EL PASO PIPELINE PARTNERS,
L.P.
REPRESENTING LIMITED PARTNER
INTERESTS
Morgan Stanley
& Co. Incorporated
Barclays Capital Inc.
Citigroup Global Markets Inc.
UBS Securities LLC
c/o Morgan
Stanley & Co. Incorporated
1585
Broadway
New York, New York 10036
El Paso Pipeline
Partners, L.P., a Delaware limited partnership (the “
Partnership ”), proposes to issue and sell to
the several Underwriters named in Schedule II hereto (the
“ Underwriters ”) the number of common
units representing limited partner interests set forth in
Schedule I hereto (the “ Firm Units
”). The Partnership also proposes to issue and sell to the
several Underwriters not more than the number of additional common
units set forth in Schedule I hereto (the “
Additional Units ”) if and to the extent that
you, as Managers of the offering, shall have determined to
exercise, on behalf of the Underwriters, the right to purchase such
common units granted to the Underwriters in Section 2 hereof.
The Firm Units and the Additional Units are hereinafter
collectively referred to as the “ Units
.” The common units representing limited partner interests of
the Partnership to be outstanding after giving effect to the sales
contemplated hereby are hereinafter referred to as the “
Common Units .”
The Partnership
and El Paso Pipeline GP Company, L.L.C., a Delaware limited
liability company (“ MLP GP ”) are
hereinafter collectively referred to as the “
Partnership Parties .”
El Paso Pipeline
Partners Operating Company, L.L.C., a Delaware limited liability
company (“ OLLC ”), WIC Holdings Company,
L.L.C., a Delaware limited liability company (“ WIC
Holdings ”), El Paso Wyoming Gas Supply Company,
L.L.C., a Delaware limited liability company (“ EP
WGSC ”), Wyoming Interstate Company, Ltd., a Colorado
limited partnership (“ WIC ”), EPPP SNG
GP Holdings, L.L.C., a Delaware limited liability company (“
EPPP SNG ”) and EPPP CIG GP Holdings, L.L.C., a
Delaware limited liability company (“ EPPP CIG
”) are hereinafter collectively referred to as the “
Subsidiaries. ”
Southern Natural
Gas Company, a Delaware general partnership (“
SNG ”), Southern Gas Storage Company, L.L.C., a
Delaware limited liability company
(“
SGSC ”), Bear Creek Storage Company, a
Louisiana joint venture (“ Bear Creek ”),
SNG Finance Company, L.L.C., a Delaware limited liability company
(“ SNG Finance ”), SNG Funding Company,
L.L.C., a Delaware limited liability company (“ SNG
Funding ”), Southern Natural Issuing Corporation, a
Delaware corporation (“ SNG Issuing ”),
Colorado Interstate Gas Company, a Delaware general partnership
(“ CIG ”), WYCO Holding Company, L.L.C.,
a Delaware limited liability company (“ WYCO
Holding ”), WYCO Development LLC, a Colorado limited
liability company (“ WYCO Development ”),
CIG Finance Company, L.L.C., a Delaware limited liability company
(“ CIG Finance ”), CIG Funding Company,
L.L.C., a Delaware limited liability company (“ CIG
Funding ”) and Colorado Interstate Issuing
Corporation, a Delaware corporation (“ CIG
Issuing ”) are hereinafter collectively referred to
as the “ Unconsolidated Affiliates.
”
The Partnership
Parties, the Unconsolidated Affiliates and the Subsidiaries are
hereinafter collectively referred to as the “
Partnership Entities .”
The Partnership
Entities, El Paso Pipeline Holding Company, L.L.C., a Delaware
limited liability company (“ El Paso LLC
”), El Paso Pipeline LP Holdings, L.L.C., a Delaware limited
liability company (“ Holdings ”) and El
Paso Corporation, a Delaware corporation (“ El
Paso ”) are hereinafter collectively referred to as
the “ El Paso Entities .”
