single breach or series of related breaches exceeds the Minimum Claim Amount. 
  

 61 

 (f) The indemnification obligations of each party hereto under this Section 8.2 shall inure to the
benefit of the ETP Indemnified Parties and CCE Indemnified Parties, and such ETP Indemnified Parties and CCE Indemnified Parties will be obligated to keep and perform the obligations imposed on an Indemnified Party by this Section 8.2, on the
same terms as are applicable to such other party. 
 (g) In all cases in which a Person is entitled to be indemnified in accordance with this
Agreement, such Indemnified Party shall be under a duty to take all commercially reasonable measures to mitigate all losses. Without limiting the foregoing, each Indemnified Party shall use its commercially reasonable efforts to collect any amount
available under insurance coverage, or from any other Person alleged to be responsible, for any Damages for which an indemnity claim is being made; provided, however, that the reasonable costs incurred by the Indemnified Party in taking such
measures shall be included in the amount of any Claim. 
 (h) An Indemnified Party shall not be entitled under this Agreement to multiple
recovery for the same losses. If an Indemnified Party receives any amount under applicable insurance policies, or from any other Person alleged to be responsible for any Damages, subsequent to an indemnification payment by the Indemnifying Party,
then such Indemnified Party shall promptly reimburse the Indemnifying Party for any payment made or expense incurred by such Indemnifying Party in connection with providing such indemnification payment up to the amount received by the Indemnified
Party, net of any expenses incurred by such Indemnified Party in collecting such amount. 
 (i) All amounts paid by CCE or ETP, as the case
may be, under this Article VIII shall be treated as adjustments to the property distributed by CCE to ETP in redemption of the 50% CCE Interest for all Tax purposes. 
 (j) Notwithstanding any other provision in the Agreement to the contrary, this Section 8.2 shall not apply to any Claim of indemnification with respect to Tax matters. Claims for indemnification with respect to
Tax matters shall be governed by Section 5.6. 
 (k) For purposes of this Article VIII only, the existence of a breach of a
representation or warranty in this Agreement and the calculation of Damages arising out of a breach of any representation or warranty in this Agreement shall be determined without giving effect to any exception or qualification of such
representation or warranty as to the materiality of the breach thereof or the Material Adverse Effect on any Person of such breach. 
 Except
as provided in Section 5.6 hereof, the provisions of this Article VIII shall constitute the sole and exclusive remedy of any Indemnified Party for Damages arising out of, resulting from or incurred in connection with any inaccuracy in any
representation or the breach of any warranty made by ETP, on the one hand, or CCE, on the other hand, in this Agreement; provided, however, that this exclusive remedy for Damages does not preclude a party from bringing an Action for specific
performance or other equitable remedy to require a party to perform its obligations under this Agreement; provided further, that this exclusive remedy for Damages does not preclude a party from bringing an Action alleging fraud, intentional
misrepresentation or intentional misconduct without reference to the provisions of this Article VIII. 
  

 62 

 Section 8.3 Calculation of Damages. The Damages suffered by any Indemnified Party shall be
calculated after giving effect to the actual receipt of any available insurance proceeds paid directly to the Indemnified Party. In computing the amount of any insurance proceeds, such insurance proceeds shall be reduced by a reasonable estimate of
the present value of future premium increases attributable to the payment of such Claim. 
 Section 8.4 Procedures for Third-Party
Claims. 
 (a) In the case of any Claim for indemnification arising from a Claim of a third party against an Indemnified Party arising
under paragraph 8.2(a) or 8.2(b) as the case may be (a “Third-Party Claim”), an Indemnified Party shall give prompt written notice to the Indemnifying Party of any Claim or demand of which such Indemnified Party has knowledge, and
as to which it may request indemnification hereunder, specifying (to the extent known) the amount of such Claim and any relevant facts and circumstances relating thereto; provided, however, that any failure to give such prompt notice or to
provide any such facts and circumstances will not waive any rights of the Indemnified Party, except to the extent that the rights of the Indemnifying Party are actually materially prejudiced thereby. The Indemnifying Party shall have the right (and,
if it elects to exercise such right, to do so by written notice within thirty (30) days after receiving notice from the Indemnified Party) to defend and to direct the defense against any such Third-Party Claim, in its name or in the name of the
Indemnified Party, as the case may be, at the expense of the Indemnifying Party, and with counsel selected by the Indemnifying Party and reasonably satisfactory to the Indemnified Party, unless (i) the Indemnifying Party shall not have taken
any action to defend such Third-Party Claim within such thirty (30) day period, or (ii) the Indemnified Party shall have reasonably concluded that there is a conflict of interest between the Indemnified Party and the Indemnifying Party in
the conduct of the defense of such Third-Party Claim. Notwithstanding anything in this Agreement to the contrary (other than the last sentence of this Section 8.4(a)), the Indemnified Party, at the expense of the Indemnifying Party (which shall
include only reasonable out-of-pocket expenses actually incurred), shall cooperate with the Indemnifying Party and keep the Indemnifying Party fully informed in the defense of such Third-Party Claim. The Indemnified Party shall have the right to
participate in the defense of any Third-Party Claim with counsel employed at its own expense; provided, however, that in the case of any Third-Party Claim (A) described in clause (ii) above, or (B) as to which the Indemnifying
Party shall not in fact have employed counsel to assume the defense of such Third-Party Claim within such thirty-day (30-day) period, or (C) that involves assertion of criminal liability on the Indemnified Party, or (D) seeks to force the
Indemnified Party to take (or prevent the Indemnified Party from taking) any action, then in each such case the Indemnified Party shall have the right, but not the obligation, to conduct and control the defense thereof for the account of, and at the
risk of, the Indemnifying Party, and the reasonable fees and disbursements of such Indemnified Party’s counsel shall be at the expense of the Indemnifying Party. Except as provided in the last sentence of Section 8.4(b), the Indemnifying
Party shall have no indemnification obligations with respect to any Third-Party Claim which shall be settled by the Indemnified Party without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld,
delayed or conditioned. 
 (b) The Indemnifying Party, if it has assumed the defense of any Third Party Claim as provided in this Agreement,
shall not consent to a settlement of, or the entry of any judgment arising from, any such Third-Party Claim without the Indemnified Party’s prior written 
  

 63 

 consent (which consent shall not be unreasonably withheld, delayed or conditioned) unless (i) such settlement or
judgment relates solely to monetary damages, and (ii) prior to consenting to such settlement or such entry of judgment, the Indemnifying Party delivers to the Indemnified Party a writing (in form reasonably acceptable to the Indemnified Party)
which unconditionally provides that, subject to the provisions of Section 8.2(d) or Section 8.2(e), as appropriate, relating to the Minimum Claim Amount, the Threshold Amount and the Cap Amount, the Damages represented thereby are the
responsibility of the Indemnifying Party pursuant to the terms of this Agreement and that, subject to the provisions of the Threshold Amount, the Indemnifying Party shall pay all Damages associated therewith in accordance with the terms of this
Agreement. The Indemnifying Party shall not, without the Indemnified Party’s prior written consent, enter into any compromise or settlement that (x) commits the Indemnified Party to take, or to forbear to take, any action or
(y) involves a reasonable likelihood of an imposition of criminal liability on the Indemnified Party, or (z) does not provide for a complete release by such third party of the Indemnified Party. With the written consent of the Indemnifying
Party, which consent shall not be unreasonably withheld, conditioned or delayed, the Indemnified Party shall have the sole and exclusive right to settle any Third-Party Claim, on such terms and conditions as it deems reasonably appropriate, to the
extent such Third-Party Claim involves equitable or other nonmonetary relief against the Indemnified Party or involves a reasonable likelihood of an imposition of criminal liability on the Indemnified Party, and shall have the right to settle any
Third-Party Claim involving money damages for which the Indemnifying Party has not assumed the defense pursuant to this Section 8.4. 
 Section 8.5 Procedures for Inter-Party Claims. In the event that an Indemnified Party determines that it has a Claim for Damages against an Indemnifying Party hereunder (other than as a result of a Third-Party Claim), the
Indemnified Party shall give prompt written notice thereof to the Indemnifying Party, specifying the amount of such Claim and any relevant facts and circumstances relating thereto, and such notice shall be promptly given even if the nature or extent
of the Damages is not then known. The notification shall be subsequently supplemented within a reasonable time as additional information regarding the Claim or the nature or extent of Damages resulting therefrom becomes available to the Indemnified
Party. Any failure to give such prompt notice or supplement thereto or to provide any such facts and circumstances will not waive any rights of the Indemnified Party, except to the extent that the rights of the Indemnifying Party are actually
materially prejudiced thereby. The Indemnified Party and the Indemnifying Party shall negotiate in good faith for a thirty-day (30-day) period regarding the resolution of any disputed Claims for Damages. Promptly following the final determination of
the amount of any Damages claimed by the Indemnified Party, the Indemnifying Party, subject to the limitations of the Minimum Claim Amount, Threshold Amount and the Cap Amount, shall pay such Damages to the Indemnified Party by wire transfer or
check made payable to the order of the Indemnified Party. 
 ARTICLE IX 
 MISCELLANEOUS PROVISIONS 
 Section 9.1 Interpretation. Unless the
context of this Agreement otherwise requires, (a) words of any gender include the other gender; (b) words using the singular or plural number also include the plural or singular number, respectively; (c) the terms “hereof,”
“herein,” “hereby” and derivative or similar words refer to this entire Agreement; (d) the terms “Article,” 
  

 64 

 “Section” and “Exhibit” refer to the specified Article, Section and Exhibit of this Agreement,
respectively; and (e) “including,” shall mean “including, but not limited to.” Unless otherwise expressly provided, any agreement, instrument, law or regulation defined or referred to herein means such agreement, instrument,
law or regulation as from time to time amended, modified or supplemented, including (in the case of agreements or instruments) by waiver or consent and (in the case of a law or regulation) by succession of comparable successor law and includes (in
the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein. 
 Section 9.2
Disclosure Letter. The CCE Disclosure Letter is incorporated into this Agreement by reference and made a part hereof. 
 Section 9.3 Payments. All payments set forth in this Agreement and Exhibits are in United States Dollars. Such payments shall be made by wire transfer of immediately available funds or by such other means as the parties to such
payment shall designate. 
 Section 9.4 Expenses. Except as expressly set forth in Section 7.2 and in this Section 9.4,
or as agreed upon in writing by the parties, whether or not the transactions contemplated hereby are consummated, each party shall bear its own costs, fees and expenses, including the expenses of its Representatives, incurred by such party in
connection with this Agreement and the Related Agreements and the transaction contemplated hereby and thereby; provided, however, that CCE shall be solely responsible for all legal, accounting and other fees, costs and expenses incurred by
CCE, and TPC in connection with the negotiation, execution and closing of this Agreement. 
 Section 9.5 Choice of Law. This
Agreement shall be governed by and construed in accordance with the law of the State of New York (regardless of the laws that might otherwise govern under applicable New York principles of conflicts of law). 
 Section 9.6 Assignment. This Agreement may not be assigned by either party without the prior written consent of the other party; provided,
however, that without the prior written consent of the other party, each party shall have the right to assign its rights and obligations under this Agreement to any third party successor to all or substantially all of its entire business. This
Agreement shall be binding upon and, subject to the terms of the foregoing sentence, inure to the benefit of the parties hereto and their successors, legal representatives and assigns. 
 Section 9.7 Notices. All demands, notices, consents, approvals, reports, requests and other communications hereunder must be in writing, will
be deemed to have been duly given only if delivered personally or by facsimile transmission (with confirmation of receipt) or by an internationally-recognized express courier service or by mail (first class, postage prepaid) to the parties at the
following addresses or telephone or facsimile numbers and will be deemed effective upon delivery; provided, however, that any communication by facsimile shall be confirmed by an internationally-recognized express courier service or regular
mail. 
  

	 	(i)	If to CCE: 

 c/o Southern Union Company 
 5444 Westheimer Road 
  

 65 

 Houston, Texas 77056 
 Attention: Julie H. Edwards, 
                    SVP and CFO 
 Facsimile: (713) 989-1166 
 With a required copy (which shall not constitute notice to CCE) to: 
 Southern Union Company 
 5444 Westheimer
Road 
 Houston, Texas 77056 
 Attention: Monica M. Gaudiosi, 
                    SVP and Associate General Counsel 
 Facsimile: (713) 989-1213 
 And a required copy (which shall not constitute notice to CCE) to:

 Fleischman and Walsh, L.L.P. 
 1919 Pennsylvania Avenue, NW, Suite 600 
 Washington, DC 20006 
 Attention: Seth M. Warner 
 Facsimile:
(202) 265-5706 
  

	 	(ii)	If to ETP: 

 Energy Transfer Partners, L.P. 
 8801 South Yale Avenue 
 Tulsa, Oklahoma
74137 
 Attention: Robert A. Burk 
 Vice President and General Counsel 
 Facsimile: (918) 493-7290 
 And a required copy (which shall not constitute notice to ETP) to: 
 Vinson & Elkins L.L.P. 
 1001 Fannin Street 
 2300 First City Tower 
 Houston, Texas 77002

 Attention: Thomas P. Mason, Esq. 
 Telephone: (713) 758-4539 
 Facsimile: (713) 615-5320 
 or to such other address as the addressee shall have last furnished in writing in accord with this provision to the addressor. 
  

 66 

 Section 9.8 Consent to Jurisdiction. Each party shall maintain at all times a duly appointed
agent in the State of New York, which may be changed upon ten (10) Business Days’ notice to the other party, for the service of any process or summons in connection with any issue, litigation, action or proceeding brought in any such
court. Any such process or summons may also be served on it by mailing a copy of such process or summons to it at its address set forth, and in the manner provided, in Section 9.7. Each party hereby irrevocably consents to the exclusive
personal jurisdiction and venue of any New York State court located in the Borough of Manhattan or to any United States Federal court of competent jurisdiction located in the Southern District of the State of New York, in any action, Claim or
proceeding arising out of or in connection with this Agreement and agrees not to commence or prosecute any action, Claim or proceeding in any other court. Each of the parties hereby expressly and irrevocably waives and agrees not to assert the
defense of lack of personal jurisdiction, forum non conveniens or any similar defense with respect to the maintenance of any such action or proceeding in New York. 
 Section 9.9 No Right of Setoff. Neither party hereto nor any Affiliate thereof may deduct from, set off, holdback or otherwise reduce in any manner whatsoever against any amounts such Persons may owe to
the other party hereto or any of its Affiliates any amounts owed by such Persons to the other party or its Affiliates. 
 Section 9.10
Time is of the Essence. Time is of the essence in the performance of the provisions of this Agreement. 
 Section 9.11
Specific Performance. The parties hereto agree that irreparable damage would occur in the event that any provision of this Agreement was not performed in accordance with the terms hereof and that the parties shall be entitled to specific
performance of the terms hereof, in addition to any other remedy at law or equity, subject to the limitations set forth in Section 7.2 of this Agreement. 
 Section 9.12 Entire Agreement. This Agreement, together with the CCE Disclosure Letter, the Exhibits hereto and the Confidentiality Agreement constitute the entire agreement between the parties hereto with
respect to the subject matter herein and supersede all previous agreements, whether written or oral, relating to the subject matter of this Agreement and all prior drafts of this Agreement, all of which are merged into this Agreement. No prior
drafts of this Agreement and no words or phrases from any such prior drafts shall be admissible into evidence in any action or suit involving this Agreement. In case of any material conflict between any provision of this Agreement and any other such
document, this Agreement shall take precedence. 
 Section 9.13 Third Party Beneficiaries. Except as expressly provided in
Article VIII hereof, none of the provisions of this Agreement shall be for the benefit of or enforceable by any third party, including any creditor of any party or any of their affiliates. Except as expressly provided in Article VIII hereof, no such
third party shall obtain any right under any provision of this Agreement or shall by reasons of any such provision make any Claim in respect of any Liability (or otherwise) against either party hereto. 
 Section 9.14 Counterparts. This Agreement may be executed in two or more counterparts, which, when executed, shall be deemed to be an
original and which together shall constitute one and the same document. 
  

 67 

 Section 9.15 Severability. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under any applicable present or future law, and if the rights or obligations of either party under this Agreement will not be materially and adversely affected thereby, (i) such provision shall be fully severable,
(ii) this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision had never comprised a part hereof, (iii) the remaining provisions of this Agreement shall remain in full force and effect and shall
not be affected by the illegal, invalid or unenforceable provision or by its severance herefrom and (iv) in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as a part of this Agreement, a legal, valid
and enforceable provision as similar in terms to such illegal, invalid or unenforceable provision as may be possible. 
 Section 9.16
Headings. The headings used in this Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof. 
 Section 9.17 Waiver. Any term or condition of this Agreement may be waived at any time by the party that is entitled to the benefit thereof, but no such waiver shall be effective unless set forth in a
written instrument duly executed by or on behalf of the party or parties waiving such term or condition. No waiver by any party of any term or condition of this Agreement, in any one or more instances, shall be deemed to be or construed as a waiver
of the same or any other term or condition of this Agreement on any future occasion. All remedies, either under this Agreement or by law or otherwise afforded, will be cumulative and not alternative. 
 Section 9.18 Amendment. This Agreement may be altered, amended or changed only by a writing making specific reference to this Agreement and
signed by duly authorized representatives of each party. 
  

 68 

 IN WITNESS WHEREOF, CCE and ETP, by their duly authorized officers, have executed this Agreement as of
the date first written above. 
  

					
	ENERGY TRANSFER PARTNERS, L.P.
		
	By:	 	 Energy Transfer Partners GP, L.P., its
 general partner

		
	By:	 	 Energy Transfer Partners, L.L.C., its
 general partner

			
		 	By:	 	 /s/ Kelcy Warren
  

		 	Name:	 	Kelcy Warren
		 	Title:	 	Co-Chief Executive Officer
	
	CCE HOLDINGS, LLC
		
	By:	 	 /s/ Drew Fossum
  

	Name:	 	Drew Fossum
	Title:	 	Sr. VP & CLO

 Signature Page to Redemption Agreement 

 Exhibit A 
 CCE’S DISCLOSURE SCHEDULES 
  

 S-1 

 Section 1.1(a) KNOWLEDGE 
 Robert O. Bond 
 Gary W. Lefelar 
 Shelley A. Corman 
 Don R. Hawkins 
 Michael T. Langston 
 Gary P. Smith 
 William A. Kendrick 
  

 S-2 

 Section 1.1((b) 
 Pro Forma Adjusted Balance Sheet 
 See Appendix 1.1(b) 
  

 S-3 

 TRANSWESTERN PIPELINE COMPANY, LLC 
 PRO FORMA ADJUSTED BALANCE SHEET 
 As of 06/30/06 
 ($000) 
 Appendix 1.1(b) 
  

												
	 	  	June
2006	 	 	Remove debt
from
Current (a)	  	Reflect
Dividend (b)	 	 	Total	 
	 Assets
	  			 		  			 		
	 Current Assets
	  			 		  			 		
	 Cash
	  	22,141	  	 		  	(22,000	) 	 	141	  
	 Accounts Receivable - Assoc Co’s
	  	119	  	 		  			 	119	  
	 Accounts Receivable - Other
	  	18,722	  	 		  			 	18,722	  
	 Transportation and Exchange Gas Receivable
	  	5,418	  	 		  			 	5,418	  
	 Materials and Supplies
	  	950	  	 		  			 	950	  
	 Other Current Assets
	  	4,949	  	 		  			 	4,949	  
		  	 	 	 	 	  	 	 	 	 	 
	 Total Current Assets
	  	52,299	  	 		  	(22,000	) 	 	30,299	  
	 Property, Plant & Equipment
	  			 		  			 		
	 Property, Plant & Equipment, Gross
	  	1,084,468	  	 		  			 	1,084,468	  
	 Accumulated Depreciation
	  	(33,396	) 	 		  			 	(33,396	) 
		  	 	 	 	 	  	 	 	 	 	 
	 Property, Plant & Equipment, Net
	  	1,051,072	  	 		  			 	1,051,072	  
	 Other Assets 
	  	113,289	  	 		  			 	113,289	  
	 Goodwill
	  			 		  			 		
	 Regulatory Assets
	  	62,561	  	 		  			 	62,561	  
	 Other Long Term Assets
	  	38,897	  	 		  			 	38,897	  
		  	 	 	 	 	  	 	 	 	 	 
	 Total Other Assets
	  	214,747	  	 		  			 	214,747	  
		  	 	 	 	 	  	 	 	 	 	 
	 Total Assets
	  	1,318,118	  	 		  	(22,000	) 	 	1,296,118	  
		  	 	 	 	 	  	 	 	 	 	 
	 Liabilities & Membership Interest
	  			 		  			 		
					
	 Current Liabilities
	  			 		  			 		
	 Accounts Payable - Assoc Co’s
	  	3,601	  	 		  			 	3,601	  
	 Accounts Payable - Other
	  	1,857	  	 		  			 	1,857	  
	 Transportation and Exchange Gas Payable
	  	6,476	  	 		  			 	6,476	  
	 Accrued Taxes, other than income
	  	6,477	  	 		  			 	6,477	  
	 Accrued Interest
	  	3,415	  	 		  			 	3,415	  
	 Other Current Liabilities
	  	10,656	  	 		  			 	10,656	  
		  	 	 	 	 	  	 	 	 	 	 
	 Total Current Liabilities
	  	32,482	  	 		  			 	32,482	  
	 Other Liabilities
	  	520,000	  	 		  			 	520,000	  
	 Long Term Debt, Senior Notes
	  			 		  			 		
	 Long Term Debt, Revolver
	  			 		  			 		
	 Other Long Term Liabilities
	  	11,708	  	 		  			 	11,708	  
		  	 	 	 	 	  	 	 	 	 	 
	 Total Other Liabilities
	  	531,708	  	 		  			 	531,708	  
	 Total Liabilities
	  	564,190	  	 		  			 	564,190	  
	 Member’s Equity
	  	753,928	  	 		  	(22,000	) 	 	731,928	  
		  	 	 	 	 	  	 	 	 	 	 
	 Total Liabilities & Membership interest
	  	1,318,118	  	 		  	(22,000	) 	 	1,296,118	  
		  	 	 	 	 	  	 	 	 	 	 
	 Pro Forma Working Capital
	  			 		  			 	(2,183	) 
		  			 		  			 	 	 

  

	(a)	to exclude any short term debt or current portions of long term debt from Working Capital by reclassifying to non-current 

	(b)	to reflect the Impact of the TWP portion of the payment of an anticipated $50 million cash distribution to the members of CCE prior to closing 

  

 S-4 

 Section 3.1(b) 
 QUALIFICATION 
  

	1.	Arizona 

  

	2.	Colorado 

  

	3.	New Mexico 

  

	4.	Oklahoma 

  

	5.	Texas 

  

 S-5 

 Section 3.2 
 AUTHORITY RELATIVE TO THIS AGREEMENT 
 None. 
  

 S-6 

 Section 3.3(a) 
 TPC INTERESTS 
 The rights contained in the Amended and Restated Limited Liability Company Agreement of CCE Holdings,
LLC, as amended. 
  

 S-7 

 Section 33(b) 
 TPC INTERESTS 
 None. 
  

 S-8 

 Section 3.3(c) 
 TPC INTERESTS 
 None. 
  

 S-9 

 Section 3.4 
 CONSENTS AND APPROVALS 
  

	1.	Consent of the Missouri Public Service Commission. 

  

	2.	Consent of the Federal Communications Commission. 

  

	3.	Consent of the Massachusetts Department of Telecommunications and Energy. 

  

	4.	Consent required under the Bridge Loan Agreement, dated as of March 1, 2006, by and among Southern Union Company and Enhanced Service Systems, Inc., as the Borrowers, and
certain Banks party thereto. 

  

	5.	Consent required under the Fourth Amended and Restated Revolving Credit Agreement dated as of September 29, 2005, as amended by the First Amendment effective as of
February 27, 2006, by and among Southern Union Company as the Borrower and the Banks named therein. 

  

	6.	Consents, waivers and/or notices are required under the documents evidencing the Existing TPC Debt and the Existing TW Holdings Debt. 

  

 S-10 

 Section 3.5 
 NO CONFLICT OR VIOLATION 
 Section 3.4 of the CCE Disclosure Letter is incorporated herein by reference.

  

 S-11 

 Section 3.7(a) 
 CONTRACTS 
 Operational Gas Sales Contracts 
  

	1.	Base Contract for Short Term Sale and Purchase of Natural Gas dated January 31, 2001 between TPC and Sempra Energy Trading Corp. 

  

	2.	Base Contract for Sale and Purchase of Natural Gas dated March 17, 2005 between TPC and ConocoPhillips Company. 

 Gas Transportation Contracts - Firm 
  

	1.	FTS-1 Firm Transportation Contract (Contract #27252) effective November 1, 2000, by and between TPC and Southwest Gas Corporation. 

  

	2.	FTS-1 Firm Transportation Contract (Contract # 10281), effective April 1, 2003, by and between TPC and Tenaska Marketing Ventures. 

  

	3.	FTS-1 Firm Transportation Contract (Contract # 10525), effective January 1, 2004, by and between TPC and Encana Marketing (USA), Inc. 

  

	4.	FTS-1 Firm Transportation Contract (Contract # 100622), effective June 1, 2003, by and between TPC and Sacramento Municipal Utility District. 

  

	5.	FTS-1 Firm Transportation Contract (Contract # 101109), effective April 1, 2005), by and between TPC and Agave Energy Co. 

  

	6.	FTS-1 Firm Transportation Contract (Contract # 25924), effective March 1, 1998, by and between TPC and Chevron U.S.A., Inc. 

  

	7.	FTS-4 Firm Transportation Contract (Contract # 101078), effective June 1, 2005, by and between TPC and ConocoPhillips Company. 

  

	8.	FTS-1 Firm Transportation Contract (Contract # 27745), effective June 1, 2002, by and between TPC and Western Gas Resources Inc. 

  

	9.	FTS-1 Firm Transportation Contract (Contract # 100048), effective June 15, 2002, by and between TPC and Frito Lay Inc. 

  

	10.	FTS-1 Firm Transportation Contract (Contract # 101479), effective January 1, 2006, by and between TPC and Sempra Energy Trading Corp. 

  

	11.	FTS-1 Firm Transportation Contract (Contract # 101622), effective May 1, 2007, by and between TPC and Agave Energy Co. 

  

	12.	FTS-1 Firm Transportation Contract (Contract # 101625), effective November 1, 1998, by and between TPC and Coral Energy Resources, L.P. 

  

	13.	FTS-1 Firm Transportation Contract (Contract # 27566), effective March 1, 2002, by and between TPC and ConocoPhillips Company. 

  

	14.	FTS-1 Firm Transportation Contract (Contract # 100524), effective May 1, 2003, by and between TPC and Cross Timbers Energy Services, Inc. 

  

	15.	FTS-1 Firm Transportation Contract (Contract # 100294), effective November 1, 2003, by and between TPC and ConocoPhillips Company. 

  

	16.	FTS-1 Firm Transportation Contract (Contract # 101409), effective April 1, 2006, by and between TPC and Astra Power LLC. 

  

	17.	FTS-1 Firm Transportation Contract (Contract # 100583), effective January 1, 2004, by and between TPC and Red Willow Production Company. 

  

 S-12 

	18.	FTS-1 Firm Transportation Contract (Contract # 101593), effective April 1, 2007, by and between TPC and Sacramento Municipal Utility District. 

  

	19.	FTS-1 Firm Transportation Contract (Contract # 101595), effective March 1, 2007, by and between TPC and Chevron U.S.A., Inc. 

  

	20.	FTS-1 Finn Transportation Contract (Contract # 100051), effective June 15, 2002, by and between TPC and United States Gypsum Company. 

  

	21.	FTS-1 Firm Transportation Contract (Contract # 100303), effective November 1, 2003, by and between TPC and BP Energy Company. 

  

	22.	FTS-4 Firm Transportation Contract (Contract # 101203), effective November 1, 2005, by and between TPC and PNM Gas Services. 

  

	23.	FTS-4 Firm Transportation Contract (Contract # 101123), effective May 1, 2005, by and between TPC and Elm Ridge Resources, Inc. 

  

	24.	FTS-1 Firm Transportation Contract (Contract # 101619), effective May 1, 2007, by and between TPC and Tenaska Marketing Ventures. 

  

	25.	FTS-1 Finn Transportation Contract (Contract # 27606), effective October 1, 2001, by and between TPC and PNM Gas Services. 

  

	26.	FTS-1 Firm Transportation Contract (Contract # 100248), effective November 1, 2003) by and between TPC and Agave Energy Co. 

  

	27.	FTS-1 Firm Transportation Contract (Contract #100749), effective October 1, 2003, by and between TPC and BP Energy Company. 

  

	28.	FTS-1 Firm Transportation Contract (Contract # 21175), effective March 16, 1992, by and between TPC and Pacific Gas and Electric Company. 

  

	29.	FTS-4 Firm Transportation Contract (Contract #101316), effective July 1, 2005, by and between TPC and ConocoPhillips Company. 

  

	30.	FTS-1 Firm Transportation Contract (Contract # 100049), effective July 1, 2005, by and between TPC and Western Gas Resources Inc. 

  

	31.	FTS-1 Firm Transportation Contract (Contract #101578), effective March 1, 2007), by and between TPC and UNS Gas, Inc. 

  

	32.	FTS-1 Firm Transportation Contract (Contract # 100050), effective June 15, 2002, by and between TPC and BP Energy Company. 

  

	33.	FTS-4 Firm Transportation Contract (Contract # 100923), effective May 1, 2005, by and between TPC and Red Willow Production Company. 

  

	34.	FTS-4 Firm Transportation Contract (Contract # 100927), effective May 1, 2005, by and between TPC and SG Interests I, Ltd. 

  

	35.	FTS-1 Firm Transportation Contract (Contract # 25025), effective December 1, 1996), by and between TPC and Burlington Resources Trading, Inc. 

  

	36.	FTS-1 Firm Transportation Contract (Contract # 100052), effective June 15, 2002, by and between TPC and PPL Energyplus, LLC. 

  

	37.	FTS-1 Firm Transportation Contract (Contract # 21165), effective March 16, 1992, by and between TPC and Pacific Gas and Electric Company. 

  

	38.	FTS-1 Firm Transportation Contract (Contract # 25071), effective December 1, 1996, by and between TPC and BP Energy Company. 

  

	39.	FTS-4 Firm Transportation Contract (Contract # 100925), effective May 1, 2005, by and between TPC and Burlington Resources Trading, Inc. 

  

	40.	FTS-1 Firm Transportation Contract (Contract # 101189), effective November 1, 2005, by and between TPC and Southern California Gas Company. 

  

 S-13 

	41.	FTS-1 Firm Transportation Contract (Contract # 27642), effective July 1, 2002, by and between TPC and Calpine Energy Services, L.P. 

  

	42.	FTS-1 Firm Transportation Contract (Contract # 101629), effective April 1, 2007, by and between TPC and Pacific Gas and Electric Company. 

  

	43.	FTS-1 Firm Transportation Contract (Contract # 101188), effective November 1, 2005, by and between TPC and Southern California Gas Company. 

  

	44.	FTS-4 Firm Transportation Contract (Contract # 100922), effective May 1, 2005, by and between TPC and ConocoPhillips Company. 

  

	45.	FTS-4 Firm Transportation Contract (Contract # 100926), effective May 1, 2005, by and between TPC and BP Energy Company. 

  

	46.	FTS-1 Firm Transportation Contract (Contract # 101427), effective September 1, 2006, by and between TPC and Southwest Gas Corporation. 

 Certain of these agreements may be supported by parent guarantees or other financial assurances. 
 Other Material Contracts 
  

	1.	Section 3.7(b) of the CCE Disclosure Letter is incorporated herein by reference. 

  

	2.	Phoenix Project Expansion Agreement, dated December 14, 2005, between TPC and Arizona Public Service Company, as amended. 

  

	3.	Phoenix Project Expansion Agreement, dated December 14, 2005, between TPC and Salt River Project Agricultural Improvement and Power District, as amended.

  

	4.	Phoenix Project Expansion Agreement, dated February 14, 2006, between TPC and Southwest Gas Corporation, as amended. 

  

	5.	Purchase and Sale Agreement, dated February 27, 2006, between TPC, El Paso Natural Gas Company, and Salt River Project Agricultural Improvement and Power District.

  

	6.	Compressor Services Related Agreements 

  

	 	a.	Electric Motor Lease Agreements, dated May 28, 2004, by and between Enron Compression Services Company and TPC for Bisti Compressor Station, Bloomfield Compressor Station and
Gallup Compressor Station. 

  

	 	b.	Netting Agreements, dated May 28, 2004, by and between TPC and Enron Compression Services Company for Bisti Compressor Station, Bloomfield Compressor Station and Gallup
Compressor Station 

  

	 	c.	Assignment Agreements, dated May 28, 2004, by and between TPC and Enron Compression Services Company for Bisti Compressor Station, Bloomfield Compressor Station and Gallup
Compressor Station. 

  

	 	d.	Letter Agreement, dated May 28, 2004 between TPC and Enron Compression Services Company for the Expansion of Gallup, Bisti and Bloomfield Compressor Stations

  

	 	e	Amended and Restated Compression Services Agreement by and between TPC and Enron Compression Services Company for Bisti Compressor Station, Bloomfield Compressor Station and Gallup
Compressor Station in accordance with the Letter Agreement of May 28, 2004. 

  

 S-14 

	 	f.	Amended and Restated Operations and Maintenance Agreement, by and between TPC and Enron Compression Services Company for Bisti Compressor Station, Bloomfield Compressor Station and
Gallup Compressor Station. 

  

	 	g.	Assignment and Bill of Sale for Motor and Drive Systems, dated May 28, 2004, by and between ECS Compression Services, L.L.C. and TPC. 

  

	 	h.	Purchase and Sale Agreement, dated as of September 21, 2004, by and among Enron Compression Services Company and Paragon ECS Holdings, LLC. 

  

	 	i.	Purchase and Settlement Agreement and Mutual Release dated as of April 30, 2004, among Enron Compression Services Company, Inc., ECS Compression Company, LLC, and TPC

  

	 	j.	Purchase and Sale Agreement, dated as of September 21, 2004, by and among Enron Compression Services Company and Paragon ECS Holdings, LLC. 

  

	 	k.	Amendment, dated November 12, 2004, approved by TPC and Paragon ECS Holdings, LLC, to Letter Agreement, dated May 28, 2004, between Enron Compression Services Company and
TPC. 

  

	7.	Blanco Hub Facilities: Construction and Ownership Agreement dated November 18, 1991, among Northwest Pipeline Corporation, TPC and Gas Company of New Mexico.

  

	8.	LaPlata Facilities: La Plata Facilities Ownership and Operating Agreement dated November 3, 1995, between Northwest Pipeline Corporation and TPC. 

  

	9.	Extension Agreement between TPC and the Navajo Nation dated May 11, 2001; Memorandum of Understanding dated October 31, 1984 between TPC and the Navajo Nation; Memorandum
of Understanding dated March 4, 1991 between TPC and the Navajo Nation and Amendment No. 1 to the Extension Agreement of May 1.1, 2001 between the Navajo Nation and TPC for the Construction of the New San Juan Lateral 36” Loop
Line. 

  

	10.	Right-Of Way Agreement between Southern Ute Indian Tribe, TPC and Northwest Pipeline Corporation dated May 2006. 

  

	11.	Memorandum of Understanding between TPC and the Pueblo of Laguna dated September 4, 2001. 

  

	12.	Operating Agreement between Pacific Gas & Electric Company and TPC dated June 27, 1995. 

  

	13.	Agreement between and TPC and Southern California Gas Company regarding PCB Claims Post-1990 Costs dated May 15, 1992. 

  

	14.	Work Offer Agreement, No. ESA-60-2003-3833, dated April 24, 2006, by and between TPC and TRC Environmental Corporation. 

  

	15.	Tasking Letter No. 06TW-PL-5440-003, dated April 24, 2006, between TPC and AMEC Paragon, Inc. Tasking Letter No. 05-TW-PSA-2385, dated April 11, 2006, between
TPC and Universal Ensco, Inc. 

  

	16.	Work Offer Agreement, No. ROW-60-2004-4222, dated May 9, 2006, between TPC and Cinnabar Service Company. 

  

	17.	Long Term Service Agreement, LTSA-60-2001-4014, dated October 11, 2001, between TPC and GE Oil & Gas, Inc. 

  

	18.	Purchase Order, P-20070001 for Phoenix Expansion Project; definitive agreement is still under negotiation. 

  

 S-15 

	19.	Construction Contract, by and between Gregory & Cook Construction, Inc. and TPC for Phoenix Lateral Project; definitive agreement is still under negotiation. A potentially
binding agreement to pay Gregory & Cook Construction, Inc. one million dollars in the event the Phoenix Lateral Project is cancelled prior to the end of September and four million dollars in the event the Phoenix Lateral Project is
cancelled during the period of October through December 2006. 

  

 S-16 

 Section 3.7(b) 
 MATERIAL CONTRACTS — AFFILIATE CONTRACTS 
  

	1.	TPC entered into a Cross License Agreement, dated as of March 31, 2004, by and among Enron Corp., Northern Border Intermediate Limited Partnership, Florida Gas Transmission
Company, Northern Border Pipeline Company, Enron Operations Services, LLC and Northern Plains Natural Gas Company. 

