8-KSecurities & ListingOther Events

Energy Transfer LP 8-K Report, Listing Notice (Aug 8, 2011)

Filed August 8, 2011For Securities:ETET-PI

Summary

This 8-K filing from Energy Transfer Equity, L.P. (ETE), filed on August 8, 2011, primarily addresses a compliance issue with New York Stock Exchange (NYSE) listing standards. The company was not in compliance with Section 303A.07(a) of the NYSE corporate governance rules, which mandates that a company's audit committee must have at least three independent directors. ETE had previously notified the NYSE of this deficiency on July 29, 2011, and received an official notice of deficiency on August 2, 2011. The most significant event reported is the election of David R. Albin to the Audit Committee of the Board of Directors of LE GP, LLC, the general partner of ETE, on August 5, 2011. Mr. Albin, who has been on the Board since 2002, was deemed independent and financially literate according to NYSE and SEC regulations. Following his appointment, ETE officially notified the NYSE on August 8, 2011, that it has now satisfied the audit committee independence requirements and is in full compliance.

Key Highlights

  • 1Energy Transfer Equity, L.P. (ETE) appointed David R. Albin to its Audit Committee on August 5, 2011.
  • 2Mr. Albin's addition brings the Audit Committee membership to three.
  • 3The company had previously been notified by the NYSE of a deficiency in meeting audit committee independence requirements.
  • 4ETE was found to be non-compliant with NYSE Section 303A.07(a) regarding audit committee independence.
  • 5Mr. Albin meets NYSE independence requirements for audit committee members and is considered financially literate.
  • 6Following Mr. Albin's election, ETE notified the NYSE on August 8, 2011, that it is now in full compliance with the audit committee independence rule.
  • 7The filing explicitly incorporates information from Item 8.01 into Item 3.01, indicating the audit committee appointment is the primary reason for addressing listing standards.

Frequently Asked Questions

The primary reason for filing this 8-K report was to announce the appointment of David R. Albin to the Audit Committee, which resolved a deficiency in complying with New York Stock Exchange (NYSE) corporate governance standards regarding audit committee independence.

ETE was out of compliance with Section 303A.07(a) of the NYSE corporate governance listing standards, which requires that all publicly-traded companies must have at least three independent directors serving on their audit committee.

David R. Albin's appointment to the Audit Committee was significant because it brought the committee to the required number of three independent directors, thereby satisfying the NYSE's listing standard and bringing ETE back into compliance, averting potential delisting concerns.

ETE became compliant with the NYSE audit committee rule on August 5, 2011, when David R. Albin was elected to the Audit Committee. The company formally notified the NYSE of its full compliance on August 8, 2011.