The Partnership
has filed with the Securities and Exchange Commission (the “
Commission ”) a registration statement (File
No. 333-156978), including a prospectus, on Form S-3 relating
to the securities (the “ Shelf Securities
”), including the Units, to be issued from time to time by
the Partnership. The registration statement as amended to the date
of this Agreement, including the information (if any) deemed to be
part of the registration statement at the time of effectiveness
pursuant to Rule 430A or Rule 430B under the Securities
Act of 1933 (the “ Securities Act ”), is
hereinafter referred to as the “ Registration
Statement, ” and the related prospectus covering the
Shelf Securities dated March 24, 2009 in the form first used
to confirm sales of the Units (or in the form first made available
to the Underwriters by the Partnership to meet requests of
purchasers pursuant to Rule 173 under Securities Act) is
hereinafter referred to as the “ Basic
Prospectus. ” The Basic Prospectus, as supplemented
by the prospectus supplement specifically relating to the Units in
the form first used to confirm sales of the Units (or in the form
first made available to the Underwriters by the Partnership to meet
requests of purchasers pursuant to Rule 173 under the
Securities Act) is hereinafter referred to as the “
Prospectus, ” and the term “
preliminary prospectus ” means any preliminary
form of the Prospectus. For purposes of this Agreement, “
Issuer Free Writing Prospectus ” means each
“free writing prospectus” (as defined in Rule 405
under the Securities Act) prepared by or on behalf of the
Partnership or used or referred to by the Partnership in connection
with the offering of the Units and “ broadly available
road show ”
2
means a
“bona fide electronic road show” as defined in
Rule 433(h)(5) under the Securities Act that has been made
available without restriction to any person.
At or prior to the
time when sales of the Units were first made (the “
Time of Sale ”), the Partnership had prepared
the following information (collectively, the “ Time of
Sale Prospectus ”): the preliminary prospectus
together with the free writing prospectuses, if any, each
identified in Schedule I hereto.
As used herein,
the terms “Registration Statement,” “preliminary
prospectus,” “Time of Sale Prospectus,”
“Basic Prospectus” and “Prospectus” shall
include the documents, if any, incorporated by reference therein.
The terms “ supplement , ” “
amendment ” and “ amend
” as used herein with respect to the Registration Statement,
the Basic Prospectus, the Time of Sale Prospectus or any free
writing prospectus shall include all documents subsequently filed
by the Partnership with the Commission pursuant to the Securities
Exchange Act of 1934 (the “ Exchange Act
”), that are deemed to be incorporated by reference
therein.
1.
Representations and Warranties . The Partnership Parties,
jointly and severally, represent and warrant to and agree with each
of the Underwriters that:
(a)
Registration Statement . (i) The Registration Statement
has been declared effective under the Securities Act; (ii) no
stop order of the Commission preventing or suspending the use of
any preliminary prospectus or the effectiveness of the Registration
Statement has been issued and no proceedings for such purpose have
been instituted or, to the Partnership’s knowledge, are
threatened by the Commission; (iii) the Registration Statement
complied when it became effective, complies and will comply, at the
Closing Date (as defined in Section 4) and any Optional
Closing Date (as defined in Section 4), in all material
respects with the requirements of the Securities Act and the
applicable rules and regulations of the Commission thereunder (the
“ Rules and Regulations ”);
(iv) each preliminary prospectus filed as part of the
registration statement as originally filed or as part of any
amendment thereto, or filed pursuant to Rule 424 under the
Securities Act, complied when so filed in all material respects
with the Securities Act and Rules and Regulations; (v) the
Prospectus will comply, as of its date and at the Closing and any
Optional Closing Date, in all material respects with the
requirements of the Securities Act and the Rules and Regulations;
(vi) each document filed or to be filed pursuant to the
Exchange Act and incorporated by reference in the Time of Sale
Prospectus or the Prospectus complied or will comply when so filed
in all material respects with the Exchange Act and the Rules and
Regulations; (vii) any statutes, regulations, contracts or other
documents that are required to be described in the Registration
Statement or the Prospectus or to be filed as exhibits to the
Registration Statement have been and will be so described or filed;
(viii) the Registration Statement did not when it became
effective, does not and will not, at the Closing Date and any
Optional Closing
3
Date contain an
untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the
statements therein not misleading; (ix) the Time of Sale
Prospectus does not and will not, at the Time of Sale when the
Prospectus is not yet available to prospective purchasers, at the
Closing Date and any Optional Closing Date, the Time of Sale
Prospectus as then amended or supplemented by the Partnership, if
applicable, will not contain an untrue statement of a material fact
or omit to state a material fact necessary to make the statements
therein not misleading, in light of the circumstances under which
they were made; (x) each Issuer Free Writing Prospectus, when
considered together with the Time of Sale Prospectus at the Time of
Sale, did not contain an untrue statement of a material fact or
omit to state a material fact necessary to make the statements
therein not misleading, in light of the circumstances under which
they were made; and (xi) the Prospectus will not, as of its
date and at the Closing Date and any Optional Closing, contain an
untrue statement of a material fact or omit to state a material
fact necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading; provided,
however, that the Partnership makes no representation or warranty
with respect to any statement contained in any preliminary
prospectus, the Registration Statement, the Time of Sale
Prospectus, the Prospectus, any free writing prospectus or any
broadly available road show materials in reliance upon and in
conformity with information furnished in writing by or on behalf of
an Underwriter through you to the Partnership expressly for use in
such preliminary prospectus, the Registration Statement, the Time
of Sale Prospectus or the Prospectus.