  

	2.	Guaranty, dated as of November 17, 2004, by and among CrossCountry Energy, LLC, CrossCountry Energy Services, LLC, CrossCountry Alaska, LLC CrossCountry Citrus, LLC
Transwestern Holding Company, LLC and TPC, and Enron Operations Services, LLC, Enron Transportation Services, LLC, EOC Preferred, LLC and Enron Corp. 

  

	3.	Operator Balancing Agreement between TPC and Panhandle Eastern Pipe Line Company dated October 1, 1994. 

  

	4.	Operator Balancing Agreement, Contract # 21711 between TPC and Panhandle Eastern Pipe Line Company dated October 1, 1994. 

  

	5.	Interruptible Transportation Contract # 20903 between TPC and Southern Union Gas Energy, Ltd., dated March 1, 1992. 

  

	6.	Firm Transportation Contract # 101603 between TPC and Southern Union Gas Energy, Ltd., dated April 1, 2006. 

  

	7.	Firm Transportation Contract # 101604 between TPC and Southern Union Gas Energy, Ltd., dated April 1, 2006. 

  

	8.	Supply Pooling Service, Contract# 22666 between TPC and Southern Union Gas Energy, Ltd., dated September 1, 1993. 

  

	9.	Interconnect Agreement, effective February 15, 1996, by and between TPC and Sid Richardson Pipeline Co. 

  

	10.	Interconnect Agreement, effective July 30, 1996, by and between TPC and Sid Richardson Pipeline Co. 

  

	11.	Interconnect Agreement, effective December 1, 1996, by and between TPC and Sid Richardson Pipeline Co. 

  

	12.	Interconnect Agreement, effective January 9, 1996, by and between TPC and Sid Richardson Pipeline Co. 

  

	13.	Interconnect Agreement, effective October 16, 1995, by and between TPC and Sid Richardson Pipeline Co. 

 TPC provides services to its Affiliates and Affiliates of TPC provide services to TPC in the ordinary course of business and pursuant to the Administrative Services
Agreement dated November 5, 2004, by and between CCE Holdings, LLC and SU Pipeline Management LP. To the extent that such services are not paid for by the recipient at the time they are rendered, amounts owing in respect of such services are
accounted for as receivables or payables, as appropriate, by TPC. 
  

 S-17 

 Section 3.7(c) 
 MATERIAL CONTRACTS — BINDING CONTRACTS 
 By letter dated May 12, 2006, Calpine Energy Services notified TPC
that it was repudiating its transportation services agreement (Contract #27642). TPC has filed two related claims in Calpine’s bankruptcy proceeding. The first claim relates to unpaid transportation reservation amounts for the remainder of the
contract through 2017. The second claim relates to the $4.6 million corporate guarantee which provided credit support for the transportation arrangement. Calpine’s annual reservation payments per the contract total $5.4 million. Calpine has not
paid its transportation reservation invoices since March 2006. 
  

 S-18 

 Section 3.7(d) 
 MATERIAL CONTRACTS — DEFAULTED CONTRACTS 
 None. 
  

 S-19 

 Section 3.8 
 COMPLIANCE WITH LAW 
 None. 
  

 S-20 

 Section 3.9(a) 
 PERMITS 
 Sections 3.11 and 3.15 of the CCE Disclosure Letter are incorporated
herein by reference. 
  

 S-21 

 Section 3.9(b) 
 TPC PERMITS 
 Numerous permits, licenses, certificates of authority, orders and approvals are associated with the ownership
and operation of an interstate natural gas pipeline. Set forth below is a sampling of such Permits that may be material to TPC for illustrative purposes. 
 Land Ricks Permits 
  

			
	Various	  	Bureau of Land Management Grants of Right-of Way
		
	Various	  	State of Arizona Grants of Right-of Way
		
	Various	  	State of California Grants of Right-of-Way
		
	Various	  	State of New Mexico Grants of Right-of-Way
		
	Various	  	State of Texas Grants of Right-of-Way
		
	Various	  	United States Forest Service Grants of Right-of-Way
		
	Various	  	Bureau of Indian Affairs Grants of Right-of-Way
		
	Various	  	Road Crossing Permits
		
	Various	  	Railroad Licenses
		
	Various	  	Water Crossing Permits
		
	Various	  	Bureau of Indian Affairs Tower Grants or Permits

 Environmental Permits 
 TPC maintains various environmental permits issued by agencies which regulate air emissions or discharges from facility operations. Such permits include, but are not limited to: 17 Title V air emissions permits issued
by states, USEPA or the Navajo Nation, nine non-Title V air emissions permits issued by states and six New Mexico Oil Conservation Department (OCD) Discharge Plans. 
 FERC Permits 
 See Appendix 3.9(b) 
  

 S-22 

 FCC Licenses 
  

											
	 Call Sign
	  	 Licensee
	  	FRM	  	Radio Service	  	 Status
	  	Expiration Date
	 1 KAP912
	  	TPC	  	0011523271	  	IG	  	Active	  	05/30/2011
	 2 KAW224
	  	TPC	  	0011523271	  	IG	  	Active	  	10/13/2013
	 3 KBP98
	  	TPC	  	0011523271	  	1G	  	Active	  	04/06/2013
	 4 KE4265
	  	TPC	  	0011523271	  	1G	  	Active	  	05/23/2011
	 5 KFY657
	  	TPC	  	0011523271	  	IG	  	Active	  	01/13/2012
	 6 KGL924
	  	TPC	  	0011523271	  	IG	  	Active	  	03/05/2013
	 7 K93697
	  	TPC	  	0011523271	  	IG	  	Active	  	12/22/2013
	 8 KJB725
	  	TPC	  	0011523271	  	IG	  	Active	  	08/05/2013
	 9 IC1E727
	  	TPC	  	0011523271	  	IG	  	Active	  	11/06/2014
	 10 K1G321
	  	TPC	  	0011523271	  	IG	  	Active	  	05/30/2011
	 11 10Q289
	  	TPC	  	0011523271	  	IG	  	Active	  	03/24/2012
	 12 KKZ281
	  	TPC	  	0011523271	  	1G	  	Active	  	01/13/2012
	 13 KK2282
	  	TPC	  	0011523271	  	1G	  	Active	  	07/21/2014
	 14 KKZ284
	  	TPC	  	0011523271	  	IG	  	Active	  	06/10/2011
	 15 KKZ286
	  	TPC	  	0011523271	  	1G	  	Active	  	03/16/2014
	 16 KKZ287
	  	TPC	  	0011523271	  	1G	  	Active	  	07/21/2014
	 17 KKZ304
	  	TPC	  	0011523271	  	IG	  	Active	  	05/11/2012
	 18 KKZ305
	  	TPC	  	0011523271	  	IG	  	Active	  	04/19/2011
	 19 KKZ307
	  	TPC	  	0011523271	  	IG	  	Active	  	06/20/2014
	 20 KLG791
	  	TPC	  	0011523271	  	1G	  	Active	  	02/22/2015
	 21 KNEF590
	  	TPC	  	0011523271	  	IG	  	Active	  	11/17/2012
	 22 KNE I623
	  	TPC	  	0011523271	  	IG	  	Active	  	01/25/2013
	 23 KNGD500
	  	TPC	  	0011523271	  	IG	  	Active	  	03/23/2013
	 24 KNHX4 I 7
	  	TPC	  	0011523271	  	IG	  	Active	  	11/29/2013
	 25 KN1E53 6
	  	TPC	  	0011523271	  	IG	  	Active	  	01/11/2014
	 26 KNJJ855
	  	TPC	  	0011523271	  	IG	  	Active	  	06/13/2014
	 27 KNJJ856
	  	TPC	  	0011523271	  	IG	  	Active	  	06/13/2014
	 28 KNNI500
	  	TPC	  	0011523271	  	IG	  	Active	  	01/31/2011
	 29 KNNR655
	  	TPC	  	0011523271	  	1G	  	Active	  	04/15/2011
	 30 KNNU918
	  	TPC	  	0011523271	  	1G	  	Active	  	05/08/2011
	 31 KOM870
	  	TPC	  	0011523271	  	IG	  	Active	  	08/09/2014
	 32 KOM872
	  	TPC	  	0011523271	  	IG	  	Active	  	01/13/2012
	 33 KOM874
	  	TPC	  	0011523271	  	IG	  	Active	  	05/30/2011
	 34 KPU72
	  	TPC	  	0011523271	  	IG	  	Active	  	10/18/2011
	 35 KTE812
	  	TPC	  	0011523271	  	IG	  	Active	  	06/03/2011
	 36 WCQ69
	  	TPC	  	0011523271	  	IG	  	Active	  	03/14/2014
	 37 WDC561
	  	TPC	  	0011523271	  	IG	  	Active	  	01/11/2014
	 38 WNDX5 05
	  	TPC	  	0011523271	  	IG	  	Active	  	04/23/2013
	 39 WNFQ370
	  	TPC	  	0011523271	  	IG	  	Active	  	07/25/2015
	 40 WNGF772
	  	TPC	  	0011523271	  	IG	  	Active	  	04/24/2011
	 41 WN51212
	  	TPC	  	0011523271	  	1G	  	Active	  	05/21/2012
	 42 WNJ1529
	  	TPC	  	0011523271	  	IG	  	Active	  	02/08/2014
	 43 WNKA363
	  	TPC	  	0011523271	  	IG	  	Active	  	01/26/2014
	 44 WNNM556
	  	TPC	  	0011523271	  	IG	  	Active	  	02/02/2014
	 45 WNP0988
	  	TPC	  	0011523271	  	IG	  	Active	  	06/20/2014
	 46 WNTT239
	  	TPC	  	0011523271	  	MG	  	Active	  	04/20/2009
	 47 WNTT240
	  	TPC	  	0011523271	  	MG	  	Active	  	10/28/2008
	 48 WNTT557
	  	TPC	  	0011523271	  	MG	  	Active	  	12/30/2008
	 49 WNTU3 85
	  	TPC	  	0011523271	  	MG	  	Active	  	04/20/2009
	 50 WNTU634
	  	TPC	  	0011523271	  	MG	  	Active	  	01/13/2009
	 51 WNVX682
	  	TPC	  	0011523271	  	IG	  	Active	  	03/27/2011

  

 S-23 

											
	 Cali Sign
	  	 Licensee
	  	FRM	  	Radio Service	  	 Status
	  	Expiration Date
	 52 WNVY471
	  	TPC	  	0011523271	  	IG	  	Active	  	03/29/2011
	 53 WNWA248
	  	TPC	  	0011523271	  	IG	  	Active	  	04/08/2011
	 54 WNWC564
	  	TPC	  	0011523271	  	IG	  	Active	  	04/1512011
	 55 WNWQ551
	  	TPC	  	0011523271	  	IG	  	Active	  	06/25/2011
	 56 WNXT696
	  	TPC	  	0011523271	  	IG	  	Active	  	12/01/2014
	 57 WNXY928
	  	TPC	  	0011523271	  	IG	  	Active	  	10/25/2014
	 58 WNYB559
	  	TPC	  	0011523271	  	IG	  	Active	  	12/17/2011
	 59 WNYC565
	  	TPC	  	0011523271	  	IG	  	Active	  	12/31/2011
	 60 WNYG505
	  	TPC	  	0011523271	  	1G	  	Active	  	01/24/2012
	 61 WNZK694
	  	TPC	  	0011523271	  	IG	  	Active	  	10/25/2014
	 62 WNZR865
	  	TPC	  	0011523271	  	IG	  	Active	  	06/09/2012
	 63 WPBE816
	  	TPC	  	0011523271	  	IG	  	Active	  	12/01/2012
	 64 WPBM528
	  	TPC	  	0011523271	  	IG	  	Active	  	01/12/2013
	 65 WPDA815
	  	TPC	  	0011523271	  	IG	  	Active	  	03/05/2013
	 66 WPDE839
	  	TPC	  	0011523271	  	IG	  	Active	  	09/17/2013
	 67 WPEB947
	  	TPC	  	0011523271	  	IG	  	Active	  	01/24/2014
	 68 WPED468
	  	TPC	  	0011523271	  	IG	  	Active	  	02/01/2014
	 69 WPGB321
	  	TPC	  	0011523271	  	IG	  	Active	  	11/30/2014
	 70 WPGS472
	  	TPC	  	0011523271	  	1G	  	Active	  	03/07/2015
	 71 WPGS532
	  	TPC	  	0011523271	  	1G	  	Active	  	03/09/2015
	 72 WPIS503
	  	TPC	  	0011523271	  	IG	  	Active	  	10/18/2015
	 73 WP3F445
	  	TPC	  	0011523271	  	MG	  	Active	  	06/07/2011
	 74 WP11391
	  	TPC	  	0011523271	  	IG	  	Active	  	06/28/2011
	 75 WPKL233
	  	TPC	  	0011523271	  	IG	  	Active	  	03/31/2012
	 76 WPKV495
	  	TPC	  	0011523271	  	IG	  	Active	  	08/04/2012
	 77 WPLD684
	  	TPC	  	0011523271	  	IG	  	Active	  	03/18/2012
	 78 WPLV278
	  	TPC	  	0011523271	  	1G	  	Active	  	03/05/2013
	 79 WPMS873
	  	TPC	  	0011523271	  	IG	  	Active	  	12/04/2013
	 80 WPMT448
	  	TPC	  	0011523271	  	IG	  	Active	  	12/10/2013
	 81 WPNV836
	  	TPC	  	0011523271	  	IG	  	Active	  	07/09/2014
	 82 WPOQ405
	  	TPC	  	0011523271	  	MG	  	Active	  	08/03/2008
	 83 WPOQ406
	  	TPC	  	0011523271	  	MG	  	Active	  	08/03/2008
	 84 WPOY492
	  	TPC	  	0011523271	  	10	  	Active	  	09/01/2014
	 85 WPR77
	  	TPC	  	0011523271	  	IG	  	Active	  	06/18/2012
	 86 WPXP622
	  	TPC	  	0011523271	  	IG	  	Active	  	05/15/2013
	 87 WPXT315
	  	TPC	  	0011523271	  	IG	  	Active	  	06/05/2013
	 88 WQCB633
	  	TPC	  	0011523271	  	IG	  	Active	  	01/25/2015
	 89 WQCU748
	  	TPC	  	0011523271	  	IG	  	Active	  	05/31/2015
	 90 WQDY871
	  	TPC	  	0011523271	  	IG	  	Active	  	12/03/2015
	 91 WQEA476
	  	TPC	  	0011523271	  	IG	  	Active	  	12/13/2015
	 92 WQET920
	  	TPC	  	0011523271	  	MG	  	Active	  	04/13/2016
	 93 WQH652
	  	TPC	  	0011523271	  	IG	  	Active	  	07/31/2015
	 94 WRM32
	  	TPC	  	0011523271	  	IG	  	Active	  	01/25/2013

  

 S-24 

 APPENDIX 3.9(b) 
 FERC Permits 
 1958 
  

			
	G-14871	  	 Application filed for certification to construct and operate a natural gas pipeline system from the Panhandle-Hugoton area of Texas and Oklahoma and
the Permian Basin area of Texas and New Mexico to the California-Arizona border near Needles, California and to sell and deliver 300,000 Mcf/day to Pacific Lighting Gas Supply Co for resale in Southern California. Approximately 1.809 miles of
pipeline consisting of: 670 miles of 30” pipe (mainline); 485 miles of 24” pipe; 65 miles of 20” pipe; 45 miles of 16” pipe; 108 miles of 12” pipe; 158 miles of 10” pipe; 116 miles of 8” pipe; 103 miles of
6” pipe; and 59 miles of 4” pipe.
  
 Compressor stations: 7,000 HP at
Station No. 3, located in Coconino County, Arizona; 7,000 HP at Station No. 5, located in McKinley County, New Mexico; 7,000 HP at Station No. 7, located in Socorro County, New Mexico; 7,000 HP at Station No. 9, located in Chaves
County, New Mexico, near Roswell, at the juncture of the 30” mainline with the West Texas and Panhandle lateral systems; 7,000 HP at Station WT-1, located in Eddy County, New Mexico; 1,930 HP at the Keystone Field Station, located in the
vicinity of Keystone Field; 1,320 HP at the Hugoton Field Station, located in the vicinity of Hugoton Field and 2,640 HP at Cities Service Field Station, located in the vicinity of Guymon, Beaver County, Oklahoma.
  
 Other facilities include: Metering & regulatory facilities; a carbon dioxide removal
plant located in the Puckett Field in Pecos County, Texas and all appurtenant facilities necessary for the operation and maintenance of the foregoing facilities.
  
 Amendment filed, 7/21/58, whereby additional contracts and revisions to Exhibits K, G, G-11, KN, N and P were submitted. Supplement filed 8/30158. Order issued 4/28/59
denying El Paso’s Motion for Determination of Adequacy of Markets. Also on 4/28/59 an order was issued dismissing Union Oil’s Appeal From Presiding Examiner’s Ruling On Admissibility of Evidence. Order Dismissing Petition For
Reconsideration Of Commission’s Order Dismissing Appeal From Presiding Examiner’s Ruling On Admissibility Of Evidence, issued 6/1/59. Opinion And Order (No. 328) Modifying And Adopting Presiding Examiner’s Decision As Modified, issued
8/10/59. Order Upon Rehearing Modifying Opinion No. 328 And Order Issued August 10, 1959, issued 9/23/59. Order Amending Order Upon Rehearing Modifying Opinion No. 328 And Order Issued August 10, 1959, issued 9129159. Order On
Admissibility of Evidence, issued 4/15/60.

 190289_1 

 1958 
 Order
Modifying And Adopting Presiding Examiner’s Decision As Modified Upon Reopened Proceedings Determining Price Level For Certificates of Public Convenience and Necessity, issued 7/11/62. Order Denying Applications for Rehearing,
issued 8/29/62. 
  

								
	 Filed:
	  	04/15/58	  		  		
	 Order issued:
	  	04/28/59	  	21 FPC 594	  	(1959	) 
	 Order issued:
	  	04/28/59	  	21 FPC 592	  	(1959	) 
	 Order issued:
	  	06/01/59	  	21 FPC 810	  	(1959	) 
	 Opinion and Order (No. 328):
	  	08/10/59	  	22 FPC 391	  	(1959	) 
	 Order issued:
	  	09/23/59	  	22 FPC 542	  	(1959	) 
	 Order issued:
	  	09/29/59	  	22 FPC 575	  	(1959	) 
	 Order issued:
	  	04/15/60	  	23 FPC 605	  	(1960	) 
	 Order issued:
	  	07/11/62	  	28 FPC 109	  	(1962	) 
	 Order issued:
	  	08/29/62	  	28 FPC 393	  	(1962	) 

  

 Appendix 3.9(b) 
 Page 2 

 1960 
  

			
	G-20464	  	 Application filed for certification to construct and operate facilities in areas co-existive with its system to enable applicant to receive
and deliver natural gas.

  

			
	 Filed:
	  	04/15/58
	 Order issued:
	  	04/28/59 21 FPC 594 (1959)
	 Order issued:
	  	04/28/59 21 FPC 592 (1959)
	 Order issued:
	  	06/01/59 21 FPC 810 (1959)
	 Opinion and Order (No. 328):
	  	08/10/59 22 FPC 391 (1959)
	 Order issued:
	  	09/23/59 22 FPC 542 (1959)
	 Order issued:
	  	09/29/59 22 FPC 575 (1959)
	 Order issued:
	  	04/15/60 23 FPC 605 (1960)
	 Order issued:
	  	07/11/62 28 FPC 109 (1962)
	 Order issued:
	  	08/29/62 28 FPC 393 (1962)

  

			
	CP60-26	  	TW’s application for “Budget-Type authority to construct and operate field facilities to enable the receipt of natural gas during 1960. $3,000,000 total; $500,000 single project limit.

  

			
	 Filed:
	  	02/08/60
	 Order issued:
	  	05/04/60 23 FPC 662 (1960)

  

			
	CP60-49	  	 Application filed for certification to construct and operate gathering facilities in the
 Atoka-Penn Field in Eddy County, New Mexico and to deliver gas to Pacific Lighting Gas Supply Co. First supplement filed April 4, 1960.

  

			
	 Filed:
	  	03/07/60
	 Order issued:
	  	06/11/63 29 FPC 1159 (1963)
		  	(See G-20464)
	 Order & Opinion No. 472 issued:
	  	08/31/65 34 FPC 659 (1965)
		  	(See G-20464)

  

			
	CP60-50	  	Application filed for certification to construct and operate gathering facilities to receive gas from various producers in Pecos County, Texas and Chaves County, New Mexico and deliver gas to
Pacific Lighting Gas Supply Company. Facilities include: approximately 7 miles of 6” pipe, with appurtenances, extending in a northwesterly direction from a point of connection with its existing 24” Panhandle lateral to a point in the
Newmill Field, Chaves County, New Mexico to purchase and receive natural gas produced by Charles P. Miller and approximately 18.6 miles of 4” supply pipeline extending in a northeasterly direction from a point of connection with its existing
20” West Texas Lateral to a point in the Putnam and Chenot Fields, Pecos County, Texas to purchase and receive natural gas produced by H.J. Mosser, G.D. Putnam in the Putnam Field and Texas Crude Oil

  

 Appendix 3.9(b) 
 Page 3 

 1960 
 Company
in the Chenot Field. Supplement filed 414/60. On 11/22/61, a Commission letter directed TW to request an amendment to the 10/13/60 Order, to conform such order with the facilities actually constructed by TW. 1/8/62, filed an application to amend the
order — submitted revised Exhibits F, G, G-I, G—II and H and a complete explanation for the construction of facilities materially different from those originally authorized. 6111/63, Order issued. 
  

			
	Filed:	  	03/07/60
	Order issued:	  	10/13/60 24 FPC 876 (1960)
	Order issued:	  	06/11/63 29 FPC 1159 (1963)
	Order & Opinion No. 472 issued:	  	08/31/65 34 FPC 659 (1965)
		  	(See G-20464)

  

 Appendix 3.9(b) 
 Page 4 

 1961 
  

			
	CP61-63	  	Application filed for certification to construct and operate facilities to take gas from Continental Oil at the tailgate of its El Mar & Maljamar plants in Lea county, New Mexico.
Supplement flied 10/7/60 in response to the Commission’s letter of 9/20/60, requesting proof of ability to provide necessary funds as required by Exhibit L. TW

  

					
		 	Filed:	  	09/01/60
		 	Order issued:	  	06/11/63 29 FPC 1159 (1963)
		 		  	(See G-20464)
		 	Order & Opinion No. 472 issued:	  	08/31/65 34 FPC 659 (1965)
		 		  	(See G-20464)

  

			
	CP61-168	  	TW’s application for “Budget-Type authority to construct and operate field facilities to enable the receipt of natural gas during 1961. $3,000,000 total; $500,000 single project limit.
Amendment filed 9/6/61 requesting authorization to construct and operate additional well connection facilities.

  

					
		 	Filed:	  	12/21/60
		 	Order issued:	  	02/28/61 25 FPC 358 (1961)

  

			
	CP61-243	  	Application filed for certification to construct and operate gathering facilities to receive gas at the tailgate of a processing plant to be constructed in Bluitt Field, Roosevelt County, New
Mexico and at the wellhead from various producers in the field.

  

					
		 	Filed:	  	03/15/61
		 	Temporary authorization granted:	  	05/12/61
		 	Order issued:	  	06/11/63 29 FPC 1159 (1963)
		 		  	(See G-20464)
		 	Order & Opinion No. 472 issued:	  	08/31/65 34 FPC 659 (1965)
		 		  	(See G-20464)

  

			
	CP61-299	  	Application filed for certification to construct and operate facilities to exchange gas with El Paso. Facilities include: 6.89 miles of 4412” field lines and appurtenant facilities.
Supplement filed 1/22/62 to add 14 wells in Beaver & Ellis Counties, Oklahoma. Second Supplement & amendment filed 8/19/63 to delete nine wells from the application and reflect change of TW’s interest in the Jennie 0.
Pearson well. Third supplement filed 7/6/64 to install a tap valve. A petition to amend application was filed 4/23/65 to construct and operate an additional tap & valve to interconnect El Paso’s Feldman A No. 2 well and to
delete 5 wells from the exchange. Petition to amend order filed to construct and operate an additional tap & valve to connect the Buzzard No. 1-75 well.

  

					
		 	Filed:	  	05/24/61
		 	Order issued:	  	01/11/65    29 FPC 1159    (1963)
		 	Order issued:	  	02/21/66    29 FPC 1159    (1963)
		 	Order issued:	  	04/24/67    29 FPC 1159    (1963)

  

 Appendix 3.9(b) 
 Page 5 

 1962 
  

			
	CP62-185	  	 Section 7(c) application filed for authorization to sell interruptible natural gas to Climax Chemical Company in Lea County, New Mexico
using the Monument lateral. Granted temporary authorization on 2/27192.

  

							
		 	 Filed:
	 	02/09/62	 	
		 	 Order issued:
	 	06/15/62 27 FPC 1357 (1962)	 	

  

			
	 CP62-192
	  	 Section 7(c) application filed for authorization to use the existing certificated pipeline facilities to enable a direct industrial sale
of natural gas to Atlantic Refining Co pursuant to an agreement between parties dated 7/5/61. The gas will be delivered to Atlantic at a point on the existing lateral line in Ward County, Texas. A tap and metering facilities will be installed to
enable the sale. 7W commenced the sale under the “mistaken belief that a certificate was not required and filed the application to continue the sale?

  

							
		 	Filed:	 	02/15/61	 	
		 	Order issued:	 	06/09/62 28 FPC 92 (1962)	 	

  

			
	CP62-293	  	 Section 7(c) application filed for authorization to sell gas to Pioneer Natural Gas Company, deliver gas at 8 points where there are
existing taps and construct approximately 5 taps valves on the 24" mainline in 7 Texas counties.

  

							
		 	Filed:	 	06/06/62	 	
		 	Order issued:	 	01/11/65 28 FPC (1962)	 	

  

 Appendix 3.9(b) 
 Page 6 

 1963  
  

			
	CP63-143	  	Section 7(c) application filed for authorization to construct and operate a tap valve on the transmission line in Curry County, New Mexico and the transportation and sale of surplus natural
gas, on an interruptible basis, to Southern Union Gas company, for resale through Southern’s distribution facilities in Portales, New Mexico.

  

							
		 	Filed:	 	11/22/62	 	
		 	Order issued:	 	04/03/63 29 FPC 702 (1963)	 	

  

			
	CP63-204	  	Application filed for a temporary certificate for authorization to sell gas to Pacific Lighting Gas Supply Company on an emergency basis and to construct and operate Stations No. 1 &
No. 8.

  

							
		 	Filed:	 	04/09/63	 	
		 	Temporary certificate denied:	 	05/03/63	 	
		 	Motion for rehearing filed:	 	05/08/63	 	
		 	Motion for rehearing denied:	 	06/04/63 29 FPC 1132 (1963)	 	

  

 Appendix 3.9(b) 
 Page 7 

 1964 
  

			
	 CP64-34
	  	Section 7(c) application filed for authorization to sell natural gas to Pacific Lighting Gas Supply Company.

  

							
		 	Filed:	 	08/02/63	 	
		 	Order issued:	 	12/16/63 30 FPC 1520 (1963)	 	

  

			
	CP64-90	  	Section 7(c) application filed for authorization to construct and operate a 650 HP compressor station on the 8" Stratford Lateral and 5.2 miles of 8" pipe along the Strafford
Lateral.

  

							
		 	Filed:	 	10/10/63	 	
		 	Supplement filed:	 	11/13/63	 	
		 	Order issued:	 	02/18/64 31 FPC 431 (1964)	 	

  

			
	CP64-237	  	TW’s application for *Budget-Type authority to construct and operate field facilities to enable the receipt of natural gas during 1964. $1,200,000 total; $300,000 single project limit.
Amendment filed 6/1/64 adjusting figures to $1,000,000 total; $250,000 single project.

  

							
		 	Filed:	 	04/14/64	 	
		 	Order issued:	 	06/21/64 32 FPC 228358 (1961)

  

 Appendix 3.9(b) 
 Page 8 

 1965 
  

			
	CP65-6	  	 Section 7(c) application filed for authorization to install and operate a 1,000 HP gas turbine compressor at Keystone Station No. 2.

  

							
		 	Filed:	 	07/06/64	 	
		 	Supplement filed:	 	07/15/64	 	
		 	Order issued:	 	09/28/64 32 FPC 864 (1964)	 	

  

			
	CP65-103	  	 Application filed for authorization to acquire minor gas facilities which were installed by producers in Texas, Kansas and Oklahoma (small
diameter gathering lines, dehydrators, metering facilities.).

  

							
		 	Filed:	 	10/15/64	 	
		 	Order issued:	 	01/13/65 33 FPC 70 (1965)	 	

  

 Appendix 3.9(b) 
 Page 9 

 1966 
  

			
	CP66-288	  	Section 7(c) application filed for authorization to install and operate a 1,000 HP gas turbine compressor at Keystone Station No. 1 and a 660 HP compressor at
Atoka.

  

							
		 	Filed:	 	03/14/66	 	
		 	Order issued:	 	05/12/66 35 FPC 733 (1966)	 	

  

 Appendix 3.9(b) 
 Page 10 

 1967 
  

			
	CP67-81	  	Section 7(c) application filed for authorization to construct additional facilities on the West Texas Lateral located in Texas and New Mexico; 8 miles of 36" loop adjacent to
Compressor Station WT-2 in West Texas and 8 miles of 30" loop adjacent to Compressor WT-1 in Southeast New Mexico.

  

							
		 	Filed:	 	09/26/66	 	
		 	Supplement filed:	 	12/06/66	 	
		 	Order issued:	 	02/28/67 75 FPC 421 (1967)	 	

  

 Appendix 3.9(b) 
 Page 11 

 1970 
  

			
	CP70-68	  	Section 7(c) application filed for authorization to interconnect with El Paso Natural.

  

							
		 	Filed:	 	09/26/69	 	
		 	Order issued;	 	12/02/69 42 FPC 1052 (1969)	 	

  

 Appendix 3.9(b) 
 Page 12 

 1972 
  

							
	CP72-49	  	Section 7(c) application filed for authorization to construct 27.27 miles of 16” loop on the Crawford Lateral and install an additional 1,000 HP compressor at the
Crawford Station.

  

					
	Filed:	  	08/30/71	  	
	Approval date:	  	11/17/71 46 FPC 1226 (1971)

  

 Appendix 3.9(b) 
 Page 13 

 1974 
  

							
	CP74-252	  	Section 7(c) application filed for authorization to construct and install 19 additional compressors totaling 19,640 HP on the supply system in Beaver County, Oklahoma;
Lipscomb, Hemphill, Reeves and Ward Counties, Texas and Eddy County, New Mexico.

  

					
	Filed:	  	03/28/74	  	
	Supplement filed:	  	07/05/74	  	
	Order issued:	  	11/27/74 52 FPC 1540 (1974)

  

 Appendix 3.9(b) 
 Page 14 

 1978 
  

							
	 CP78-399
	  	Application filed for authorization to purchase pipeline facilities from Diamond Shamrock Corp. in Lipscomb County, Texas.

  

					
	Filed:	  	06/28/78	  	
	Order issued:	  	01/24/79 6 FERC ¶ 161,063

  

							
	(1979)	  	

  

 Appendix 3.9(b) 
 Page 15 

 1979 
  

							
	 CP79-326
	  	TW/CITIES SERVICE. - Joint application for authorization to exchange up to 75,000 Dth per day. (This gas to be purchased from ONG by TW and delivered to cities by Oklahoma
natural at an existing interconnect between Oklahoma natural & Cities Service in Woodward county, Ok and cities Service will concurrently reduce the volumes received by Transwestern at an existing delivery point between Cities & TW
in Hemphill County, TX.

  

					
	Filed:	  	05/25/79	  	
	Order issued:	  	07/26/79 8 FERC ¶61,067

  

							
	 CP79-422
	  	MICHIGAN-WISCONSIN PIPELINE CO. - Joint application for authority to construct and operate a bi-directional metering station and to exchange gas at an interconnect between
the two systems, located in Sec. 36, Block B-1, H&GN Survey, Roberts County, Texas. Authority also requested to exchange gas from additional wells attached to respective gathering systems of each applicant as they become available. The gas to be
exchanged will be gathered and delivered from various wells located in Beckham County, Oklahoma.

  

					
	Filed:	  	07/30/79	  	
	Order issued:	  	01/08/80 10 FERC ¶ 61,020

  

 Appendix 3.9(b) 
 Page 16 

 1980 
  

							
	 CP80-9
	  	 Petitions to amend the order of January 10, 1980 which authorized the construction of two specified single gas purchase
facilities costing in excess of the single project cost limit of $2,500,000. TW constructed 19.7 miles of 12-inch pipeline and appurtenant facilities to connect gas supplies in the Southeast Leedy Field, located in Roger Mills County, Ok and
approximately 84,500 feet of 12-inch pipeline, the Feldman Lateral, and appurtenant facilities to connect gas supplies in the Leedy Field located in the same county.
  
 The order issued January 10, 1980 was amended to increase the total cost limitation for gas supply facilities during the calendar year 1981 and further
amended to authorize the construction of two single onshore projects in excess of the single project cost limitation.

				
		  	     Filed:
	  	10/12/79	  	
		  	     Order issued:
	  	01/10/80 10 FERC ¶62,013	  	
	CP80-9-001	  	     Amendment filed
	  	04/06/81	  	
		  	     Order issued:
	  	07/22/81 16 FERC ¶62,152	  	
		  	     Amendment filed
	  	06/29/82	  	
	CP80-9-002	  	
	CP80-9-003	  	
				
		  	     Order issued:
	  	09/27/82 20 FERC ¶62,544	  	

  

					
	 CP80-25
	  	 TW/CITIES SERVICE GAS COMPANY - Joint application with Cities Service for the exchange of gas which will be gathered by
Cities from 9 wells located near their system in Dewey County, Ok and dedicated to TW, Cities will concurrently reduce the volumes received from TW by equivalent quantity at the existing delivery point between Cities and TW located in Hemphill
County, TX.

  

					
	Filed:	  	10/12/79	  	
	Certificate issued:	  	05/23/80 11 FERC ¶61,201

  

					
	CP80-155	  	TW - Application for authorization to transport natural gas for other interstate pipelines for periods not to exceed two years.

  

					
	Filed:	  	12/26/79	  	
	Certificate issued:	  	05/27/80 10 FERC ¶ 61,191

  

					
	CP80-476	  	TW/OASIS PIPELINE CO. - Applications for authorization to construct an interconnect in Ward and Reeves Counties, Texas to receive gas from Oasis.

  

					
	Filed:	  	08/01/80	  	
	Certificate issued:	  	05/27/80 10 FERC ¶ 61,191

  

 Appendix 3.9(b) 
 Page 17 

 1981 
  

							
	CP81-45	  	BUDGET-TYPE AUTHORIZATION - Application pursuant to Sec. 7 for authorization to construct, remove and relocated and for permission for and approval of the abandonment
during the calendar year 1981, and operation of field gas compression and related metering and appurtenant facilities. Amendment filed for authorization to increase the total and single project cost limitations during 1981.
				
		  	     Filed:
	  	11/10/80	  	
		  	     Order issued:
	  	01/13/81 14 FERC ¶62,024	  	
	CP81-45-001	  	     Amendment filed:
	  	04/03/81	  	
		  	     Order issued:
	  	08/20/81 16 FERC ¶62,268	  	

  

							
	CP81-99	  	 TWIINTRATEX GAS COMPANY - Application for authority to transport natural gas on behalf of Intratex Gas Company for 10
years, construct, remove and relocate and for approval of the abandonment during 1982, and operation of field gas compression and related metering and appurtenant facilities. TW’s application for rehearing was denied and INGAA’s and
Delhi’s petition to intervene was rejected in an order for rehearing issued Sept. 22, 1982.

				
		  	     Filed:
	  	12/12/80	  	
		  	     Notice of withdrawal filed:
	  	04/27/82	  	
		  	     Withdrawal Effective:
	  	05/25/82	  	
		
	CP81-267	  	TW/ CITIES SERVICE GAS COMPANY - Original application requested authorization to construct and operate two new 8,000 hp compressor stations, consisting of two 4,000 hp gas
turbine-driven centrifugal compressor units, one in Roosevelt County, New Mexico and one in Deaf Smith county, Texas, and 4,000 additional compressor horsepower at an existing compressor station in Gray County, Texas, all on TW’s Panhandle
Lateral in Texas and New Mexico. On Oct. 22, 1981, Cities Service and on Oct. 23, 1981, Transwestem filed applications for rehearing of the Sept. 24, 1981 order (16 FERC 1161,224). Cities Services application for rehearing was dismissed and
TW’s application for rehearing was denied.
				
		  	     Filed:
	  	04/01/81	  	
		  	     Order issued:
	  	09/241181 16 FERC ¶61,224	  	
		  	     Filed for rehearing:
	  	10/23/81	  	
		  	     Order issued:
	  	03/03//82 18 FERC ¶61,205	  	

  

 Appendix 3.9(b) 
 Page 18 

 1981 
  

							
	CP82-64	  	FIELD COMPRESSION - Application for authority to construct, remove and relocate and for approval of the abandonment during 1982, and operation of field gas compression and
related metering and appurtenant facilities.
				
		  	     Filed:
	  	11/10/81	  	
		  	     Certificate Issued:
	  	02/05/82 18 FERC ¶62,163	  	
		  	     Order Approving Abandonment:
	  	02/05/82 18 FERC ¶62,163	  	
		  	     Certificate Terminated Effective:
	  	11/18/82 date of acceptance of Blanket Certificate
		
	CP82-534	  	 BLANKET CERTIFICATE - Application for Blanket Certificate authorizing certain
transactions and abandonments. (Implement Section 157.208 thru 157.218.) CP80-9 (issued 01/10180, 10 FERC 1162,013 and CP82-64 (issued 02/05182, 18 FERC 1162,163) were surrendered upon acceptance of this certificate.

