857644--3/1/2006--TEPPCO_PARTNERS

related topics

{gas, price, oil}

{investment, property, distribution}

{debt, indebtedness, cash}

{tax, income, asset}

{operation, natural, condition}

{loss, insurance, financial}

{interest, director, officer}

{personnel, key, retain}

{cost, regulation, environmental}

{stock, price, operating}

{financial, litigation, operation}

{competitive, industry, competition}

Our interstate tariff rates are subject to review and possible adjustment by federal regulators, which could have a material adverse effect on our financial condition and results of operations. Our partnership status may be a disadvantage to us in calculating our cost of service for rate-making purposes. Competition could adversely affect our operating results. Our business requires extensive credit risk management that may not be adequate to protect against customer nonpayment. Our crude oil marketing business involves risks relating to product prices. Pipelines are dependent on their interconnections with other pipelines to reach their destination markets. Reduced demand could affect shipments on the pipelines. Our gathering system profits and cash flow depend on the volumes of natural gas produced from the fields served by our gathering systems and are subject to factors beyond our control. Our operations are subject to governmental laws and regulations relating to the protection of the environment and safety which may expose us to significant costs and liabilities. Terrorist attacks aimed at our facilities could adversely affect our business. Our business involves many hazards and operational risks, some of which may not be covered by insurance. We depend on the leadership and involvement of our key personnel for the success of our business. Risks Relating to Our Partnership Structure We are a holding company and depend entirely on our operating subsidiaries distributions to service our debt obligations. We may issue additional limited partnership interests, diluting existing interests of unitholders and benefiting our General Partner . Our tax treatment depends on our status as a partnership for federal income tax purposes and our exemption from state-level taxation by states. Some of our executive officers and directors face potential conflicts of interest in managing our business. Our General Partner and its affiliates may have conflicts with our partnership. Unitholders have limited voting rights and control of management. If EPCO or other entities that own or control our General Partner are presented with certain business opportunities, Enterprise will have the first right to pursue such opportunities. To the extent that our General Partner shares executive offices or other personnel with EPCO and its affiliates, there may be conflicts in the allocation of their time and compensation costs between our business and the business of EPCO and its other affiliates.

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857644--3/1/2006--TEPPCO_PARTNERS_LP