(b)
Issuer Free Writing Prospectuses Conform to the Requirements of
the Securities Act. The Partnership is not an “ineligible
issuer” in connection with the offering pursuant to
Rules 164, 405 and 433 under the Securities Act. Each Issuer
Free Writing Prospectus conformed or will conform in all material
respects to the requirements of the Securities Act and the Rules
and Regulations on the date of first use, and the Partnership has
complied with all prospectus delivery requirements, any filing
requirements and any record keeping requirements applicable to such
Issuer Free Writing Prospectus pursuant to the Rules and
Regulations. The Partnership has not made any offer relating to the
Units that would constitute an Issuer Free Writing Prospectus
without the prior written consent of the Managers. The Partnership
has retained in accordance with the Rules and Regulations all
Issuer Free Writing Prospectuses that were not required to be filed
with the Commission pursuant to the Rules and Regulations. The
Partnership has taken all actions necessary so that any “road
show” (as defined in Rule 433 of the Rules and
Regulations) in connection with the offering of the Units will not
be required to be filed pursuant to the Rules and Regulations. No
Issuer Free Writing Prospectus includes any information that
conflicts with the information contained in the Time of Sale
Prospectus as of the Time of Sale.
4
(c)
Incorporated Documents. The documents incorporated or deemed
to be incorporated by reference in the Prospectus at the time they
were or hereafter are filed with the Commission complied and will
comply in all material respects with the requirements of the
Securities Act or the Exchange Act, as applicable, and the Rules
and Regulations.
(d)
Formation and Qualification. Each of the Partnership
Entities has been duly formed or incorporated, as the case may be,
is validly existing and is in good standing under the laws of its
respective jurisdiction of formation or incorporation, as
applicable, with all corporate, limited liability company or
partnership, as the case may be, power and authority necessary to
own or hold its properties and to conduct the businesses in which
it is engaged and, in the case of MLP GP, to act as the general
partner of the Partnership, in each case in all material respects
as described in the Registration Statement, the Time of Sale
Prospectus and the Prospectus. Each of the Partnership Entities is
duly registered or qualified to do business in and is in good
standing as a foreign limited partnership, general partnership,
limited liability company or corporation, as applicable, in each
jurisdiction in which its ownership or lease of property or the
conduct of its business requires such qualification or
registration, except where the failure to be so qualified or
registered could not, individually or in the aggregate, have a
material adverse effect on the financial condition,
securityholders’ equity, results of operations, properties,
business or prospects of the Partnership Entities taken as a whole
(a “ Material Adverse Effect ”), or
subject the limited partners of the Partnership to any material
liability or disability.