  

					
	Filed:	  	09/17/82	  	
	Certificate Issued:	  	11/04/82 21 FERC ¶62,190

  

 Appendix 3.9(b) 
 Page 19 

 1985 
  

			
	CP85-441	  	GREAT PLAINS ABANDONMENT - Application for authority to abandon sales of gas to Great Plains Gas Co. under Rate Schedule RW-1 (2 Mcf/d to residence firm and max of 1,675 Mcf/d and 612,000
Mcf/yr), to operate facilities to make direct sales to Great Plains customers and prior notice to install sales taps and meters (43) under blanket certificate to continue service. On May 28, 1985, TW filed a supplement submitting signed
agreements. On July 29, 1985 TW filed an amendment to the application requesting permission to construct and operate a meter station and tap for sales of 3,000 dth/d to Wiley Reynolds & Sons (to serve a subdivision near Pampa, TX)
under Rate Schedule SG-1 and to either construct new facilities or acquire facilities to make direct sales to continue service under Rate Schedule RW-1 to Great Plains customers. TW notified the Commission by letter on April 24, 1987 that no
facilities were ever acquired or constructed, sales to Great Plains were not abandoned and sales to Reynolds commenced on February 1, 1996.

  

							
		 	Filed:	  	04/16/85	  	
		 	Order issued:	  	05/28/85 33 FERC ¶61,283	  	
		 	Amendment filed:	  	07/29/85	  	
		 	Order issued:	  	11/27/85	  	
		 	Letter filed:	  	04/24/87	  	

  

 Appendix 3.9(b) 
 Page 20 

 1986 
  

			
	CP86-211	  	 TW/SOUTHWEST GAS - Section 7(c) application filed for certification of metering equipment and a tap (installed under NGPA §. 311
(a)) located in Mohave County, Arizona and to commence sales to South Gas (up to 3,000 MMBtu/d) under Rate Schedule SG-2.

  

							
		 	Filed:	  	11/21/85	  	
		 	Order issued:	  	06/04/86	  	

  

			
	CP86-212	  	TW/Mojave, Kern River, El Dorado, Northwest, El Paso & Standard Pacific Gas - Section 7 application to construct and operate gas pipeline facilities. TW proposes to construct and
operate facilities and to provide firm transportation service per this docket. TW proposes to loop all of the unlooped portions of its system between West Texas and California, 358 miles of 30” pipeline to interconnect with Mojave. The new
facilities will increase capacity by 320 MMcf per day for which TW seek authority to offer a new firm transportation service under a new CDT-1 Rate Schedule, under which it would recover the incremental costs of the new facilities in addition to
fuel use charges.

  

							
		 	Filed:	  	12/ /85	  	
		 	Order Consolidating Proceedings	  	05/19/86	  	
		 	Order Granting Motion for Summary Disposition And Dismissing Application with Prejudice*	  	10/27/86	  	

  

			
	CP86-276	  	* El Dorado’s application for a certificate of public convenience and necessity was dismissed with prejudice for failure to prosecute the application diligently.

  

			
		  	ABANDONMENT OF SALES SERVICE - Section 7(b) application requesting permission and approval to abandon sales services under Rate Schedule CDQ-2 and for partial abandonment of Rate Schedule
CDQ-3 (to reduce CDQ to 127,214 dth/d), both to Northwest Central.

  

							
		 	Filed:	  	01/16/86	  	
		 	Settlement Filed:	  	01-16.86	  	
		 	Order issued:	  	01/28/87 38 FERC 1161,056	  	

  

 Appendix 3.9(b) 
 Page 21 

 1987 
  

			
	CP87-112	  	TW/H.L. BROWN RESTRUCTURING - Section 7(b) and 7(c) application filed jointly by Transwestem and H.L. Brown requesting permission to abandon gas supply facilities by sale to Brown and to
restructure certain gas purchase agreements covering properties in Bluitt Field, Roosevelt County, New Mexico. Transwestern requested permission to abandon 12 meter stations and related laterals. Brown requested authorization for the abandonment of
sales to the extent Brown’s processing of gas results in decreased sales to Transwestern, and a finding that the acquired facilities will be non-jurisdictional under the new arrangement. In addition, Brown requested pre-granted abandonment
authorization so that gas released pursuant to the market-out provision of the contract may be sold to another purchaser. Order Approving Abandonment, Denying Application in Part, and Disclaiming Jurisdiction Issued. Request for rehearing filed.

  

							
		 	Filed:	  	12/18/86	  	
		 	Approval date:	  	10121/87 41 FERC ¶61,055	  	
		 	Order dismissing request for rehearing:	  	04/07/88 43 FERC ¶61,028	  	

  

			
	CP87-134	  	 ABANDONMENT, RECERTIFICATION, AND INITIAL AUTHORIZATION - Section 7(b) application requesting permission and approval to abandon
certain compressors, dehydrators, and miscellaneous facilities and for blanket authority to abandon other miscellaneous auxiliary equipment and for a certificate of public convenience and necessity to construct and operate certain existing
facilities and to recertify existing compression facilities.

  

							
		 	Filed:	  	12/18/86	  	
		 	Approval date:	  	01/21/88 42 FERC 1161,040	  	

  

			
	CP87-135	  	 PUCKETT PLANT ABANDONMENT - Section 7(b) application requesting permission and approval to abandon a gas treatment plant in Pecos
County, Texas. Request for clarification filed; order amended.

  

							
		 	Filed:	  	12/18/86	  	
		 	Approval date:	  	12/15/8741 FERC ¶61,319	  	
	CP87-135-001	 	Amendment approved:	  	02/16/88 42 FERC ¶61,203	  	

  

 Appendix 3.9(b) 
 Page 22 

 1988 
  

			
	CP88-99	  	INTERRUPTIBLE SALES PROGRAM - Abbreviated application for certificate authority to implement an off-system and on-system interruptible sales service (under Rate Schedule IS-1) and for
pregranted authority to abandon this service. Filed an amendment to unbundle sales and transportation services rendered under Rate Schedule IS-1 in order to be able to make sales at the wellhead and to transport the gas under Rate Schedule
FTS-1 or ITS-1. Order issuing Certificate subject to certain conditions.

  

							
		 	Filed:	  	12/01/87	  	
		 	Approval date:	  	05/11/88 43 FERC 161,240	  	

  

			
	CP88-1333	  	BLANKET TRANSPORTATION CERTIFICATE - Transwestem’s Application for a Blanket Certificate of Public Convenience and Necessity Authorizing the Transportation of Natural Gas Under an
“Open Access” Program pursuant to the terms and conditions of the Commission’s Order No. 436 and Part 284 of the Commissions’ Regulations.

  

							
		 	Filed:	  	December 17, 1987	  	
		 	Order Issued:	  	March 1, 1988	  	

  

 Appendix 3.9(b) 
 Page 23 

 1989 
  

			
	CP89-539	  	 RATE SCHEDULE CDQ-3 ABANDONMENT - Section 7(b) application for permission and approval to abandon its firm sales of up to 127,214 Dth
equivalent of natural gas per day to Williams Natural Gas Company under Transwestem’s Rate Schedule CDQ-3, effective February 1, 1989. Transwestem also requests approval to eliminate its Rate Schedule CDQ-3 from its FERC Gas Tariff,
effective February 1, 1989. Transwestem also requests the Commission to condition the proposed abandonments by permitting Transwestern to reserve its right to recover from Williams, under the alternative pass-through procedures of Order
No. 500, Williams’ equitable share of Transwestem’s take-or-pay buyout, buydown, and contract reformations costs pursuant to any filing made by Transwestem subsequent to the effective date of the proposed abandonments. Kansas Power
and Light Company filed a request for clarification or, in the alternative, rehearing of the October 6, 1989 order.

  

							
		 	Filed:	  	01/05/89	  	
		 	Approval date:	  	10/06/89 49 FERC ¶ 61,021	  	
	CP89-539-001	 	Amendment approved:	  	04/30/91 55 FERC ¶ 61,156	  	

  

			
	CP89-696	  	 CHEVRON USA, INC. - Prior notice filing for authorization to transport natural gas for Chevron USA, Inc. In the same filing,
Transwestem requests a waiver of section 284.223(a) of the Commission’s regulations for the transaction.

  

							
		 	Filed:	  	01/25/89	  	
		 	Approval date:	  	02/27/89 FERC ¶ 61,261	  	

  

			
	CP89-886	  	SoCAL STANDBY SALES SERVICE ABANDONMENT - Section 7(b) application for permission and approval to abandon, effective February 1, 1989, standby sales service provided to Southern
California Gas Company (SoCal) under Rate Schedules CDQ-1 and FTS. Request for clarification and/or rehearing filed; rehearing request denied. Clarified the March 20 order; order did not relieve SoCal of responsibility for its allocable share
of take-or-pay buy-out, buy-down, and contract reformation costs incurred by Transwestem in standing ready to perform standby sales service to SoCal.

  

							
		 	Filed:	  	02/23/89	  	
		 	Approval date:	  	03/20/90 50 FERC ¶61,379	  	
	CP89-886-001	 	Amendment filed:	  	04/03/90	  	
		 	Amendment approved:	  	04/04/91 55 FERC ¶61,026	  	

  

			
	CP89-2104	  	TWIPANHANDLE EXCHANGE ABANDONMENT - Joint Section 7(b) application for permission and approval to abandon an exchange of natural gas between Transwestern and Panhandle Eastern Pipe
Line Company in Roberts, Hemphill, and Sherman Counties in Texas.

  

							
		 	Filed:	  	09/15/89	  	
		 	Approval date:	  	03/21/90 FERC ¶62,198	  	

  

 Appendix 3.9(b) 
 Page 24 

 1990 
  

			
	CP90-14	  	 IS SALES AND TRANSPORTATION SERVICE UNBUNDLING - Section 7(c) application to amend a certificate issued in Docket No. CP88-99-000
authorizing Transwestern to make on-system and off-system interruptible sales of surplus gas. Docket No. CP88-999-000 authorized Transwestem to institute an interruptible sales service (13S) pursuant to new Rate Schedule IS-1 (IS). Amendment
filed requesting clarification of the Commission’s March 16, 1990 order; Texaco sought clarification and rehearing; rehearing granted in part, and dismissed as moot, in part.

  

							
		 	Filed:	  	10/04/89	  	
		 	Approval date:	  	03/16/90 50 FERC ¶61,362	  	
	CP90-14-002	 	Amendment filed:	  	04/16/90	  	
		 	Amendment approved:	  	02/05/92 58 FERC ¶61,101	  	

  

			
	CP90-179	  	WEST TEXAS LATERAL LOOP LINE - Section 7(c) application for a certificate of public convenience and necessity authorizing the construction and operation of a loop line and authorizing the
operation of two existing emergency interconnections with El Paso Natural Gas Company (El Paso) for general service located in Ward County, Texas. Transwestem also requested authorization to operate two existing interconnections with El Paso in
Cibola County, New Mexico and Ward County, Texas for general service.

  

							
		 	Filed:	  	10/31/89	  	
		 	Approval date:	  	05/23/91 55 FERC ¶62,175	  	

  

			
	CP90-305	  	 COASTAL GAS MARKETING COMPANY - Sec. 157.205 and 284.223 request for authorization to transport natural gas on behalf of Coastal. Up to
400,000 MMbtu per day would be transported from Arizona, New Mexico. Oklahoma and Texas for redelivery to Arizona, New Mexico, Oklahoma and Texas.

  

							
		 	Filed:	  	12/14/89	  	
		 	Approval date:	  	      ?                    54 FR 52982	  	

  

			
	CP90-307	  	 MOBIL NATURAL GAS - Sec. 157.205 and 284.223 request for authorization to transport natural gas on an interruptible basis on behalf of
Mobil. Up to 20,000 MMbtu per day would be transported.

  

							
		 	Filed:	  	12/12/89	  	
		 	Approval date:	  	      ?                    54 FR 52982	  	

  

			
	CP90-324	  	ENRON GAS MARKETING, INC. - Sec. 157.205 request for authorization to transport natural gas on an interruptible basis on behalf of Enron. Up to 100,000 MMbtu per day would be transported
from all receipt points listed in TW’s transportation point catalog and delivered to Arizona, New Mexico, Oklahoma and Texas.

  

							
		 	Filed:	  	12/14/89	  	
		 	Approval date:	  	      ?                    54 FR 52982	  	

  

 Appendix 3.9(b) 
 Page 25 

 1990 
  

			
	CP90-325	  	 CIBOLA CORPORATION - Sec. 157.205 and 283.223 request for authorization to transport natural gas on an interruptible basis on behalf of
Cibola. Up to 50,000 MMbtu per day would be transported from Arizona, New Mexico. Oklahoma and Texas and deliver equivalent volumes in Arizona, New Mexico, Oklahoma and Texas.

  

							
		 	Filed:	  	12/12/89	  	
		 	Approval date:	  	      ?                    54 FR 52982	  	

  
  

			
	CP90-388	  	TEXACO GAS MARKETING, INC. - Sec. 157.205 and 284.223 request for authorization to transport natural gas on an interruptible basis on behalf of Texaco. Up to 750,000 MMbtu per day would
be transported from various receipt points on TW’s system and delivered to a delivery point in Mohave County, Texas.

  

							
		 	Filed:	  	12/19/90	  	
		 	Approval date:	  	      ?                    54 FR 53175	  	

  

			
	CP90-413	  	 WILLIAMS GAS MARKETING COMPANY - Sec. 157.205 and 284.223 request for authorization to transport natural gas on an interruptible basis
on behalf of Williams. Up to 50,000 MMbtu per day would be transported.

  

							
		 	Filed:	  	12/26/89	  	
		 	Approval date:	  	      ?                    55 FR 469	  	

  

			
	CP90-521	  	 U.S. ALLEN NO. 1 COMPRESSOR UNIT 809 ABANDONMENT - Section 7(b) application requesting permission and approval to abandon a
skid-mounted field compressor station in Beaver County, Oklahoma.

  

							
		 	Filed:	  	01/16/90	  	
		 	Approval date:	  	04/17/90 55 FERC ¶ 61,073	  	

  

			
	CP90-692 	  	BRIDGEGAS U.S.A., INC. - Sec. 157.205 request for authorization to transport natural gas on behalf of BridgeGas under Rate Schedule ITS-1. Up to 100,000 MMbtu per day would be transported
from all receipt points listed in TW’s transportation point catalog and delivered to Arizona, New Mexico, Oklahoma and Texas.

  

							
		 	Filed:	  	02/07/90	  	
		 	Approval date:	  	      ?                    55 FR 5880	  	

  

			
	CP90-693	  	 NGC TRANSPORTATION, INC. - Sec. 157.205 request for authorization to transport natural gas on behalf of NGC. Up to 40,000 MMbtu per day
would be transported from all receipt points listed in TW’s transportation point catalog and delivered to Arizona, New Mexico, Oklahoma and Texas.

  

							
		 	Filed:	  	02/09/90	  	
		 	Approval date:	  	      ?                    55 FR 6425	  	

  

 Appendix 3.9(b) 
 Page 26 

 1990 
  

			
	CP90-698	  	WILLIAMS GAS MARKETING COMPANY - Sec. 157205 request for authorization to transport natural gas on behalf of Williams under Rate Schedule ITS-1. Up to 8,000 MMbtu per day would be
transported from all receipt points listed in Dewey and Ellis Counties, Oklahoma and Hemphill County, Texas and delivered to Dewey County, Oklahoma and Hemphill County, Texas.

  

					
	Filed:	  	02/08/90	  	
	Approval date:	  	?	  	55 FR 5880

  

			
	CP90-741	  	ADOBE GAS MARKETING COMPANY - Sec. 157.205 and 284.223 request for authorization to transport natural gas on behalf of Adobe under Rate Schedule ITS-1. Up to 40,000 MMbtu per day would be
transported.

  

					
	Filed:	  	02/13/90	  	
	Approval date:	  	?	  	55 FR 6425

  

			
	CP90-856	  	PHILLIPS PETROLEUM COMPANY - Sec. 157.205 request for authorization to transport natural gas on behalf of Phillips under Rate Schedule ITS-1.

  

					
	Filed:	  	03/02/90	  	
	Approval date:	  	?	  	55 FR 9170

  

			
	CP90-926	  	GASMARK, INC. - Sec. 157.205 and 284.223 request for authorization to transport natural gas on behalf of GasMark, Inc. under Rate Schedule ITS-1. Up to 50,000 MMbtu per day would be
transported from all receipt points listed in TW’s transportation point catalog and delivered to Arizona, New Mexico, Oklahoma and Texas.

  

					
	Filed:	  	03/06/90	  	
	Approval date:	  	?	  	55 FR 10093

  

			
	CP90-927	  	 ENOGEX SERVICES CORP. - Sec. 157.205 request for authorization to transport natural gas on behalf of Enogex. Up to 10,000 MMbtu per day would
be transported from all receipt points listed in TW’s transportation point catalog and delivered to Arizona, New Mexico, Oklahoma and Texas.

  

					
	Filed:	  	03/06/90	  	
	Approval date:	  	?	  	55 FR 10098

  

			
	CP90-1736	  	 VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various
shippers.

  

					
	Filed:	  	07/19/90	  	
	Approval date:	  	?	  	55 FR 30505 (1990)

  

 Appendix 3.9(b) 
 Page 27 

 1990 
  

			
	CP90-1912	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	08/07/90	  	
	 Approval date:
	  	?	  	55 FR 33351 (1990)

  

			
	CP90-1913	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	08/07/90	  	
	 Approval date:
	  	?	  	55 FR 33351 (1990)

  

			
	CP90-1914	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	08/07/90	  	
	 Approval date:
	  	?	  	55 FR 33351 (1990)

  

			
	CP90-1923	  	NGC TRANSPORTATION - Sec. 157.205 request for authorization to construct and operate a new delivery point and to provide interruptible transportation service to NGC Transportation, Inc.
under Rate Schedule ITS-1. Up to 25,000 Mcf per day would be transported from all receipt points listed in TW’s transportation point catalog. NGC will deliver gas to Mewbourne Oil to be used in enhanced oil recovery.

  

					
	 Filed:
	  	08/10/90	  	
	 Approval date:
	  	?	  	55 FR 34061 (1990)

  

			
	CP90-2294	  	SAN JUAN BASIN EXPANSION - Section 7(c) application for a certificate of public convenience and necessity authorizing the construction and operation of certain pipeline,
compression, and related facilities in New Mexico and Arizona which will expand the capacity of the mainline system and connect to that system gas supplies produced in the San Juan Basin. In addition, Transwestern also requests approval of proposed
initial rates for firm and interruptible transportation services which it will provide through that portion of the proposed facilities connecting its mainline system to the San Juan Basin.

  

							
		  	Filed:	  	09/25/90	 	
		  	Approval date:	  	01/17/91	 	54 FERC ¶61,031
	 CP90-2294-001
	  	Amendment filed:	  	02/19/91	 	
		  	Amendment approved:	  	08/01/91	 	56 FERC ¶61,196
	 CP90-2294-002
	  	Amendment approved:	  	03/04/93	 	62 FERC ¶ 61,209
	 CP90-2294-003
	  	Amendment filed:	  	05/22/92	 	
		  	Amendment approved:	  	09/18/92	 	60FERC ¶ 62,220
	 CP90-2294-004
	  	Amendment filed:	  	04/05/93	 	
		  	Amendment approved:	  	04/08/94	 	67 FERC ¶ 61,037
		  	Request to Proceed with Construction	  	09/09/91	 	
		  	Placed in Service - Mainline/Lateral on 3/1/92 3/09/92 Commenced
		  	Construction of Flagstaff Lateral 10/09/92

  

 Appendix 3.9(b) 
 Page 28 

 1991 
  

			
	CP91-29	  	HADSON GAS SYSTEMS - Sec. 157.205 request for authorization to provide interruptible transportation service to Hadson Gas under Rate Schedule ITS-1. Up to 100,000 MMBtu per day would be
transported from Arizona, New Mexico. Oklahoma and Texas for redelivery in New Mexico, Oklahoma and Texas.

  

					
	 Filed:
	  	10/05/90	  	
	 Approval date:
	  	?	  	55 FR 41751 (1990)

  

			
	CP91-30	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	10/05/90	  	
	 Approval date:
	  	?	  	55 FR 41751 (1990)

  

			
	CP91-31	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	10/05/90	  	
	 Approval date:
	  	?	  	55 FR 41751 (1990)

  

			
	CP91-31	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	10/05/90	  	
	 Approval date:
	  	?	  	55 FR 41751 (1990)

  

			
	CP91-316	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	11/08/90	  	
	 Approval date:
	  	?	  	55 FR 48891 (1990)

  

			
	CP91-494	  	NGC TRANSPORTATION - Sec. 157.205 request for authorization to provide interruptible transportation service to NGC Transportation under Rate Schedule ITS-1. Up to 100,000 Dth per day
would be transported from all TW’s receipt points for redelivery in Texas and New Mexico.

  

					
	 Filed:
	  	11/27/90	  	
	 Approval date:
	  	?	  	55 FR 50216 (1990)

  

			
	CP91-507	  	UNIT 773 ABANDONMENT - Section 7(b) application to abandon by removal a compressor unit in Woodward County, Oklahoma on the off-system South Vici gas supply system.

  

					
	 Filed:
	  	11/27/90	  	
	 Approval date:
	  	03/13/91	  	54 FERC 62,174

  

 Appendix 3.9(b) 
 Page 29 

 1991 
  

			
	CP91-651	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	12/18/90	  	
	 Approval date:
	  	?	  	55 FR 53336 (1990)

  

			
	CP91-870	  	NGC TRANSPORTATION - Sec. 157.205 request for authorization to provide interruptible transportation service to NGC Transportation under Rate Schedule ITS-1. Up to 400,000 MMBtu per day
would be transported from Arizona, New Mexico. Oklahoma and Texas for redelivery in New Mexico.

  

					
	 Filed:
	  	01/09/91	  	
	 Approval date:
	  	?	  	56 FR 2512 (1991)

  

			
	CP91-1040	  	SOUTH VICI GATHERING SYSTEM ABANDONMENT - Section 7(b) application to abandon the South Vici Gathering System and for approval of the proposed accounting treatment of the sale.
Transwestern intended to sell the facilities to Panda Resources, Inc.

  

					
	 Filed:
	  	01/29/91	  	
	 Approval date:
	  	02/20/92	  	58 FERC ¶ 61,188

  

			
	CP91-1057	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	02/05/91	  	
	 Approval date:
	  	?	  	56 FR 6002 (1991)

  

			
	CP91-1058	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	 Filed:
	  	02/05/91	  	
	 Approval date:
	  	?	  	56 FR 6002 (1991)

  

			
	CP91-1080	  	OXY U.S.A. - Sec. 157.205 and 284.223 request for authorization to provide interruptible transportation service on behalf of Oxy under Rate Schedule ITS-1. Up to 5,000 MMBtu on a peak day
would be transported from Arizona, New Mexico. Oklahoma and Texas for delivery in New Mexico.

  

					
	 Filed:
	  	012/31/91	  	
	 Approval date:
	  	?	  	56 FR 6007 (1991)

 1991 
  

			
	CP91-1629	  	 VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of a
shipper.

  

					
	 Filed:
	  	03/28/91	  	
	 Approval date:
	  	?	  	56 FR 14360 (1991)

  

 Appendix 3.9(b) 
 Page 30 

			
	CP91-1683	  	PUCKETT FIELD COMPRESSOR AND DEHY ABANDONMENT - Section 7(b) application to abandon four compressor units and two dehydration units in the Puckett field in Pecos County,
Texas.

  

					
	Filed:	  	04/01/91	  	
	Approval date:	  	08/16/91	  	56 FERC 1 162,123

  

			
	CP91-1916	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	04/29/91	  	
	Approval date:	  	?	  	55 FR 21478 (1991)

  

			
	CP91-1984	  	YATES PETROLEUM - Sec. 157.205, 157.211 and 284.223 Prior Notice request for authorization to install and operate a delivery point to transport natural gas to Yates Petroleum service to
NGC Transportation under Rate Schedule ITS-1. Up to 400,000 MMBtu per day would be transported from Arizona, New Mexico. Oklahoma and Texas for redelivery in New Mexico.

  

					
	Filed:	  	05/13/91	  	
	Approval date:	  	?	  	56 FR 23562 (1991)

  

			
	CP91-2022	  	MEWBOURNE OIL - Sec. 157.205 Prior Notice request for authorization to provide interruptible transportation service to Mewbourne Oil Company under Rate Schedule ITS-1. Up to 50,000 MMBtu
per day would be transported from Arizona, New Mexico. Oklahoma and Texas for redelivery in Arizona, New Mexico, Oklahoma and Texas.

  

					
	Filed:	  	05/13/91	  	
	Approval date:	  	?	  	56 FR 23576 (1991)

  

			
	CP91-2087	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	05/24/91	  	
	Approval date:	  	?	  	56 FR 25674 (1991)

  

 Appendix 3.9(b) 
 Page 31 

 1991 
  

			
	CP91-2121	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	05/28/91	  	
	Approval date:	  	?	  	56 FR 26400 (1991)

  

			
	CP91-2122	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	05/28/91	  	
	Approval date:	  	?	  	56 FR 26400 (1991)

  

			
	CP91-2123	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	05/28/91	  	
	Approval date:	  	?	  	56 FR 26400 (1991)

  

			
	CP91-2298	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	06/20/91	  	
	Approval date:	  	?	  	56 FR 29643 (1991)

  

			
	CP91-2374	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	07/11/91	  	
	Approval date:	  	?	  	56 FR 33427 (1991)

  

			
	CP91-2760	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	08/12/91	  	
	Approval date:	  	?	  	56 FR 41668 (1991)

  

 Appendix 3.9(b) 
 Page 32 

 1991 
  

			
	CP91-2761	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	08/12/91	  	
	Approval date:	  	?	  	56 FR 41668 (1991)

  

			
	 CP91-2773
	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	08/12/91	  	
	Approval date:	  	?	  	56 FR 41668 (1991)

  

			
	 CP91-2905
	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	08/30/91	  	
	Approval date:	  	?	  	56 FR 45948 (1991)

  

			
	 CP91-3016
	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	09/19/91	  	
	Approval date:	  	?	  	56 FR 48782 (1991)

  

			
	 CP91-3030
	  	VARIOUS SHIPPERS - Sec. 157.205 and 284.223 request for authorization to provide transportation service on behalf of various shippers.

  

					
	Filed:	  	09/16/91	  	
	Approval date:	  	?	  	56 FR 48199 (1991)

  

 Appendix 3.9(b) 
 Page 33 

 1992 
  

			
	 CP92-74
	  	2.55 (b) NOTICE WAIVER AT NEEDLES Filed petition for waiver of the requirement in Section 2.55(b) of the regulations requiring notification to the Commission at least 30 days
prior to commencing construction activities to replace existing facilities. This request was necessary in order to upgrade existing pipeline due to the encroachment of a residential subdivision near the Needles measurement station in Mohave Valley,
Arizona.

  

							
		 	Filed:	  	10/09/91	  	
		 	Approval date:	  	10/28/91 57 FERC ¶61,114 (1991)

  

			
		
	CP92-202	  	BLANCO HUB ABANDONMENT Section 7(b) application to abandon by sale to Gas Company of New Mexico (GCNM), jointly with Northwest Pipeline Corporation, equal portions of their undivided
interests in the Blanco Hub, located in San Juan county, New Mexico. Northwest requested authority to abandon by sale to Transwestem and GCNM a portion of its interest in a meter station that Northwest constructed for deliveries to GCNM. GCNM was
also authorized to acquire an approximate one-third interest in Northwest’s and Transwesternts Blanco Hub gas supply facilities.

  

							
		 	Filed:	  	11/20/91	  	
		 	Approval date:	  	06/29/92 59 FERC ¶61,391 (1992)

  

							
		
	CP92-207	  	MOCANE SYSTEM ABANDONMENT Section 7(b) application to abandon by sale to Continental Natural Gas Company the Mocane Gathering System located in Beaver County, Oklahoma;
to abandon a point of interconnection location in Beaver County, Oklahoma, used for exchange of natural gas with El Paso Natural Gas Company; to abandon certificated interstate sales of natural gas to Transwestem upon sale of the facilities to
Continental; and authorization to account for the sale of the Mocane System as a normal retirement rather than as a sale of the operation unit or system.

  

							
		 	Filed:	  	11/22/91	  	
		 	Approval date:	  	08/05/92 60 FERC ¶61,139 (1992)

  

							
		
	CP92-243	  	TOPOCK INTERCONNECT Section 7(c) application requesting a certificate of public convenience and necessity authorizing the operation of certain pipeline and measurement
facilities constructed as Section 311 facilities located in Mojave County, Arizona and San Bernardino County, California (Topock Interconnect). Facilities were constructed that directly interconnect with the pipeline systems of PG&E,
Southern California Gas Company (SoCalGas), and Mojave Pipeline Company (Mojave).

  

							
		 	Filed:	  	12/16/91	  	
		 	Approval date:	  	06/11/92 59 FERC ¶61,305 (1992)

  

 Appendix 3.9(b) 
 Page 34 

 1992 
  

			
	CP92-477	  	CREE SYSTEM AND RATE SCHEDULE X-10 ABANDONMENT Transwestern and GPM Gas Corporation (GPM) filed on May 1, 1992 a stipulation and agreement of settlement that resolved all issues
related to a certificated exchange agreement between Transwestern and GPM. The settlement agreement related to: 1) the application by Phillips 66 (now GPM) to abandon the certificated exchange service with Transwestem and 2) the application by
Transwestern to abandon its exchange with GPM; abandon its Cree Flowers Gathering System (Cree System) by sale to Wallace Oil & Gas, Inc. (Wallace); and to abandon and remove one skid-mounted compressor unit located on the Cree System.
Finally, Transwestern sought approval of its proposed accounting treatment of the sale of the Cree System.

  

							
		 	Filed:	  	05/01/92	  	
		 	Approval date:	  	10/20/92 61 FERC 561,078 (1992)

  

							
		
	CP92-686	  	RATE SCHEDULE X-10 ABANDONMENT Section 7(b) application to abandon the exchange of natural gas between Transwestem and Williams Natural Gas Company at exchange points
in Woodward County, Oklahoma, and Hemphill County, Texas, pursuant to the terms of Rate Schedule X-10.

  

							
		 	Filed:	  	09/01/92	  	
		 	 Approval date:
	  	10/22/92 61 FERC 562,063 (1992)

  

 Appendix 3.9(b) 
 Page 35 

 1993 
  

			
	CP93-75	  	SUNRISE COMPLAINT Complaint filed by Sunrise Energy Company against Transwestern and a request for an investigation pursuant to rule 206 of the Commission’s regulations, 18 CFR
¶385.206. Sunrise alleged that Transwestem 1) did not provide timely access to information relating to the discount on interruptible rates offered to Transwestem’s affiliate, Enron Marketing; 2) did not offer a similar discount to
nonaffiliated firm shippers, thereby engaging in undue discrimination; 3) communicated to Enron Marketing information regarding Sunrise’s financial difficulties; 4) misrepresented the availability of interruptible capacity on the expansion
facilities; 5) engaged in a systematic effort to remove Sunrise as a competitor of Enron Marketing in the California market by refusing to amend or modify Sunrise’s firm contracts, and; 6) facilitated and actively participated in Enron
Marketing’s anti-competitive and predatory behavior toward Sunrise. The complaint was dismissed and the request to investigate was denied. On March 3, 1993, Sunrise Energy Company, Signal Fuels Trading Company, Natural Gas Clearinghouse,
and Indicated Shippers filed for rehearing of the “Order of Complaint,” and Meridian Oil Incorporated requested clarification and/or reconsideration of the order. The requests for rehearing, clarification and reconsideration were all
denied. On March 7, 1994, Sunrise Energy filed a motion for clarification submitting that the legal effect was to render moot the allegations and Transwestern’s response to those allegations on rehearing. Sunrise’s request for
clarification was granted and provided.

  

							
		 	Filed:	  	11/23/92	  	
		 	Approval date:	  	02/01/93 62 FERC ¶61,087 (1993)
	CP93-75-001	 	Filed:	  	03/03/93	  	
		 	Rehearing denied:	  	02/03/94 66 FERC ¶61,170 (1994)
	CP93-75-002	 	Filed:	  	03/07/94	  	
		 	Clarification granted:	  	04/20/94 67 FERC ¶61,093 (1994)

  

							
		
	CP93-367	  	RATE SCHEDULE X-16 ABANDONMENT Application to abandon a natural gas exchange service provided pursuant to Williams Natural Gas (WNG) Rate Schedule X-17 and Transwestem Rate
Schedule X-16. WNG and TW were authorized to exchange gas under an exchange agreement dated August 9, 1979 in Docket No. CP80-25 at a delivery and balancing point between WNG and Transwestern in Hemphill County, Texas, and from additional wells
in Roger Mill, Ellis, Woodward and Dewey Counties, Oklahoma and in Hemphill and Lipscomb Counties, Texas.

  

							
		 	Filed:	  	06/01/93	  	
		 	Approval date:	  	08/19/93 64 FERC ¶62,120 (1993)

  

							
		
	CP93-529	  	ABANDONMENT BY TRANSFER TO TRANSWESTERN L.P. Section 7(b) application to abandon services and facilities by transfer to Transwestem LP., and to acquire and operate
Transwestern’s facilities, and to transport gas in interstate commerce pursuant to section 7(c). On August 30,1 994, Transwestem filed a notice of withdrawal of the application; withdrawal was effective September 14,
1995.

  

							
		 	Filed:	  	06/30/93	  	
		 	Withdrawal approved:	  	09/22/94 68 FERC ¶61,415 (1994)

  

 Appendix 3.9(b) 
 Page 36 

 1994 
  

							
	CP94-55	  	 RATE SCHEDULE X-9 ABANDONMENT Section 7(b) application to abandon a portion of two exchange services with Caprock
Natural Gas Company. Caprock filed a 7(b) application in Docket No. CP93-306 to abandon certain pipeline and compressor facilities and related exchange and transportation services. Northern Natural Gas Company (Northern Natural) filed in Docket No.
CP94-302 a related application to abandon a related firm transportation service for Caprock. Caprock stated that gas had been delivered by Caprock to Transwestem in Roberts County, Texas and that Transwestem redelivered the gas to Caprock in Parmer
County, Texas. The gas was then delivered to Westar Transmission Company (Westar) in Gaines County, Texas. Because gas delivery declined, the parties no longer desired the exchange services and the facilities were no longer required. On
September 23, 1994, Caprock and Cholla Petroleum Inc. (Cholla) filed a motion for clarification to determine that the facilities are non-jurisdictional gathering facilities exempt from the Commission’s NGA jurisdiction and that the rates
for gathering services will not be subject to the Commission’s jurisdiction under section 4 and 5 of the NGA.

  

							
		 	Filed:	  	11/02/93	  	
		 	Approval date:	  	08/10/94 68 FERC ¶61,224 (1994)
	CP94-55-001	 	Amendment filed:	  	09/23/94	  	
		 	Approval date:	  	11/18/94 69 FERC ¶61,230 (1994)

  

							
		
	CP94-90	  	RATE SCHEDULE NO. X-6 ABANDONMENT Section 7(b) application to abandon a natural gas transportation and exchange service between Transwestern and American Processing
(American). Pursuant to an agreement between Transwestem and American, the agreement provided that American would deliver gas to Transwestem in Roberts County, Texas, and Transwestern would redeliver equivalent volumes to American in Gray or Carson
Counties, Texas. In accordance with the terms of the agreement, Transwestem notified American on June 1, 1993, that it wished to terminate the agreement effective January 1, 1994. Transwestem stated that all exchange activity
under the agreement ceased, no imbalance existed and no facilities would be abandoned.

  

							
		 	Filed:	  	11/18/93	  	
		 	Approval date:	  	03/01/94 66 FERC ¶62,107 (1994)

  

 Appendix 3.9(b) 
 Page 37 

 1994 
  

			
	 CP94-211
	  	VACA LATERAL ABANDONMENT Section 7(b) application to abandon by sale to Enron Oil & Gas Company (Enron) certain facilities located in Lea County, New Mexico. Transwestem
proposed to abandon by sale to its affiliate Enron the “Vaca lateral” which included approximately 0.71 mile of 4-inch pipeline, one meter station and related facilities attached to Transwestem’s 24-inch West Texas lateral in Lea
County, New Mexico. Transwestern filed an amendment seeking to transfer the Vaca lateral facilities to TGC, which in turn conveyed the Vaca lateral facilities to Enron Oil and Gas Company

  

							
		 	Filed:	  	02/02/94	  	
		 	Approval date:	  	11/01/94 69 FERC ¶61 ;130 (1994)
	CP94-211-001	 	Amendment filed:	  	11/16/94	  	
		 	Approval date:	  	07/27/95 72 FERC ¶61,085 (1995)

  

			
	CP94-213	  	SOUTH HIGGINS AND TRENFIELD FACILITIES ABANDONMENT Section 7(b) application to abandon by sale to Mewbourne Oil Company (Mewboume) certain small diameter pipelines, meter stations
and related facilities located in Lipscomb County, Texas and Ellis County, Oklahoma. Transwestern proposed to abandon by sale approximately five miles of 4-inch and 6-inch pipeline, two meter stations and related facilities (South Higgins
facilities). These facilities were attached to Transwestern’s 12-inch Leedy lateral in Ellis County, Oklahoma. Transwestern also proposed to abandon approximately seven miles of 4-inch pipelines, six meter stations, and related facilities
(Trenfield facilities). These facilities were located off the east end of Transwestern’s Mammoth Creek lateral in Lipscomb County, Texas.

