ENERGY TRANSFER PARTNERS (ETP)

Unallocated Selling, General and Administrative Expenses. The selling, general and administrative expenses that relate to the general operations of the Partnership are not allocated to our segments.

For the year ended August 31, 2005, the total unallocated selling, general, and administrative expenses were $13.4 million as compared to $4.0 million unallocated selling, general, and administrative expense for the year ended August 31, 2004. Aggregate total unallocated selling, general, and administrative expense for the year ended August 31, 2004 would have been $9.3 million. The aggregate increase of $4.1 million in unallocated selling, general, and administrative expenses is primarily related to the $4.4 million expense related to our ongoing efforts to comply with the Sarbanes Oxley Act and additional executive wages charged to unallocated selling, general and administrative expenses during fiscal year 2005, offset by approximately $4.5 million of transaction costs related to the Energy Transfer Transactions.

Unallocated Selling, General and Administrative Expenses. The selling, general and administrative expenses that relate to the general operations of the Partnership are not allocated to our segments.

For the three months ended May 31, 2006, selling, general, and administrative expenses decreased $2.1 million compared to the same three month period last year due to a decrease in the unit-based compensation expense for the period.

Unallocated selling, general and administrative expenses increased $4.3 million for the nine months ended May 31, 2006 as compared to the nine month period ended May 31, 2005. This increase is primarily attributed to a $0.7 million increase in executive salaries due to additional staffing, a $2.2 million increase in professional fees due to our on-going efforts with Sarbanes-Oxley and other Partnership expenses, and a $1.4 million increase in additional executive bonuses and non-cash compensation related to additional staffing and restricted units awards outstanding.

Unallocated Selling, General and Administrative Expenses. The selling, general and administrative expenses that relate to the general operations of the Partnership are not allocated to our segments.

The increases of $4.7 million and $6.4 million in the total unallocated selling, general, and administrative expenses during the three and six months ended February 28, 2006, respectively compared to the same three and six-month periods last year are primarily due to the $1.5 million increase in professional fees which is related to our ongoing efforts to comply with the Sarbanes Oxley Act and a $3.4 million increase in additional executive bonuses and non-cash compensation during fiscal year 2006.

Unallocated Selling, General and Administrative Expenses. The selling, general and administrative expenses that relate to the general operations of the Partnership are not allocated to our segments.

The increase of $1.7 million in the total unallocated selling, general, and administrative expenses is primarily related to the $1.4 million increase in professional fees which primarily related to our ongoing efforts to comply with the Sarbanes Oxley Act and $0.3 million additional executive wages charged to unallocated selling, general and administrative expenses during fiscal year 2005.