(e)
Ownership of El Paso LLC. El Paso directly owns 99% of the
issued and outstanding limited liability company interests in El
Paso LLC and indirectly, through a wholly-owned subsidiary, owns 1%
of the issued and outstanding limited liability company interests
in El Paso LLC; such limited liability company interests are duly
authorized and validly issued in accordance with El Paso
LLC’s LLC agreement (the “ El Paso LLC LLC
Agreement ”) and fully paid (to the extent required
by the El Paso LLC LLC Agreement) and non-assessable (except as
such nonassessability may be affected by Sections 18-607 and
18-804 of the Delaware Limited Liability Company Act (the “
Delaware LLC Act ”)); and El Paso will own such
limited liability company interests free and clear of all liens,
encumbrances, security interests, charges or claims (“
Liens ”), other than restrictions on transfers
arising under applicable securities laws or the El Paso LLC LLC
Agreement.
(f) Ownership
of MLP GP. El Paso LLC owns 100% of the issued and outstanding
limited liability company interests in MLP GP; such limited
liability company interests is duly authorized and validly issued
in accordance with MLP GP’s LLC agreement the (“
MLP GP LLC Agreement ”) and fully paid (to the
extent required by the MLP GP LLC Agreement) and non-assessable
(except as such nonassessability may be affected by
Sections 18-607 and 18-804
5
of the Delaware
Limited Liability Company Act); and El Paso LLC owns such limited
liability company interests free and clear of all Liens, other than
restrictions on transfers arising under applicable securities laws
or the MLP GP LLC Agreement.
(g)
Ownership of the General Partner Interest in the
Partnership. MLP GP is the sole general partner of the
Partnership with a 2.0% general partner interest in the
Partnership; such general partner interest is duly authorized and
validly issued in accordance with the Partnership Agreement; and
MLP GP owns such general partner interest free and clear of all
Liens, other than restrictions on transfers arising under
applicable securities laws or the Partnership Agreement.
(h)
Ownership of Holdings. El Paso LLC owns 100% of the issued
and outstanding limited liability company interests in Holdings;
such limited liability company interests are duly authorized and
validly issued in accordance with the Holdings Limited Liability
Company Agreement (the “ Holdings LLC Agreement
”) and fully paid (to the extent required by the Holdings LLC
Agreement) and non-assessable (except as such nonassessability may
be affected by Sections 18-607 and 18-804 of the Delaware LLC
Act); and El Paso LLC owns such limited liability company interests
free and clear of all Liens, other than restrictions on transfers
arising under applicable securities laws or the Holdings LLC
Agreement.
(i)
Ownership of the El Paso Units and the Incentive Distribution
Rights. Holdings owns 55,326,397 Common Units (the “
El Paso Common Units ”) and 27,727,411
subordinated units (as defined in the Partnership Agreement, the
“ Subordinated Units ” and, together with
the El Paso Common Units, the “ El Paso Units
”) and MLP GP owns 100% of the Incentive Distribution Rights;
the El Paso Units and the Incentive Distribution Rights and the
limited partner interests represented thereby have been duly
authorized and validly issued in accordance with the Partnership
Agreement and are fully paid (to the extent required under the
Partnership Agreement) and nonassessable (except as such
nonassessability may be affected by Sections 17-607 and 17-804
of the Delaware Revised Uniform Limited Partnership Act (the
“ Delaware LP Act ”)); and Holdings owns
the El Paso Units and MLP GP owns the Incentive Distribution
Rights, in each case free and clear of all Liens, other than
restrictions on transfers arising under applicable securities laws
or the Partnership Agreement and other than the Lock-Up Agreement
referred to in Section 6(j).
(j) Valid
Issuance of the Units . The Units and the limited partner
interests represented thereby, are duly authorized in accordance
with the Partnership Agreement and, when issued and delivered to
the Underwriters against payment therefor in accordance with this
Agreement, will be duly and validly issued, fully paid (to the
extent required under the Partnership Agreement)
6
and
nonassessable (except as such nonassessability may be affected by
Sections 17-607 and 17-804 of the Delaware LP Act).
(k)
Capitalization . After giving effect to the offering of the
Firm Units as contemplated by this Agreement and the concurrent
capital contribution to the Partnership by MLP GP, there will be
2,524,354 General Partner Units issued and outstanding, the issued
and outstanding Units of the Partnership will consist of 95,965,923
Common Units and 27,727,411 Subordinated Units.