  

							
		 	Filed:	  	02/03/94	  	
	CP94-213-001	 	Filed amendment:	  	05/27/94	  	
		 	Approval date:	  	08/17/94 68 FERC ¶61,236 (1994)

  

			
	CP94-254	  	REFUNCTIONALIZATION Section 7(b) and 7(c) application for a certificate of public convenience and necessity and abandonment authorization relating to proposed refunctionalization
of certain facilities from production and gathering to transmission and from transmission to production and gathering, respectively. Transwestern filed an amendment requesting to functionalize each facility individually, and not generically,
based on its primary function.

  

							
		 	Filed:	  	02/24/94	  	
	CP94-254-001	 	Filed amendment:	  	02/25/97	  	
		 	Approval date:	  	07/27/95 72 FERC ¶61,085 (1995)

  

 Appendix 3.9(b) 
 Page 38 

 1994 
  

			
	CP94-307	  	AMOCO’S EMPIRE ABO PLANT - Prior notice filing for authorization to install and operate a tap and metering facilities at a new point of delivery to provide natural gas to Amoco
Production Company’s Empire Abo Plant in Eddy County, New Mexico.

  

							
		 	Filed	  	03/24/94	  	
		 	Approval date:	  	  ??        05/19/94 59 FR 15718 (1994)

  

			
	CP94-341	  	RATE SCHEDULE X-14 ABANDONMENT Section 7(b) application to abandon a natural gas exchange service requested by Natural Gas Pipeline Company of America (Natural) and Transwestern
Pipeline Company as provided under Natural’s Rate Schedule X-69 and Transwestern’s Rate Schedule X-14. Under the agreement, Natural delivered natural gas to Transwestem in Eddy, Lea, and Chaves Counties, New Mexico and Ward County, Texas.
In exchange, Transwestern delivered equivalent volumes of natural gas to Natural in Roosevelt and Eddy Counties, New Mexico and in Beckham County, Oklahoma. By a letter agreement dated January 31, 1994, Natural and Transwestern agreed to
terminate the exchange service effective June 15, 1993.

  

							
		 	Filed:	  	04/07/94	  	
		 	Approval date:	  	05/12/94 67 FERC ¶62,124 (1994)

  

			
	CP94-676	  	SID RICHARDSON DELIVERY POINT Prior notice filing for authorization to install and operate a tap and valve at a new point of delivery to provide interruptible transportation of up to 700
Mcf/d of natural gas to Sid Richardson Gasoline Company (Richardson), a producer located in Winkler County, Texas.

  

							
		 	Filed	  	07/21/94	  	
		 	Approval date:	  	07/27195 72 FERC ¶61,085 (1995)

  

			
	CP94-751-000	  	ABANDONMENT OF FACILITIES - Section 7(b) filing for permission and approval to abandon and remove certain transmission and gathering facilities. Filed two (2) Amendments to the application
to correct and revised facilities to be abandoned (CP94-751-001 & 002) in the instant application. Order issued on July 27, 1995 in Docket No. RP95-271, et al., granted abandonment by removal as conditioned by Appendix D to the Order.
Additional, Amendment to application filed on November 13, 1995 and is more fully described below (CP94- 751-004). Initial implementation plan on removal filed January 26, 1996. Revised implementation plan filed March 1, 1996.
Director’s Letter issued March 5, 1996 approved the revised implementation plan.

  

							
		 	Filed:	  	08/30/94	  	
	CP94-751-001	 	Filed Amendment to Application:	  	10/03/94	  	
	CP94-751-002	 	Filed Amendment to Application:	  	05/01/95	  	
		 	Order Approving Abandonment:	  	07/27/95 71 FERC ¶61,085 (1995)
	CP94-751-003	 	Request for Rehearing:	  	08/28/95	  	
		 	Order Denying Rehearing:	  	10/17/95	  	

  

 Appendix 3.9(b) 
 Page 39 

 1994 
  

			
	CP94-751-004	  	751 ABANDONMENT Section 7(b) application to modify the abandonment authorization of certain facilities owned by Transwestem Pipeline Company. The Commission’s July, 1995
order addressed separate applications by Transwestern in Docket No. CP94-751-000 and CP95-70-000 to abandon certain compressors, treater plants, meters, dehydration units and associated facilities. The amendment requested modification of the July,
1995 abandonment authorization to permit some of the facilities originally proposed to abandon in place, to be abandoned by sale to Agave Energy Company, Conoco, Inc., Enron Oil & Gas Company, Highlands Gathering and Processing Company, and
Mobil Producing Texas and New Mexico, Inc. This amendment authorized the transfer of the facilities identified.

  

							
		 	Filed:	  	11/13/95	  	
		 	Approval date:	  	07/02/96 76 FERC ¶61,018 (1996)

  

			
	CP94-751-005	  	751 AMENDMENT Amendment to application requests permission to abandon certain of the facilities in the original application by sale to third parties rather than removal. This amendment
requested modification of the July, 1995 abandonment authorization to permit some of the facilities originally proposed to abandon in place to be abandoned by sale to Agave Energy Company, Conoco, Inc., Enron Oil & Gas Company, Highlands
Gathering and Processing Company, and Mobil Producing Texas and New Mexico, Inc.

  

							
		 	Filed Amendment to Application:	  	12/24/96	  	
		 	Order issued:	  	11/03/97 81 FERC ¶ 61,151 (1997)

  

 Appendix 3.9(b) 
 Page 40 

 1995 
  

			
	CP95-65	  	RATE SCHEDULE X-7 ABANDONMENT Section 7(b) application to abandon an exchange service between Transwestem and Natural Gas Pipeline Company of America. Pursuant to a gas exchange
agreement between Transwestern and Natural Gas Pipeline Company, Transwestern and Natural were authorized to exchange natural gas during periods of emergency at existing facilities in Eddy County, New Mexico and Hansford and Gray Counties, Texas.
However, neither of their records indicated whether or not this exchange was ever utilized. Pursuant to a letter agreement between Transwestern and Natural Gas Pipeline Company dated October 12, 1997, Transwestern and Natural agreed to
terminate the Agreement as of December 1, 1993.

  

					
	Filed:	  	11/09/94	  	
	Approval date:	  	01/05/95 70 FERC ¶62,007 (1995)

  

			
	CP95-70	  	 SPINDOWN ABANDONMENT/RATE SCHEDULES
X-1                    AND X-15
 ABANDONMENT
Section 7(b) application to abandon certain facilities located in Kansas, New Mexico, Oklahoma, and Texas by sale to its wholly owned subsidiary, Transwestem Gathering Company (TGC). Transwestern also requested authorization to abandon
(1) certain interruptible service agreements under Rate Schedule ITS-1, to the extent receipt points on contracts effectuating such service were located on the facilities to be abandoned; (2) certain firm (i.e., no-notice) transportation
service under Rate Schedule FTS-2 provided to various right-of-way grantors or agricultural users, and small general customers; and (3) certain certificated exchange services which are performed under Rate Schedules X-1 and
X-15.

  

					
	Filed:	  	11/14/94	  	
	Approval date:	  	07/27/95 72 FERC 761,085 (1995)

  

			
	CP95-153	  	BRILLHART AND KIOWA CREEK SYSTEM ABANDONMENTS Section 7(b) application to abandon by sale portions of the Brillhart and Kiowa Creek gathering systems to GPM Gas Corporation.
Abandonment consists of approximately one mile of four-inch pipeline and two meter stations located in Lipscomb County, Texas.

  

					
	Filed:	  	01/12/95	  	
	Approval date:	  	07/27/95 72 FERC 761,085 (1995)

  

			
	CP95-327	  	RIO GRANDE RIVER CROSSING Section 7(c) application to construct and operate approximately 3,200 feet of 30-inch diameter pipeline under the Rio Grande River in Valencia County, New
Mexico. On August 20, 1994, the northern most pipeline exploded resulting in the loss of that segment and damage to the steel structure pipeline bridge. Transwestem replaced one of the pipelines and the bridge under section 2.55(b) of the
Commission’s Regulations. The total cost of this project to replace the second pipeline was $1,675,000, and was reimbursed by Transwestem’s insurance carrier.

  

					
	Filed:	  	04/17/95	  	
	Approval date:	  	08/16/95 72 FERC 762,147 (1995)

  

 Appendix 3.9(b) 
 Page 41 

 1995 
  

			
	CP95-378	  	NGC/GRAY AND WHEELER COUNTY FACILITIES ABANDONMENT Section 7(b) application for authorization to abandon: (1) by sale to NGC Intrastate Pipeline Company (NGC) certain transmission
facilities including two meter stations, five compressors, 6.5 miles of 10-inch pipeline and 17.4 miles of eight- inch pipeline located in Gray and Wheeler Counties, Texas; (2) by reconveyance to GPM pursuant to an exchange agreement dated
September 18, 1972, six mites of 16-inch pipeline located in Gray County, Texas; and (3) a FTS-2 Transportation Service Agreement between Transwestem and the City of LeFlors.

  

					
	Filed:	  	05/01/95	  	
	Approval date:	  	07/27/95 72 FERC ¶61,085 (1995)

  

 Appendix 3.9(b) 
 Page 42 

 1996 
  

			
	CP94-751-004	  	CP94-751-004 - Amendment to application requests permission to abandon certain of the facilities in the original application by sale to third parties rather than removal. There are five
(5) separate closings. Closed are sale to Conoco, Agave Energy Company, and Enron Oil & Gas. Bills of Sale for remaining facilities drafted by Legal. Pending sales are Mobil Producing Texas and New Mexico, Inc. and Highlands
Gathering & Processing Company.

  

					
	REMAINING CONDITION: • Notice of abandonment.
	Filed Amendment to Application:	  	11/13/95	  	
	Order Approving Abandonment:	  	07/02/96 76 FERC 1162,006 (1996)

  

			
	CP96-10	  	SAN JUAN EXPANSION - PHASE I Section 7(c) application to construct and operate a new 10,000 horsepower compressor station located near Mile Post 36 on Transwestem’s San Juan
Lateral, to construct and operate 7,000 hp of additional compression at the existing Bloomfield compressor station, to adjust its mainline and San Juan Lateral capacity on a flexible basis by changing the pressure of its mainline facilities, to
operate an existing 4,132 hp back-up compressor on a flexible basis at the Bloomfield compressor station, and to purchase from Northwest Pipeline Corporation a 77.7% undivided ownership interest in Northwest’s mainline LaPlata
Facilities.

  

					
	Filed:	  	10/04/95	  	
	Environmental Assessment 3/1/96	  	03/01/96	  	
	Approval date:	  	04/29/96 75 FERC IT61,107 (1996)
	Acceptance Letter	  	05/29/96	  	
	Implementation Plan	  	06/19/96	  	
	Bloomfield/Bisti In Service at 12/1/96	  	12/05/96	  	
	Post Construction Bloomfield Noise Survey 01/29/97

  

			
	CP96-33	  	HALL FARM TAP ABANDONMENT Section 7(b) application to abandon by sale the S. Gene Hall farm tap located in Gray County, Texas, to NGC Intrastate Pipeline Company. Transwestem
facilities connected to the Hall farm tap were abandoned by sale to NGC in Docket No. CP95-378. This was initially certificated in Docket No. CP75-17 and CP75-277.

  

					
	Filed:	  	10/24/95	  	
	Approval date:	  	11/17/95 73 FERC 1162,115 (1995)

  

 Appendix 3.9(b) 
 Page 43 

 1996 
  

			
	CP96-119	  	WEST TEXAS LATERAL AND CHENOT PUTNAM LATERAL ABANDONMENT Section 7(b) application to abandon by sale to Chevron USA, Inc. Certain pipeline facilities (West Texas Lateral and Chenot
Putnam Lateral), including two farm taps. On January 5, 1997, Chevron filed a request for an order declaring that the facilities, once acquired and operated by Chevron, would perform a gathering function, and as such, would be exempt from
Commission regulation under the section 1(b) of the National Gas Act. Closing effective September 16. Notice of Abandonment filed on September 24.

  

					
	Filed:	  	12/22/95	  	
	Approval date:	  	08/07/96 76 FERC ¶61,189 (1996)

  

			
	CP96-214	  	 WEST TEXAS GAS FARM TAPS - Section 7(b) application to abandon 59 farm
 taps located in parts of Texas and New Mexico, along with the related service that Transwestern renders through such facilities, by sale to West Texas Gas, Inc. On
January 8 1997, Transwestern filed a supplement to its application, removing five of the farm taps in questions from its original application and the corresponding sale agreement with West Texas. On September 10, 1998 filed the Notice of
Abandonment for 54 farm taps effective September 1, 1998.

  

					
	Filed:	  	02/27/96	  	
	Approval date:	  	02/26/97 78 FERC ¶61,183 (1997)

  

			
	CP96-370	  	TEMPORARY COMPRESSION - Section 7(c) application for a blanket certificate authorizing Transwestern to install, operate, and remove temporary compressor units during scheduled or
unscheduled maintenance. Certificate issued with environmental conditions. The blanket certificate is limited for the purpose of maintenance of existing permanent compressor units. The temporary compressor units shall not be used to increase the
volume of service above that rendered by the involved existing permanent compressor units. Certificate accepted September 20, 1996. Reporting of temporary compressors will be included in the Annual Blanket Certificate Report.

  

					
	Filed:	  	04/30/96	  	
	Order issued:	  	08/21/96 76 FERC ¶61,211 (1996)
	Certificate Accepted:	  	09/20/96	  	

  

			
	CP96-371	  	BILBREY COMPRESSION ABANDONMENT Section 7(b) application requesting abandonment and removal of the Santa Fe Bilbrey Compressor Unit and its Texaco Bilbrey Compressor Unit, both
located on Transwestem’s Monument Lateral in Lea County, New Mexico.

  

					
	Filed:	  	04/30/96	  	
	Approval date:	  	07/02/96 76 FERC ¶62,006 (1996)

  

 Appendix 3.9(b) 
 Page 44 

 1997 
  

			
	CP94-751-005	  	CP94-751-005 - Amendment to application requests permission to abandon certain of the facilities in the original application by sale to Continental Natural Gas, Inc. and GPM Gas
Corporation rather than remove the equipment as originally proposed.

  

					
	REMAINING CONDITION:	  		  	
	Notice of abandonment.	  		  	
	Filed Amendment to Application:	  	12/24/96	  	
	Order issued:	  	11/03/97 81 FERC ¶61,151 (1997)

  

			
	CP97-159	  	PANHANDLE P1 and P2 COMPRESSOR MODIFICATIONS - Section 7(c) application for a certificate of public convenience and necessity to modify the P1 and P2 compressor units in order increase
operational flexibility and increase capacity of approximately 14 MMcf per day on the Panhandle lateral.

  

					
	Filed:	  	12/18/96	  	
	Notice of Application	  	01/13/97	  	
	Approval date:	  	05/08/97 79 FERC ¶62,102 (1997)
	In-Service	  		  	

  

			
	CP97-209	  	GPM/CACTUS DELIVERY POINT - Prior notice filing to install and operate a new delivery point in Sherman County, Texas in order to provide natural gas deliveries to GPM for fuel
use.

  

					
	Filed:	  	01/27/97	  	
	Approval date:	  	03/18/97	  	

  

			
	CP97-286	  	BLOOMFIELD COMPRESSOR MODIFICATIONS - Section 7(c) application for a certificate of public convenience and necessity to modify the Bloomfield compressor units in order increase
operational flexibility and increase capacity of approximately 25 MMcf per day on the San Juan lateral. The modified compressors were placed in-service on December 1, 1997. Actual project costs filed May 20, 1998.

  

					
	Filed:	  	03/12/97	  	
	Order issued:	  	11/05/97 81 FERC ¶61,172
	In-Service	  	12/01/97	  	

  

			
	CP97-349	  	WTG/HANSFORD DELIVERY POINT - Prior notice filing to operate an existing side valve located in Hansford County, Texas as a new delivery point in order to provide natural gas deliveries to
West Texas Gas to serve residential and commercial customers. WIG will own and operate all facilities downstream of the tap.

  

					
	Filed:	  	04/17/97	  	
	Approval date:	  	06/10/97	  	

  

 Appendix 3.9(b) 
 Page 45 

 1997 
  

			
	CP97-391	  	ANNUAL 311 REPORT - Annual Report for the construction of facilities pursuant to §311(a) of the Natural Gas Policy Act of 1978 for calendar year 1996.

  

					
	 Filed:
	  	04/28/97	  	

  

			
	CP97-393	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission's Regulations for calendar year 1996.

  

					
	Filed:	  	04/28/97	  	

  

			
	CP97-397	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction, operation, and abandonment of eligible facilities under automatic authorizations for calendar year 1996.

  

					
	Filed:	  	04/28/97	  	

  

			
	CP97-516	  	SAN JUAN EXPANSION - PHASE II - Section 7(c) application for a certificate of public convenience and necessity to expand capacity of the San Juan facilities. Facilities include a new
15,000 horsepower compressor station at Standing Rock and additional 2,000 horsepower at the existing LaPlata "A' compressor station to increase capacity from Ignacio to Blanco by 115,000 Dth/d and from Blanco to Thoreau by 130,000 Dth/d.
Application amended to install a 7000 ISO rated horsepower unit at the LaPlata compressor station in lieu of the 2000 HP unit originally proposed. On December 18, 1997, notified FERC that discussions continue with representatives of the Navajo
Nation regarding R-O-W for Standing Rock. Order Granting Clarification issued on February 18, 1998 pursuant to Transwestern's December 17, 1997 request for clarification regarding locked in rates. The Commission clarified that locked in
rates applies to "Current Customers" only as set forth in Appendix C of the Global Settlement. On April 8, 1998, Northern filed the notice of an April 1, 1998 in-service date for the LaPlata "A" facilities. On December 25, 1998,
Transwestern notified FERC that it was unable to reach agreement with the Navajo Nation regarding ROW for the Standing Rock compressor station. Transwestern filed on September 25, 1998 a request to vacate the portion of the certificate
authorizing the construction and operation of the Standing Rock station. Notice Vacating in Part Prior Order was issued March 16, 1999 for the Standing Rock portion of this certificate.

  

					
		  	Original Application Filed:	  	05/19/97
	CP97-516-001	  	Amendment filed:	  	08/22/97
		  	Order issued:	  	11/17/97 81 FERC ¶61,217 (1997)
		  	Certificate accepted:	  	11/21/97
		  	 Order Granting Clarification issued: 02/18/98 82 FERC ¶61,164 (1998)

		  	Notice Vacating in Part at Standing Rock	  	03/16/99
		  	In Service of La Plata Modifications	  	04/01/98

  

 Appendix 3.9(b) 
 Page 46 

 1988 
  

			
	CP98-8	  	CITIZENS UTILITIES DELIVERY POINT - Prior notice filing for authorization to operate existing facilities located in Coconino County, Arizona as a delivery point to accommodate natural gas
deliveries to Citizens Utilities Company.

  

					
	Filed:	  	10/03/97	  	
	Approval date:	  	11/25/97	  	

  

			
	CP98-13	  	PG&E ABANDONMENT - Section 7(b) application for permission and approval to abandon, by sale to PG&E-TEX, the Gomez lateral located in Ward and Pecos Counties,
Texas and certain service render thereby. PG&E filed its “Petition for a Declaratory Order” in Docket No. CP98-43. On January 8, 1998, Transwestern supplemented Exhibit U to the original filing with the First Amendment to the
Purchase and Sale Agreement. Filed to further supplement Exhibit U of the original application for additional amendments to the Asset Purchase Agreement. Notice of Withdrawal of Application and Request to cancel Settlement Conference was filed
August 28, 1998.

  

					
	Filed:	  	10/09/97	  	
	Application Withdrawn:	  	08/28/98	  	
	Withdrawal effective:	  	09/14/98	  	

  

			
	CP98-233	  	KN INTERSTATEILIPSCOMB MOCANE & LEEDY LATERAL SALE - Section 7(b) application for permission and approval to abandon, by sale to K N Interstate Transmission Company,
Transwestern’s Lipscomb Mocane and Leedy laterals. Mewbourne withdrew its protest October 1, 1998. Aurora did not withdraw its protest. On December 22, 1998, the Commission issued an Order Denying Protest and Approving Abandonment. A
Second Amendment to the Asset Purchase Agreement was executed January 31, 2000 extending the terms of the agreement until March 31, 2000. An agreement to assign the original Asset Purchase Agreement, as amended, to OneOk, Inc. was executed
April 5, 2000. OneOk has until July 5, 2000 to notify Transwestern of its intent to purchase the subject facilities. By letter dated June 26, 2000, ONEOK officially exercised its right to terminate the Asset Purchase Agreement for
this transaction.

  

					
	Filed:	  	02/13/98	  	
	Order Issued:	  	12/22/98	  	85 FERC ¶61,416 (1998)
	Order on Motion to Vacate:	  	06/04/01	  	95 FERC ¶ 61,443 (2001)
	Regulatory Contact: Michele

  

			
	CP98-413	  	ANNUAL 311 REPORT - Annual Report for the construction of facilities pursuant to §311(a) of the Natural Gas Policy Act of 1978 for calendar year 1997.

  

					
	Filed:	  	04/30/98	  	

  

 Appendix 3.9(b) 
 Page 47 

 1998 
  

			
	CP98-419	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for calendar year 1997

  

			
	Filed:	  	04/30/98

  

			
	CP98-690	  	PITCO RESTRUCTURING - Joint Petition for Declaratory Order and Waiver of Tariff Provisions filing pursuant to Section 385207(a)(2) of the Commission’s Regulations. PG&E Gas
Transmission, Northwest Corporation, Transwestern Pipeline Company, Pacific Interstate Transmission Company and Pan-Alberta Gas (U.S.) Inc. are the joint petitioners. Specifically, the joint petitioners seek waiver of the respective capacity release
provisions of PGT and Transwestem’s tariff to the extent necessary to accommodate PITCO’s request in Docket No. CP98-529 to reassign capacity related to pre-built ANGTS facilities due to its change in status under the NGA. On
September 23, 1998, the parties filed a Stipulation, Agreement and Settlement in the docket. On December 17, 1998, the Commission issued an Order on Settlement and Authorizing Abandonment, Acquisition of Facilities, Waiving Tariff
Provisions, and Granting Motion for Consolidation. The Order on Rehearing upholds the original order by denying DEK’s request for rehearing and allows PGE/Northwest to waive its Tariff to the extent necessary to permit credit support for PAGUS.

  

									
	 	  	 	  	Filed:	  	07/24/98	  	 
		  		  	Order Issued:	  	12/17/98 85 FERC ¶61,378 (1998)
	CP98-690-001	  		  	Request for Rehearing Filed:	  	01/15/99	  	
		  		  	Order on Rehearing Issued:	  	11/29/99 89 FERC ¶61,246 (1999)

  

			
	CP98-745	  	SPS/HOBBS DELIVERY POINT - Prior notice filing to operate an existing delivery point acquired pursuant to §311(a) of the NGPA to provide non-restricted service to Southwest Public
Service Company at its Cunningham Power Plant. Transwestem will also begin operating the pipeline connected to the subject delivery point pursuant to the automatic authorization of its blanket certificate and §157.208(a) of the
Commission’s Regulations. Staff is holding the Notice until Transwestern supplemented its request providing eligible on behalf of entity, costs to acquire facilities, and certain environmental data. Supplement filed September 4, 1998.
Application withdrawn due to incorrect legal description and Staffs request that Transwestem include pipeline in its request. Request may be refiled at a later date.

  

			
	Filed:	  	08/25/98
	Withdrawal Filed:	  	09/14/98
	Withdrawal Effective:	  	09/29/98

  

 Appendix 3.9(b) 
 Page 48 

 1998 
  

			
	CP98-795	  	UPH/BURTON FLATS SALE AND CRAWFORD COMPRESSOR RELOCATION - Section 7 application for permission and approval to abandon by sale to Union Pacific Highlands Gathering and Processing
Company (UPH) approximately 58 miles of pipeline and request to relocate the Crawford compressor station. On July 8, notified FERC that the first, of a two-part closing, became effective July 1, 1999. Subsequent negotiations with Duke have
resulted in the cancellation of the second closing. On January 12, 2001, Transwestem filed a letter notifying FERC that, due to economic reasons, the second closing/abandonment will not take place. This decision also precluded the need to
relocate the Crawford compressor station. FERC may or may not respond to the letter filed January 12, 2001.

  

			
	Filed:	  	09/23/98
	Order:	  	04/01/99 87 FERC ¶61,004 (1999)
	Certificate Accepted:	  	04/26/99

  

 Appendix 3.9(b) 
 Page 49 

 1999 
  

			
	CP99-522	  	GALLUP EXPANSION/SAN JUAN COOLERS - Section 7(c) application to install and operate additional cooling at the Bloomfield and LaPlata “A” compressor stations and a new
electric drive compressor station near Gallup all on the San Juan Lateral. The subject facilities will create incremental firm capacity of approximately 50,000 Mcf/d on the San Juan Lateral downstream of the Bloomfield compressor station for a total
capacity on the San Juan Lateral of 850,000 Mcf/d. The facilities will also allow Transwestern to increase its mainline operating pressure from Thoreau to California to 950 psig, thereby allowing Transwestem to operate its mainline west to
California at its certificated capacity of 1,090,000 Mcf/d. The certificate authority for operational flexibility of the San Juan Lateral and the mainline for deliveries east of Thoreau received in Docket No. CP96-10 will remain in full force and
effect (this would become an issue if the unit at Gallup is abandoned).

  

			
	Filed: 05/13/99
	Order Issued: 01/13/00 90 FERC ¶ 61,032 (2000)
	
	Accepted Certificate: 01/14/00
		
	In Service at Bloomfield Coolers	  	04/06/00
	In Service at La Plata Coolers	  	04/20/00
	In Service at Gallup Station	  	05/01/00

  

			
	CP99-534	  	STATION 8 - Section 7(b) application for permission and approval to abandon by removal Unit No. 3 (6,500 HP) at Transwestern’s Station 8 located in Lincoln County, New Mexico. On
December 2, 1999, Transwestem filed the Notice of Abandonment of Unit #3 at Station 8 effective November 30, 1999.

  

			
	Filed:	  	05/21/99
		
	Order issued:	  	08/18/99 88 FERC 1162,157 (1999)

  

			
	CP99-447	  	 ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the
 construction of eligible facilities under automatic authorizations for calendar year 1998

  

			
	Filed:	  	04/30/99

  

			
	NM	  	 ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual
 Report for construction activity during the year 1998 under Section 284.11(d) of the Commission’s Regulations.

  

			
	Filed:	  	(Not Filed)

  

 Appendix 3.9(b) 
 Page 50 

 1999 
  

			
	CP99-443	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations for calendar year 1998.

  

					
	Filed:	  	04/30/99	  	

  

			
	N/A	  	ANNUAL SYSTEM CAPACITY REPORT - Pursuant to Section 284.13 for the calendar year 1998.

  

					
	Filed:	  	03/01/99	  	

  

			
	N/A	  	ANNUAL SYSTEM FLOW DIAGRAMS REPORT - FERC Form No. 567 for the calendar year 1998.

  

					
	Filed:	  	05/28/99	  	

  

			
	N/A	  	QUARTERLY INDEX OF CUSTOMERS REPORT - Pursuant to Section 284.106 for the calendar year 1999.

  

					
	Filed:	  		  	
			
	1st Quarter:	  	12/31/98	  	
	2nd Quarter:	  	04/01/99	  	
	3rd Quarter:	  	06/29/99	  	
	4th Quarter:	  	10/01/99	  	

  

 Appendix 3.9(b) 
 Page 51 

 2000 
  

			
	CP00-277	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for calendar year 1999.

  

					
	Filed:	  	05/01/00	  	

  

			
	N/A	  	ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 1999 under Section 284.11(d) of the Commission’s Regulations.

  

					
	Filed:	  	(Not Filed.)	  	

  

			
	CP00-305	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations for calendar year 1999.

  

					
	Filed:	  	05/01/00	  	

  

			
	N/A	  	ANNUAL SYSTEM FLOW DIAGRAMS REPORT - FERC Form No. 567 for the calendar year 1999.

  

					
	Filed:	  	6/01/00	  	

  

			
	RM85-1	  	ANNUAL SYSTEM CAPACITY REPORT - Pursuant to Section 284.13 for the calendar year 1999.

  

					
	Filed:	  	3/01/00	  	

  

			
	N/A	  	QUARTERLY INDEX OF CUSTOMERS REPORT - Pursuant to Section 284.106 for the calendar year 2000.

  

					
	Filed:	  		  	
			
	1st Quarter	  	12/22/99	  	
	2nd Quarter:	  	03/31/00	  	
	3rd Quarter	  	06/29/00	  	
	4th Quarter:	  	10/02/00	  	

  

	1	FERRIS gives a 5/01/00 record for a Transwestem 311 Filing. Look to the right column for a reference to “2.551f. This record is actually Transwestem’s Annual 2.55(b)
Replacement Report, not a 311 Report. Transwestem has no files supporting a 311 Report for the year 1999. 

  

 Appendix 3.9(b) 
 Page 52 

 2001 
  

			
	CP01-115	  	Red Rock Expansion - Section 7(b)/7(c) application requesting permission and approval to: (1) abandon in-place existing units totaling 49,500 HP at Transwestem’s Stations 1, 2, 3 & 4
and (2) install a 41,500 HP unit at each station resulting in 150,000 Mcf/d of incremental firm capacity from Thoreau to the California border. Requested expedited treatment with an Order issued by August 1, 2001.

  

			
	Application Filed:	  	03/29/2001
	 FERC Environmental Assessment
	  	06/14/2001
	 Order Issuing Certificate and
	  	
	Approving Abandonment:	  	07/16/2001
	Acceptance Letter	  	07/19/2001
	 Placed in Service 06/15/02
	  	06/21/2002
	 Order Extension of Time
	  	07/09/2002
	 Post Construction Noise Survey
	  	08/06/2002
	 Notification of Abandonment
	  	12/16/2002
	 In-Service (Stations 1-3)
	  	06/15/2002

  

			
	CP01-272	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for calendar year 2000.

  

			
	Filed:	  	05/01/01
	Revision Filed:	  	12/13/01

  

			
	N/A	  	ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 2000 under Section 284.11(d) of the Commission’s Regulations.

  

			
	Filed:	  	(Not Filed?)

  

			
	CP01-238	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations for calendar year 2000.

  

			
	Filed:	  	04/30/04

  

	2
	 FERRIS gives a 4/30/01 record for a Transwestem 311 Filing. Look to the right column for a reference to “2.551f. In other words, this record is actually
Transwestem’s Annual 2.55(b) Replacement Report, not a 311 Report. Transwestem has no records supporting a 311 Report for the year 2000. 

  

 Appendix 3.9(b) 
 Page 53 

 2001 
  

			
	N/A	  	ANNUAL SYSTEM FLOW DIAGRAMS REPORT - FERC Form No. 567 for the calendar year 2000.

  

			
	Filed:	  	5/30/01

  

			
	N/A	  	ANNUAL SYSTEM CAPACITY REPORT - Pursuant to Section 284.13 for the calendar year 2000.

  

			
	Filed:	  	3/01/01

  

			
	N/A	  	QUARTERLY INDEX OF CUSTOMERS REPORT - Pursuant to Section 284.106 for the calendar year 2001.

  

			
	Filed:	  	
		
	1st Quarter:	  	01/02/01
	2nd Quarter:	  	04/02/01
	2 Quarter 1st Revision	  	05/23/01
	3rd Quarter.	  	07/02/01
	4th Quarter:	  	10/01/01

  

 Appendix 3.9(b) 
 Page 54 

			
	2002 CP02-134	  	San Juan Lateral Capacity (Bloomfield Air Coolers) — Section 7 of the Natural Gas Act (“NGA”), as amended, and Part 157 of the Commission’s Regulations, requesting the
issuance of a certificate of public convenience and necessity authorizing an additional 10,000 Dth/day of capacity on Transwestern’s San Juan lateral.

  

							
		 	Filed:	  	04/02/2002	  	
		 	Noticed	  	04/05/2002	  	
		 	 Order issuing Certificate and
 Approving Abandonment:

	  	04/19/2002	  	
		 	Acceptance of Certificate	  	05/10/2002	  	
		 	In-Service	  	05/10/2002	  	
		 	(Constructed under Section 2.55(a)	  	
		 	W/O No. C.015384.01, Actual Cost = $288,404)	  	

  

			
	CP02-255	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for the calendar year 2001.

  

							
		 	Filed:	  	05/01/02	  	
		 	Revision Filed:	  	04/21/03	  	

  

			
	CP02-247	  	ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 2001 under Section 284.11(d) of the Commission’s Regulations.

  

							
		 	Filed:	  	05/01/02	  	

  

			
	CP02-258	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations for calendar year 2001.

  

							
		 	Filed:	  	05/01/02	  	

  

			
	N/A	  	ANNUAL SYSTEM FLOW DIAGRAMS REPORT — FERC Form No. 567 for the calendar year 2001.

  

							
		 	Filed:	  	05/10/02	  	

  

			
	N/A	  	ANNUAL SYSTEM CAPACITY REPORT — Pursuant to Section 284.13 for the calendar year 2001.

  

							
		 	Filed:	  	02/25/02	  	

  

			
	N/A	  	QUARTERLY INDEX OF CUSTOMERS REPORT — Pursuant to Section 284.106 for the calendar year 2002.

  

							
		 	Filed:	  		  	
		 	1st Quarter:	  	01/02/02	  	
		 	Revised 1st
Quarter:	  	05/10/02	  	
		 	2nd Quarter:	  	04/01/02	  	
		 	3rd Quarter.	  	07/01/02	  	
		 	4th Quarter:	  	10/01/02	  	

  

 Appendix 3.9(b) 
 Page 55 

 2003 
  

			
	CP03-205	  	 ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations
for the calendar year 2002.

  

							
		 	Filed:	  	05/01/03	  	

  

			
	CP03-160	  	 ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 2002 under
Section 284.11(d) of the Commission’s Regulations.

  

							
		 	Filed:	  	05/01/03	  	

  

			
	CP03-164	  	 ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations
for calendar year 2002.

  

							
		 	Filed:	  	05/01/03	  	

  

			
	N/A	  	 ANNUAL SYSTEM CAPACITY REPORT — Pursuant to Section 284.13 for the calendar year 2002.

  

							
		 	Filed:	  	02/28/03	  	

  

			
	N/A	  	 ANNUAL SYSTEM FLOW DIAGRAMS REPORT — FERC Form No. 567 for the calendar year 2002.

  

							
		 	Filed:	  	05/28/03	  	

  

			
	N/A	  	 QUARTERLY INDEX OF CUSTOMERS REPORT — Pursuant to Section 284.106 for the calendar year 2003.

  

							
		 	Filed:	  		  	
		 	1st Quarter:	  	01/02/03	  	
		 	2nd Quarter:	  	04/01/03	  	
		 	2ND Quarter
Revised:	  	04/10/03	  	
		 	3rd Quarter:	  	07/01/03	  	
		 	4th Quarter:	  	10/01/03	  	

  

 Appendix 3.9(b) 
 Page 56 

 2004 
  

			
	CPO4-104	  	 San Juan 2005 Expansion Project - Section 7(b)(c) application for permission and approval to construct, modify, and operate pipeline
looping, and to abandon, replace, install and modify certain compression, piping, and ancillary facilities. Transwestern’s proposed Expansion Project facilities will increase capacity by 375,000 Dth/day on the San Juan Lateral from the Blanco
Hub located in San Juan County, NM to the Gallup area located at the interconnection of the San Juan Lateral and Transwestern’s mainline.

  

							
		 	Filed:	  	04/08/04	  	
				
		 	Notice of Application	  	04/15/04	  	
				
		 	Order issued:	  	08/05/04	  	
				
		 	In-Service	  	05/01/05	  	

  

			
	CP05-04	  	P-1 and P-2 Compressor Stations Rewheel Project - Section 7(c) application requesting the issuance of a certificate of public convenience and necessity authorizing certain modifications
at Transwestern’s existing P-1 and P-2 Compressor Stations, and an additional 10,000 Dth/day of incremental capacity on Transwestern’s Panhandle Lateral. Transwestem is requesting Commission authorization to replace the compressor wheels
(“rewheel”) at its existing P-1 and P-2 Compressor Stations that will allow higher flow volumes that will create an incremental year-round 10,000 Dth/day of gas flow on its Panhandle Lateral.

  

							
		 	Filed:	  	10/08/04	  	
				
		 	Notice of Application	  	10/13/04	  	
				
		 	Order Issued:	  	11/08/04	  	
				
		 	Commenced Construction	  	11/15/04	  	
				
		 	In-Service	  	11/19/05	  	
		 	Cost Comparison filed	  	05/19/05	  	

  

			
	CP04-196	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for the calendar year 2003.

  

							
		 	Filed:	  	04/30/04	  	
		 	Revision Filed:	  	09/09/04	  	

  

			
	CPO4-203	  	 ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 2003 under
Section 284.11(d) of the Commission’s Regulations.

  

							
		 	Filed:	  	04/30/04	  	

  

 Appendix 3.9(b) 
 Page 57 

 2004 
  

			
	CPO4-312	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations for calendar year 2003.

