News Release
May 16, 2000


HOUSTON – Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P., (NYSE:TPP) today announced that it has amended the previously announced agreement to acquire ARCO Pipe Line Company. Under the revision, ARCO will retain its interest in the refined products pipeline of Seaway Pipeline Company in exchange for a $36.5 million reduction in the purchase price. The transaction is now valued at $318.5 million.

The agreement was also restructured to eliminate a tax liability to TEPPCO in connection with the proposed contribution of ARCO assets to TEPPCO. The assets include ARCO’s interest in the Seaway crude transportation pipeline from the Texas Gulf Coast to Cushing, Okla.; crude oil terminal facilities in Midland, Texas, and Cushing, including the line transfer and pumpover business at each location; an undivided ownership interest in both the Rancho Pipeline and the Basin Pipeline; and ARCO’s West Texas Trunk System.

"We are pleased that we were able to restructure the transaction to effect the purchase of the Seaway crude oil assets, the undivided pipeline interests, and the Cushing and West Texas assets," said William L. Thacker, chairman, president, and chief executive officer of the general partner of TEPPCO. "The revised transaction, when compared to the previous agreement, is expected to be more accretive to both income and cash flow on an annual basis beginning in 2001."

The purchase is contingent upon satisfaction of any regulatory requirements. BP Amoco p.l.c. has submitted TEPPCO to the Federal Trade Commission as the approved purchaser of ARCO Pipe Line Company under the consent order issued in connection with the merger of BP Amoco and ARCO. The parties anticipate the transaction will be completed by the end of second quarter 2000.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements that involve certain risks and uncertainties. These risks and uncertainties include, among other things, market conditions, governmental regulations and other factors discussed in TEPPCO’s filings with the Securities and Exchange Commission.

TEPPCO Partners, L.P. is a publicly owned master limited partnership, which conducts business through two operating companies. TE Products Pipeline Company, Limited Partnership is one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States. TEPPCO Crude Oil, LLC is a crude oil gathering, transportation, storage and marketing company operating primarily in Texas and Oklahoma. Texas Eastern Products Pipeline Company, LLC, which is an indirect wholly owned subsidiary of Duke Energy Field Services, LLC, is the general partner of TEPPCO Partners, L.P.

Contact: Kathleen A. Sauve
Phone: 713-759-3635
24 Hour Phone: 704-594-0681
Contact: Brenda J. Peters
Phone: 713-759-3954
24 Hour Phone: 704-594-0681