(l)
Ownership of OLLC. The Partnership owns 100% of the issued
and outstanding limited liability company interests in OLLC; such
limited liability company interests have been duly authorized and
validly issued in accordance with the OLLC Limited Liability
Company Agreement and are fully paid (to the extent required under
the OLLC Limited Liability Company Agreement) and non-assessable
(except as such nonassessability may be affected by
Sections 18-607 and 18-804 of the Delaware LLC Act); and the
Partnership owns such limited liability company interests free and
clear of all Liens (except for restrictions on transfer arising
under applicable securities laws or the OLLC Limited Liability
Company Agreement, or described in the Time of Sale Prospectus,
including under the Credit Facility).
(m)
Ownership of the Subsidiaries. All of the equity interests
in each of the Subsidiaries and Unconsolidated Affiliates are owned
as set forth on Exhibit A hereto; all of such equity
interests are duly and validly authorized and issued in accordance
with the general partnership, limited partnership or limited
liability company agreements of each such Subsidiaries and
Unconsolidated Affiliates (the “ Organizational
Agreements ”), are fully paid (to the extent required
by the Organizational Agreements) and nonassessable (except as such
nonassessability may be affected by (i) Sections 18-607
and 18-804 of the Delaware LLC Act, (ii) Sections 17-607
and 17-804 of the Delaware LP Act or
(iii) Sections 15-309 and 15-807 of the Delaware Revised
Uniform Partnership Act (the “ Delaware GP Act
”) or, in the case of the general partner interests in SNG
and CIG, as set forth in the partnership agreement of SNG and CIG,
respectively); and such equity interests are owned as set forth on
Exhibit A free and clear of all Liens (except for
restrictions on transfer arising under applicable Organizational
Agreements or described in the Time of Sale Prospectus, including
under the Credit Facility).
(n) No
Other Subsidiaries . Other than its direct or indirect
ownership interests in the Subsidiaries and the Unconsolidated
Affiliates and the 10% non-economic voting interest in Elba Express
Company, LLC, the Partnership does not own, directly or indirectly,
any equity or long-term debt securities of any corporation,
partnership, limited liability company, joint venture, association
or other entity, other than notes receivable held by CIG and SNG
under the El Paso cash management program and a note receivable
from El Paso.
7
(o) No
Preemptive Rights, Registration Rights or Options. Except as
identified in the Time of Sale Prospectus, there are no
(i) preemptive rights or other rights to subscribe for or to
purchase, nor any restriction upon the voting or transfer of, any
equity interests in of any of the Partnership Entities or
(ii) outstanding options or warrants to purchase any
securities of any of the Partnership Entities. Except for such
rights that have been waived or complied with, none of the filing
of the Registration Statement, the consummation of the transactions
contemplated by this Agreement, nor the offering or sale of the
Units as contemplated by this Agreement gives rise to any rights
for or relating to the registration of any Common Units or other
securities of any of the Partnership Entities.
(p)
Authority and Authorization. The Partnership has all
requisite partnership power and authority to issue, sell and
deliver the Units, in accordance with and upon the terms and
conditions set forth in this Agreement, the Partnership Agreement,
the Registration Statement and the Time of Sale Prospectus. Each of
MLP GP and the Partnership has all requisite right, power and
authority to execute and deliver this Agreement and to perform its
respective obligations thereunder. All corporate, partnership and
limited liability company action, as the case may be, required to
be taken by Partnership Entities or any of their security holders,
members or partners for the authorization, issuance, sale and
delivery of the Units and the consummation of the transactions
contemplated by this Agreement shall have been validly
taken.
(q)
Authorization, Execution and Delivery of this Agreement .
This Agreement has been duly authorized and validly executed and
delivered by each of MLP GP and the Partnership.