  

							
		 	Filed:	  	04/30/04	  	

  

			
	N/A	  	 ANNUAL SYSTEM CAPACITY REPORT — Pursuant to Section 284.13 for the calendar year 2003.

  

							
		 	Filed:	  	02/26/04	  	

  

			
	N/A	  	 ANNUAL SYSTEM FLOW DIAGRAMS REPORT — FERC Form No. 567 for the calendar year 2003.

  

							
		 	Filed:	  	05/28/04	  	

  

			
	N/A	  	 QUARTERLY INDEX OF CUSTOMERS REPORT — Pursuant to Section 284.106 for the calendar year 2004.

  

							
		 	Filed:	  		  	
		 	1st
Quarter:	  	01/02/04	  	
		 	2nd
Quarter:	  	04/01/04	  	
		 	3rd Quarter:	  	07/01/04	  	
		 	4th
Quarter:	  	10/01/04	  	

  

 Appendix 3.9(b) 
 Page 58 

 2005 
  

			
	CP05-294	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for the calendar year 2004.

  

							
		 	Filed:	  	04/29/05	  	

  

			
	CP05-259	  	ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 2004 under Section 284.11(d) of the Commission’s
Regulations.

  

							
		 	Filed:	  	04/29/05	  	

  

			
	CP05-285	  	 ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations
for calendar year 2004.

  

							
		 	Filed:	  	04/29/05	  	

  

			
	N/A	  	 ANNUAL SYSTEM CAPACITY REPORT — Pursuant to Section 284.13 for the calendar year 2004.

  

							
		 	Filed:	  	03/01/05	  	

  

			
	N/A	  	 ANNUAL SYSTEM FLOW DIAGRAMS REPORT — FERC Form No. 567 for the calendar year 2004.

  

							
		 	Filed:	  	06/01/05	  	

  

			
	N/A	  	 QUARTERLY INDEX OF CUSTOMERS REPORT — Pursuant to Section 284.106 for the calendar year 2005.

  

							
		 	Filed:	  		  	
		 	1st Quarter:	  	01/01/05	  	
		 	2nd Quarter:	  	04/01/05	  	
		 	3rd Quarter:	  	07/01/05	  	
		 	4th Quarter:	  	10/01/05	  	

  

 Appendix 3.9(b) 
 Page 59 

 2006 
  

			
	CP06-59	  	East of Canadian River Facilities Abandonment by Sale - Section 7(b) abandonment application requesting authorization to abandon by sale to PVR Midstream LLC approximately 115 miles of 12
and 16-inch pipeline laterals, one compressor station, and related appurtenant facilities located in Hemphill and Lipscomb Counties, Texas, and Beaver, Ellis, and Roger Mills Counties, Oklahoma (“East of Canadian River Facilities”). Also,
Transwestem and PVR jointly request that the Commission declare the East of Canadian River Facilities, once abandoned, to be gathering and exempt from the Commission’s regulations pursuant to Section 1(b) of the NGA.

  

							
				
		 	Filed:	  	2/03/06	  	
				
		 	Notice of Application	  	2119/06	  	
				
		 	Order Issued:	  	5/17/06	  	
				
		 	Notice of Abandonment	  	7107/06	  	
				
		 	Facilities Conveyed to PVR Midstream	  	7101/06	  	

  

			
	N/A	  	ANNUAL SYSTEM CAPACITY REPORT — Pursuant to Section 284.13 for the calendar year 2004.

  

							
		 	Filed:	  	03/01/06	  	

  

			
	N/A	  	ANNUAL 2.55(b) REPORT - Annual Report for the replacement of facilities pursuant to §2.55(b) of the Commission’s Regulations for calendar year 2004.

  

							
		 	Filed:	  	04/29/06	  	

  

			
	N/A	  	ANNUAL REPORT OF 311 FACILITIES UNDER SECTION 284.11(d) - Annual Report for construction activity during the year 2004 under Section 284.11(d) of the Commission’s Regulations.

  

							
		 	Filed:	  	04/29/06	  	

  

			
	CP82-534	  	ANNUAL BLANKET REPORT - Annual Blanket Certificate Report for the construction of eligible facilities under automatic authorizations for the calendar year 2004.

  

							
		 	Filed:	  	04/29/06	  	

  

			
	N/A	  	ANNUAL SYSTEM FLOW DIAGRAMS REPORT — FERC Form No. 567 for the calendar year 2005.

  

							
		 	Filed:	  	06/01/06	  	

  

			
	N/A	  	 QUARTERLY INDEX OF CUSTOMERS REPORT — Pursuant to Section 284.106.

  

							
		 	1st Quarter Filed:	  	01/01/06	  	
		 	2nd Quarter
Filed:	  	04/01/06	  	
		 	3rd Quarter Filed:	  	07/01/06	  	
		 	4th Quarter Filed	  	10/01/06	  	

  

 Appendix 3.9(b) 
 Page 60 

 Section 3.10 
 LITIGATION 
  

	1.	In Re Natural Gas Royalties Qui Tam Litigation previously known as Grynberg v. Enron, et al. (including many pipeline defendants and TPC), U.S. District Court of
Wyoming; MDL Docket No. 1293, CA. No. 99MD-1640 and 99MD1626. Associated with the sale of certain assets to Agave Energy Company, TPC agreed to indemnify Agave Energy Company for any ongoing expenses related to these proceedings as set
forth in the Measurement Indemnification letter agreement of October 1, 1995 and letter dated August 27, 1999. 

  

	2.	TPC Order to Respond Proceeding, Docket No. 11402-6-000. 

  

	3.	United States Department of Interior, Bureau of Indian Affairs — TPC is managing two threatened trespass actions related to right of way on Tribal or allottee land.

  

	 	(a)	The first matter involves an agreement with the United States Department of Interior, Bureau of Indian Affairs (BIA) covering 44 miles of ROW on a total of 69 Navajo allotments
within Tribal or allottee lands. This ROW agreement expired on January 1, 2004. One Allottee, Mr. Leon Gibson, sent a letter dated January 16, 2004 to the BIA claiming TPC is trespassing. Discussions are ongoing with the BIA to
approve the renewal application, which was filed in October 2002. 

  

	 	(b)	The second matter involves trespass actions related to 5100 feet of ROW on private allotments within the Laguna Pueblo that expired on December 28, 2002. TPC received a letter
dated March 19, 2003 from the BIA on behalf of the two allottees asserting trespass. 

  

	4.	Enron Corp. v. Citigroup, Inc., U.S. Bankruptcy Court, Southern District of New York, 

 Adversary Proceeding No. 03-93611 (AJG). Enron Corp. initiated an adversary proceeding against Citigroup in 2003, seeking return of
certain payments made by Enron to Citigroup shortly before the Enron bankruptcy. Citigroup notified TPC in December of 2004 that it intended to seek indemnification from TPC under the provisions of certain loan agreements executed in 2001 between
TPC and Citigroup as to any amount ultimately required to be repaid by Citigroup to Enron. In January of 2005, Enron gave notice that it would assume the defense as to and indemnify CCE Holdings, LLC, against any action by Citigroup to collect from
TPC. Discovery is ongoing in the adversary proceeding and TPC has not been joined in the litigation. 
  

 S-24 

 Section 3.11 
 TITLE TO PROPERTIES 
 Expiration of Permits 
 The following New Mexico State Highway Crossing Permits have expired. These permits are in the process of being renewed. 
  

	 	a.	30” Loopline  

  

	 	1.	Chaves County - TPC Tract No. M-1-L-H 

  

	 	2.	Lincoln County - TPC Tract Nos. M-92-L-H and M-97-L-H 

  

	 	3.	Valencia County - TPC Tract No. M-165-L-H 

  

	 	4.	Cibola County - TPC Tract Nos. M-187-L-H.1, M-187-L-H.2, M- 

 187-L-H.3, M-187-L-H.4, M-187-L-H.5 and M-193-L-H 
  

	 	b.	24” West Texas Loop - Chaves County - TPC Tract Nos. MTL-3-L-H, MTL-5- 

 L-H, MTL-16B-L-H and MTL-66-L-H 
  

	 	c.	36” West Texas Loop - Eddy County - TPC Tract Nos. MTL-81-L-H, MTL-89- 

 L-H and MTL-93-L-H 
  

	 	d.	36” West Texas Loop - Lea County - TPC Tract No. MTL-112-L-H 

  

	 	e.	12” Atoka Artesia Lateral - Eddy County - TPC Tract Nos. MTL-0001-L-10- 

 HX.2 and MTL-0001-L-10-HX.3 
  

	 	f.	16” Crawford Loop Lateral - Eddy County - TPC Tract Nos. MTL-0002-L-20- 

 HX and MTL-0002-L-21-HX.1 
 Rentals in arrears 
  

	 	a.	16” Keystone Lateral  

  

	 	1.	Winker County, Texas - TPC Tract No. TL-0005-06-RRX.1. Rental last paid to Texas-New Mexico Railway Co. thru 1988 -Successor in title has never been identified despite attempts to
do so. 

  

	 	2.	Winkler County, Texas - TPC Tract No. TL-0005-06-RRX.2. Rental last paid to Texas-New Mexico Railway Co. thru 1988 -Successor in title has never been identified despite attempts to
do so. 

 Right-of-Way Exceptions 
  

	 	a.	30” Mainline  

  

	 	1.	TPC Tract No. M-134A - SW/4 NW/4, Section 22, Township 2 North, Range 5 East, Torrance County, New Mexico. Pipeline traverses property for a distance of 1,548 feet or
0.293 miles. No Easement or permanent Right-of-Way file has been located. Owners unknown. 

  

	 	2.	TPC Tract No. M-167A - Portion of Belen Grant, Valencia County, New Mexico. Pipeline traverses property for a distance of approximately 4,000 feet or 0.758 miles. No Easement
or permanent Right-of-Way file has been located. Owner(s) unknown. 

  

 S-25 

	 	3.	TPC Tract No. M-236-R - Portion of S/2, Section 3, Township 13 North, Range 12 West, McKinley County, New Mexico. Pipeline traverses property for a distance of 2,878 feet or
0.545 miles. No Easement or permanent Right-of-Way file has been located. The owner in 1959 as reflected on alignment drawing was Electric Plains Railroad Spur; current owners unknown. 

  

	 	b.	30” Loop of Mainline - TPC Tract No. M-167A - Portion of Belen Grant, Valencia County, New Mexico. Pipeline traverses property for a distance of approximately 4,008 feet
or 0.759 miles. No Easement or permanent Right-of-Way file has been located. Owner(s) unknown. 

  

	 	c.	16” Crawford Lateral Loop — The ROW documents related to the following tracts were inadvertently assigned in a sale to GPM (Assets now owned by Duke Field Services,
successor in title). The pipeline was not conveyed. TPC is in the process of attempting to have these instruments assigned back to TPC from Duke. 

  

	 	1.	TPC Tract No. MTL-0002-L-01-BX — Road x-ing permit [9 rods] 

  

	 	2.	TPC Tract No. MTL-0002-L-08-RRX — Railroad x-ing [13 rods] 

  

	 	3.	TPC Tract No. MTL-0002-L-07B — Easement [3 rods] 

  

	 	4.	TPC Tract No. MTL-0002-L-16-FIX — Road x-ing permit [1 rod] 

 Navajo
Nation Allotment Renewal - As of January 1, 2004, TPC’s Grant of Right-of Way by the U.S. Department of Interior (“DOI”), Bureau of Indian Affairs (“BIA”) for a total of approximately forty-four (44) miles of
pipeline on a total of sixty-nine (69) Navajo allotments expired. These allotments are lands within the Navajo Nation reservation that are privately held but administered by the B I A. One allottee has made claims of trespass. The BIA sent a
letter dated January 20, 2004, noting certain alleged deficiencies in the TPC Application for a Grant of Right-of-Way to renew right-of-way on these allotments and requesting a revised appraisal based on pipeline corridor valuations.

 Southern Ute Tribe - TPC received letters dated May 27, 2003 and September 2, 2003 from the law firm of Maynes, Bradford, Shipps &
Sheftek, LLP, on behalf of the Southern Ute Tribe (“Tribe”) alleging trespass by TPC. The letters referenced a May 19, 2003 resolution by the Tribal Council of the Tribe, which revokes a 1996 resolution that granted the Tribe’s
Consent to a Partial Assignment by Northwest Pipeline Company (“Northwest”) to TPC of certain interests in a 1990 Grant of Easement and Right-of-Way, issued by the Secretary of the Interior through the BIA. An application by TPC for
approval of the assignment of this interest from Northwest has been in the possession of the BIA since 1999 with no action taken. The total distance of the right-of-way is approximately 6.6 miles. There is an approximate 3,100- foot “gap”
in the description of the right-of-way in the BIA grant. The right-of-way for these 6.6 miles expired in September 2005. In addition, an application is pending with the BIA to renew a meter site and a buried electric cable right-of-way for which the
Tribe has previously consented and which consent has not been revoked. The original right-of-way for the buried cable expired on November 16, 2000. The original right-of-way for the meter site expired on 

  

 S-26 

 
February 21, 2001. Agreement for renewal of right-of way grants, between Southern Ute, TPC and Northwest, was concluded on June 14, 2006.
Application to BIA was made on August 3, 2006. 
 Laguna Pueblo Allotments — TPC received a letter dated March 19, 2003 from the DOIBIA on
behalf of two private allotments within the boundaries of the Laguna Pueblo that TPC has been in trespass on these two allotments since December 28, 2002. TPC’s right-of-way on these two allotments expired on December 28, 2002. The
total distance of the right-of-way is about 5,100 feet. 
 Navajo Nation Tribal Lands Renewal - As of January 1, 2004, TPC’s grant of right-of-way
by the DOI-BIA for a total of approximately 14 acres of land near Thoreau, N.M. expired. TPC is conducting remediation activities on this site. An application for renewal of approximately 7 acres has been submitted. 
 Other mortgages, liens or other encumbrances may exist which have not been subordinated to the title of TPC. For example, the majority of the property rights that
acquired for pipelines are in the nature of easements, and upon taking these easements the fee property may have already been subject to a variety of encumbrances such as a mortgage. TPC may have taken the easement subject to the mortgages and may
have not subsequently obtained a subordination from the mortgage company. 
 Encumbrances 
 Blanco Hub Facilities: Construction and Ownership Agreement dated November 18, 1991, among Northwest Pipeline Corporation, TPC and Gas Company of New Mexico.

 LaPlata Facilities: La Plata Facilities Ownership and Operation Agreement dated November 3, 1995, between Northwest Pipeline Corporation and TPC.

  

 S-27 

 Section 3.12(a) 
 EMPLOYEE MATTERS 
  

	1	Medical (Active and Retired): 

  

	 	a.	United Health Care: PPO program under an ASO arrangement with a specific stop loss ($225,000). 

  

	 	i.	 High Option ( 90/70) 

  

	 	ii.	 Middle Option ( 80/60
) 

  

	 	iii.	 Low Option ( 70/60) 

  

	 	iv.	Indemnity Plan (70%) 

  

	 	v.	Retiree Under 65 Plan 

  

	 	vi.	Retiree 65 and Over Plan 

  

	2.	Dental: Delta Dental of RI — PPO program under an ASO arrangement. 

  

	3.	Vision: Vision Benefits of America — PPO program under an ASO arrangement. 

  

	4.	Life and AD&D: non-contributory with Aetna. 

  

	5.	Voluntary Life: contributory with Aetna. 

  

	6.	Voluntary Spouse & Dependent Life: contributory with Aetna. 

  

	7.	LTD: non-contributory with Aetna. 

  

	 	a.	Executive Officers 

  

	 	b.	All Other Employees 

  

	8.	STD: advice only program with Prudential. 

  

	9.	Defined Contribution Plans: Cross Country Energy Savings Plans 

  

	 	a.	Plan 001 (Main Plan) 

  

	 	b.	Plan 002 (Enron Rollover Plan) 

  

	10.	Severance Plan. 

  

	11.	Healthcare Flexible Spending Account under Flex Plan – United Health Care. 

  

 S-28 

 Section 3.12(b) 
 EMPLOYEE MATTERS 
  

	1.	Outstanding Contributor Award Program 

  

	2.	Annual Incentive Plan 

  

	3.	Stock Option Plan: 

  

	 	a.	Southern Union Company 2003 Stock and Incentive Plan 

  

	4.	Other Benefits: 

  

	 	a.	Sick Days 

  

	 	b.	Personal Days 

  

	 	c.	Holidays 

  

	 	d.	Vacation 

  

	 	e.	Employee Assistance Program — Care24 with United Health Care 

  

	 	f.	Educational Assistance/Tuition Reimbursement 

  

	 	g.	Dependent Care Flexible Spending Account under Flex Plan — United Health Care 

  

	 	h.	Relocation Benefits 

  

	 	i.	Bereavement Leave 

  

	 	j.	Paternity/Adoption Leave 

  

	 	k.	Jury Duty, Witness Duty and Military Leave 

  

	5.	TPC committed to provide a $1,648.39 monthly lifetime annuity to an individual under the Houston Natural Gas Corporation and Subsidiaries Executive Supplemental Benefit
Agreement. 

  

	6.	TPC committed to provide a total of $295,320 to the spouse of a former executive upon death of the executive under the Houston Natural Gas Corporation and Subsidiaries Executive
Post-Retirement Salary Continuation Agreement. 

  

	7.	Transwestern Pipeline Company, LLC VEBA to provide for Retiree Health Care and Other Benefits 

  

 S-29 

 Section 3.12(e)(vi) 
 EMPLOYEE MATTERS 
 A determination letter request is currently pending with the IRS relating to the
Transwestem. Pipeline Company, LLC VEBA to Provide for Retiree Health Care and Other
Benefits. 
  

 S-30 

 Section 3.12(e)(vii) 
 EMPLOYEE MATTERS 
 With respect to post-retirement medical benefits, eligible current and
former employees and retirees of TPC (and their eligible spouses, surviving spouses and dependents) have been covered under the Enron Inactive Medical Plan and the Medical Plan sponsored by CC Energy, and effective as of the Closing Date, such
eligible individuals, as well as eligible Shared Service Employees who become Transferring Shared Service Employees (and their eligible spouses, surviving spouses and dependents) will be covered under the plan established by TPC or ETP pursuant to
Section 5.5(e) of the Agreement. In addition, with respect to post-retirement medical benefits, and in accordance with an order relating to the Enron VEBA Motion or any other order of a court of competent jurisdiction relating to the partition
of assets held under the Enron VEBA and/or the distribution of liabilities associated with the Enron VEBA, such plan established by TPC or ETP pursuant to Section 5.5(e) of the Agreement will cover current and former employees and retirees of
TPC, former employees and retirees of former affiliates of TPC who provided services to TPC, and their respective eligible spouses, surviving spouses and dependents. In the case of individuals eligible for post-retirement medical benefits under the
Enron Inactive Medical Plan, the Medical Plan sponsored by CC Energy or the plan established by TPC or ETP pursuant to Section 5.5(e) of the Agreement, or eligible for such benefits in accordance with an order relating to the Enron VEBA Motion
or any other order of a court of competent jurisdiction relating to the partition of assets held under the Enron VEBA and/or the distribution of liabilities associated with the Enron VEBA, references to “former employees and retirees”
include eligible disabled former employees and retirees. Consistent with a Statement of Policy issued by the Federal Energy Regulatory Commission on December 17, 1992, TPC has recovered in the past and is currently recovering funds to provide
retiree medical benefits. Funds recovered in this manner were, in the past, contributed to the Enron VEBA, and are currently being contributed to the TPC VEBA. Consistent with applicable legal requirements, funds held in the two VEBAs referred to in
the preceding sentence must be used for the purposes for which the VEBAs were established. In addition, funds recovered in rates may be required to be returned to the rate payers in the event that retiree medical benefits for which the funds were
recovered are not provided. 
  

 S-31 

 Section 3.12(e)(ix) 
 EMPLOYEE MATTERS 
 The substantive provisions relating to the severance benefits available under the Transwestem Pipeline
Company Severance Pay Plan are not identical to the substantive severance provisions set forth in Section 5.5(f) of the Agreement; however, such Plan will be terminated prior to the employment transfers contemplated under Section 5.5
(g) of the Agreement 
  

 S-32 

 Section 3.12(e)(x) 
 EMPLOYEE MATTERS 
 The two CrossCountry Energy Savings Plans are based on prototype documents that have opinion letters from
the IRS. Individual determination letters have not yet been requested from the IRS with respect to these Plans. 
  

 S-33 

 Section 3.12(e)(xi) 
 EMPLOYEE MATTERS 
 The CrossCountry Energy Savings Plans may experience a termination or partial
termination. 
  

 S-34 

 Section 3.12(e)(xiii) 
 EMPLOYEE MATTERS 
 A determination letter request with respect to the Transwestern Pipeline
Company, LLC VEBA to Provide for Retiree Health Care and Other Benefits is currently pending with the IRS. 
  

 S-35 

 Section 3.14 
 INTELLECTUAL PROPERTY 
  

					
	 Mark
	  	 Type
	  	 Registrant

	Hottap	  	Service Mark	  	Panhandle Eastern Pipe Line Company, LP
	Sunburst	  	Service Mark	  	Southern Union Company
	sug.com	  	Domain Name	  	Southern Union Company

  

	1.	Third party software that TPC has no ownership rights in are listed below. CCE is still reviewing the ability to provide software services under a Transition Services Agreement. CCE
may not have the right to utilize third-party software to provide services to a non-affiliated party. 

  

	 	•	 	 Hyena Maint 

  

	 	•	 	 IPSwitch WS FTP 20 user License Pack/Maint. 

  

	 	•	 	 Sun Maint on Hardware (Silver Support)-Maintech 

  

	 	•	 	 Configuresoft Maintenance (300 svrs, 2400 wkst) 

  

	 	•	 	 NetIQ -Security Administration Suite 

  

	 	•	 	 Legato Tape Backup Solution Maint. 

  

	 	•	 	 Chg Mgr for MS SQL maint Embarcadero 

  

	 	•	 	 DBArtisan maint (7 license) Embarcadero 

  

	 	•	 	 MS Premier Support Agreement 

  

	 	•	 	 Tidal Software SAN /Sys Admiral 

  

	 	•	 	 Web Trends Enterprise Edition 

  

	 	•	 	 Rightfax Server Upgrade (FGT & ET&S &OCC) 

  

	 	•	 	 MS SQL Server (Houston/25) no maint til 2006 

  

	 	•	 	 MS Visio 

  

	 	•	 	 MSDN Universal Subscriptions (7) 

  

	 	•	 	 MS Project 

  

	 	•	 	 MS 2000 Server 

  

	 	•	 	 MS 2000 Wksn 

  

	 	•	 	 MS FrontPage 

  

	 	•	 	 Adobe Illustrator 

  

	 	•	 	 Adobe Photo Shop 

  

	 	•	 	 SmallTalk 

  

	 	•	 	 Web Analysis Tool - Webgain Toplink Java (16@1150) 

  

	 	•	 	 Resin Software - Caucho Technology 

  

	 	•	 	 Resin Server Licenses - Caucho Technology 

  

	 	•	 	 Dream Weaver MX 

  

	 	•	 	 Computer Associates ERWIN 

  

	 	•	 	 Informatica - PowerMart 

  

	 	•	 	 Business Objects - Full Client 

  

	 	•	 	 Business Objects - Broadcast Agent Server 

  

	 	•	 	 Business Objects - Developer 

  

 S-36 

	 	•	 	 Business Objects - Servers 

  

	 	•	 	 HP Alpha Maint on Hardware - GC 

  

	 	•	 	 Reflection Licenses (GC) 

  

	 	•	 	 Multinet by Process Software (GC) 

  

	 	•	 	 Impact Weather (Universal Weather Service Maint) (Gas Control) 

  

	 	•	 	 Quillix Maint. 

  

	 	•	 	 PGAS System Maint 

  

	 	•	 	 Bass-Trigon Software 

  

	 	•	 	 Primavera P3 

  

	 	•	 	 Timberline 

  

	 	•	 	 WinD.O.T.tm - The Pipeline Safety Reg 

  

	 	•	 	 Paradigm Plus licenses (4) 

  

	 	•	 	 Pipeline Toolbox Annual Software Lease 

  

	 	•	 	 Spectel Maint for Audio Conf Bridge 

  

	 	•	 	 Map Objects 

  

	 	•	 	 CAD Maint Renewal 

  

	 	•	 	 Macromedia Breeze 

  

	 	•	 	 Oracle Financials 

  

	 	•	 	 Oracle Financials; iExpense, HR. & Discoverer 

  

	 	•	 	 PowerPlan Consultants 

  

	 	•	 	 PowerPlan Consultants 

  

	 	•	 	 Bottom Line Technologies 

  

	 	•	 	 Other Misc Software 

  

	 	•	 	 PHE + 

  

	 	•	 	 Workforce 

  

	 	•	 	 Remedy - Change Management Software 

  

	 	•	 	 Vertex Q Series 

  

	 	•	 	 Microsoft 

  

	 	•	 	 Convey 1042-S 

  

	 	•	 	 Convey 1099 Level C 

  

	 	•	 	 Convey 1042-S & 1099 Level C 

  

	 	•	 	 Email - LDC Exchane & Pangea Migration Project 

  

	 	•	 	 User Friendly Consulting - Quillix & MuWave 

  

	 	•	 	 Quest Toad 

  

	 	•	 	 Micro Focus for Net Express Support 

  

	 	•	 	 BMC Remedy - Help Desk, Asset Mgmt, Change Ctrl 

  

	 	•	 	 BMC Identity Mgmt & Sigle Sign-On 

  

	 	•	 	 BMC Discovery Tools 

  

	 	•	 	 Consolidate Pipeline DR Sites 

  

	 	•	 	 SANZ-Houston office tape library (HW) 

  

	 	•	 	 SANZ-Dallas (HW) 

  

	 	•	 	 SANZ-MJHarden tape backup library (HW) 

  

	 	•	 	 SANZ - SW support (Legato) 

  

	 	•	 	 DR Messaging 

  

 S-37 

	 	•	 	 Sherpa Software - Discovery Attender 

  

	 	•	 	 NetIQ -Security Administration Suite 

  

	 	•	 	 Citrix 

  

	 	•	 	 Configuresoft ECM Server License 

  

	 	•	 	 Configuresoft Maintenance (300 svrs, 1,200 wkst) 

  

	 	•	 	 Verisign - EC Prod & EC Test 

  

	 	•	 	 Citrix Subscription Advantage 

  

	 	•	 	 NetIQ-AppManager 

  

	 	•	 	 OMTool Support (faxing) 

  

	 	•	 	 MOJO Systems Solaris 

  

	 	•	 	 MOJO Systems Solaris 

  

	 	•	 	 Landesk Mgmt - Dell 

  

	 	•	 	 Landesk Handheld Mgr - ASAP 

  

	 	•	 	 WinZip 

  

	 	•	 	 Connected 

  

	 	•	 	 Symantec Mail Security 8200 Series AntiSpam & AntiVirus 

  

	 	•	 	 Blackberry 

  

	 	•	 	 Quest - Spotlight on SQL Server Enterprise 

  

	 	•	 	 MS SLB SQL SRV ENT 2005 - 32 CPU 

  

	 	•	 	 Computer Associates (AllFusion) 

  

	 	•	 	 Oracle - MTHarden, Leasedata 

  

	 	•	 	 Sybase 

  

	 	•	 	 Embarcadero — increase for MSR+ lic. 

  

	 	•	 	 Credit & Management Systems, Inc. 

  

	 	•	 	 Oracle TopLink Mapping Workbench 

  

	 	•	 	 AvePoint for SharePoint-DocAve 301 Svc 

  

	 	•	 	 Macromedia Breeze 

  

	 	•	 	 Business Objects 

  

	 	•	 	 Celeritas Public Awareness Hosting 

  

	 	•	 	 ESRI ArcInfo Floating License 

  

	 	•	 	 ESRI ArcView single Use Unkeyed License 

  

	 	•	 	 ESRI MapObjects 

  

	 	•	 	 FileNet - Email Manager 

  

	 	•	 	 FileNet - SharePoint Portal 

  

	 	•	 	 Flow-Cal 

  

	 	•	 	 Invensys Avantis-Popfax 

  

	 	•	 	 Precision Products-Low-Volume ScanCare Plus Post Warranty 

  

	 	•	 	 SpatiaX-sxCAD for AutoCad 

  

	 	•	 	 TG WEB Direct Purchase 

  

	 	•	 	 Total CAD Systems 

  

 S-38 

 Section 3.15 
 ENVIRONMENTAL MATTERS 
 Owing Remediation 
  

	A.	WT-1 Station 

  

			
	Location:	  	Lea County, NM
	Agency:	  	New Mexico Oil Conservation Division (“NMOCD”)
	Status:	  	 WT- 1 Station Dehy Area Soil and groundwater in the dehy area are impacted with natural gas condensate liquid. Off-site soil
and groundwater has also been impacted. Groundwater monitoring occurs semiannually with annual reporting to the NMOCD.
  
 WT-1 Station Engine Room Pit Area — Soil and groundwater in the engine room pit area are impacted with used lube oil that also contains low concentrations of halogenated organic compounds. Off-site soil
and groundwater has also been impacted. Groundwater monitoring occurs semiannually with annual reporting to the NMOCD.

  

	B.	Roswell Station 

  

			
	Location:	  	Chaves County, NM
	Agency:	  	New Mexico Oil Conservation Division
	Status:	  	Soil and groundwater are impacted with natural gas condensate liquid. Trace concentrations of halogenated organic compounds in soil and groundwater are present in the area immediately around
the former burn pits. Off-site soil and groundwater has also been impacted. Groundwater monitoring occurs semiannually with annual reporting to the NMOCD.

  

	C.	Laguna Station 

  

			
	 Location:
 Agency:
 Status:
	  	 Cibola County, NM
 Pueblo of Laguna
 Soil and groundwater are impacted with natural gas condensate liquid, used lube oil containing low concentrations of halogenated organic compounds, and PCBs. Off-site
soil and groundwater has also been impacted. Groundwater monitoring occurs semiannually with annual reporting to the Pueblo of Laguna. TPC is currently in the process of removing hydrocarbon impacted soils in the turbo charger area of the facility.

  

 S-39 

	D.	N. Crawar Station 

  

			
	 Location:
 Agency:
 Status:
	  	 Ward County, TX
 Texas Railroad Commission
(“TRC”)
 Soil and groundwater are impacted with natural gas condensate liquid. Off-site soil and groundwater has also been impacted. TPC was the
historical owner and operator of the site during the period of the release. A public water supply well owned and operated by the Crane County Water District is located about 1000 feet east of the site but there are no known impacts to this well
arising from contamination at the N. Crawar Station. Groundwater monitoring occurs semiannually with annual reporting to the TRC.

  

	E.	Bell Lake Plant 

  

			
	 Location:
 Agency:
 Status:
	  	 Lea County, NM
 New Mexico Oil Conservation Division

 Soil and groundwater are impacted with natural gas condensate liquid, caustic, and mercaptans. Off-site soil and groundwater has also been impacted.
Groundwater monitoring occurs semiannually with annual reporting to the NMOCD.

  

	F.	Thoreau Station 

  

			
	 Location:
 Agency:
 Status:
	  	 McKinley County, NM
 New Mexico Oil Conservation
Division and Navajo Nation EPA (“NNEPA”)
 Soil and groundwater are impacted with natural gas condensate liquid and PCBs. Off-site soil and
groundwater has also been impacted. Groundwater monitoring occurs semiannually with annual reporting to the NMOCD and NNEPA.

  

	G.	Ivanhoe Station 

  

			
	 Location:
 Agency:
 Status:
	  	 Beaver County, OK
 Oklahoma Corporation Commission
(“OCC”)
 Soil and groundwater are impacted with natural gas condensate liquid. Soil and groundwater of property adjacent to the Ivanhoe Station has
also been impacted. The affected property has been acquired by TPC. Groundwater monitoring occurs semiannually with annual reporting to the OCC.

  

 S-40 

	H.	Puckett Plant 

  

			
	 Location
 Agency
 Status
	  	 Pecos County, Texas
 Texas Railroad
Commission
 Status Arsenic was utilized in the natural gas processing at the Puckett Plant. This resulted in surface soil and equipment contamination with
elevated levels of arsenic. As a result, TPC was issued a permit by the TRC to abandon the plant by creating several on-site landfills. TPC is required to monitor the condition of the site and the associated clay caps, operate and service an offsite
groundwater well, maintain the existing monitoring wells and renew the permit in 2017.

 Other Matters 
 TPC received an Information Request from the Texas Commission on Environmental Quality dated October 15, 2003 regarding the San Angelo Electric Service Company site in San Angelo Texas. TPC responded to the
Request in November 2003 stating it has been unable to identify any responsive information. There has been no further communications with the Texas Commission on Environmental Quality on this matter since November 2003. 
 TPC has reported deviations from permit conditions under the EPA Title V air-permitting program but has since addressed the conditions resulting in such deviations. To
TPC’s Knowledge, there are no notices of violation, either pending or threatened, for such deviations. 
 TPC recently discovered a leaking oil/water
drain line located at the Klagatoh Compressor Station in Arizona. TPC is in the process of evaluating any potential impacts as a result of the leaking line. 
 New v. Georgia Pacific Corporation et al., Case No. 2004-57450 (asbestos MDL Case, District Court Harris County, Texas). Norma New and the estate of Darrell New have filed suit against Northern Natural Gas Company
(“Northern”) and others claiming asbestos exposure he allegedly suffered while working as an employee of TPC and others. By letter dated May 30, 2006 Northern requested TPC assume the defense of the suit or indemnify Northern for its
costs, expenses an attorney’s fees. TPC declined. TPC has not been named as a defendant in the litigation. 
 TPC is in the process of removing and
disposing of certain PCB impacted equipment located at the Thoreau Compressor station. TPC is currently making payments to customers whose facilities have been impacted by PCBs under the Operating Agreement between Pacific Gas & Electric
Company and TPC dated June 27, 1995 and the agreement between and TPC and Southern California Gas Company regarding PCB Claims Post-1990 Costs dated May 15, 1992. 
  

 S-41 

 Section 3.16(a) 
 TAX MATTERS 
 None. 
  

 S-42 

 Section 3.16(b) 
 TAX MATTERS 
 None. 
  

 S-43 

 Section 3.17(a) 
 ABSENCE OF CERTAIN CHANGES OR EVENTS 
  

	1.	Closing of that certain Purchase and Sale Agreement, dated as of November 18, 2005, by and between TPC and PVR Midstream LLC (sale of Mocane lateral and appurtenant
properties). 

  

	2.	Execution of that certain Purchase and Sale Agreement, dated February 27, 2006, between TPC, El Paso Natural Gas Company, and Salt River Project Agricultural Improvement and
Power District (purchase option on Santan Lateral). 

  

 S-44 

 Section 3.17(b) 
 ABSENCE OF CERTAIN CHANGES OR EVENTS 
  

	1.	Calpine declared bankruptcy in 2005, and repudiated its transportation contract with TPC in 2006. 

  

	2.	TPC has renegotiated transportation arrangements with certain former global settlement shippers at rates or volumes that are lower than prior revenue levels.

  

	 	a.	FTS-1 Firm Transportation Contract (Contract #101629), effective April 1, 2007, by and between TPC and Pacific Gas and Electric Company. 

  

	 	b.	FTS-1 Firm Transportation Contract (Contract #101595, effective March 1, 2007, by and between TPC and Chevron U.S.A., Inc. 

  

	 	c.	FTS-1 Firm Transportation Contract (Contract #101578), effective March 1, 2007, by and between TPC and UNS Gas, Inc. 

  

	3.	TPC had unsubscribed San Juan-Needles capacity for the period January — March 2006 that is sold at rates and volumes that were less than the prior year.

  

	4.	2006 transport capacity value for Permian-west has been below expectations due to low basis differentials. 

  

 S-45 

 Section 3.17(c) 
 ABSENCE OF CERTAIN CHANGES OR EVENTS 
  

	1.	Certain firm contracts have been extended in the ordinary course of business. 

  

	2.	On July 21, 2006 and again on August 9, 2006, TPC entered into amendments to the Phoenix Project Expansion Agreements with Salt River Project, Arizona Public
Service Company and Southwest Gas Corporation to extend TPC’s deadline for providing notice of termination due to certain cost increases. 

