8-KLeadership ChangesOther EventsExhibits & Filings

ENTERPRISE PRODUCTS PARTNERS L.P. 8-K Report, Executive Changes (Mar 28, 2008)

Filed March 28, 2008For Securities:EPDEPDU

Summary

This Current Report on Form 8-K filed by Enterprise Products Partners L.P. (EPD) on March 28, 2008, primarily details two key events. Firstly, it provides an update on an employee incentive arrangement established on February 20, 2008, through the formation of Enterprise Unit L.P. (Enterprise LP). This entity was created to offer a "profits interest" to certain employees, funded by aggregate contributions from EPCO Holdings, Inc. (EPCO Holdings) totaling $18,000,000 initially, with a potential for up to an additional $33 million. These funds were used to purchase common units in Enterprise GP Holdings L.P. and EPD Units. Secondly, the report discloses the settlement of an environmental enforcement action with the Texas Commission on Environmental Quality (TCEQ) regarding air emissions from cooling towers at its Mont Belvieu, Texas, fractionation complex. While EPD paid a $270,725 administrative penalty and committed to a Supplemental Environmental Project (SEP) of the same amount, along with cooling tower upgrades, the company explicitly states that these costs and actions are not expected to be material to its financial condition, results of operations, or cash flows.

Key Highlights

  • 1EPD established Enterprise Unit L.P. (Enterprise LP) as an employee incentive program through a "profits interest" arrangement.
  • 2EPCO Holdings, Inc. is contributing $18 million initially to Enterprise LP, with an option to contribute up to an additional $33 million.
  • 3Funds from Enterprise LP contributions are being used to purchase common units of Enterprise GP Holdings L.P. (EPE Units) and EPD Units.
  • 4EPD has settled an environmental enforcement action with the TCEQ concerning air emissions at its Mont Belvieu facility.
  • 5The settlement involves a $270,725 administrative penalty payment and a commitment to a $270,725 Supplemental Environmental Project (SEP).
  • 6EPD will implement cooling tower upgrades as part of the settlement.
  • 7The company asserts that the environmental penalty, SEP, and upgrades are not expected to be material to its financial condition or results.

Frequently Asked Questions

Enterprise LP was formed as an employee incentive arrangement to provide certain employees of EPCO with a "profits interest" in Enterprise LP.

EPCO Holdings, Inc. made an initial aggregate contribution of $18,000,000 to Enterprise LP and may make additional contributions up to approximately $33 million. These funds are used to purchase common units in Enterprise GP Holdings L.P. (EPE Units) and Enterprise Products Partners L.P. (EPD Units).

EPD received a notice of enforcement action from the TCEQ regarding air emissions from cooling towers at its Mont Belvieu complex. EPD settled this action by paying a $270,725 penalty and committing to a Supplemental Environmental Project (SEP) of the same amount, along with cooling tower upgrades. EPD explicitly stated that these actions are not expected to be material to its financial condition, results of operations, or cash flows.

The events leading to this Form 8-K filing occurred on or around March 25, 2008, and the report was filed with the SEC on March 27, 2008 (though the filing date on the document is March 28, 2008).