(r) No
Conflicts . None of (i) the offering, issuance and sale by
the Partnership of the Units and the application of the proceeds
from the sale of the Units as described under “Use of
Proceeds” in Time of Sale Prospectus, (ii) the
execution, delivery and performance of this Agreement by the
Partnership Entities party hereto or (iii) the consummation of
the transactions contemplated hereby (A) conflicts or will
conflict with or constitutes or will constitute a violation of the
partnership agreement, limited liability company agreement,
certificate of formation or conversion, certificate or articles of
incorporation, bylaws or other constituent document of any of the
Partnership Entities, (B) conflicts or will conflict with or
constitutes or will constitute a breach or violation of, or a
default (or an event that, with notice or lapse of time or both,
would constitute such a default) under any indenture, mortgage,
deed of trust, loan agreement, lease or other agreement or
instrument to which any of the Partnership Entities is a party or
by which any of them or any of their respective properties may be
bound, (C) violates or will violate any statute, law or
regulation or any order, judgment, decree or injunction of any
court or governmental agency or body directed to any of the
Partnership Entities or any of their properties in a proceeding to
which any
8
of them or
their property is a party or (D) results or will result in the
creation or imposition of any Lien upon any property or assets of
any of the Partnership Entities (other than Liens created pursuant
to the Credit Facility), which conflicts, breaches, violations,
defaults or Liens, in the case of clauses (B), (C) or
(D), would, individually or in the aggregate have a Material
Adverse Effect or materially impair the ability of the Partnership
Entities to perform their obligations under this
Agreement.
(s) No
Consents . No permit, consent, approval, authorization, order,
registration, filing or qualification of or with any court,
governmental agency or body having jurisdiction over any of the
Partnership Entities is required in connection with (i) the
offering, issuance or sale by the Partnership of the Units,
(ii) the application of the proceeds therefrom as described
under “Use of Proceeds” in the Time of Sale Prospectus,
(iii) the execution and delivery of this Agreement by the
Partnership Entities party hereto and consummation by such
Partnership Entities of the transactions contemplated hereby,
except for (A) such permits, consents, approvals and similar
authorizations as may be required under the Securities Act or the
Exchange Act and (B) for such consents that, if not obtained,
would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect or materially impair the ability
of the Partnership Entities to consummate the transactions provided
for in this Agreement.
(t) No
Defaults . None of the Partnership Entities (i) is in
violation of its certificate of limited partnership, agreement of
limited partnership, limited liability company agreement,
certificate of incorporation or bylaws or other organizational
documents, (ii) is in violation of any law, statute,
ordinance, administrative or governmental rule or regulation
applicable to it or of any decree of any court or governmental
agency or body having jurisdiction over it, or (iii) is in
breach, default (or an event which, with notice or lapse of time or
both, would constitute such an event) or violation in the
performance of any obligation, agreement or condition contained in
any bond, debenture, note or any other evidence of indebtedness or
in any agreement, indenture, lease or other instrument to which it
is a party or by which it or any of its properties may be bound,
which breach, default or violation, in the case of
clauses (ii) or (iii), would, individually or in the
aggregate, have a Material Adverse Effect or materially impair the
ability of the Partnership Entities to consummate the transactions
provided for in this Agreement.
(u)
Conformity of Units to Description in the Time of Sale
Prospectus and Prospectus . The Units, when issued and
delivered in accordance with the terms of the Partnership Agreement
and this Agreement against payment therefor as provided therein and
herein, will conform in all material respects to the description
thereof contained in the Registration Statement, the Time of Sale
Prospectus and the Prospectus.
9
(v) No
Material Adverse Change . None of the Partnership Entities has
sustained, since the date of the latest audited financial
statements included in the Time of Sale Prospectus, any loss or
interference with its business from fire, explosion, flood or other
calamity, whether or not covered by insurance, or from any labor
dispute or court or governmental action, order or decree, and since
such date, there has not been any change in the capitalization or
increase in the long-term debt of any of the Partnership Entities
or any adverse change in or affecting the condition (financial or
otherwise), results of operations, securityholders’ equity,
properties, management, prospects or business of the Partnership
Entities, taken as a whole, in each case except as could not,
individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect.
(w)
Conduct of Business . Except as disclosed in or contemplated
by the Registration Statement and Time of Sale Prospectus, since
the date as of which information is given in the Time of Sale
Prospectus, none of the Partnership Entities has (i) incurred
any liability or obligation, direct or contingent, that,
individually or in the aggregate, is material to the Partnership
Entities taken as a whole, other than liabilities and obligations
that were incurred in the ordinary course of business,
(ii) entered into any transaction not in the ordinary course
of business that, individually or in the aggregate, is material to
the Partnership Entities taken as a whole, or (iii) declared,
paid or made any dividend or distribution on any class of
security.