  

 S-46 

 Section 3.18 
 ABSENCE OF UNDISCLOSED LIABILITIES 
 1. In 1992, Argentina granted Transportadora de Gas del Sur S.A. (“TGS”) a
35-year license to operate Argentina’s main natural gas pipeline. Following a competitive bid process, the Argentine government awarded the bid to own and operate the TGS pipeline to a consortium that included Enron Corp. (“Enron”).
As part of the bid application, TPC’s net worth was used to satisfy certain net worth requirements set forth in the bidding rules, and TPC agreed to provide ongoing technical support to the Enron affiliate, Enron Pipeline Company-Argentina,
S.A. (“EPCA”), serving as the Technical Operator for the TGS pipeline. In addition, TPC guaranteed the performance of EPCA’s obligations under certain shareholder and other agreements with its joint venture partner. 
 Enron entered into a Master Settlement and Mutual Release Agreement (the “MSA”) with PetrOleo Brasilerio S.A. (“Petrobras”) on
April 16, 2004, containing, among other things, the following provisions: (1) Petrobras fully released Enron and its affiliates from any liabilities arising from, among other things, the direct or indirect sale by Enron of TPC, which
release includes a release of future claims; (2) any performance obligation owed by TPC to Petrobras regarding EPCA’s performance obligations under certain governance agreements was terminated; and (c) the Enron parties agreed,
subject to the consent of Ente Nacional Regulador de Gas (“ENARGAS”), to the assignment of that certain Technical Assistance Agreement (the “TAA”) to Petrobras. 
 On May 27, 2004, EPCA and Petrobras filed an application with ENARGAS seeking consent to the assignment of the TAA from EPCA to Petrobras. In a
resolution, dated June 11, 2004, ENARGAS declared that it had no objections to the assignment of the TAA from EPCA to Petrobras on the terms previously disclosed to ENARGAS. The ENARGAS resolution contained broad language releasing TPC from its
potential joint liability with EPCA. On July 29, 2004, EPCA filed a letter with ENARGAS stating its understanding that, by virtue of the ENARGAS resolution, the Enron economic group and the transfer restriction under the Bidding Rules had
terminated. To date, we are not aware of any response from ENARGAS. 
 As of the date hereof, although the effectiveness of the release,
which is a matter of Argentine law, could be questioned, TPC does not believe there is significant risk of any claim in connection with TGS that would lead to potential liability to TPC given, among other things, (1) ENARGAS has consented to
the assignment of the TAA, (2) ENARGAS would have to prove damages to TGS from TPC breaking from the Enron economic group and TGS has not suffered any financial or operational damages, (3) the impact and likelihood of any liability to TPC
resulting from operational upset to the system or a line rupture will lessen over time, and (4) by virtue of the passage of time without objection, ENARGAS may be “estopped” from taking a position contrary to the July 29, 2004,
EPCA letter. 
 2. Evaluation is ongoing of an increase in operation and maintenance costs associated with the TPC Ivanhoe remediation project. The increase
in costs is attributable to securing an alternate source of fuel to operate the thermal oxidizer for the duration of the remediation project. The current estimated increase is a total of approximately $1,000,000 to $2,500,000 over the projected 12
year period. 
  

 S-47 

 Section 3.20 
 AFFILIATED TRANSACTIONS 
 Section 3.7(b) of the CCE Disclosure Letter is incorporated herein by
reference. 
  

 S-48 

 Section 3.21 
 2006 — 2007 POLICY SCHEDULE 
  

							
	 Coverage Description
	  	 Limits
	  	 Company
	  	 Policy No.

	Automobile Coverage	  		  		  	
	CCE Holdings LLC	  	$2MM CSL	  	Travelers Property Casualty Co. of America	  	TC2ICAP750G9200
				
	Worker’s	  		  		  	
	Compensation	  		  		  	
	CCE Holdings LLC	  	$IMM/$1MM/$1MM	  	Charter Oak Fire Insurance Company	  	TC2OUB749G9945
	CCE Holdings LLC (AZ)	  	$1MM/$1MMAIMM	  	Travelers Property Casualty Co. of America	  	TRJUB749G9933
				
	Excess Liabilities	  		  		  	
	Primary	  	$35MM	  	AEGIS	  	X0012A1A06
	1st Excess	  	$100MM xs $35MM	  	EIM	  	250162-06GL
	2nd Excess	  	$25MM xs $135MM	  	Aegis Syndicate (Aon Limited)	  	WE0600136
	3rd Excess	  	$150MM xs $160MM	  	XL (Aon Bermuda) —100mm plo 150mm xs 160mm	  	BM00022138L106A
		  		  	Zurich (Aon Bermuda) —50mm plo 150mm xs 160mm	  	ZGEB-0112L
	4th Excess	  	$200MM xs $310MM	  	OCIL — Bermuda 150mm p/o 200mm xs 310mm	  	U920032-0705
		  		  	Zurich (Aon Bermuda) —25mrn plo 200mm xs 310mm	  	ZGEB-0 1 12L
		  		  	Westchester (Swett & Crawford)-25mm p/o 200mm xs 310mm	  	G22035265001
				
	Property Program	  		  		  	
	OIL Property	  	$250MM	  	OIL Insurance Limited	  	2003-262
	Property XS OIL Wrap	  	$200MM	  	Birmingham Fire Insurance Company of PA	  	ARS4564
		  		  	SR International Business Insurance Co. Ltd. through Aon Limited	  	
		  		  	Commonwealth Insurance Company	  	
	Terrorism	  	$200MM	  	Underwriters at Lloyd’s through Aon Limited	  	E05RQ2598900

  

 S-49 

 Section 3.22 
 REGULATORY MATTERS 
  

	(a)	The December 31, 2004 and December 31, 2005 balance sheets in the FERC Form 2s require an adjustment to reduce deferred taxes (account 283) and goodwill (account 186) by
$17.3MTVI. These amounts do not affect the GAAP financial statements 

  

					
	(b)	 	1.	  	  TPC, Docket No. 1NO2-6-000, (Order to Respond arising from TPC’s 2001 financing)

  

	 	2.	TPC, Docket No. RP97-288-000 (negotiated rate filing for Red Rock Expansion Project contracts) 

  

	 	3.	TPC, Docket No. RPO4-214, (Cross Timbers Reservation charge crediting) 

  

	 	4.	TPC, Docket No. CP06-59, (Accounting filings regarding PVR Midstream asset sale) 

  

	 	5.	TPC, Docket No. PF06-4-000, Request for Pre-Filing Review Determination (Phoenix Project) 

  

	 	6.	As a result of a rate settlement in FERC Docket No. RP95-271, et al., TPC is obligated to prepare and file an NGA Section 4 rate case for rates to be effective November 1,
2006. 

  

 S-50 

 Section 3.23(c) 
 INTERNAL CONTROLS 
 None. 
  

 S-51 

 Section 3.24 
 HEDGING 
 Section 3.7(a), items #1 and #2 under Gas Contracts of the CCE Disclosure
Letter is incorporated herein by reference. 
  

 S-52 

 Section 3.25 
 BANK ACCOUNTS; POWERS OF ATTORNEY 
  

			
	 Bank Accounts
	  	 Power of Attorney

	 Chase (Syracuse) - Account ##
 Controlled Disbursement

	  	Bond, Robert Chanley, Earl Geaccone, Tracy Hawkins, Don Kinney, Katherine Lefelar, Gary Marshall, Richard McEllin, David Murray, Douglas Simon, Mary Smith, Rick Whippo, Jeffrey
		
	 JPMorgan Chase
 Right of Way Drafts — Account
#
 Controlled Disbursement
	  	 Bond, Robert Ciccariella, Mark Cloud, Richard Fannan, Michael Fuentes, Peter Fuentes, Rodney Gleffe, Lawrence Kelly, Sheri
 Lefelar, Gary
 Lyons, Steven Marshall, Richard McNickol, Daniel Piwko II,
Ronald Sutherland, Judy Trepl, Paulette Westbrook, Roger

  

 S-53 

			
	JPMorgan Chase	  	Bond, Robert
	Working Fund - Account # 	  	Chanley, Edwin
	Controlled Disbursement	  	Hawkins, Don
		  	Kinney, Katherine Lefelar, Gary Marshall, Richard McEllin, David Murray, Douglas Simon, Mary Whippo, Jeffrey
		
	Wachovia Securities	  	Bond, Robert
	Money Market Sales - Account #	  	Geaccone, Tracy
		  	Lefelar, Gary
		  	Marshall, Richard
		  	McLaughlin, Michael
		
	Wachovia (BlackRock)	  	Bond, Robert
	 Money Market - Account #
	  	Geaccone, Tracy
		  	Lefelar, Gary
		  	Marshall, Richard
		  	McLaughlin, Michael
		
	JPMorgan Chase	  	Bond, Robert
	Wire - Account #	  	Lefelar, Gary
		  	Marshall, Richard

  

 S-54 

 Section 3.26 
 GAS IMBALANCES 
 TPC - Summary of OBA Balances 
 As of June 30, 2006 
 Receivable Balances

  

								
	 Operator
	  	Dollars	  	Volume	  	 Imbalance Type

	 Frontier Field Services LLC
	  	$	340,769	  		  	Dollar Valued
	 Amarillo Nat Gas
	  	$	269,072	  		  	Dollar Valued
	 Crosstex Energy Services
	  	$	199,798	  		  	Dollar Valued
	 Williams Field Services
	  	$	184,024	  		  	Dollar Valued - monthly cash out
	 Red Cedar Gathering
	  	$	176,609	  	30,984	  	Volumetric **
	 Panhandle Eastern Pipeline
	  	$	164,291	  	28,823	  	Volumetric **
	 Connect Energy Services
	  	$	135,633	  		  	Dollar Valued - monthly cash out
	 Jumbo American Petroleum
	  	$	120,030	  		  	Dollar Valued
	 TEPPCO Partners, LP
	  	$	107,496	  		  	Dollar Valued - monthly cash out
	 Northern Natural Gas
	  	$	106,459	  		  	Dollar Valued - monthly cash out
	 New Mexico Nat Gas
	  	$	93,917	  		  	Dollar Valued - monthly cash out
	 Southern California Gas Co
	  	$	85,865	  	15,064	  	Volumetric **
	 Dominion Gas Ventures
	  	$	82,569	  		  	Dollar Valued
	 Plains Gas Farmers Co-Op
	  	$	69,883	  		  	Dollar Valued - monthly cash out
	 West Texas Gas Inc
	  	$	57,825	  		  	Dollar Valued
	 Northwest Pipeline
	  	$	39,541	  	6,937	  	Volumetric **
	 PNM Gas Services
	  	$	31,488	  		  	Dollar Valued
	 Lonestar Gas Company
	  	$	29,161	  	5,116	  	Volumetric **
	 Seven M Gas
	  	$	19,958	  		  	Dollar Valued
	 Southern Star Central Gas PL
	  	$	19,146	  	3,359	  	Volumetric **
	 Elm Ridge Resources
	  	$	11,760	  		  	Dollar Valued
	 Devon Energy Production
	  	$	11,586	  		  	Dollar Valued - monthly cash out
	 Oasis Pipe Line Company
	  	$	9,461	  		  	Dollar Valued
	 Mewbourne Oil Company
	  	$	8,390	  		  	Dollar Valued
	 Exco Resources
	  	$	7,844	  		  	Dollar Valued - monthly cash out
	 Mid-America Pipeline
	  	$	4,760	  	835	  	Volumetric **
	 Giant Industries Arizona
	  	$	2,373	  		  	Dollar Valued
				
	 Total Receivable Balances
	  	$	2,389,709	  		  	

  

 S-55 

 TPC Summary of OBA Balances 
 As of June 30, 2006 
 Payable Balances 
  

										
	 Operator
	  	Dollars	 	 	Volume	 	 	 Imbalance Type

	 Strat Land Exploration
	  	$	(260,015	) 	 			 	Dollar Valued
	 Duke Energy Field Sery LP
	  	$	(236,724	) 	 			 	Dollar Valued
	 ANR Pipeline
	  	$	(224,038	) 	 			 	Dollar Valued
	 Southern Union Gas Services, LTD
	  	$	(219,081	) 	 			 	Dollar Valued
	 Agave Energy Co
	  	$	(218,108	) 	 			 	Dollar Valued
	 Enterprise Texas Pipeline
	  	$	(212,793	) 	 			 	Dollar Valued - monthly cash out
	 Navajo Tribal Utility Authority
	  	$	(161,911	) 	 			 	Dollar Valued
	 Calpine Energy Services
	  	$	(132,851	) 	 			 	Dollar Valued
	 OneOk Westex Transmission
	  	$	(127,719	) 	 			 	Dollar Valued
	 Enterprise Field Servies LLC
	  	$	(111,017	) 	 			 	Dollar Valued - monthly cash out
	 Regency Gas Services
	  	$	(89,422	) 	 			 	Dollar Valued
	 E New Mexico Gas Accoc
	  	$	(67,915	) 	 			 	Dollar Valued
	 Questar Southern Trails Pipeline
	  	$	(49,411	) 	 			 	Dollar Valued - monthly cash out
	 UNS Gas Inc
	  	$	(69,803	) 	 			 	Dollar Valued
	 TransColorado Gas Transmission
	  	$	(32,898	) 	 			 	Dollar Valued
	 State of Texas
	  	$	(29,805	) 	 			 	Dollar Valued
	 Bettis, Boyle, Stovall
	  	$	(26,760	) 	 			 	Dollar Valued
	 Unocal Keystone Gas
	  	$	(25,000	) 	 	(4,386	) 	 	Volumetric **
	 EOG Resources Inc
	  	$	(17,476	) 	 			 	Dollar Valued
	 BP America Production
	  	$	(17,425	) 	 	(3,057	) 	 	Volumetric **
	 SW Cheese
	  	$	(12,101	) 	 			 	Dollar Valued
	 Red Willow Mid-Continent LLC
	  	$	(12,076	) 	 			 	Dollar Valued - monthly cash out
	 Natural Gas Pipeline Company
	  	$	(10,963	) 	 			 	Dollar Valued
	 El Paso Natural Gas
	  	$	(9,730	) 	 	(1,707	) 	 	Volumetric **
	 SW Gas Transmission
	  	$	(2,967	) 	 			 	Dollar Valued - monthly cash out
	 PPC Energy LP
	  	$	(1,951	) 	 			 	Dollar Valued
	 WTG Gas Marketing
	  	$	(1,611	) 	 			 	Dollar Valued
	 Atmos Energy
	  	$	(743	) 	 			 	Dollar Valued - monthly cash out
	 Pacific Gas and Electric Company
	  	$	(125	) 	 	(22	) 	 	Volumetric **
				
	 Total Payable Balances
	  	$	(2,382,437	) 	 			 	
				
	 Total Net Imbalances
	  	$	7,272	  	 			 	

  

	**
	 The volumetric balances at June 30, 2006 were valued at $5.70.

  

 S-56 

 Section 5.1(a) 
 CONDUCT OF BUSINESS 
 1. As a result of a rate settlement in FERC Docket No. RP95-271, et al., TPC is obligated to prepare
and file an NGA Section 4 rate case for rates to be effective November 1, 2006. 
 2. TPC may do all things necessary, including entering into all
appropriate agreements and making all appropriate regulatory filings, for the construction and completion of the proposed Phoenix Expansion Project, substantially as approved by the Executive Committee of CCE by written consent on August
            , 2006. 
  

	3.	CCE may pay off all Existing TW Holdings Debt as per this Agreement. 

 4.
TPC intends to sell a group of servers and associated computer equipment that is shared by TPC and its Affiliates, for the net book value, to one of its Affiliates. The TPC net book value of the group of servers on June 30, 2006 was $783,342.
This transaction shall not impact the Net Working Capital Amount for purposes of this Agreement. 
  

 S-57 

 Section 5.1(b) 
 CONDUCT OF BUSINESS 
 Section 5.1(a) of the CCE Disclosure Letter is incorporated herein by reference. 
  

 S-58 

 Section 5.1(b)(iv) 
 CONDUCT OF BUSINESS 
 Section 3.12(a), Item #10 of the CCE Disclosure Letter is incorporated
herein by reference. 
  

 S-59 

 Section 5.1(b)(xii)(C) 
 CONDUCT OF BUSINESS 
 None. 
  

 S-60 

 Section 5.5(g) 
 SHARED SERVICE EMPLOYEES 
 See attached Shared Services Chart. 
  

 S-61 

 Section 5.11 
 TRADEMARKS 
  

					
	 Mark
	  	 Registration Serial No.
	  	 Registration Owner

	Transwestem	  	0750308	  	Transwestem Pipeline Company
		  	72/112505	  	
	Logo (TW with Flame)	  	0734713	  	Transwestem Pipeline Company
		  	72112506	  	

  

 S-62 

 Section 6.3(e) 
 CCE CONSENTS 
  

	1.	Consent of the Missouri Public Service Commission. 

  

	2.	Consent of the Massachusetts Department of Telecommunications and Energy. 

  

	3.	Consent required under the Bridge Loan Agreement, dated as of March 1, 2006, by and among Southern Union Company and Enhanced Service Systems, Inc., as the Borrowers, and
certain Banks party thereto. 

  

	4.	Consent required under the Fourth Amended and Restated Revolving Credit Agreement dated as of September 29, 2005, as amended by the First Amendment effective as of
February 27, 2006, by and among Southern Union Company as the Borrower and the Banks named therein. 

  

 S-63 

 Exhibit B 
 Transition Services Agreement Term Sheet 
 CCE Holdings, LLC (“Providing Company”) and
Energy Transfer Partners, L.P., (“Receiving Company”) shall enter into a Transition Services Agreement (“TSA”) on the Closing Date, as that term is defined in the Redemption Agreement by and between Providing Company and
Receiving Company. The TSA shall specify terms and conditions substantially similar to the following: 
 1. General: The Providing
Company agrees to provide, or cause to be provided, to the Receiving Company the transition services for Transwestern Pipeline Company, LLC (“TPC”) as set forth in Paragraph 17 below on the terms and conditions described herein. The
Receiving Company agrees to compensate the Providing Company for the transition services at an agreed upon price, as set forth in Paragraph 4. 
 2. Additional Services: The Parties agree to work in good faith to provide any additional transition services reasonably requested by the other Party. 
 3. Term of TSA: The TSA shall terminate one year after the Closing Date; provided, however, that the term may be extended (i) with respect to witness consulting services related to the TPC Rate Case as
contemplated by paragraph 6(c), until such time as an order resolving the TPC Rate Case is determined to be final and nonappealable and (ii) with respect to the IT services described in Paragraph 17, until such time with respect to each IT
service as specifically set forth in the migration plan developed by the parties. Following the execution of the Redemption Agreement, the parties shall meet at mutually agreeable times and work together in good faith to develop an IT migration plan
in order to transition the IT functions reasonably necessary for TPC to function independently of [CCES and PEPL] with a goal of completing this IT transition within 12 months after the Closing Date. Individual transition services may be terminated
by the Receiving Company by providing thirty (30) days prior written notice to Providing Company. 
 4. Payment Terms: The
Receiving Company shall pay the Providing Company for the cost of providing all transition services based on the Providing Party’s actual cost incurred in performing, or causing to be performed, the transition services specified in Paragraph 17
below; provided that, in the event that the term of the TSA is extended as provided in Paragraph 3 above, the Receiving Company shall pay the Providing Party for providing the transition services based on the Providing Party’s actual cost of
providing the transition services. The costs shall include the fully loaded cost of labor as documented using timesheets, any third party costs, and all allocated costs consistent with Providing Company’s internal cost allocation practices,
provided that in no event shall costs include any allocation of federal income taxes. Providing Company shall bill Receiving Company for transition services on a monthly basis. The Receiving Company shall pay the Providing Company its calculated
costs for all transition services invoiced within thirty (30) days of receipt of an invoice. 
 5. Books and Records; Audit
Rights: The Providing Company shall keep books and records that appropriately document charges for transition services rendered under the TSA. Receiving Company shall have audit rights appropriate to confirm that all billings are for transition
services and are otherwise consistent with the TSA. 

 6. Performance Standards; Role of Providing Company: 
 a. Performance Standards: With respect to any service provided hereunder by Providing Company, or any service which Providing Company causes to be
provided hereunder, Providing Company will use, or cause to be used, the same degree of diligence, care and economy as it would in conducting such services for its interstate pipeline companies. 
 b. Objectives: Providing Company will cooperate with Receiving Company in the transition of TPC to new ownership contemplated under the Redemption
Agreement. Providing Company will make reasonable accommodations for training and support of Receiving Company personnel or their designees to conduct the transition services set forth in Paragraph 17 below.. 
 c. Regulatory Matters: Providing Company acknowledges that, after the Closing Date, a number of critical regulatory filings related to the TPC
Rate Case must be made, along with the performance of a number of ancillary duties, including but not limited to stakeholder meetings, witness preparation, and possible hearings. After the Closing Date, Providing Company shall make reasonably
available to Receiving Company, upon its written request, any employee of Providing Company or its Affiliates whose assistance or participation is reasonably necessary for the TPC Rate Case in order to prepare, prosecute and/or defend the TPC Rate
Case. 
 d. Witness/consultation services: Providing Company shall make available, to Receiving Company, Providing Company’s
then-current officers, directors and employees as witnesses and/or consultants to the extent that (i) such persons may reasonably be required by Receiving Company in connection with the TPC Rate Case, or in connection with any investigation or
complaint involving or affecting TPC as of the Closing Date and (ii) there is no conflict between Receiving Company and its Affiliates, on the one hand, and Providing Company and its Affiliates, on the other hand, in the TPC Rate Case,
investigation or complaint proceedings or in the positions either Party has taken or is reasonably likely to take in the foreseeable future. 
 e. [intentionally left blank] 
 f. Independent Parties: In providing transition services under the TSA, Providing Company is
acting as an independent contractor. Except as expressly provided in the TSA, neither Party undertakes to perform any obligation of the other, whether regulatory or contractual, or to assume any responsibility for the other Party’s business or
operations. Notwithstanding any provision of the TSA to the contrary, the TSA shall only be construed as establishing a contract between unrelated business entities for the provision and purchase of certain services and shall not be deemed to create
a partnership, joint venture, agency or any other type of joint relationship between the Parties. 
 7. Role of Receiving Company: On
and after the Closing Date and notwithstanding the existence of the TSA, Receiving Company shall have controlling authority over TPC, and will make all material decisions concerning the business and operations of TPC. Upon consultation with
Providing Company, Receiving Company shall assure that decisions are made, requests are responded to and questions are resolved on a timely basis such that Providing Company may accomplish its obligations in a timely manner. 
  

 - 2 - 

 8. Limitation of Liability and Indemnities: Receiving Company shall fully indemnify Providing
Company and its Affiliates as to all third party claims, costs and liabilities to third parties associated with the transition services. Providing Company and its Affiliates shall only be liable to Receiving Company in the event of gross negligence
or willful misconduct in providing the transition services under the TSA and Providing Company’s liability shall in any event be limited to the actual payments received for transition services. Neither Providing Company or Providing
Company’s Affiliates nor Receiving Company or Receiving Company’s Affiliates, nor their respective officers, directors, agents, employees, successors or assigns, shall be liable to the other Party or their Affiliates and their officers,
directors, agents, employees, successors or assigns, for any incidental, punitive, special, indirect, multiple or consequential damages connected with or resulting from performance or non-performance of the TSA. 
 9. Good Faith Cooperation; Consents: The Parties will use good faith efforts to cooperate with each other in all matters relating to the provision
and receipt of transition services. Subject to the other provisions of the TSA, such cooperation shall include exchanging information, providing electronic access to systems used in connection with the transition services to the extent systems are
designed and configured to permit such access, and obtaining all consents, licenses, sublicenses or approvals necessary to permit such party to perform its obligations. The costs of obtaining consents, licenses, sublicenses or approvals shall be the
responsibility of Receiving Company. 
 10. Proprietary Software: Providing Company will provide, or cause to be provided, a license
to Receiving Company to utilize proprietary software and applications currently utilized by TPC and owned by Southern Union, CCES or their wholly-owned Affiliates. 
 11. Third Party Software Consents: At the expense of the Receiving Company, Providing Company will cooperate with Receiving Company to seek consents, waivers or approvals necessary to allow Providing Company to
utilize third party software to provide transition services to Receiving Company during the transition period. Notwithstanding anything herein to the contrary, if the consents, waivers, approvals, or standstill agreements are not obtained, or are
not reasonably satisfactory to Providing Company, then Providing Company shall not be obligated to utilize Providing Company’s third party software for the benefit of Receiving Company or to provide the related transition services. 

12. Force Majeure: The Providing Company shall not be liable for any failure or delay in performance under the TSA to the extent such failure
or delay is caused by forces beyond the Providing Company’s reasonable control and occurs without Providing Company’s fault or gross negligence; including, without limitation, failure of suppliers, failure of vendor to support current
software/hardware version, failure of subcontractors, lack of availability of necessary employee resources, and failure of carriers, provided that, as a condition to the claim of non-liability, the Providing Company shall provide the Receiving
Company with prompt written notice, with full details following the occurrence of the cause relied upon. All obligations to provide a specific transition service that are delayed under this clause, shall be extended for that specific transition
service only by a period equal to the term of the resultant delay to the extent the cause for the failure of delay is reasonably subject to remedy. 
  

 - 3 - 

 13. Assignment: The TSA may not be assigned (including by operation of law) by any Party without
the prior written consent of the other Party, and any purported assignment, unless so consented to, shall be void and without effect. Notwithstanding the foregoing, Providing Company may assign all or part of it duties under this Agreement to any of
its Affiliates without the prior written consent of the Receiving Company; provided that no assignment or delegation shall relieve the Providing Company of its obligations hereunder. Providing Company may, in the ordinary course of business or as
may be deemed best practice under the circumstances, subcontract the performance of certain aspects of this TSA to a third party consultant acting under the supervision of Providing Company; provided, however, that any decision to subcontract, to an
Affiliate or third party, any transition service(s) related to the Regulatory Matters must be reviewed and given prior authorization by the Receiving Party, which authorization shall not be unreasonably denied. 
 14. Confidentiality: 
 a. Possession, degree of
care: The TSA and all Confidential Information provided under or with respect to the services described in the TSA shall be subject to a comprehensive confidentiality agreement. Each Party acknowledges that the other possesses and, in carrying
out the TSA, will possess information that has been developed or received by it or its Affiliates that is not in the public domain and is considered Confidential Information. The term “Confidential Information” does not include information
that (i) is already in the receiving party’s possession, provided that such information is not known to be subject to another confidentiality agreement with or other obligation of secrecy, or fiduciary duty of confidentiality, to or any
representative of the party providing such Confidential Information, (ii) becomes generally available to the public other than as a result of a disclosure by the receiving party or its representatives, or (iii) becomes available to the
receiving party on a non-confidential basis from a source other than the providing party or its representatives, provided that such source is not known by the receiving party to be bound by a confidentiality agreement with or other obligation of
secrecy, or fiduciary duty of confidentiality, to providing party or any of its representatives. For purposes of this letter agreement, the term “representatives” shall include directors, officers, partners, employees, affiliates, agents,
advisors, including, without limitation, counsel, financial advisors, accountants of, or to, . 
 Each Party will use at least the same
degree of care to prevent disclosing to third parties the Confidential Information as it employs to avoid unauthorized disclosure, publication or dissemination of its own information of a similar nature. Neither Party will make any use or copies of
the confidential information of the other Party except as contemplated by the TSA. 
 b. Disclosure notice: A Party shall not be
considered to have breached its obligations under the TSA for disclosing confidential information if such disclosure is required to satisfy any legal requirement of a competent court or governmental authority, provided that, promptly upon receiving
any such request and to extent that it may legally do so, such Party advises the other Party promptly and, to the extent reasonably practicable, prior to making such disclosure in order that the other Party may interpose an objection to such
disclosure, take action to assure confidential handling of the confidential information, or take such other action as it deems appropriate to protect the confidential information. 
  

 - 4 - 

 c. Destruction of confidential information: Upon the termination or expiration of the TSA or at
any time requested by a Party consistent with its duties under the TSA and the Redemption Agreement; each Party shall return or destroy (and certify the destruction) at Receiving Company’s option, all documentation in any medium that contains,
refers, to, or relates to the Confidential Information of the requesting Party. With respect to the destruction of electronic records, a Party shall be deemed to be in compliance with this Paragraph if it uses reasonable efforts to return or destroy
such Confidential Information. 
 15. Compliance with Laws and Regulations: Both Parties shall comply with, and will use reasonable
efforts to require that their Affiliates and subcontractors comply in all material respects with, applicable laws and regulations relating to the transition services. In performing their respective obligations under the TSA, neither Party will be
required to undertake any activity that would violate any applicable laws or regulations. 
 16. Governing Law: The TSA will be
governed by and construed in accordance with the laws, other than choice of law rules, of the State of New York. 
 17. List of transition
services that will be provided to Receiving Company:  
 I. Operations & Engineering 
  

	 	A)	Technical Expertise – assistance related to pipeline safety, measurement, compression and prime movers, environmental compliance, right of way, engineering and construction,
and safety 

  

	 	B)	Pipeline integrity/corrosion control/engineering records 

  

	 	C)	Purchasing/supply management 

  

	 	D)	Contract management 

 II. Accounting/Tax 
  

	 	A)	Taxes other than income for calendar year 2006 

  

	 	B)	Credit services 

  

	 	C)	Oracle financial system support 

  

	 	D)	Accounts payable support/vendor maintenance 

 III. Regulatory &
Legal 
  

	 	A)	TPC Expansion Projects 

  

	 	B)	TPC Rate Case, including witness and/or consultation services 

  

	 	C)	General regulatory filings, proceedings or matters 

  

	 	D)	Compliance advice 

  

 - 5 - 

 IV. Information Technology 
  

	 	A)	Systems – financial, treasury, gas control, SCADA and gas measurement, billing, customer, asset management, geographic information systems and other operations systems

  

	 	B)	Telecommunications 

  

	 	C)	Hardware 

  

	 	D)	Systems/software 

  

	 	E)	Network and desktop 

  

	 	F)	Disaster recovery 

  

	 	G)	Data center, including all hardware, web-site, site administration and IT support needed to maintain and continually update FERC-required Informational Postings

  

	 	H)	Electronic Data Interchange support 

 V. Office space 
 VI. Data Storage/Retrieval 
 VII. Intellectual Property 
 Providing Company and its Affiliates will provide a temporary license to Receiving Company to use the trademarks currently utilized by TPC. 
 18. List of services that will not be provided to Receiving Company 
 Treasury/cash management/lockbox 
 Financial reporting 
 Internal controls 
 Human resources, payroll
and benefits 
 Corporate legal 
 Governmental affairs 
 Litigation management 
 Corporate governance functions 
 Internal audit 
 19. Performance Covenant. Panhandle Eastern Pipe Line Company, LP hereby covenants, to the extent permitted by applicable law, to cause Providing Company to
perform the duties and obligations of Providing Company hereunder. 
  

 - 6 - 

 Exhibit C 
  
  
  
 SECOND AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 CCE HOLDINGS, LLC 
 dated as of
                    , 2006 
  
  
  

 SECOND AMENDED AND RESTATED 
 LIMITED LIABILITY COMPANY AGREEMENT 
 OF 
 CCE HOLDINGS, LLC 
 This Second Amended
and Restated Limited Liability Company Agreement of CCE Holdings, LLC, a Delaware limited liability company (the “Company”), is entered into as of this      day of
                    , 2006, by and between Energy Transfer Partners, L.P., a Delaware limited partnership, CCE Acquisition, LLC, a Delaware limited
liability company, and CCEA Corp., a Delaware corporation. 
 W I T N E S S E T H: 
 WHEREAS, the Certificate of Formation of the Company was filed with the Secretary of State of Delaware on May 14, 2004, in accordance with the
Delaware Limited Liability Company Act; 
 WHEREAS, the parties hereto are the sole members of the Company; and 
 WHEREAS, the parties hereto desire to amend and restate the limited liability company agreement of the Company as set forth herein in order to provide
for the manner in which the Company shall be governed and operated subsequent to the date hereof; and 
 NOW, THEREFORE, in consideration of
the premises hereof, and of the mutual covenants and agreements contained herein, the receipt, adequacy and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 ARTICLE I. 
 DEFINITIONS 

 1.1 Defined Terms. The following terms have the meanings hereinafter indicated whenever used in this Agreement with initial capital
letters: 
 “Accepting Member” shall have the meaning specified in Section 5.1(b)(i). 
 “Act” shall mean the Delaware Limited Liability Company Act, at Del. Code Ann., Title 6, Section 18-101, et seq., as
amended. 
 “Adjusted Capital Account” shall mean, with respect to any Member, the balance in such Member’s Capital
Account as of the end of the relevant Fiscal Year, after giving effect to the following adjustments: 
 (a) Crediting to such Capital Account
any amounts that such Member is obligated to restore pursuant to this Agreement or is deemed to be obligated to restore pursuant to Regulations Sections 1.704-1(b)(2)(ii)(b)(3), 1.704-1(b)(2)(ii)(c), 1.704-2(g)(1) and 1.704-2(i)(5); and 

 (b) Debiting to such Capital Account the items described in Regulations Sections 1.704-1(b)(2)(ii)
(d)(4), (5) and (6). 
 The foregoing definition of “Adjusted Capital Account” is intended to comply with the provisions of
Regulations Section 1.704-1(b)(2)(ii)(d) and shall be interpreted consistently therewith. 
 “Adjusted Capital Account
Deficit” shall mean, with respect to any Member, the deficit balance, if any, in such Member’s Adjusted Capital Account. 
 “Administrative Services Agreement” shall mean the Amended and Restated Administrative Services Agreement substantially in the form of Exhibit C or in such other form as shall be approved by the Executive Committee.

 “Administrative Services Provider” shall mean the Person that from time to time shall be a party to the Administrative
Services Agreement with the Company. 
 “Affiliate” shall mean, with respect to a Person, another Person that directly or
indirectly controls, is controlled by or is under common control with such first Person. For purposes of this definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled by” and
“under common control with”), as applied to any Person, means the possession, directly or indirectly, of the power to vote a majority of the securities having voting power for the election of directors of such Person or otherwise to direct
or cause the direction of the management and policies of that Person, whether through ownership of voting securities, by contract or otherwise. 
 “Aggregate Percentage Interest” shall mean, with respect to each Member, its proportionate interest, expressed as a percentage, in the residual Profits, Losses and distributions of the Company to which the Members are
entitled. The Aggregate Percentage Interests of the Members are set forth on Exhibit A. 
 “Agreement” shall mean
this Amended and Restated Limited Liability Company Agreement, including all exhibits and schedules attached hereto, as amended, modified or otherwise supplemented, from time to time. 
 “Asset Value” shall mean, with respect to any asset of the Company (other than cash), the adjusted basis of such asset as of the
relevant date for federal income tax purposes, except as follows: 
 (a) the initial Asset Value of any asset (other than cash) contributed by
a Member to the Company shall be the fair market value of such asset (as determined by the Members) at the time of contribution; 
 (b) the
Asset Values of all Company assets (including intangible assets such as goodwill) shall be adjusted to equal their respective fair market values as of the following times: 
 (i) the acquisition of an additional interest in the Company by any new or existing Member in exchange for a Capital Contribution;

  

 2 

 (ii) the distribution by the Company to a Member of an amount of money or Company
property as consideration for an interest in the Company; or 
 (iii) the liquidation of the Company within the meaning of
Regulations Section 1.704-1(b)(2)(ii)(g); 
 (c) the Asset Value of any Company asset distributed in kind to any Member shall be
adjusted to equal the gross fair market value of such asset on the date of distribution, as determined by the Members; 
 (d) the Asset
Values of any Company assets shall be increased (or decreased) to reflect any adjustments to the adjusted basis of such assets pursuant to Code Section 734(b) or Code Section 743(b), but only to the extent that such adjustments are taken
into account in determining Capital Accounts pursuant to Regulations Section 1.704-1(b)(2)(iv)(m); provided that Asset Values shall not be adjusted pursuant to Code Section 743(b) to the extent that the Members make a corresponding
adjustment under subparagraph (b)(ii); and 
 (e) if the Asset Value of an asset has been determined or adjusted pursuant to subsection (a),
(b) or (d) above, such Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses and other items allocated pursuant to Article VII. 

The foregoing definition of “Asset Value” is intended to comply with the provisions of Regulations Section 1.704-1(b)(2)(iv) and shall
be interpreted and applied consistently therewith. 
 “Bankruptcy Event” shall be deemed to occur with respect to any Person
if (a) such Person shall institute a voluntary case seeking liquidation or reorganization under Bankruptcy Law, or shall consent to the institution of an involuntary case thereunder against it; (b) such Person shall file a petition or
consent or shall otherwise institute any similar proceeding under any other applicable Federal or state law, or shall consent thereto; (c) such Person shall apply for, or by consent there shall be an appointment of, a receiver, liquidator,
sequestrator, trustee or other officer with similar powers for itself or any substantial part of its assets; (d) such Person shall make an assignment for the benefit of its creditors; (e) such Person shall admit in writing its inability to
pay its debts generally as they become due; (f) an involuntary case shall be commenced seeking liquidation or reorganization of such Person under Bankruptcy Law or any similar proceedings shall be commenced against such Person under any other
applicable Federal or state law and (i) the petition commencing the involuntary case is not dismissed within 60 days of its filing, (ii) an interim trustee is appointed to take possession of all or a portion of the property, and/or to
operate all or any part of the business of such Person and such appointment is not vacated within 60 days, or (iii) an order for relief shall have been issued or entered therein; (g) a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee or other officer having similar powers of such Person or all or a part of its property shall have been entered; or (h) any other similar relief shall be granted
against such Person under any applicable Federal or state law. 
  

