Operations

NGL Pipelines

Enterprise owns interests in 16,648 miles of NGL pipelines, 156 million barrels of working capacity of NGL and related product storage and import and export facilities. These NGL pipelines transport mixed NGLs and other hydrocarbons from natural gas processing facilities, refineries and import terminals to fractionation plants, petrochemical plants, export facilities and refineries; and deliver propane to customers along the Dixie pipeline and certain sections of the Mid-America and TE Products Pipeline systems. Our pipelines provide transportation services to customers on a fee basis; therefore, the gross operating margin for this business is generally dependent upon the volume of product transported and the level of fees charged to customers. Typically, our pipeline customers retain title to the products transported by our NGL pipelines and the associated commodity price risk.

Enterprise's most significant NGL pipelines are the Mid-America and Seminole pipeline systems which total 9,296 miles. The Mid-America system covers 13 states and is a regulated NGL pipeline system consisting of three NGL pipelines: the 2,932 mile Rocky Mountain pipeline, the 2,769 mile Conway North pipeline and the 2,222 mile Conway South pipeline.

The Rocky Mountain section of the pipeline transports mixed NGLs from the Rocky Mountain Overthrust and San Juan Basin areas to the Hobbs hub located on the Texas-New Mexico border. The Conway North segment links the NGL hub at Conway, Kansas to refineries, petrochemical plants and propane markets in the upper Midwest. In addition, the Conway North segment has access to NGL supplies from Canada's Western Sedimentary Basin through third-party connections. The Conway South pipeline connects the Conway hub with Kansas refineries and provides bidirectional transportation of NGLs between Conway, Kansas and the Hobbs hub. The Mid-America Pipeline System interconnects with our Seminole Pipeline and Hobbs NGL fractionator and storage facility at the Hobbs hub.

During 2011, approximately 52% of the volumes transported on the Mid-America Pipeline System were mixed NGLs originating from natural gas processing plants. The remaining volumes consisted of purity NGL products originating from NGL fractionators located in Kansas, Oklahoma and Texas, as well as deliveries from Canada.

The 1,373 mile Seminole pipeline is a regulated pipeline that transports NGLs from the Hobbs hub and the Permian Basin area of west Texas to markets in south Texas including our NGL fractionation facility in Mont Belvieu, Texas. The primary source of throughput for Seminole is the volume originating from the Mid-America Pipeline system.

In March 2011, we announced an expansion project involving the Rocky Mountain segment of our Mid-America Pipeline System. The Rocky Mountain pipeline expansion involves looping the existing system with approximately 218 miles of 16-inch diameter pipeline, as well as pump station modifications. This expansion project is expected to add 65 MBPD of transportation capacity to the Rocky Mountain pipeline's existing capacity of approximately 275 MBPD. This expansion project is expected to begin service in the third quarter of 2014.

In March 2011, we announced, along with Enbridge, and Anadarko the construction of Texas Express pipeline, a 580 mile 20-inch diameter pipeline from Skelleytown to Mont Belvieu. The initial capacity of 250 MBPD will be in service second quarter of 2013, expandable to 400 MBPD. Along with two new gathering systems, this will tie in to processing plants in the Granite Wash and Barnett shale plays. In conjunction with the announcement of the Front Range Pipeline project in April 2012, DCP Midstream LLC acquired 10% interest in the Texas Express Pipeline from Enterprise.

In January 2012, we announced the development of our 1,230-mile ATEX Express that will transport growing ethane production from the Marcellus and Utica Shale producing areas of Pennsylvania, West Virginia and Ohio to the U.S. Gulf Coast. We expect that the ATEX Express will begin commercial operations in the first quarter of 2014 increasing to full capacity by 2018.

In April 2012, we announced, along with Anadarko, DCP Midstream (each have 1/3 ownership), the construction of a 38.5 mile 12-inch diameter pipe and a 395 mile 16-inch pipe from DJ Basin to Skellytown. The Front Range Pipeline is expected to be in service in the fourth quarter of 2013 and initially transport 150 MBPD, expandable to 230 MBPD.