(x)
Financial Statements . The historical financial statements
(including the related notes and supporting schedules) included in
the Registration Statement and Time of Sale Prospectus (i) comply
in all material respects with the applicable requirements under the
Securities Act and the Exchange Act, (ii) present fairly in
all material respects the financial condition, results of
operations and cash flows of the entities purported to be shown
thereby on the basis shown therein at the dates or for the periods
indicated, and (iii) have been prepared in accordance with
accounting principles generally accepted in the United States
consistently applied throughout the periods involved except for
changes in accounting principles as described therein. The summary
historical financial data included in the Time of Sale Prospectus
under the captions “Summary—Summary Historical
Financial Data” and “Summary—Results of
Operations” are fairly presented in all material respects and
prepared on a basis consistent with the audited and unaudited
historical financial statements from which they have been
derived.
(y)
Statistical and Market-Related Data . The statistical and
market-related data included in the Time of Sale Prospectus are
based on or derived from sources that the Partnership Entities
believe to be reliable and accurate in all material
respects.
10
(z)
Independent Registered Public Accounting Firm . Ernst &
Young LLP, who has audited the audited financial statements
contained in the Registration Statement and the Time of Sale
Prospectus, whose report appears in the Time of Sale Prospectus and
the Prospectus and who has delivered the initial letter referred to
in Section 5(e) hereof, is, and was during the periods covered by
the financial statements covered by such reports, an independent
registered public accounting firm within the meaning of the
Securities Act and the applicable rules and regulations thereunder
adopted by the Commission and the Public Company Accounting
Oversight Board (United States) (the “ PCAOB
”).
(aa)
Title to Properties . Each Partnership Entity has good and
indefeasible title to all its interests in real property, other
than real property held under lease, subject to recordation of
individual conveyances and assignments, and good title to all its
personal property (excluding easements or rights-of-way), in each
case free and clear of all Liens except (i) as described, and
subject to the limitations contained, in the Time of Sale
Prospectus, (ii) for Liens that arise under the Credit
Facility, or (iii) such as do not materially interfere with
the use of such properties taken as a whole as they have been used
in the past and are proposed to be used in the future as described
in the Registration Statement or the Time of Sale Prospectus; and
all assets held under lease by the Partnership Entities are held by
them under valid, subsisting and enforceable leases, with such
exceptions as do not materially interfere with the use made and
proposed to be made of such assets by the Partnership
Entities.
(bb)
Rights-of-Way . Each of the Partnership Entities has such
consents, easements, rights-of-way or licenses from any person
(collectively, “ rights-of-way ”) as are
necessary to conduct its business in the manner described in and
subject to the limitations contained in the Time of Sale
Prospectus, except for (i) qualifications, reservations and
encumbrances that would not have, individually or in the aggregate,
a Material Adverse Effect, and (ii) such rights-of-way that,
if not obtained, would not have, individually or in the aggregate,
a Material Adverse Effect; other than as set forth, and subject to
the limitations contained in the Time of Sale Prospectus, at the
Time of Sale, each Partnership Entity has fulfilled and performed
all its material obligations with respect to such rights-of-way
required to be fulfilled or performed and no event has occurred
which allows, or after notice or lapse of time would allow,
revocation or termination thereof or would result in any impairment
of the rights of the holder of any such rights-of-way, except for
such revocations, terminations and impairments that would not have
a Material Adverse Effect; and except as described in the Time of
Sale Prospectus, and none of such rights-of-way will contain any
restriction that is materially burdensome to the Partnership
Entities, taken as a whole.