 3 

 “Bankruptcy Law” means Title 11, U.S. Code or any similar federal or state law for the
relief of debtors. 
 “Business Day” shall mean any day that is neither a Saturday nor a Sunday nor a legal holiday on which
commercial banking institutions are authorized or required by law, regulation or executive order to be closed in the States of New York or Texas. 
 “Capital Account” shall mean, with respect to any Member (and without duplication), the Capital Account maintained for such Member in accordance with the following provisions: 
 (a) From time to time, the Capital Account of each Member shall be increased by (i) the amount of any cash contributed by the Member to the Company,
(ii) the Asset Value (as determined by the Members) of any property contributed by the Member to the Company (net of liabilities that the Company is deemed to have assumed or taken subject to, under and pursuant to Section 752 of the
Code), and (iii) allocations to the Member of Profit (or items thereof) and other income and gain pursuant to Section 7.1, including income and gain exempt from tax, and income and gain described in Regulations
Section 1.704-1(b)(2)(iv)(g), but excluding items of income and gain described in Regulations Section 1.704-1(b)(4)(i). 
 (b) The
Capital Account of each Member shall be decreased by (i) the amount of any cash distributed to such Member, (ii) the Asset Value (as determined by the Members) of any property distributed to such Member (net of any liabilities that such
Member is deemed to have assumed or taken subject to, under and pursuant to Section 752 of the Code), (iii) allocations to the Member of expenditures described in Section 705(a)(2)(B) of the Code, and (iv) allocations to the
Member of Loss (or items thereof) and other loss and deductions pursuant to Section 7.1, including loss and deduction described in Regulations Section 1.704-1(b)(2)(iv)(g), but excluding items described in clause (iii) above,
tax items of loss and deduction described in Regulations Section 1.704-1(b)(4)(i), and items of deduction described in Regulations Section 1.704-1(b)(4)(iii). 
 (c) A single Capital Account shall be maintained for each Member, which Capital Account shall reflect all allocations, distributions, or other adjustments required by this definition with respect to the Membership
Interest owned by such Member. 
 (d) Upon any transfer of all or part of a Membership Interest as permitted by this Agreement, the Capital
Account (or portion thereof) of the transferor that is attributable to the transferred interest (or portion thereof) shall carry over to the transferee as prescribed by Regulations Section 1.704-1(b)(2)(iv)(l). 
 (e) Notwithstanding anything to the contrary in this definition, it is the intention of the Members that the Capital Accounts of the Members be
maintained strictly in accordance with the capital account maintenance requirements of Regulations Section 1.704-1(b)(2)(iv), and that such Capital Accounts be adjusted to the extent required by the provisions of such Regulations or any
successor provisions thereto. 
 “Capital Contribution” shall mean the total amount of money and the net fair market value
of property (as determined by the Executive Committee) contributed by each Member to the Company pursuant to this Agreement. 
  

 4 

 “Cash Flow” shall mean, with respect to any period, all cash received by the Company
(other than from the liquidation of any assets pursuant to Article X) plus all cash withdrawn from reserves (as determined to be appropriate by the Executive Committee or, if the Executive Committee does not approve the amount of such
reserves, no withdrawal from reserves will be made for such period), less (a) all operating expenses of the Company (including amounts payable under the Administrative Services Agreement but excluding capital expenditures), (b) any
amounts withheld by the Company in accordance with Section 6.2, (c) additions to reserves made during such period (as determined to be appropriate by the Executive Committee or, if the Executive Committee does not approve the amount
of such reserves, no addition to reserves will be made for such period) and (d) all payments of interest and scheduled principal in respect of Indebtedness of the Company. 
 “CCE” shall mean CCE Acquisition, LLC, a Delaware limited liability company, and any of its Affiliates that are Members. 
 “Certificate” shall mean the Certificate of Formation of the Company. 
 “Citrus Corp.” shall mean Citrus Corp., a Delaware corporation. 
 “Class A Executive Committee Member” shall have the meaning specified in Section 4.1(c). 
 “Class A Member” shall mean each Person listed on Exhibit A hereto and indicated as such, its respective permitted successors and
assigns, and any other Person that is hereafter admitted as a Class A Member pursuant to Article VIII. 
 “Class A
Membership Interest” shall mean a Class A Member’s entire interest in the Company including such Class A Member’s right to share in the Profits and Losses and distributions of the Company, and the Class A
Member’s right to vote or consent to, or otherwise participate in, any decision or action of or by the Class A Members granted pursuant to this Agreement or the Act. 
 “Class A Percentage Interest” shall mean a Class A Member’s proportionate interest, expressed as a percentage, in the residual
Profits, Losses, and distributions of the Company to which the Class A Members are entitled. The Class A Percentage Interests of the Class A Members are set forth on Exhibit A. 
 “Class A Prohibited Transferee” shall mean any Persons designated on Exhibit B as a Class A Prohibited Transferee and any
Affiliate or successor thereof. 
 “Class B Executive Committee Member” shall have the meaning specified in
Section 4.1(c). 
 “Class B Member” shall mean each Person listed on Exhibit A hereto and indicated as such, its
respective permitted successors and assigns, and any other Person that is hereafter admitted as a Class B Member pursuant to Article VIII. 
  

 5
 

 “Class B Membership Interest” shall mean a Class B Member’s entire interest in the
Company including such Class B Member’s right to share in the Profits and Losses and distributions of the Company, and the Class B Member’s right to vote or consent to, or otherwise participate in, any decision or action of or by the Class
B Members granted pursuant to this Agreement or the Act. 
 “Class B Percentage Interest” shall mean a Class B Member’s
proportionate interest, expressed as a percentage, in the residual Profits, Losses, and distributions of the Company to which the Class B Members are entitled. The Class B Percentage Interests of the Class B Members are set forth on Exhibit
A. 
 “Class B Prohibited Transferee” shall mean any Persons designated on Exhibit B as a Class B Prohibited
Transferee and any Affiliate or successor thereof. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended from
time to time, and any successor statutory provisions. 
 “Company” shall have the meaning assigned thereto in the preamble
to this Agreement. 
 “Company Minimum Gain” shall mean the amount determined in accordance with Regulations
Section 1.704-2(d) by (a) computing with respect to each Nonrecourse Liability of the Company the amount of income or gain, if any, that would be realized by the Company if it disposed of the property securing such Nonrecourse Liability in
full satisfaction thereof, and (b) aggregating all separate amounts so computed. 
 “Company Subsidiaries” shall
mean CrossCountry, CrossCountry Alaska, LLC, CrossCountry Energy Services, LLC, Transwestern Holding Company, LLC, Transwestern and CrossCountry Citrus, LLC; provided, however, that none of the foregoing shall be considered a
“Company Subsidiary” at such time as the Company shall have disposed of its ownership interests therein. 
 “Contribution Offer Expiration Date” shall have the meaning specified in Section 5.1(b)(i). 
 “Contribution Offer Notice” shall have the meaning specified in Section 5.1(b)(i). 
 “CrossCountry” shall mean CrossCountry Energy, LLC, a Delaware limited liability company. 
 “Credit
Facilities” shall mean such loan agreements and instruments to which the Company or any Company Subsidiary shall be a party from time to time. 
 “Depreciation” shall mean, for each Fiscal Year or part thereof, an amount equal to the depreciation, amortization, or other cost recovery deduction allowable for federal income tax purposes with
respect to an asset for such Fiscal Year or part thereof, except that if the Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year, the depreciation, amortization or other cost
recovery deduction for such Fiscal Year or part thereof shall be an amount which bears the same ratio to such Asset Value as 

  

 6 

 
the federal income tax depreciation, amortization or other cost recovery deduction for such Fiscal Year or part thereof bears to such adjusted tax basis. If
such asset has a zero adjusted tax basis, the depreciation, amortization or other cost recovery deduction for each Fiscal Year shall be determined under a method selected by the Members. 
 “EBITDA” shall mean for any period the consolidated net income of the Company determined in accordance with GAAP plus
(a) its reported interest expense, plus (b) its reported income tax expense, plus (c) the amount it reported as depreciation of assets, plus (d) the amount it reported as the amortization of intangibles,
plus (e) 50% of Citrus Corp.’s reported interest expense, plus (f) 50% of the amount Citrus Corp. reported as income tax expense, plus (g) 50% of the amount Citrus Corp. reported as depreciation of assets,
plus (g) 50% of the amount Citrus Corp. reported as the amortization of intangibles, in each case as determined in accordance with GAAP. 
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended, and the rules and regulations promulgated there under. 
 “ETP” shall mean Energy Transfer Partners, L.P., a Delaware limited partnership, and any of its Affiliates that are Members.

 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended. 
 “Executive Committee” shall have the meaning specified in Section 4.1(a). 
 “Executive Committee Members” shall have the meaning specified in Section 4.1(a). 
 “Fiscal Year” shall mean the taxable year of the Company, which initially shall be the calendar year. 
 “GAAP” shall mean United States generally accepted accounting principles consistently applied. 
 “Governmental Authority” shall mean any court, tribunal, agency, commission, official or other instrumentality of the United States or
any state or political subdivision thereof. 
 “Indebtedness” shall mean, with respect to any Person, (A) all
obligations for borrowed money of the such Person, (B) all obligations for the deferred purchase or acquisition price of property or services, other than trade accounts payable (other than for borrowed money) arising, and accrued expenses
incurred, in the ordinary course of business so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or the respective services are rendered, (C) the capitalized amount (determined in
accordance with GAAP) of all obligations such Person is required to pay or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be
classified and accounted for as capital leases on a balance sheet of such Person under GAAP, (D) all obligations for borrowed money secured by any lien upon or in any property owed by such Person whether or not such Person has assumed or become
liable for the payment of such obligations for borrowed money and (E) all obligations of the type described in any of clauses (A) through (D) above which are guaranteed, directly or indirectly, or endorsed (otherwise than for
collection or deposit in the ordinary course of business) or discounted with recourse by such Person. 
  

 7 

 “Liquidating Trustee” shall have the meaning specified in the Act. 
 “Managing Member” shall mean the Member designated pursuant to Section 4.3. 
 “Material Regulatory Filing” shall mean any filing with any Governmental Authority which, if determined adversely to the Company, would
have a material adverse effect on the business, assets or financial condition of the Company. 
 “Member Nonrecourse Debt”
shall mean debt of the Company determined in accordance with the principles of Regulations Section 1.704-2(b)(4). 
 “Member
Nonrecourse Deductions” shall mean any and all items of loss, deduction or expenditure (described in Section 705(a)(2)(B) of the Code) that, in accordance with the principles of Regulations Section 1.704-2(i)(2), are attributable
to a Member Nonrecourse Debt. 
 “Members” shall mean each of the Persons set forth on Exhibit A and any other Person
that hereafter is admitted as a Member pursuant to Article VIII. 
 “Membership Interest” and “Membership
Interests” shall mean, individually the Class A Membership Interest or the Class B Membership Interest and, collectively, the Class A Membership Interests and the Class B Membership Interests, as the context requires. 

“Minimum Gain Attributable to Member Nonrecourse Debt” shall mean that amount determined in accordance with the principles of
Regulations Sections 1.704-2(i)(3), (4) and (5). 
 “Nonrecourse Deductions” shall mean that amount determined in
accordance with Regulations Section 1.704-2(b)(1). 
 “Nonrecourse Liability” shall mean any liability of the Company
treated as a nonrecourse liability under Regulations Section 1.704-2(b)(3). 
 “Person” shall mean any individual,
partnership, limited liability company, corporation, trust or other entity. 
 “Profits” and “Losses” shall
mean, for each Fiscal Year or other period, an amount equal to the Company’s taxable income or loss for such Fiscal Year or period, determined in accordance with Code Section 703(a) (for this purpose, all items of income, gain, loss, or
deduction required to be stated separately pursuant to Code Section 703(a)(1) shall be included in taxable income or loss), with the following adjustments: 
 (a) Any income of the Company that is exempt from federal income tax and not otherwise taken into account in computing Profits and Losses shall be added to such taxable income or loss; 
  

 8 

 (b) Any expenditures of the Company described in Code Section 705(a)(2)(B) or treated as Code
Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing Profits or Losses, shall be subtracted from such taxable income or loss; 
 (c) In the event the Asset Value of any Company asset is adjusted pursuant to clause (b) or clause (c) of the definition thereof, the amount of
such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits and Losses; 
 (d) Gain or loss resulting from any disposition of Company property with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Asset Value of the property disposed of,
notwithstanding that the adjusted tax basis of such property differs from its Asset Value; 
 (e) In lieu of depreciation, amortization and
other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year or other period; 
 (f) To the extent an adjustment to any adjusted tax basis of any Company asset pursuant to Code Section 734(b) or Code Section 743(b) is
required pursuant to Regulations Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in determining Capital Accounts as a result of a distribution other than in liquidation of a Member’s Membership Interest in the Company, the amount
of the adjustment shall be treated as an item of gain (if the adjustment increases the basis of the asset) or loss (if the adjustment decreases the basis of the assets) from the disposition of the asset and shall be taken into account for purposes
of computing Profits and Losses; and 
 (g) Any items which are specially allocated pursuant to Section 7.1(c) shall not be taken
into account in computing Profits and Losses. 
 “Prohibited Transferee” shall mean those Persons set forth on Exhibit
B and any Affiliate or successor thereof. 
 “Rate Filing” shall mean any application, notice or other submission filed
with or otherwise delivered to any Governmental Authority relating to the establishment of, or modification or supplement to, the rates, tariffs or charges for services or commodities provided by any Company Subsidiary; provided,
however, that “Rate Filing” shall not include any of the foregoing unless the intended or expected effect thereof is (i) to increase the revenues of the applicable Company Subsidiary by more than 10% per annum,
(ii) to increase or decrease the rates chargeable for transportation of natural gas through the applicable Company Subsidiary’s pipeline facilities by more than 10%, (iii) the offering by the applicable Company Subsidiary of a new
service or (iv) the expansion or addition of capacity of, or the increase in the pressure of, the applicable Company Subsidiary’s pipeline facilities. 
 “Redemption Agreement” shall mean the Redemption Agreement, dated as of September 14, 2006, between the Company and ETP. 
  

 9 

 “Regulatory Allocations” shall have the meaning set forth in
Section 7.1(c)(vii). 
 “Regulations” shall mean any and all temporary and final regulations promulgated under
the Code, as amended from time to time (including corresponding provisions of succeeding regulations). 
 “Securities Act”
shall mean the Securities Act of 1933, as amended. 
 “SUG” shall mean Southern Union Company, a Delaware corporation.

 “Tax Matters Member” shall mean the Member designated to serve as such pursuant to Section 7.5. 

“Third Party Purchaser” shall mean any Person (other than a Member or an Affiliate of a Member) that has expressed an interest to
purchase any of the Class A Membership Interests or Class B Membership Interests. 
 “Third Party Purchaser Notice”
shall have the meaning specified in Section 8.2. 
 “Transfer” shall mean any, direct or indirect, sale,
assignment, gift, hypothecation, pledge or other disposition, whether voluntary or by operation of law (including through the state law conversion of the legal status of a Member), of a Membership Interest or any portion thereof including as a
result of a sale or transfer of the equity interests in a Member or its direct or indirect parent, but the term “Transfer” shall not include any sale or transfer of equity interests in ETP or SUG. 
 “Transferee” shall mean any Person that receives a Membership Interest as the result of a Transfer from a Transferring Member.

 “Transferring Member” shall have the meaning specified in Section 8.2. 
 “Transwestern” shall mean Transwestern Pipeline Company, LLC. 
 1.2 Interpretative Matters. In this Agreement, unless otherwise specified or where the context otherwise requires: 
 (a) the headings of particular provisions of this Agreement are inserted for convenience only and will not be construed as a part of this Agreement or
serve as a limitation or expansion on the scope of any term or provision of this Agreement; 
 (b) the singular shall include the plural and
the plural shall include the singular wherever appropriate; 
 (c) words importing any gender shall include other genders; 
 (d) the words “include,” “includes” or “including” shall be deemed to be followed by the words “without
limitation”; 
  

 10 

 (e) the words “hereof,” “herein” and “herewith” and words of similar import
shall, unless otherwise stated, be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement; 
 (f) references to “Sections”, “Articles”, “Exhibits” and “Appendices” shall be to Sections, Articles, Exhibits and Appendices of or to this Agreement; 
 (g) references to any Person include the successors and permitted assigns of such Person; 
 (h) the use of the words “or,” “either” and “any” shall not be exclusive; 
 (i) wherever a conflict exists between this Agreement and any other agreement, this Agreement shall control but solely to the extent of such conflict;

 (j) references to any agreement or contract, unless otherwise stated, are to such agreement or contract as amended, modified or
supplemented from time to time in accordance with the terms hereof and thereof; and 
 (k) the parties hereto have participated jointly in
the negotiation and drafting of this Agreement; accordingly, in the event an ambiguity or question of intent or interpretation arises, this Agreement shall be construed as if drafted jointly by the parties hereto, and no presumption or burden of
proof shall arise favoring or disfavoring any party hereto by virtue of the authorship of any provisions of this Agreement. 
 ARTICLE II.

 ORGANIZATIONAL MATTERS 
 2.1 Formation. The Company has been formed and exists for the limited purposes described herein and shall be governed by and operated in accordance with the Act. The Members shall execute and the Managing
Member shall make, or cause to be made, all filings required by the Act or other applicable law with respect to the formation and operation of the Company. 
 2.2 Name. The name of the Company is CCE Holdings, LLC. 
 2.3 Principal Place of Business. The
principal place of business of the Company shall be located at 5444 Westheimer Road, Houston, TX 77056. The Members may change the principal place of business of the Company at any time and from time to time. 
 2.4 Registered Office and Agent. The registered office of the Company shall be located at 1209 Orange Street, Wilmington, New Castle County,
Delaware 19801 and the registered agent for the Company at such office shall be The Corporation Trust Company. The Executive Committee may change the registered office of the Company or the registered agent for the Company at any time, and from time
to time. 
 2.5 Term. The term of the Company shall commence upon the filing of the Certificate and shall continue until dissolved in
accordance with Article X or the Act. 
  

 11 

 ARTICLE III. 
 BUSINESS OF THE COMPANY 
 3.1 Purpose. The business of the Company shall be to,
directly and indirectly, own and manage ownership interests in the Company Subsidiaries, and their respective assets, and to engage in any business necessary or incidental thereto. 
 ARTICLE IV. 
 MANAGEMENT OF COMPANY 
 4.1 Executive Committee. 
 (a)
Establishment. There is hereby established a committee of Member representatives (the “Executive Committee”) comprised of natural Persons (the “Executive Committee Members”) having the authority and duties
set forth in this Agreement. Any decisions to be made by the Executive Committee shall require the unanimous approval of the Executive Committee Members; provided, however, that in the case of any action or decision by the Executive
Committee relating to (i) the commencement of any legal or arbitration proceedings against a Member or an Affiliate thereof, (ii) entering into any transaction with a Member or any of its Affiliates of the type referred to in
Section 4.2(g) or (iii) the enforcement or waiver of any rights of the Company under any material agreement with a Member or any of its Affiliates, the Executive Committee Members appointed by the Class of Membership Interests held
by such Member (and respecting which such Member is entitled to exercise voting rights as provided in Section 4.2(a)(ii) and Section 4.2(a) (iii)) shall not participate in any decisions by the Executive Committee in respect
of such matters and such Executive Committee Members shall be disregard for purposes of this Section 4.1(a) and Section 4.2(d)(iv) to the extent of any Executive Committee meetings or decisions relating to any such matters.
Absent authority granted by the Executive Committee, no Member or Executive Committee Member shall have the power to act for or on behalf of, or to bind, the Company. At each meeting of the Executive Committee, the Executive Committee shall
designate a person to preside over such meeting. 
 (b) Powers. The business and affairs of the Company shall be managed by or under
the direction of the Executive Committee, except as otherwise expressly provided in this Agreement. The Executive Committee shall have the power on behalf and in the name of the Company to carry out any and all of the objectives and purposes of the
Company contemplated by Section 3.1 and to perform all acts that the Executive Committee may deem necessary or advisable in connection therewith. 
 (c) Composition of the Executive Committee and Appointment of Executive Committee Members. The Executive Committee shall consist of four members, two of whom shall be appointed by the Class A Members (the
“Class A Executive Committee Members”), and two of whom shall be appointed by the Class B Members (the “Class B Executive Committee Members”). In addition, the Class A Members and the Class B Members may
appoint one or more alternates for the Class A Executive Committee Members and the Class B Executive Committee Members, respectively, and each such alternate shall have all of the powers of a Executive Committee Member in such Executive
Committee Member’s absence or inability to 

  

 12 

 
serve. The Class A Members shall have the power to remove any Class A Executive Committee Member, and the Class B Members shall have the power to
remove any Class B Executive Committee Member. Any vacancy on the Executive Committee shall be filled by the Class A Members if the vacancy shall be in respect of a Class A Executive Committee Member, or by the Class B Members if the
vacancy shall be in respect of a Class B Executive Committee Member. The Class A Members shall notify the Class B Members, and the Class B Members shall notify the Class A Members, of their respective appointments or removals of Executive
Committee Members as provided in this Section 4.1(c). In addition to the Executive Committee Members, the Class A Members and the Class B Members shall each be entitled to appoint one individual who shall be entitled to attend each
meeting of the Executive Committee and receive all notices and other information provided to the Executive Committee Members, but no such observer shall be entitled to any other rights or privileges granted to the Executive Committee Members
hereunder or pursuant hereto. The Class A Members and the Class B Members shall be entitled to remove and replace their respective Executive Committee observers from time to time. The Class A Members shall notify the Class B Members, and
the Class B Members shall notify the Class A Members, of their respective appointments or removals of their Executive Committee observers as provided in this Section 4.1(c). 
 (d) Meetings of the Executive Committee. Regular meetings of the Executive Committee shall be held at least four times in each Fiscal Year and may
be held at such place, within or without the State of Delaware, as shall from time to time be determined by unanimous consent of the Executive Committee. Special meetings of the Executive Committee may be called by or at the request of any Executive
Committee Member. Notice of each such regular or special meeting shall be mailed to each Executive Committee Member, addressed to such Executive Committee Member at his or her residence or usual place of business, at least five days before the date
on which the meeting is to be held, or shall be sent to such Executive Committee Member at such place by personal delivery, telephone, electronic mail or telecopier, not later than five days (or, in the case of meetings held by telephone, one day)
before the day on which such meeting is to be held. Each such notice shall state the time and place of the meeting and, as may be required, the purposes thereof. 
 (i) Any Executive Committee Member who is present at a meeting shall be conclusively presumed to have waived notice of such meeting except
when such member attends for the express purpose of objecting at the beginning of the meeting to the transaction of any business because the meeting is not lawfully called or convened. Such Executive Committee Member shall be conclusively presumed
to have assented to any action taken unless his or her dissent shall be entered in the minutes of the meeting or unless his or her written dissent to such action shall be filed with the person acting as the secretary of the meeting before the
adjournment thereof or shall be forwarded by registered mail to the Managing Member of the Company immediately after the adjournment of the meeting. Such right to dissent shall not apply to any Executive Committee Member who voted in favor of such
action. 
 (ii) Executive Committee Members may participate in and act at any meeting of the Executive Committee through the
use of a conference telephone or other communications equipment by means of which all persons participating in the meeting can hear each other, and participation in the meeting pursuant to this Section 4.1(d) shall constitute presence in
person at the meeting. 
  

 13 

 (iii) Unless otherwise restricted by this Agreement or the Act, any action required or
permitted to be taken at any meeting of the Executive Committee may be taken without a meeting if all the Executive Committee Members consent thereto in writing, and the writing or writings are filed with the minutes of proceedings of the Executive
Committee. 
 (iv) At each meeting of the Executive Committee, the presence of at least one Class A Executive Committee
Member and each Class B Executive Committee Member shall constitute a quorum and be required for the transaction of business, subject to the provisions of Section 4.1(a) in respect of decisions to be made by the Executive Committee.

 (e) Compensation of Executive Committee Members. Executive Committee Members shall not receive any compensation from the Company
for their services but may be reimbursed for any expenses related to attendance at each meeting of the Executive Committee. 
 4.2 Actions
Requiring Executive Committee Approval The following actions by the Company shall require the approval of the Executive Committee: 
 (a)
commencing, or any other material action with respect to, a Bankruptcy Event of the Company or of any Company Subsidiaries; 
 (b)
transferring any assets of the Company to satisfy any liabilities of any of the Members or their respective Affiliates (or any trade or business, whether or not incorporated, that is treated as a single employer together with such Member or its
Affiliates (under section 414 of the Code or section 4001(b) of ERISA)) arising from ERISA; 
 (c) selling, exchanging, licensing as
licensor, leasing as lessor, or disposing of any assets of the Company or any Company Subsidiaries in excess of $30 million; 
 (d) engaging
in, or acquiring any material assets related to, any business other than the business historically conducted by CrossCountry with a value in excess of $30 million, other than assets sold or exchanged in the ordinary course; 
 (e) redeeming any ownership interest in the Company; 
 (f) making any non-pro rata distribution of cash, income, assets or rights to any Member, except to the extent permitted under this Agreement, and making any other distribution not expressly permitted by Article VI
hereof (other than the distribution contemplated by Section 5.1(c) of the Redemption Agreement); 
 (g) entering into any material
transactions (including purchases, sales or leases of assets) by the Company or any Company Subsidiaries with or for the benefit of a Member or an Affiliate thereof; 
  

 14 

 (h) incurring or assuming any Indebtedness by the Company or any Company Subsidiary in excess of $50
million in the aggregate, excluding the Indebtedness incurred prior to the date hereof in connection with the acquisition of the Company Subsidiaries by the Company; 
 (i) any repayment (other than (i) repayments in accordance with scheduled maturity or which are otherwise mandatory pursuant to the terms of any document to which the Company or a Company Subsidiary is a party
and (ii) paydowns on any revolving credit facility), voluntary prepayment or redemption of, or any refinancing or other modification of the terms of, any indebtedness pertaining to the Company or a Company Subsidiary; 
 (j) initiating any material legal proceedings or arbitration on behalf of the Company or a Company Subsidiary, or agreeing to the settlement of any claim
by or against the Company or a Company Subsidiary with respect to claims in excess of $3 million, or which includes requests for any material injunction, specific performance or other equitable relief; provided, however, that if the vote of the
Executive Committee results in a tie, the Class A Executive Committee Members shall prevail on any such votes relating solely to any Company Subsidiary (other than Transwestern), or any entity owned by Citrus Corp. and the Class B Executive
Committee Members shall prevail on any such votes relating solely to Transwestern; 
 (k) entering into any confession of a judgment in
excess of $3 million against the Company or a Company Subsidiary; provided, however, that if the vote of the Executive Committee results in a tie, the Class A Executive Committee Members shall prevail on any such votes relating solely to any
Company Subsidiary (other than Transwestern), or any entity owned by Citrus Corp. and the Class B Executive Committee Members shall prevail on any such votes relating solely to Transwestern; 
 (l) adopting each annual budget for the Company and each Company Subsidiary, and any amendment or other modification to any such budget; provided,
that if the Executive Committee is unable to agree on the annual budget for any year for the Company or any Company Subsidiary, the Company or such Company Subsidiary, as the case may be, shall adopt an annual budget equal to the annual budget in
effect in the immediately preceding year, subject to the discretion of the Managing Member to increase one or more line items by not more than 5% (and subject to the limitation that the budgeted EBITDA for the new year shall not be less than 90% of
the budgeted EBITDA for the preceding year); 
 (m) the making of any Rate Filing or any Material Regulatory Filing with any Governmental
Authority by the Company or any Company Subsidiary, except to the extent such filing is required to be made by applicable law; provided, however, that if the vote of the Executive Committee results in a tie, the Class A Executive Committee
Members shall prevail on any such votes relating solely to any Company Subsidiary (other than Transwestern) or any entity owned by Citrus Corp. and the Class B Executive Committee Members shall prevail on any such votes relating solely to
Transwestern; 
 (n) implementing any material change in accounting policies or practices in respect of the Company or any Company
Subsidiary, in each case except to the extent that such change is required to be made by GAAP or applicable law, or terminating the engagement of the Company’s principal independent auditors; and 
  

 15 

 (o) the entry into any new line of business by the Company. 
 4.3 Management of the Company. 
 (a)
Managing Member. Day-to-day management of the Company in accordance with the polices established, and direction given, by the Executive Committee from time to time, and subject to the limitations provided elsewhere in this Agreement, shall be
the responsibility of a managing Member (the “Managing Member”). In addition, the Managing Member shall provide to any Executive Committee Member such additional information as such Executive Committee Member may reasonably request
from time to time to the extent that (i) such requested information relates to the operation of the Company or any Company Subsidiary and (ii) the Managing Member has such information or can acquire it without unreasonable effort. Subject
to the next following sentence, the Managing Member shall be CCE. If at any time (x) CCE and its Affiliates shall cease to hold at least 80% of the Class A Membership Interests, or (y) CCE or any of its Affiliates that is a Member
shall breach in any material respect any of its obligations under this Agreement, Members holding not less than a majority of the Class B Membership Interests (taking into the account the provisions of Section 4.4(a)(iii)) shall have the
right (but not the obligation) to designate a replacement Managing Member by written notice to CCE, which replacement shall be effective immediately or at such other time as shall be specified in such written notice to CCE. In the case of any such
replacement, CCE shall cooperate fully in the transition to such new Managing Member. 
 (b) Administrative Services Agreement.
Simultaneously with the execution of this Agreement, the Company shall enter into the Administrative Services Agreement with the Administrative Services Provider. Subject to the next following sentence, the Administrative Services Provider shall be
an Affiliate of CCE that is designated by CCE and is qualified to perform the duties required of it under the Administrative Services Agreement. Members holding not less than a majority of the Class B Membership Interests shall have the right (but
not the obligation) to designate a replacement Administrative Services Provider (that may be an Affiliate of ETP) by written notice to CCE and the then current Administrative Services Provider, which replacement shall be effective immediately or at
such other time as shall be specified in such written notice to CCE and the Administrative Services Provider, (i) upon the Administrative Service Provider’s material breach of its obligations under the Administrative Services Agreement,
and the Administrative Service Provider’s failure to cure such breach within 60 days following the Administrative Service Provider’s receipt of written notice from the Company setting forth in reasonable detail the relevant conduct or
failure, (ii) upon any of the representations and warranties of the Administrative Service Provider contained in the Administrative Services Agreement proving to be materially false, incomplete or misleading, and not reasonably subject to cure
in a manner that will result in no material harm to the Company, (iii) upon the Administrative Service Provider committing a material violation of any law applicable to Company or any Company Subsidiary, (iv) if SUG, or its Affiliates,
cease to own beneficially at least a majority of the Class A Membership Interests or (v) in the event of a failure by the Company or any Company Subsidiary to pay principal or interest as and when due under any credit facility (subject to
applicable grace periods). It is expressly understood and agreed that the foregoing provisions shall be in addition to, and shall not otherwise limit, any other remedies that may be available to the Company or any other Member (other than CCE or any
of its Affiliates) upon any breach of the Administrative Services Agreement by the 

  

 16 

 
Administrative Services Provider, CCE or any of its Affiliates. In the case of any such replacement, CCE shall cause its Affiliate Administrative Services
Provider to cooperate fully in the transition to such new Administrative Services Provider. 
 (c) Transwestern Matters. At the
request of the Class B Member, representatives of the Managing Member and the Class B Member shall meet weekly. During such meetings, the Class B Member shall be entitled to provide guidance to the Managing Member with respect to material decisions
involving, or otherwise relating to, Transwestern, including decisions with respect to commercial, financial, regulatory, operational and other general policy matters involving, or otherwise relating to, Transwestern. 
 4.4 Member Rights and Obligations. 
 (a) Voting Rights. Except as provided in this Agreement or as otherwise required by applicable law; 
 (i) the
Class A Members and the Class B Members shall vote together without distinction as to class, and any action requiring the approval of the Members shall require the affirmative vote of the Class A Members and Class B Members holding a
majority of the Class A Membership Interests and the Class B Membership Interests; 
 (ii) all actions requiring the
approval of the Class A Members, and unless expressly provided otherwise, all other actions to be taken by the Class A Members (including, without limitation, any direction to be given to the Executive Committee Members appointed by the
Class A Members),shall require the affirmative vote of Members holding a majority of the Class A Membership Interests; provided, however, that in the case of any vote by the Class A Members, whether pursuant to this
Section or any other provision of this Agreement, ETP and any of its Affiliates holding any Class A Membership Interests shall not be entitled to participate in such vote and the Class A Membership Interests held by them shall be
disregarded for all purposes of such vote; and 
 (iii) all actions requiring the approval of the Class B Members, and
unless expressly provided otherwise, all other actions to be taken by the Class B Members (including, without limitation, any direction to be given to the Executive Committee Members appointed by the Class B Members), shall require the affirmative
vote of Members holding a majority of the Class B Membership Interests; provided, however, that in the case of any vote by the Class B Members, whether pursuant to this Section or any other provision of this Agreement, CCE and any
of its Affiliates holding any Class B Membership Interests shall not be entitled to participate in such vote and the Class B Membership Interests held by them shall be disregarded for all purposes of such vote. 
 (b) Actions Requiring Unanimous Approval of Members. The following actions by the Company shall require the unanimous approval of all of the
Members: 
 (i) amending the Certificate or this Agreement; 
  

 17 

 (ii) requiring any Member to contribute additional capital; and 
 (iii) issuing any Membership Interests or other equity securities of the Company to any Member. 
 (c) Actions Requiring Approval of Two-Thirds of Class A Members and Class B Members. The following actions by the Company shall require the
approval of Members holding at least two-thirds of the Class A Membership Interests and Members holding at least two-thirds of the Class B Membership Interests: 
 (i) dissolving, terminating or liquidating the Company or any Company Subsidiary; 
 (ii) selling all or substantially all of the assets of the Company or any Company Subsidiary; and 
 (iii) merging, consolidating or changing the form of entity of the Company or any Company Subsidiary, whether or not involving a change of
control. 
 (d) Members’ Meetings. Meetings of the Members may be called from time to time by the affirmative vote of the
Executive Committee Members or upon written request of any Member having an Aggregate Percentage of not less than 20% delivered to any member of the Executive Committee. If action is to be taken at a duly called meeting of the Members, notice of the
time, date and place of meeting shall be given by the Managing Member, at the direction of the Executive Committee, to each other Member by personal delivery, telephone, electronic mail or telecopier sent to the address of each Member set forth on
Exhibit A at least five business days in advance of the meeting; provided, however, that no notice need be given to a Member who waives notice before or after the meeting or who attends the meeting without protesting at or
before its commencement the inadequacy of notice to such Member. The Members may attend a meeting in person or by proxy. Meetings of the Members shall be held at the Company’s principal place of business during normal business hours, or at such
other place and time as unanimously agreed by the Members; provided, however, that the Members may participate in and act at any meeting of the Members through the use of a conference telephone or other communications equipment by
means of which all individuals participating in the meeting can hear each other, and such participation in the meeting shall constitute presence in person at the meeting. Any action required or permitted to be taken at any meeting of the Members may
be taken without a meeting if one or more written consents to such action shall be signed by Members whose affirmative vote at a meeting would be sufficient to approve such action. Such written consents shall be delivered to the principal office of
the Company and, unless otherwise specified, shall be effective on the date when the first consent is delivered. 
 (e) Limitation of
Authority. Except in accordance with the provisions of this Agreement, no Member shall have any right or authority to act for or bind the Company. 
 4.5 Limitation of Liability. No Member, Managing Member, Executive Committee Member or any Affiliate, agent, officer, partner, employee, member, representative, director or shareholder of any of the foregoing
shall be liable, responsible or accountable in damages or otherwise to the Company or any Member for (i) any act performed in good faith within the 

  

 18 

 
scope of the authority conferred by this Agreement, (ii) any failure or refusal to perform any acts except those required by the terms of this Agreement
or (iii) any performance or omission to perform any acts in reliance in good faith on the advice of independent accountants or legal counsel for the Company. 
 4.6 Indemnification. In any threatened, pending or completed action, suit or proceeding to which a Member, Managing Member, Executive Committee Member or any Affiliate, agent, officer, partner, employee,
member, representative, director or shareholder of any of the foregoing was or is a party or is threatened to be made a party by reason of the fact that such Person is or was acting on behalf of the Company (other than an action by or in the right
of the Company), the Company shall indemnify such Member, Managing Member, Executive Committee Member or any Affiliate, agent, officer, partner, employee, member, representative, director or shareholder of any of the foregoing against expenses,
including attorneys’ fees, judgments and amounts paid in settlement actually and reasonably incurred by such Person in connection with such action, suit or proceeding to the maximum extent permitted by applicable law, provided that such
Person acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and that the conduct giving rise to the liability for which indemnification is sought does not constitute fraud, gross
negligence or gross misconduct. 
 ARTICLE V. 
 CONTRIBUTIONS 
 5.1 Capital Contribution. Unless unanimously agreed to by the Members
in writing, no Member shall be required to make additional Capital Contributions to the Company. In addition, no Member shall be allowed to make additional Capital Contributions to the Company without the approval of CCE (but only so long as it
shall be a Member) and of ETP (but only so long as it shall be a Member). 
 5.2 No Right to Interest or Return of Capital. Except as
set forth herein, no Member shall be entitled to any return of, or interest on, Capital Contributions to the Company. No Member shall have any liability for the return of the Capital Contribution of any other Member and each Member shall look only
to the assets of the Company for return of its Capital Contribution. 
 5.3 No Third Party Rights. The obligations or rights of the
Company or the Members to make any Capital Contribution under this Article V shall not grant any rights to or confer any benefits upon any Person who is not a Member. 
 ARTICLE VI. 
 DISTRIBUTIONS 
 6.1 Cash Flow. Subject to Sections 6.2, 6.3 and 11.2, Cash Flow shall be distributed at such times as shall be determined by
the affirmative vote of the Executive Committee to each Class A Member and Class B Member in proportion to their respective Aggregate Percentage Interests. Distributions to each Member shall be sent via wire transfer to such account identified
by such respective Member in writing to the Managing Member from time to time. 
  

 19 

 6.2 Amounts Withheld for Taxes. Notwithstanding any provision of this Agreement to the contrary,
if the Company is required to pay, with respect to or on behalf of any Member or any other Person, any amount required to be withheld by the Company in respect of taxes based on or measured by income under federal, state, or local law or any
estimated tax or similar amount, such Member or other Person shall, upon demand of the Company, promptly reimburse the Company for such amount. To the extent that such Member or other Person has not so reimbursed the Company, any and all amounts so
paid by the Company may be withheld from and offset against distributions to such Member or other Person and shall be considered for all purposes of this Agreement to have been distributed to such Member or other Person pursuant to this Article VI.

