Energy Transfer 2010 Annual Report Download - page 10

The Transwestern pipeline is an open-access interstate natural gas pipeline extending from the gas producing
regions of West Texas, eastern and northwestern New Mexico, and southern Colorado primarily to pipeline
interconnects off the east end of its system and to pipeline interconnects at the California border. The
Transwestern pipeline has access to three significant gas basins: the Permian Basin in West Texas and eastern
New Mexico; the San Juan Basin in northwestern New Mexico and southern Colorado; and the Anadarko Basin
in the Texas and Oklahoma panhandle. Natural gas sources from the San Juan Basin and surrounding producing
areas can be delivered eastward to Texas intrastate and mid-continent connecting pipelines and natural gas
market hubs as well as westward to markets like Arizona, Nevada and California. Transwestern’s Phoenix lateral
pipeline, with a throughput capacity of 500 MMcf/d, connects the Phoenix area to the Transwestern mainline.
Transwestern’s customers include local distribution companies, producers, marketers, electric power generators
and industrial end-users. Transwestern transports natural gas in interstate commerce. As a result, Transwestern
qualifies as a “natural gas company” under the Natural Gas Act (“NGA”) and is subject to the regulatory
jurisdiction of the FERC.
Tiger Pipeline
• Initial capacity of 2.0 Bcf/d
• Planned expansion of 0.4 Bcf/d (expected to be completed in the second half of 2011)
• Approximately 175 miles of interstate natural gas pipeline
See additional description of the Tiger pipeline included in “Significant Achievements in 2010” above.
Fayetteville Express Pipeline
• Initial capacity of 2.0 Bcf/d
• Approximately 185 miles of interstate natural gas pipeline
• 50/50 joint venture with KMP
See additional description of the Fayetteville Express pipeline included in “Significant Achievements in 2010”
above.
Midcontinent Express Pipeline
On May 26, 2010, we completed the transfer of the membership interests in ETC Midcontinent Express Pipeline
III, L.L.C. (“ETC MEP III”) to ETE pursuant to the Redemption and Exchange Agreement between us and ETE,
dated as of May 10, 2010 (the “MEP Transaction”). ETC MEP III owns a 49.9% membership interest in
Midcontinent Express Pipeline, LLC (“MEP”), our joint venture with KMP that owns and operates the
Midcontinent Express pipeline. In exchange for the membership interests in ETC MEP III, we redeemed
12,273,830 ETP Common Units that were previously owned by ETE. We also granted ETE an option to acquire
the membership interests in ETC Midcontinent Express Pipeline II, L.L.C. (“ETC MEP II”). ETC MEP II owns a
0.1% membership interest in MEP. The option may not be exercised until May 27, 2011.
As part of the MEP Transaction, on May 26, 2010, ETE completed the contribution of the membership interests
in ETC MEP III and the assignment of its rights under the option to acquire all of the membership interests in
ETC MEP II, to a subsidiary of Regency, in exchange for 26,266,791 Regency common units. In addition, ETE
completed the acquisition of a 100% equity interest in the general partner entities of Regency from an affiliate of
GE Energy Financial Services, Inc. (“GE EFS”). In exchange, ETE issued 3,000,000 Series A Convertible
Preferred Units to the affiliate of GE EFS.
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