Energy Transfer Partners Settles FERC Claims for $5 Million

The settlement agreement provides that ETP will make a $5 million payment to the federal government and the FERC will dismiss all claims against ETP. Separate from the payment to the federal government, ETP also will establish a $25 million fund for the purpose of settling related third party claims against ETP. This fund amount will be paid into a specific account held by a financial institution selected by mutual agreement of ETP and the FERC Enforcement Litigation Staff. An administrative law judge appointed by FERC will determine the validity of any third party claim against this fund. Any party who receives money from this fund will be required to waive all claims against ETP related to this matter. Management of ETP believes that the application of this fund will resolve the existing litigation related to this matter.

Pursuant to the settlement agreement, FERC will make no findings of fact or conclusions of law. In addition, the settlement agreement specifies that ETP does not admit or concede to FERC or any third party any actual or potential fault, wrongdoing or liability in connection with its alleged conduct related to the FERC claims.

The settlement amount is a small fraction of the approximately $200 million sought by the FERC and the FERC Enforcement Staff in the two proceedings against ETP. In March 2009, ETP entered into a separate settlement agreement with the FERC related to allegations against its Oasis Pipeline subsidiary following the initial decision of the FERC's administrative law judge granting Oasis' summary judgment motion relating to the primary claim against Oasis. The Oasis settlement agreement did not require ETP to make any payments to the federal government or any other parties.

"I continue to be disgusted by the manner in which the FERC Enforcement Staff administers the FERC's enforcement powers," said Kelcy Warren, ETP's Chief Executive Officer. "As seen in the Oasis proceeding, the FERC's appointed judge granted us summary judgment on Enforcement Staff's primary claim against Oasis. I believe that the FERC needs to take a long, hard look at how its Enforcement Staff conducts itself to ensure the natural gas industry receives the fairness and due process it rightly deserves."

"We have had a strong regulatory compliance program in place for many years and we will continue to comply with all FERC rules and regulations. The settlement agreement should not require us to change our existing compliance practices," said Jerry Langdon, former FERC Commissioner and ETP's Compliance Officer.

Energy Transfer Partners, L.P. (NYSE:ETP) is a publicly traded partnership owning and operating a diversified portfolio of energy assets. ETP has pipeline operations in Arizona, Colorado, Louisiana, New Mexico, and Utah, and owns the largest intrastate pipeline system in Texas. ETP's natural gas operations include gathering and transportation pipelines, treating and processing assets, and three storage facilities located in Texas. ETP currently has more than 17,500 miles of pipeline in service and has a 50% interest in joint ventures that have approximately 500 miles of interstate pipeline in service. ETP is also one of the three largest retail marketers of propane in the United States, serving more than one million customers across the country.

Energy Transfer Equity, L.P. (NYSE:ETE) owns the general partner of Energy Transfer Partners and approximately 62.5 million ETP limited partners units.

The information contained in this press release is available on the Partnerships' website at www.energytransfer.com.

SOURCE: Energy Transfer Partners, L.P.

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