 6.3 Minimum Distribution for Taxes. To the extent permitted by applicable Credit Facilities and other obligations of the Company,
the Company shall distribute in accordance with Section 6.1, with respect to each Fiscal Year and during the period commencing on the first day of such Fiscal Year and ending on the 15th day of the third month following the end of such
Fiscal Year, an amount equal to the lesser of (a) (i) the Company’s Cash Flow for such Fiscal Year less (ii) the aggregate amount of all quarterly distributions of Cash Flow previously made during such Fiscal Year and
(b) 40% (or such other percentage as may be determined by the Executive Committee) of the taxable income of the Company for such Fiscal Year. For purposes of this Section 6.3, the taxable income of the Company for each Fiscal Year shall be
computed as though the Company were a corporation which did not file consolidated Federal income tax returns, as though such corporation did not make any of the elections specified in Code Section 703(b), as though Code Section 243(a)(1)
and Code Section 243(c) (if applicable), rather than Code Section 243(a)(3), applied to “qualifying dividends” (as defined in Code Section 243(b)(1)), without regard to any carryover or carryback of any net operating loss,
capital loss, investment credit, unused foreign tax, excess charitable contribution, passive loss or credit, or other item from any other year, and without regard to the provisions of Code Section 703(a). 
 ARTICLE VII. 
 ALLOCATIONS

 7.1 Book Allocations. Sections 7.1(a) and (b) set forth the general rules for book allocations to the
Members. Section 7.1(c) sets forth various special rules that supercede the general rules of Sections 7.1(a) and (b). 
 (a) Profit. Profits for each Fiscal Year shall be allocated to the Members in the following order of priority: 
 (i) first, each Class A Member and Class B Member shall be allocated Profits (in proportion to the aggregate Losses allocated to such Members under Section 7.1(b)(ii) for all Fiscal Years) until the aggregate
allocations made to each Class A Member and Class B Member pursuant to this Section 7.1(a)(i) is equal to the aggregate Losses allocated to the Member pursuant to Section 7.1(b)(ii) for all Fiscal Years; and 

(ii) thereafter, each Class A Member and each Class B Member shall be allocated Profits in proportion to its
Aggregate Percentage Interests. 
  

 20 

 (b) Losses. Losses for each Fiscal Year shall be allocated to the Members in the following order
of priority: 
 (i) first, to the Class A Members and Class B Members, if any, having positive balances in
their Adjusted Capital Accounts, in proportion to and to the extent of, such positive balances; and 
 (ii)
thereafter, to the Class A Members and Class B Members in proportion to their Aggregate Percentage Interests. 
 (c)
Special Rules. Notwithstanding Sections 7.1(a) and (b), the following special allocation rules shall apply under the circumstances described: 
 (i) Limitation on Loss Allocations. The Losses allocated to any Member pursuant to Section 7.1(b) with respect to any
Fiscal Year shall not exceed the maximum amount of Losses that can be so allocated without causing such Member to have an Adjusted Capital Account Deficit at the end of such Fiscal Year. All items of loss or deduction in excess of the limitation set
forth in this Section 7.1(c)(i) shall be allocated first, to the Member who will not be subject to this limitation, and second, any remaining amount to the Members in the manner required by the Code and the Regulations. To the extent
that items of loss and deduction are allocated pursuant to this Section 7.1(c)(i) to a Member, such Member shall be allocated a corresponding amount of income and gain as may be available in the earliest subsequent Fiscal Year to offset
such allocation of loss and deduction. 
 (ii) Company Minimum Gain. Except as otherwise provided in Regulations
Section 1.704-2(f), if there is a net decrease in Company Minimum Gain during any Company taxable period, each Member shall be specially allocated items of Company income and gain for such period (and, if necessary, subsequent periods) in
proportion to and to the extent of, an amount equal to the portion of such Member’s share of the net decrease in Company Minimum Gain, determined in accordance with Regulations Section 1.704-2(g). This Section 7.1(c)(ii) is
intended to comply with the charge back of items of income and gain requirement in Regulations Section 1.704-2(f) and shall be interpreted consistently therewith. 
 (iii) Minimum Gain Attributable to Member Nonrecourse Debt. Except as otherwise provided in Regulations Section 1.704-2(i)(4),
if there is a net decrease in Minimum Gain Attributable to Member Nonrecourse Debt during any Company taxable period, each Member with a share of Minimum Gain Attributable to Member Nonrecourse Debt shall be specially allocated items of Company
income and gain for such period (and, if necessary, subsequent periods) in proportion to, and to the extent of, an amount equal to the portion of such Member’s share of the net decrease in the Minimum Gain Attributable to Member Nonrecourse
Debt, determined in accordance with Regulations Section 1.704-2(i)(4). This Section 7.1(c)(iii) is intended to comply with the charge back of items of income and gain requirement in Regulations Section 1.704-2(i)(4) and shall
be interpreted consistently therewith. 
  

 21 

 (iv) Qualified Income Offset. In the event any Member unexpectedly receives any
adjustments, allocations or distributions described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4),(5) or (6), and such adjustment, allocation or distribution causes or increases an Adjusted Capital Account Deficit for such Member, then before any
other allocations are made under this Agreement or otherwise, such Member shall be allocated items of Company income and gain (consisting of a pro rata portion of each item of Company income, including gross income and gain) in an amount and manner
sufficient to eliminate, to the extent required by the Regulations, such Adjusted Capital Account Deficit of such Member as quickly as possible. 
 (v) Nonrecourse Deductions. Nonrecourse Deductions for any taxable period shall be allocated to the Members in the same ratios that Profit is allocated for the taxable year in accordance with Regulations
Section 1.704-2(b)(1). If the Executive Committee determines in its good faith discretion that the Nonrecourse Deductions must be allocated in a different ratio to satisfy the safe harbor requirements of the Regulations promulgated under
Section 704(b) of the Code, the Executive Committee is authorized to revise the prescribed ratio to the numerically closest ratio that does satisfy such requirements. 
 (vi) Member Nonrecourse Deductions. Member Nonrecourse Deductions for any taxable period shall be allocated 100% to the Member that
bears the economic risk of loss (as described in Regulations Section 1.704-2(b) with respect to the Member Nonrecourse Debt to which such Member Nonrecourse Deductions are attributable in accordance with Regulations Section 1.704-2(i)). If
more than one Member bears the economic risk of loss with respect to a Member Nonrecourse Debt, such Member Nonrecourse Deductions attributable thereto shall be allocated between or among such Members in accordance with the ratios in which they
share such economic risk of loss. 
 (vii) Curative Allocations. The allocations set forth in Sections 7.1(c)(i)
through 7.1(c)(vi) (the “Regulatory Allocations”) are intended to comply with certain requirements of Regulations Sections 1.704-1(b) and 1.704-2(b). Notwithstanding any other provisions of this Section 7.1(c)
(other than the Regulatory Allocations), the Regulatory Allocations shall be taken into account in allocating other items of income, gain, loss, and deduction among the Members so that, to the extent possible, the net amount of such allocations of
other items and the Regulatory Allocations (including anticipated future Regulatory Allocations) to each Member shall be equal to the net amount that would have been allocated to such Member if the Regulatory Allocations had not occurred.

 (viii) Change in Regulations. If the Regulations incorporating the Regulatory Allocations are hereafter changed or
if new Regulations are hereafter adopted, and such changed or new Regulations, in the opinion of independent tax counsel for the Company, make it necessary to revise the Regulatory Allocations or provide further special allocation rules in order to
avoid a significant risk that a material portion of any allocation set forth in this Article VII would not be respected for federal income tax purposes, the Executive Committee shall make such reasonable amendments to this 

  

 22 

 
Agreement as, in the opinion of such counsel, are necessary or desirable, taking into account the interests of the Members as a whole and all other relevant
factors, to avoid or reduce significantly such risk to the extent possible without materially changing the amounts allocable and distributable to any Member, pursuant to this Agreement. 
 (ix) Non-Recourse Liabilities. “Excess non-recourse liabilities” of the Company within the meaning of Regulations
Section 1.752-3(a)(3) shall be allocated in the same ratio that Profit is allocated for the taxable year. 
 7.2 Tax Allocations.

 (a) In General. Allocations for tax purposes of items of income, gain, loss, deduction and basis therefor, shall be made in the
same manner as allocations for book purposes set forth in Section 7.1. Allocations pursuant to this Section 7.2 are solely for purposes of federal, state and local income taxes and shall not affect, or in any way be taken
into account in computing, any Member’s Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement. 
 (b) Special Rules. 
 (i) Elimination of Book/Tax Disparities. In determining a
Member’s allocable share of Company taxable income, the Member’s allocable share of each item of Profit and Loss shall be properly adjusted to reflect the rules and principles of Code Section 704(c) and Regulations
Section 1.704-3. This Section 7.2(b)(i) is intended to comply with the requirements of Code Section 704(c) and Regulations Sections 1.704-1(b)(2)(iv)(d) and (f) and shall be interpreted consistently therewith. Any
elections or other decisions relating to such allocations shall be made by the Members in any manner that reasonably reflects the purpose and intention of this Agreement. 
 (ii) Allocation of Items Among Members. Except as otherwise provided in Section 7.2(b)(i), each item of income, gain,
loss and deduction and all other items governed by Code Section 702(a) shall be allocated among the Members in proportion to the allocation of Profits, Losses and other items to the Members hereunder, provided that any gain recognized
from any disposition of a Company asset that is treated as ordinary income because it is attributable to the recapture of any depreciation or amortization shall be allocated among the Members in accordance with Regulations Section 1.1245-1(e),
if applicable, or with any other applicable provision of the Regulations and, if no such provision is applicable, in the same ratio as the prior allocations of Profits and Losses and other items that included such depreciation or amortization, but
not in excess of the gain otherwise allocable to each Member. 
 (c) Conformity of Reporting. The Members are aware of the income tax
consequences of the allocations made by this Section 7.2 and hereby agree to be bound by the provisions of this Section 7.2 in reporting their shares of Company profits, gains, income, losses, deductions, credits and other
items for income tax purposes. 
 7.3 Transferred Interests. If any Membership Interest (or portion thereof) is sold, assigned or
transferred during any Fiscal Year, then Profit, Loss, each item thereof and all other 

  

 23 

 
items realized by the Company during such Fiscal Year shall be divided and allocated between the Members by taking into account their varying interests
during the Fiscal Year in accordance with Code Section 706(d), using any conventions permitted by law and selected by the Members. 
 7.4 Section 754 Election. In the event of a Transfer of a Membership Interest permitted under this Agreement, the Company shall, at the request of the transferee Member, file an election under Section 754 of the Code to
adjust the basis of the assets of the Company in accordance with the provisions of Section 743 of the Code. Any costs associated with such election (such as accounting fees) shall be borne by the transferee Member. 
 7.5 Tax Matters Member. 
 (a) For
purposes of Code Sections 6221 through 6223, the Managing Member from time to time shall also be, and is hereby designated as, the “tax matters partner” of the Company (the “Tax Matters Member”). 
 (b) The Tax Matters Member shall make an election under Code Section 6231(a)(i)(B)(ii) with the Company’s first tax return to be filed after
the effective date of this Agreement to have Code Sections 6221 to 6234, inclusive, apply to the Company. 
 (c) The Tax Matters Member
shall, within ten days (or such shorter period of time as is reasonably practicable) of the receipt of any notice from the Internal Revenue Service in any administrative proceeding at the Company level relating to the determination of any Company
item of income, gain, loss, deduction or credit, deliver a copy of such notice to each Member. The Tax Matters Member shall cooperate with any Member, and shall take such action as may be required to be taken by the Tax Matters Member, to cause such
Member to become a “notice partner” within the meaning of Section 6231(a)(8) of the Code. The Tax Matters Member shall inform each Member of all significant matters that may come to its attention in its capacity as Tax Matters Member
by giving written notice thereof within 10 business days (or such shorter period of time as is reasonably practicable) after becoming aware thereof and, within that time, shall forward to each other Member copies of all significant written
communications it may receive in its capacity as Tax Matters Member. 
 (d) The Tax Matters Member shall not take any action that may be
taken by a “tax matters partner” under Code Section 6221 through 6234 unless (i) it has first given the other Members written notice of the contemplated action at least ten business days prior to the applicable due date of such
action and (ii) it has received the unanimous written consent of the other Members to such contemplated action; provided, however, that unless the Tax Matters Member is notified otherwise no later than two business days prior to
any date by which the Tax Matters Member must act as set forth in any notice received from the Internal Revenue Service, the Code or the regulations promulgated thereunder, such other Members shall be deemed to have given their consent. 

(e) At least 20 days prior to the due date for the filing of any federal income tax return of the Company, the Tax Matters Member shall provide a
proposed draft of such return to the Members for their approval. If the Members approve such return, the return shall be filed as approved. Failure to provide the Tax Matters Member with written notice that the 

  

 24 

 
Members do not approve such return within 10 days from the receipt thereof by the Members shall be deemed approval by the Members. In the event the Members
do not approve such return, and the Members and Tax Matters Member are otherwise unable to resolve their differences with regard to such return, the matter shall be submitted to an independent, nationally recognized accounting firm, the decision of
which shall be final. The cost of retaining such accounting firm with respect to resolving such dispute shall be borne by the Company. The Tax Matters Member shall provide a draft or final copy of any tax return to a Member upon written request by
such Member. 
 (f) Without limiting and in addition to the foregoing, for tax proceedings, matters and claims in excess of $3 million, the
Tax Matters Member shall not initiate any legal or administrative proceedings on behalf of the Company or a Company Subsidiary in respect of or relating to any tax proceedings or other tax matters, or agree to the settlement of any claims in respect
of or relating to any tax proceedings or other tax matters, without first consulting with the Executive Committee a reasonable period of time prior to taking any such action. 
 ARTICLE VIII. 
 TRANSFER/ADMISSION MATTERS 
 8.1 Transfer Restrictions. ETP, CCE and any other Person holding, directly or indirectly, a Class A Membership Interest or Class B Membership
Interest may Transfer all or any portion of its Membership Interest only in accordance with the provisions of this Article VIII; provided, that ETP, CCE and any other Person holding, directly or indirectly, a Class A Membership
Interest or Class B Membership Interest may Transfer all or any portion of its Membership Interest to an Affiliate with prior notice to the Executive Committee and upon satisfaction of the provisions of Section 8.3. Notwithstanding any
provision hereof to the contrary, no Class A Member may Transfer any Membership Interest to any person that is a Class A Prohibited Transferee and no Class B Member may Transfer any Membership Interest to any person that is a Class B
Prohibited Transferee. 
 8.2 Right of First Offer. If any Class A Member or Class B Member (a “Transferring
Member”) desires to Transfer all or any portion of its Class A Membership Interest or Class B Membership Interest, as applicable (the “Specified Interest”), to any Third Party Purchaser, such Transferring Member shall
first give notice thereof (the “Offer Notice”) to the other Class A Members and Class B Members (the “Non-Transferring Members”), specifying the price (the “Specified Price”) and other terms
(the “Specified Terms”) at and on which such Transferring Member is willing to sell the Specified Interest. The delivery of the Offer Notice by the Transferring Member to the Non-Transferring Members shall constitute an offer by the
Transferring Member to negotiate in good faith to sell to the Non-Transferring Members the Specified Interest at the Specified Price upon the Specified Terms. The Non-Transferring Members shall each have 30 Business Days (the “Acceptance
Period”) from and including the date it receives the Offer Notice to accept such offer, which acceptance shall be in the form of a written notice (the “Acceptance Notice”) to the Transferring Member. Each Non-Transferring
Member wishing to accept such offer (each, an “Accepting Member”) shall thereafter negotiate in good faith with the Transferring Member. If more than one Non-Transferring Member shall wish to purchase the Specified Interest, each
such Non-Transferring Member shall be entitled to purchase a proportionate share of the Specified Interest on the basis of its Aggregate Percentage 

  

 25 

 
Interest. If the Accepting Member(s) and the Transferring Member fail to execute a definitive purchase agreement within 30 Business Days following receipt by
the Transferring Member of the applicable Acceptance Notice(s), or if the sale of the Specified Interest to the Non-Transferring Member(s) is not consummated within 60 days following such receipt of the Acceptance Notice, the offer set forth in this
Section 8.2 shall then automatically expire, and such Transferring Member may Transfer the Specified Interest, subject to the other terms of this Agreement, for a price and on terms and conditions substantially no more favorable to the
purchaser than those offered by the Transferring Member; provided, however, that if the Transferring Member shall fail to sell the Specified Interest or any portion thereof within 180 days from such expiration, the Specified Interest
or such non-transferred portion of the Specified Interest shall again be subject to the right of first offer contained in this Section 8.2. 
 8.3 Transfer Requirements. Notwithstanding anything to the contrary contained herein, the Company shall not recognize for any purpose any purported Transfer of all or any portion of a Member’s Membership
Interest unless: 
 (a) the Company shall have been furnished with the documents effecting such Transfer executed and acknowledged by both
transferor and transferee, together the written agreement of the transferee to become a party to and be bound by this Agreement, which shall be in form and substance reasonably satisfactory to the Executive Committee; 
 (b) such Transfer shall have been made in accordance with all applicable laws and regulations and all necessary governmental consents shall have been
obtained and requirements satisfied, including without limitation, compliance with the Securities Act, and applicable state blue sky and securities laws, and such Transfer will not cause the Company to breach or violate any applicable law;

 (c) such Transfer will not cause the Company to have more than 100 partners (within the meaning of Regulations Section 1.7704-1(h))
or does not otherwise cause the Company to be treated as a “publicly traded partnership” within the meaning of Section 7704 of the Code; 
 (d) such Transfer will not result in a termination of the Company for purposes of Section 708 of the Code; 
 (e) all necessary instruments reflecting such admission shall have been filed in each jurisdiction in which such filing is necessary in order to qualify the Company to conduct business or to preserve the limited liability of the Members;
and 
 (f) such Transfer will not result in the occurrence of an event of default or similar occurrence (whether immediately or with the
giving of notice, the passage of time or both) under the terms of any of the Credit Facilities; 
 provided, however, that the foregoing provisions of
this Section 8.3 shall not apply to the Transfers contemplated by the Redemption Agreement. 
 The Executive Committee may request an opinion of counsel
(which counsel shall be chosen by the non-transferring Member but shall be reasonably satisfactory to the transferee Member) with 

  

 26 

 
respect to any of the foregoing or any other matters that the Executive Committee reasonably deems appropriate in respect of any such Transfer. In addition,
the Executive Committee, upon unanimous consent, may waive any of the foregoing provisions. Notwithstanding the foregoing, a Transferring Member need not comply with Section 8.3(d) if such Transferring Member indemnifies each other
Member in a manner and amount reasonably satisfactory to each such other Member for any adverse tax effects that would result from such termination. 
 8.4 Admission of a Member. A Person may be admitted as Class A Member or a Class B Member upon satisfaction of the relevant requirements of this Article VIII or with the unanimous written consent of
the Class A Members and the Class B Members. Upon such admission, such Member shall be designated as either a Class A Member or a Class B Member, and the Managing Member shall amend Exhibit A appropriately to reflect the admission
of such Person as a Member. 
 8.5 Cooperation by Members. If any Member wishes to Transfer all or a portion of its Membership
Interest in accordance with the provisions of this Article VIII, each other Member shall use its reasonable efforts to assist the Member seeking to make such Transfer as such Member may reasonably request. 
 ARTICLE IX. 
 BOOKS AND RECORDS;
BANK ACCOUNTS 
 9.1 Books and Records. The books and records of the Company shall, at the cost and expense of the Company, be
kept or caused to be kept by the Managing Member at the principal place of business of the Company. Such books and records will be kept on the basis of a calendar year, and will reflect all Company transactions and be appropriate and adequate for
conducting the Company’s business. By February 28 of each year, the Tax Matters Member shall provide each Member of Holdings with an estimate of its allocable share of the preceding year’s taxable income, loss, credit and certain
other information necessary for the Members to file a complete tax return. 
 9.2 Reporting Requirements. 
 (a) Members Holding 5% Membership Interests. The Managing Member shall prepare, or cause to be prepared, and shall deliver a financial report
(audited in the case of a report sent as of the end of a Fiscal Year and unaudited in the case of a report sent as of the end of a quarter) to each holder of 5% or more of the outstanding Class A Membership Interests and to each holder of 5% or
more of the outstanding Class B Membership Interests within 120 days after the end of each Fiscal Year (commencing after the date of this Agreement) and 60 days after the end of each of the first three quarters of each Fiscal Year (commencing with
the first full quarter after the date of this Agreement), setting forth for such Fiscal Year or quarter: 
 (i) the assets and
liabilities of the Company and the Company Subsidiaries, on a consolidated and consolidating basis, as of the end of such Fiscal Year or quarter; 
 (ii) the net profit or net loss of the Company and the Company Subsidiaries, on a consolidated and consolidating basis, for such Fiscal Year or quarter; 
  

 27 

 (iii) the cash flows of the Company and the Company Subsidiaries, on a consolidated and
consolidating basis, for such Fiscal Year or quarter; and 
 (iv) in the case of a Fiscal Year only, such Class A
Member’s or such Class B Member’s closing Capital Account balance as of the end of such Fiscal Year. 
 (b) Members Holding 20%
Membership Interests. The Managing Member shall prepare, or cause to be prepared, and shall deliver to each Member holding 20% or more of the outstanding Class A Membership Interests and to each Member holding 20% or more of the outstanding
Class B Membership Interests as promptly as practicable such information regarding the Company and each Company Subsidiary as such Member shall reasonably request. 
 9.3 Bank Accounts. All funds of the Company will be deposited in its name in an account or accounts maintained with such bank or banks selected by the Executive Committee. The funds of the Company will not be
commingled with the funds of any other Person. Checks will be drawn upon the Company account or accounts only for the purposes of the Company and shall be signed by authorized representatives of the Company. 
 ARTICLE X. 
 DISSOLUTION AND
LIQUIDATION 
 10.1 Dissolution. The Company shall be dissolved upon the approval of the Members required by
Section 4.4(c)(i). 
 10.2 Distribution on Dissolution. 
 (a) Upon dissolution of the Company, no further business shall be conducted except for the taking of such action as shall be necessary for the winding up
of the affairs of the Company and the distribution of assets pursuant to the provisions of this Section. So long as it shall then be a Member, CCE shall act as the Liquidating Trustee. If CCE shall not then be a Member or if it is unable to act as
Liquidating Trustee, then the Members shall appoint another Liquidating Trustee. The Liquidating Trustee shall have full authority to wind up the affairs of the Company and to make distributions provided herein. 
 (b) Upon dissolution of the Company, the Liquidating Trustee shall either sell the assets of the Company at the best price available, or the Liquidating
Trustee may distribute to the Members all or any portion of the Company’s assets in kind. If any assets are to be distributed in kind, the Liquidating Trustee shall ascertain the fair market value (by appraisal or other reasonable means) of
such assets, and each Member’s Capital Account shall be charged or credited, as the case may be, as if such asset had been sold for cash at such fair market value and the Profit or Loss recognized thereby had been allocated to and among the
Members in accordance with Article VII. 
 (c) All assets of the Company shall be applied and distributed in the following order: 

(i) first, to the payment and discharge of all the Company’s debts and liabilities to creditors, including
liabilities to Members who are creditors, to the extent otherwise permitted by law; 
  

 28 

 (ii) second, to establish such reserves as the Liquidating Trustee may deem
reasonably necessary (and if the Liquidating Trustee shall be a Member, with the approval of Members holding at least two-thirds of all Membership Interests) for contingent or unforeseen liabilities or obligations of the Company; and 
 (iii) thereafter, to the Class A Members and the Class B Members in accordance with Section 6.1.

 10.3 Cancellation of Certificate. Upon the completion of the distribution of Company assets as provided in this Article X,
the Company shall be terminated, and the Members shall cause the cancellation of the Certificate and all amendments thereto, and shall take such other actions as may be necessary or appropriate to terminate the Company. 
 ARTICLE XI. 
 GENERAL 

 11.1 Title to Company Property. All property owned by the Company, including, whether real or personal, tangible or intangible,
shall be deemed to be owned by the Company as an entity, and no Member, individually, shall have any ownership of such property. The Company may hold any of its assets in its own name or in the name of its nominee, which nominee may be one or more
Persons. 
 11.2 Severability. Every provision of this Agreement is intended to be severable. Any provision of this Agreement which is
illegal, invalid, prohibited or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity, prohibition or unenforceability without invalidating or impairing the remaining provisions
hereof or affecting the validity or enforceability of such provision in any other jurisdiction. If any term or provision hereof is illegal or invalid for any reason whatsoever, such illegality or invalidity will not affect the validity of the
remainder of this Agreement. 
 11.3 Governing Law. This Agreement and rights and obligations of the parties hereto with respect to
the subject matter hereof will be interpreted and enforced in accordance with, and governed exclusively by, the law of the State of Delaware, excluding the conflicts of law provisions thereof. 
 11.4 Successors and Assigns. This Agreement will be binding upon and inure to the benefit of the parties hereto and their permitted successors,
heirs and assigns. 
 11.5 Waiver of Action for Partition. Each of the Members irrevocably waives during the term of the Company any
right that he may have to maintain any action for partition with respect to any property of the Company. 
  

 29 

 11.6 Headings. The headings of the Articles, Sections and paragraphs of this Agreement have been
inserted for convenience of reference only and do not constitute a part of this Agreement. 
 11.7 Counterparts; Facsimile. This
Agreement may be executed in any number of counterparts and by different parties in separate counterparts, with the same effect as if all parties had signed the same documents, each of which will be considered an original, but all such counterparts
together will constitute but one and the same Agreement. Any facsimile copies hereof or signature hereon shall, for all purposes, be deemed originals. 
 11.8 Entire Agreement. This Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof. This Agreement and the exhibits hereto supersede all prior written and
all prior and contemporaneous oral agreements, understandings, negotiations and representations between the parties with respect to such subject matter. 
 11.9 Amendment. Except in the case of a modification of Exhibit A to be made by the Managing Member as expressly contemplated by the terms of this Agreement, including Section 5.2, this Agreement
may be amended only by an instrument in writing signed by all of the Members. Promptly following any amendment to this Agreement (including any modification to Exhibit A by the Managing Member), the Managing Member shall provide a true and
complete copy thereof to each other Member. 
 11.10 Securities Law Matters. The Members agree and acknowledge that their Membership
Interests are being acquired by them for investment purposes only and not with a view to any sale thereof; that they have had adequate opportunity to obtain from representatives of the Company and others all information necessary for purposes of
evaluating the merits and risks of holding a Membership Interest; that they are able to bear the economic risk of holding their Membership Interests hereunder for an indefinite period; that the Membership Interests are illiquid assets and that there
is no market in which to effectuate a resale thereof or any portion thereof; and that, in any event, the resale of their Membership Interests cannot be effectuated except pursuant to compliance with the registration requirements under the Securities
Act or an exemption therefrom. 
 11.11 Notices. 
 (a) Each notice or other communication required or permitted to be given pursuant to this Agreement shall be in writing and delivered in person or by first class United States mail, postage prepaid, to the party to
whom addressed or by any nationally known overnight courier service to the address specified on Exhibit A or to such other address as the party may advise the Executive Committee, the Managing Member and the other Members as its address for notice
hereunder. 
 (b) All notices shall be deemed given upon the earlier to occur of: (i) the date of actual receipt; (ii) the date of
refusal of delivery; and (iii) (A) as to hand delivery, the date of delivery, (B) as to facsimile, when such facsimile is transmitted to the facsimile number specified herein and the appropriate confirmation is provided, (C) as
to overnight courier service, the date following the deposit with the overnight courier service, and (D) as to the US Mails, three business days after depositing in the US Mails. 
  

 30 

 11.12 Construction. None of the provisions of this Agreement shall be for the benefit of, or
enforceable by, any creditors of the Company or other third parties. 
 11.13 Submission to Jurisdiction; Consent to Service of
Process. 
 (a) Any claims or disputes which may arise or result from, or be connected with, this Agreement, any breach or default
hereunder, or the transactions contemplated by this Agreement, and any and all Actions related to the foregoing shall be filed and maintained exclusively in the United States District Court for the Southern District of New York sitting in New York
County or the Commercial Division, Civil Branch, of the Supreme Court of the State of New York sitting in New York County and any appellate court from any thereof. 
 (b) The parties hereby unconditionally and irrevocably waive, to the fullest extent permitted by applicable law, any objection which they may now or hereafter have to the laying of venue of any dispute arising out of
or relating to this Agreement or any of the transactions contemplated by this Agreement brought in any court specified in paragraph (a) above, or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto
agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 
 (c) Each of the parties hereto hereby consents to process being served by any party to this Agreement in any suit, action or proceeding by the mailing of a copy thereof in accordance with the provisions of Section 11.11. 
 11.14 No Consequential or Punitive Damages. No party hereto (or its Affiliates) shall, under any circumstance, be liable to any other party (or
its Affiliates) for any consequential, exemplary, special, incidental or punitive damages claimed by such other party under the terms of or due to any breach of this Agreement, including, but not limited to, loss of revenue or income, cost of
capital, or loss of business reputation or opportunity. 
 11.15 Waiver. No consent or waiver, express or implied, by any Member to or
of any breach or default by any other Member in the performance by such other Member of its obligations under this Agreement shall be deemed or construed to be a consent to or waiver of any other breach or default in the performance by such other
Member of the same or any other obligation of such other Member under this Agreement. Failure on the part of any Member to complain of any act or failure to act of any other Member or to declare any other Member in default, irrespective of how long
such failure continues, shall not constitute a waiver by such Member of its rights under this Agreement. 
 11.16 Confidentiality.
Each Member shall hold, and shall cause its Affiliates to hold, in strict confidence, unless compelled to disclose by judicial or administrative process or by other requirements of law, the contents of any reports, financial statements, budgets or
other information delivered to any Member pursuant to Section 9.2 (“Confidential Information), except to the extent that such Confidential Information (i) has been or has become (A) generally available to the public
other than as a result of disclosure by any party hereunder or an Affiliate 

  

 31 

 
of a party or (B) available to the public on a non-confidential basis from a source other than an Affiliate of a party entitled to the protection
offered hereby, or (ii) is required to be disclosed under applicable law or stock exchange rules; provided, however, the applicable Member shall use, and shall cause its Affiliates to use, commercially reasonable efforts to give
each other Member prior notice of any such disclosure in sufficient time to enable each other Member to protect any such information. However, nothing contained in this Section shall preclude the disclosure of Confidential Information, on the
condition that it remain confidential, to auditors, attorneys, lenders, financial advisors, members, limited partners and other Persons in connection with the performance of their duties as delegated or requested by any Member hereof. 
 11.17 Public Announcement. The Members shall consult with each other before issuing any press release relating to the Company or the Company
Subsidiaries and shall not issue any such press release or make any such public statement without the prior consent of the other Members, which consent shall not be unreasonably withheld, conditioned or delayed; provided, however, that
a Member may, without consulting with any other Member and without the prior consent of the other Members, issue such press release or make such public statement as may, upon the advice of counsel, be required by applicable law or stock exchange
rules if it has used all reasonable efforts to consult with the other Members. 
  

 32 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized
officers as of the day and year first above written. 
  

					
	CLASS A MEMBERS
	
	 CCE ACQUISITION, LLC

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	 CCEA CORP.

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
	
	CLASS B MEMBER
	
	 ENERGY TRANSFER PARTNERS, L.P.

		
	By:	 	 Energy Transfer Partners, GP, L.P.,
 its
general partner

		
	By:	 	 Energy Transfer Partners, L.L.C.,
 its
general partner

			
		 	By:	 	  

		 	Name:	 	
		 	Title:	 	

 Signature Page 
 Second Amended and Restated Limited Liability Company Agreement of CCE Holdings, LLC 

 EXHIBIT B 
 Members 
  

										
	 Class A Members
	  	Class A
Percentage
Interest	 	 	Class B
Percentage
Interest	 	 	Aggregate
Percentage
Interest	 
	 CCE ACQUISITION, LLC
 5444 Westheimer Road
 Houston, TX 77056
 Attn:
	  	99.9	% 	 	N/A	  	 	49.95	% 
				
	 CCEA CORP.
 5444 Westheimer Road
 Houston, TX 77056
 Attn:
	  	.2	% 	 			 	.1	% 
				
	 Class B Member
	  	Class A
Percentage
Interest	 	 	Class B
Percentage
Interest	 	 	Aggregate
Percentage
Interest	 
	 ENERGY TRANSFER PARTNERS, L.P.
 2828 Woodside
Street
 Dallas, TX 75204
 Attn:
	  	N/A	  	 	100	% 	 	50	% 

 EXHIBIT B 
 Class A Prohibited Transferees 
  

	1.	Kinder Morgan 

  

	2.	American International Group, Inc. 

 Class B Prohibited
Transferees 
  

	1.	General Electric 

  

	2.	Kinder Morgan 

  

	3.	American International Group, Inc. 

 EXHIBIT C 
 Administrative Services Agreement 

 Exhibit D 
 CCE HOLDINGS, LLC 
 Unanimous Consent of the 
 Executive Committee 
 The undersigned,
constituting all of the members comprising the Executive Committee (the “Committee”) of CCE Holdings, LLC, a Delaware limited liability company (the “Company”), in accordance with Article IV, Section 4.l(d)(iii) of the
Amended and Restated Limited Liability Company Agreement of the Company dated as of November 5, 2004 (the “Agreement”), as further amended, hereby consent to the adoption of the statement and resolutions set forth below and, upon
execution of this consent or a counterpart hereof by each of the members of the Committee listed below, do hereby adopt such statements and resolutions: 
 WHEREAS, management of Transwestern Pipeline Company, LLC (“Transwestern”) has apprised the Executive Committee (the “Committee”) of the Company of Transwestern’s proposed Phoenix Expansion
Project, which is comprised of approximately 25 miles of looping of Transwestern’s existing San Juan Lateral system at a projected cost of approximately $71 million and construction of an approximately 285-mile expansion of the pipeline system
connecting Transwestern’s existing mainline with markets in the Phoenix, Arizona area at a projected cost of approximately $640 million, all as more specifically described in the draft “Application for a Certificate of Public Convenience
and Necessity and to Acquire an Undivided Interest in Natural Gas Pipeline Facilities” that is attached hereto (the “FERC Application”); 
 WHEREAS, management of Transwestern has apprised the Committee of Transwestern’s obligation under that order issued July 27, 1995, in docket nos. RP95-271-000, et al., to file with the FERC by October 1,
2006, a major rate case proposing new rates to become effective not later than November 1, 2006 (the “Transwestern Rate Case”); and 
 WHEREAS, the Company proposes to enter into a Redemption Agreement, of even date herewith (the “Redemption Agreement”), between the Company and Energy Transfer Partners, L.P. (“ETP”). 

 NOW, THEREFORE, IT IS RESOLVED, that the Committee hereby approves proceeding with the
Phoenix Expansion Project on terms and conditions consistent with those described in the FERC Application, such approval to include specifically, but not by way of limitation, approval to file the FERC Application, approval to execute additional
expansion agreements with prospective customers of the Phoenix Expansion Project, approval to waive or decline to exercise contract termination rights in existing expansion agreements, and approval to make financial commitments and to execute
contracts for materials and services necessary to complete the Phoenix Expansion Project; 
 RESOLVED, that the Phoenix
Expansion Project shall be financed by internal funds as well as outside debt and/or equity financing, provided that the approvals set forth in these resolutions shall not require or constitute a capital contribution commitment by any member of the
Company; 
 RESOLVED, that the Committee hereby approves Transwestern’s filing of a major rate case by October 1,
2006, proposing new rates to become effective on November 1, 2006; 
 RESOLVED, that the Committee hereby approves the
execution and delivery of the Redemption Agreement and, subject to (i) consummation of the transactions contemplated under the Purchase and Sale Agreement (“Purchase Agreement”), dated as of even date herewith, among ETP and the Class
B Members of the Company and (ii) in the event the Closing (as defined in the Purchase Agreement) does not occur, CCE is not liable for any expenses incurred under the Redemption Agreement, the performance by the Company of its obligations
thereunder and the transactions contemplated thereby (including, without limitation, the provision by the Company of notices, and requests for consents and/or waivers, relating to the change of control resulting from the transactions contemplated by
the Redemption Agreement and the Purchase Agreement, pursuant to the documents evidencing the Existing TW Holdings Debt and the Existing TPC Debt (in each case, as defined in the Redemption Agreement)); and 
 RESOLVED FURTHER, that the proper officers of the Company and Transwestern, and their respective counsel, be, and each of them hereby is,
authorized, empowered, and directed (any one of them acting alone) to take any and all such further action, to amend, execute, and deliver all such further instruments and documents, for and in the name and on behalf of the 

  

 -2 

 
Company or Transwestern, as applicable, and to pay all such expenses as in its discretion appear to be necessary, proper, or advisable to carry into effect
the purposes and intentions of this and the foregoing resolutions. 
  

 -3 

 IN WITNESS WHEREOF, this written consent has been executed to be effective as of the
14 day of September, 2006. 
  

	
	 /s/ Robert O. Bond

	Robert O. Bond
	
	 /s/ Julie H. Edwards

	Julie H. Edwards
	
	 /s/ Randall F. Hornick

	Randall F. Hornick
	
	 /s/ Vandana G. McCaw

	Vandana G. McCaw

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