News Release
Sept. 10, 2001


HOUSTON – Texas Eastern Products Pipeline Company, LLC, the general partner of TEPPCO Partners, L.P. (TEPPCO) (NYSE:TPP) today announced the signing of a purchase and sale agreement by which TEPPCO will acquire Jonah Gas Gathering Company, a subsidiary of Alberta Energy Company (AEC), for approximately US$360 million.

"The acquisition of these recently built, high-quality assets signals TEPPCO’s entry into the natural gas gathering business," said William L. Thacker, chairman and chief executive officer of the general partner of TEPPCO. "The revenues from this system are generated under long-term, fee-based contracts with area producers. We believe these are premier assets in one of the most prolific natural gas basins in the United States and will provide TEPPCO with significant organic growth opportunities."

Under the proposed transaction, TEPPCO will acquire approximately 300 miles of pipeline, five compressor stations totaling 33,000 horsepower and the related metering facilities. Fifty miles of new 20-inch diameter pipeline and additional compression are under construction increasing capacity to more than 700 MMcf/d and will be placed in service in early 2002. The purchase, contingent on satisfaction of any regulatory requirements, is anticipated to be completed by the end of September 2001. The assets will be operated and commercially managed by Duke Energy Field Services, LP (DEFS) under agreements with TEPPCO.

"As the parent company of the general partner of TEPPCO and the operator of these new assets, DEFS is very excited about this acquisition," said Jim W. Mogg, chairman, president and chief executive officer of DEFS and vice-chairman of the general partner of TEPPCO. "With the long-life, dedicated gas reserves and growing production around this system, and DEFS’s proven record as a reliable, low-cost operator, the transaction will significantly benefit both TEPPCO and DEFS as well as provide quality service to AEC and the other producers in the Jonah area."

TEPPCO will host a conference call related to the acquisition at 8:05 a.m. CT on Sept. 11. Interested parties may listen via Internet, live or on a replay basis at

TEPPCO Partners, L.P. is a publicly traded master limited partnership, which conducts business through various subsidiary operating companies. TEPPCO owns and operates one of the largest common carrier pipelines of refined petroleum products and liquefied petroleum gases in the United States; owns and operates natural gas liquid pipelines; is engaged in crude oil gathering, transportation, storage and marketing; and owns a 50-percent interest in Seaway Crude Pipeline Company and an undivided ownership interest in the Rancho and Basin Pipelines. Texas Eastern Products Pipeline Company, LLC, an indirect wholly owned subsidiary of Duke Energy Field Services, LLC, is the general partner of TEPPCO Partners, L.P. For more information, access TEPPCO’s website at

DEFS is a premier North American midstream energy company that leads or is among the nation’s leaders in the gathering, processing, transportation, marketing, and storage of natural gas and the production, transportation, and marketing of natural gas liquids (NGLs). DEFS has 2,600 employees and operates in 11 states across five of the largest natural gas producing regions in North America, extending from western Canada to the Gulf Coast. The Denver-based company owns and operates 65 plants, 57,000 miles of pipeline and had revenues of $9.1 billion and assets of $6.1 billion in 2000. Duke Energy owns approximately 70 percent of the joint venture with Phillips Petroleum owning the remaining percentage. More information is available about the company at

Contact: Kathleen A. Sauve -- TEPPCO Media Relations
Phone: 713/759-3635
24 Hour Phone: 704/382-8333
Contact: Brenda J. Peters - Investor Relations
Phone: 713/759-3954
24 Hour Phone: 704/382-8333
Contact: Tom E. Long -- DEFS Investor/Media Relations
Phone: 303/605-1731
24 Hour Phone: 704/382-8333