Enterprise Products Partners L.P.

SEC Filings

TEPPCO PARTNERS LP filed this Form 10-Q on 05/06/1997
Entire Document
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     The Notes, which are secured by a mortgage on substantially all property,
plant and equipment of the Partnership, require annual principal payments
through March 2010. Interest is payable semi-annually on March 7 and September
7. Cash and cash equivalents were reduced by the $13.0 million principal
payment related to the Notes on March 7, 1997. At March 31, 1997, the current
maturities of the Notes were $17.0 million. The note agreement relating to the
Notes limits the amount of cash distributions that can be made by TE Products
Pipeline Company, Limited Partnership to TEPPCO Partners, L.P. Such restriction
is not anticipated to preclude the Partnership from making quarterly
distributions to Unitholders of at least $0.75 per Unit during 1997.


     The operations of the Partnership are subject to federal, state and local
laws and regulations relating to protection of the environment. Although the
Partnership believes the operations of the pipeline system are in material
compliance with applicable environmental regulations, risks of significant
costs and liabilities are inherent in pipeline operations, and there can be no
assurance that significant costs and liabilities will not be incurred.
Moreover, it is possible that other developments, such as increasingly strict
environmental laws and regulations and enforcement policies thereunder, and
claims for damages to property or persons resulting from the operations of the
pipeline system could result in substantial costs and liabilities to the

     As part of the Agreed Order entered into between the Partnership and the
Indiana Department of Environmental Management (IDEM), the Partnership has
completed the remedial investigation phase II sampling plan for groundwater
contamination at the Seymour, Indiana, terminal. Additionally, as a part of the
Agreed Order, the Partnership has presented a scope of work for the final
remedial investigation report for the Seymour terminal. The Agreed Order
entered into between the Partnership and IDEM will ultimately result in a
remediation program for any on-site and off-site environmental problems
attributable to the Partnership's operations at Seymour. In the opinion of the
general partner, the completion of the remediation program to be proposed by
the Partnership, if such program is approved by IDEM, will not have a material
adverse impact on the Partnership.

     During the first quarter of 1997, the Partnership completed its Midwest
mainline expansion project, which added 50,000 barrels per day of capacity
between El Dorado, Arkansas, and Seymour, Indiana. On March 31, 1997, the
Partnership placed in service the expansion of the Ark-La-Tex system between
Shreveport, Louisiana, and El Dorado. This project provides an additional
25,000 barrels per day of refined products transportation capacity.
Additionally, on May 1, 1997, the Partnership placed in service the connection
of the pipeline system to Colonial Pipeline Company's (Colonial) pipeline at
Beaumont, Texas. The Partnership has entered into a 10-year capacity lease with
Colonial, whereby the Partnership has guaranteed a minimum monthly throughput
rate for the new connection. The Ark-La-Tex system expansion and the connection
to the Colonial pipeline system relieve origin constraints of refined products
to the Partnership's mainline system allowing additional capacity created by
the Midwest expansion project to be utilized.