NGL Storage

Our NGL and related product storage facilities are integral parts of our operations. Our underground storage wells are used to store mixed NGLs, NGL products and petrochemical products for customers and ourselves.

We operate our storage operations based on the needs and requirements of our customers in the NGL, petrochemical, heating and other related industries. We usually experience an increase in the demand for storage services during the spring and summer months due to increased feedstock storage requirements for motor gasoline production, and a decrease during the fall and winter months when propane inventories are being drawn down for heating needs. The following table summarizes the gross working capacity of our primary storage assets and our ownership of such capacity (on a net basis in accordance with our ownership interest) by state at March 31, 2005.

NGL and Petrochemical Storage Assets	Practical Capacity (MMBbls)	Ownership of Practical Capacity (MMBbls)
Texas⁽¹⁾	113.9	95.5
Louisiana	31.0	16.8
Mississippi ⁽²⁾	10.9	10.9
Iowa	0.5	0.5
Nebraska	0.3	0.3
Oklahoma	0.1	0.1
Total	156.7	124.1

⁽¹⁾The 113.9 MMBbls of working capacity that we utilize in Texas includes 18.1 MMBbls held under operating leases assumed as a result of the GulfTerra Merger.
⁽²⁾In connection with the GulfTerra Merger, we were required bv the FTC to sell our pre-merger undivided 50% ownership in a Hattiesburg, Mississippi propane storage facility by December 31, 2004. We sold our ownership interest in this facility during the fourth quarter of 2004.