The following table summarizes the significant NGL pipelines and related storage assets of our NGL Pipelines & Services business segment.

Facility	Ownership Interest	Miles	Operator	Function
NGL Pipelines
Mid-America Pipeline System	100.0%	7,923	Enterprise	Transports mixed NGLs produced from natural gas processing plants in Wyoming, Utah, Colorado and New Mexico to the Seminole pipeline in West Texas.
Dixie Pipeline	100.0%	1,306	Enterprise	Transports propane from fractionators and refineries in Texas, Louisiana, and Mississippi to customers throughout the Southeast.
Seminole Pipeline	100.0%⁽¹⁾	1,373	Enterprise	Transports NGLs from the Hobbs hub and the Permian Basin area of West Texas to markets in southeast Texas including our fractionation facility in Mont Belvieu, Texas. NGLs originating on the Mid-America Pipeline System are the primary source of throughput for this pipeline.
Chaparral NGL System(3)	100.0%	1,011	Enterprise	Transports NGLs from natural gas processing facilities in West Texas and New Mexico to Mont Belvieu, Texas.
South Texas NGL System	100.0%	1,411	Enterprise	Gathering and transportation pipelines that deliver mixed NGLs from our South Texas natural gas processing plants to our South Texas NGL fractionation facilities.
Louisiana Pipeline System	100.0%	955	Enterprise	Gathering and transportation pipelines that deliver mixed NGLs originating in Louisiana and Texas to refineries and petrochemical companies located along the Mississippi River corridor to southern Louisiana.
Skelly-Belvieu Pipeline	50.0%⁽²⁾	572	Enterprise	Transports mixed NGLs from Skellytown, Texas to Mont Belvieu, Texas.
Promix NGL Gathering System	50.0% ⁽³⁾	365	Enterprise	Gathers mixed NGLs from natural gas processing plants in southern Louisiana for delivery to our Promix NGL fractionator.
Lou-Tex NGL Pipeline	100.0%	206	Enterprise	Transports NGL products and refinery grade propylene between Louisiana and Texas markets.
Houston Ship Channel Pipeline System	100.0%	300	Enterprise	Connects our Mont Belvieu, Texas facilities with our Houston Ship Channel import/export terminals and various third-party petrochemical plants, refineries and other pipelines located along the Houston Ship Channel.
Rio Grande Pipeline	70.0%⁽⁴⁾	249	Enterprise	Transports mixed NGLs to a pipeline interconnect at the Mexican border south of El Paso, Texas.
Others (9 systems)⁽⁶⁾	Various^(5,7)	977	Various	Transports NGLs in the Gulf Coast.

(1) In December 2011, we acquired the remaining 10% ownership interest in Seminole Pipeline Company (“Seminole”).

(2) Our ownership interest in the Skelly-Belvieu Pipeline is held indirectly through our equity method investment in Skelly-Belvieu Pipeline Company, L.L.C. ("Skelly-Belvieu").

(3) Our ownership interest in the Promix NGL Gathering System is held indirectly through our equity method investment in K/D/S Promix, L.L.C. ("Promix").

(4) We own a 70% consolidated interest in the Rio Grande Pipeline through our majority owned subsidiary, Rio Grande Pipeline Company.

(5) We own an 83.3% consolidated interest in the Tri-States NGL Pipeline through our majority owned subsidiary, Tri-States NGL Pipeline, L.L.C.

(6) Includes our Belle Rose and Wilprise pipelines located in the coastal regions of Louisiana and Mississippi; Port Arthur pipelines located in southeast Texas; and our Meeker pipeline in Colorado.

(7) We own a 74.7% consolidated interest in the 30-mile Wilprise pipeline through our majority owned subsidiary, Wilprise Pipeline Company, LLC. We proportionately consolidate our 50% undivided interest in a 45-mile segment of the Port Arthur pipelines. The remainder of these NGL pipelines are wholly owned.