(cc)
Permits . Each of the Partnership Entities has such permits,
consents, licenses, franchises, certificates and authorizations of
governmental or regulatory authorities (“
permits ”) as are necessary to own or lease its
properties
11
and to conduct
its business in the manner described in the Time of Sale
Prospectus, subject to such qualifications as may be set forth in
the Time of Sale Prospectus and except for such permits, consents,
franchises, certificates and authorizations which if not obtained,
would not have, individually or in the aggregate, a Material
Adverse Effect; each of the Partnership Entities has fulfilled and
performed in all material respects all its obligations with respect
to such permits in the manner described, and subject to the
limitations contained in the Time of Sale Prospectus, and to the
knowledge of the Partnership Entities no event has occurred that
would prevent the permits from being renewed or reissued or that
allows, or after notice or lapse of time would allow, revocation or
termination thereof or results or would result in any impairment of
the rights of the holder of any such permit. None of the
Partnership Entities has received written notification of any
revocation or modification of any such permit.
(dd)
Environmental Compliance . Except as described in the Time
of Sale Prospectus or for which adequate reserves have been
established in accordance with generally accepted accounting
principles, each of the Partnership Entities, with respect to the
assets owned or leased by the Partnership Entities at the Time of
Sale, (i) is, and at all times prior hereto was, in compliance
with any and all applicable federal, state and local laws and
regulations relating to the protection of human health and safety
and the environment or imposing liability or standards of conduct
concerning any Hazardous Materials (as defined below) (“
Environmental Laws ”), (ii) has received
all permits required of them under applicable Environmental Laws to
conduct their respective businesses, (iii) is in compliance
with all terms and conditions of any such permits and (iv) has
not received written notice, or to the knowledge of the Partnership
Entities, oral notification of any actual or alleged violation of
Environmental Law, except where such noncompliance with
Environmental Laws, failure to receive required permits, failure to
comply with the terms and conditions of such permits could not,
individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. The term “Hazardous Material”
means (A) any “hazardous substance” as defined in
the Comprehensive Environmental Response, Compensation and
Liability Act of 1980, as amended, (B) any “hazardous
waste” as defined in the Resource Conservation and Recovery
Act, as amended, (C) any petroleum or petroleum product,
(D) any polychlorinated biphenyl and (E) any pollutant or
contaminant or hazardous, dangerous or toxic chemical, material,
waste or substance regulated under or within the meaning of any
other Environmental Law.
(ee)
Insurance . The Partnership Entities carry or are entitled
to the benefits of insurance relating to the assets owned or leased
by the Partnership Entities at the Time of Sale in such amounts and
covering such risks as is commercially reasonable, and all
insurance is in full force and effect. None of the Partnership
Entities believe that they will not be able (i) to renew their
existing insurance coverage relating to the assets owned or leased
by the Partnership
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Entities at the
Time of Sale as and when such policies expire or (ii) to
obtain comparable coverage relating to the assets owned or leased
by the Partnership Entities at the Time of Sale from similar
institutions as may be necessary or appropriate to conduct such
business as now conducted and at a cost that would not reasonably
be expected to have a Material Adverse Effect.
(ff)
Litigation. Except as described in the Time of Sale
Prospectus, there is (i) no action, suit or proceeding before
or by any court, arbitrator or governmental agency, body or
official, domestic or foreign, now pending or, to the knowledge of
any of the Partnership Entities, threatened, to which any of the
Partnership Entities is or may be a party or to which the business
or property of any of the Partnership Entities is or may be
subject, (ii) no statute, rule, regulation or order that has
been enacted, adopted or issued by any governmental agency and
(iii) no injunction, restraining order or order of any nature
issued by a federal or state court or foreign court of competent
jurisdiction to which any of the Partnership Entities is or may be
subject, that, in the case of clauses (i), (ii) and (iii)
above, is reasonably expected to (A) individually or in the
aggregate be expected to have a Material Adverse Effect,
(B) prevent or result in the suspension of the offering and
issuance of the Units, or (C) in any manner draw into question
the validity of this Agreement.
(gg)
Related Party Transactions . No relationship, direct or
indirect, exists between or among the El Paso Entities on the one
hand, and the directors, officers, partners, customers or suppliers
of MLP GP and its affiliates (other than the Partnership Entities)
on the other hand, which is required to be described in the Time of
Sale Prospectus or the Prospectus and which is not so
described.
(hh) No
Labor Disputes . No labor dispute with the employees that are
engaged in the business of the Partnership Entities exists or, to
the knowledge of the Partnership Entities, is imminent or
threatened. None of the Partnership Entities is in v
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