Energy Transfer 2012 Annual Report Download - page 60

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Terrorist attacks aimed at our facilities could adversely affect our business, results of operations, cash flows and financial
condition.
Since the September 11, 2001 terrorist attacks on the United States, the United States government has issued warnings that energy
assets, including our nation’s pipeline infrastructure, may be the future target of terrorist organizations. Some of our facilities are
subject to standards and procedures required by the Chemical Facility Anti-Terrorism Standards. We believe we are in compliance
with all material requirements; however, such compliance may not prevent a terrorist attack from causing material damage to our
facilities or pipelines. Any such terrorist attack on our facilities or pipelines or those of our customers could have a material
adverse effect on our business.
We have a significant equity investment in AmeriGas and the value of this investment, and the cash distributions we expect to
receive from this investment, are subject to the risks encountered by AmeriGas with respect to its business.
In January 2012, we consummated the contribution of the Propane Business to AmeriGas in exchange for consideration of
approximately $1.46 billion in cash and approximately 30 million AmeriGas common units, plus the assumption of approximately
$71 million of existing HOLP debt. The value of our investment in AmeriGas common units and the cash distributions we expect
to receive on a quarterly basis with respect to these common units are subject to the risks encountered by AmeriGas with respect
to its business, including the following:
• adverse weather condition resulting in reduced demand;
• cost volatility and availability of propane, and the capacity to transport propane to its customers;
• the availability of, and its ability to consummate, acquisition or combination opportunities;
• successful integration and future performance of acquired assets or businesses;
• changes in laws and regulations, including safety, tax, consumer protection and accounting matters;
• competitive pressures from the same and alternative energy sources;
• failure to acquire new customers and retain current customers thereby reducing or limiting any increase in revenues;
• liability for environmental claims;
• increased customer conservation measures due to high energy prices and improvements in energy efficiency and technology
resulting in reduced demand;
• adverse labor relations;
• large customer, counter-party or supplier defaults;
• liability in excess of insurance coverage for personal injury and property damage arising from explosions and other catastrophic
events, including acts of terrorism, resulting from operating hazards and risks incidental to transporting, storing and distributing
propane, butane and ammonia;
• political, regulatory and economic conditions in the United States and foreign countries;
• capital market conditions, including reduced access to capital markets and interest rate fluctuations;
• changes in commodity market prices resulting in significantly higher cash collateral requirements;
• the impact of pending and future legal proceedings;
• the timing and success of its acquisitions and investments to grow its business; and
• its ability to successfully integrate acquired businesses and achieve anticipated synergies.
We are subject to risks resulting from the moratorium in 2010 on and the resulting increased costs of offshore deepwater
drilling.
The United States Department of Interior (the “DOI”) implemented a six-month moratorium on offshore drilling in water deeper
than 500 feet in response to the Macondo accident and oil spill in the U.S. Gulf of Mexico. The offshore drilling moratorium was
implemented to permit the DOI to review the safety protocols and procedures used by offshore drilling companies, which review
will enable the DOI to recommend enhanced safety and training needs for offshore drilling companies. The moratorium was lifted
in October 2010. The United States Bureau of Ocean Energy Management and the Bureau of Safety and Environmental Enforcement
(formerly the Bureau of Ocean Energy Management, Regulation and Enforcement) have enacted enhanced regulatory mandates
with additional regulatory mandates expected. The new regulatory requirements will increase the cost of offshore drilling and
production operations. The increased regulations and cost of drilling operations could result in decreased drilling activity in the
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