Enterprise and Magellan File Joint Tariff to Facilitate Crude Oil Deliveries from South Texas to Houston-Area Refining Complex

            Houston, Texas and Tulsa, Oklahoma (December 21, 2010) – Enterprise Products Partners L.P. (NYSE: EPD) and Magellan Midstream Partners, L.P. (NYSE: MMP) today announced they have jointly filed with the Texas Railroad Commission to combine two separate crude oil pipeline segments between Sealy and Texas City, Texas under a single transportation tariff.  Currently, shippers moving crude oil from South Texas origins on the 40-mile portion of Enterprise’s Rancho pipeline from Sealy to Genoa Junction and the 26-mile segment of Magellan’s pipeline between Genoa Junction and Texas City are subject to two different tariffs.  Establishing a single tariff structure will not only simplify the process for shippers but will provide producers in South Texas with more efficient access to the Houston-area refining complex, which features more than two million barrels per day (BPD) of refining capacity.  Enterprise and Magellan expect the joint tariff to be effective February 1, 2011. 

            “We are very pleased to partner with Magellan on this mutually beneficial project, which represents an important first step towards working together on future opportunities designed to improve market access,” said Mark A. Hurley, senior vice president, Crude Oil for Enterprise.  “The joint tariff also complements our Eagle Ford Shale crude oil strategy that includes Enterprise’s recently announced plans to construct a new crude oil storage facility and pipelines in southeast Houston that will receive deliveries from the Rancho system and provide the capability to deliver into the nearby Magellan pipeline.”  

            Enterprise’s South Texas crude oil gathering system consists of more than 1,100 miles of pipelines with a current capacity of approximately 90,000 BPD.  Facilitating deliveries of South Texas crude oil into the Sealy station, particularly volumes coming from the growing Eagle Ford Shale play, is a new 140-mile pipeline Enterprise expects to have ready for service in the first quarter of 2012.  Current crude oil and condensate production from the Eagle Ford is estimated at approximately 35,000 BPD. 

            “This joint tariff provides our customers the seamless ability to transport crude oil from the production fields of South Texas to the Texas City refining region using Enterprise’s gathering and Magellan’s distribution networks,” said Mike Mears, chief operating officer for Magellan. “Magellan plans to work with Enterprise and prospective shippers to provide the capabilities to distribute crude oil from the South Texas producing regions throughout the Houston and Texas City refining complex using our recently acquired crude oil distribution system.” 

            Magellan’s Texas crude oil distribution system, which it acquired in September 2010, is comprised of nearly 40 miles of crude oil pipelines running between Houston and Texas City that vary in size from 24 to 26 inches in diameter. This system currently delivers crude oil to the BP Texas City and Valero Houston refineries. With additional enhancements, Magellan’s crude oil system also could connect to other major refineries within Houston and Texas City, including the Shell Deer Park, Lyondell Houston, Valero Texas City, Pasadena Refining and Marathon Texas City refineries. 

            Enterprise Products Partners L.P. is the largest publicly traded partnership and a leading North American provider of midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products and petrochemicals.  Enterprise’s assets include: 49,100 miles of onshore and offshore pipelines; approximately 200 million barrels of storage capacity for NGLs, refined products and crude oil; and 27 billion cubic feet of natural gas storage capacity.  Services include: natural gas transportation, gathering, processing and storage; NGL fractionation, transportation, storage, and import and export terminaling; crude oil and refined products storage, transportation and terminaling; offshore production platform; petrochemical transportation and storage; and a marine transportation business that operates primarily on the United States inland and Intracoastal Waterway systems and in the Gulf of Mexico.  Additional information is available at www.epplp.com.   

            Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership formed to own, operate and acquire a diversified portfolio of energy assets. Magellan primarily transports, stores and distributes refined petroleum products, such as gasoline and diesel fuel, and crude oil.  Magellan’s primary assets include: the longest petroleum products pipeline system in the continental United States at 9,600 miles, which can access 40 percent of the country’s refining capacity and imports, as well as 85 petroleum terminals with more than 70 million barrels of storage. More information is available at www.magellanlp.com 


This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that Enterprise and Magellan expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors included in the reports filed with the Securities and Exchange Commission by the partnerships. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. Except as required by law, Enterprise and Magellan do not intend to update or revise their forward-looking statements, whether as a result of new information, future events or otherwise. 

Contact Information:

Magellan: Paula Farrell, Investor Relations 918-574-7650 paula.farrell@magellanlp.com 
  Bruce Heine, Media Relations 918-574-7010 bruce.heine@magellanlp.com 
Enterprise: Randy Burkhalter, Investor Relations 713-381-6812 or 866-230-0745
  Rick Rainey, Media Relations 713-381-3635  

Contact Information:

Paula Farrell Investor Relations 918-574-7650 paula.farrell@magellanlp.com