<SEC-DOCUMENT>0000950123-11-032669.txt : 20110405
<SEC-HEADER>0000950123-11-032669.hdr.sgml : 20110405
<ACCEPTANCE-DATETIME>20110404185341
ACCESSION NUMBER:		0000950123-11-032669
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		3
FILED AS OF DATE:		20110405
DATE AS OF CHANGE:		20110404

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Teekay LNG Partners L.P.
		CENTRAL INDEX KEY:			0001308106
		STANDARD INDUSTRIAL CLASSIFICATION:	WATER TRANSPORTATION [4400]
		IRS NUMBER:				000000000
		STATE OF INCORPORATION:			1T
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-162579
		FILM NUMBER:		11737632

	BUSINESS ADDRESS:	
		STREET 1:		4TH FLOOR, BELVEDERE BUILDING
		STREET 2:		69 PITTS BAY ROAD
		CITY:			HAMILTON
		STATE:			D0
		ZIP:			HM 08
		BUSINESS PHONE:		(441) 298-2530

	MAIL ADDRESS:	
		STREET 1:		SUITE NO. 1778, PAR-LA-VILLE ROAD
		CITY:			HAMILTON
		STATE:			D0
		ZIP:			HM 11
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>o67390e424b5.htm
<DESCRIPTION>424(B)(5)
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<TABLE style="color: #FF0000" width="100%" border="1" cellpadding="5"><TR><TD>
<B><FONT style="font-size: 9pt; font-family: Arial, Helvetica; color: #C41E3A">The
information in this preliminary prospectus supplement is not
complete and may be changed. This preliminary prospectus
supplement and the accompanying prospectus are not an offer to
sell these securities and are not soliciting an offer to buy
these securities in any jurisdiction where the offer or sale is
not permitted.<BR>
</FONT></B>
</TD></TR></TABLE>

<DIV style="margin-top: 1pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Filed Pursuant to Rule 424(b)(5)
</DIV>

<DIV align="right" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Registration No. 333-162579
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-family: Arial, Helvetica; color: #C41E3A">SUBJECT
    TO COMPLETION, DATED April&#160;4, 2011
    </FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 8pt; font-family: Arial, Helvetica">PROSPECTUS
    SUPPLEMENT
    </FONT>
</DIV>

<DIV style="font-size: 3pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 8pt; font-family: Arial, Helvetica">(To
    Prospectus dated October&#160;29, 2009)
    </FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">3,700,000
    Common Units</FONT></B>
</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">Representing
    Limited Partner Interests</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="o67390o6739001.gif" alt="(TEEKAY LNG PARTNERS L.P. LOGO)"><B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 26pt; font-family: Arial, Helvetica">Teekay
    LNG Partners L.P.</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">$&#160;&#160;&#160;&#160;&#160;
    per common unit</FONT></B>
</DIV>

<DIV style="font-size: 24pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are selling 3,700,000 of our common units, representing
    limited partner interests. We have granted the underwriters an
    option to purchase up to 555,000 additional common units to
    cover over-allotments, if any.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units are listed on the New York Stock Exchange under
    the symbol &#147;TGP.&#148; The last reported sale price of our
    common units on the New York Stock Exchange on April&#160;1,
    2011 was $40.43 per common unit.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in our common units involves risks. Please read
    &#147;Risk Factors&#148; beginning on
    <FONT style="white-space: nowrap">page&#160;S-5</FONT>
    of this prospectus supplement and page&#160;6 of the
    accompanying prospectus before you make an investment in our
    common units.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus supplement or the
    accompanying prospectus are truthful or complete. Any
    representation to the contrary is a criminal offense.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 9pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="74%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="12%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Per common
    unit</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Total</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="8" align="right" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -9pt; margin-left: 9pt">
    Proceeds to us (before expenses) from this offering to the public
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD colspan="9" style="border-top: 1px solid #000000">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriters expect to deliver the common units on or about
    April&#160;&#160;&#160;, 2011.
</DIV>



<DIV style="font-size: 16pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 24pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
    <TD width="33%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 16pt; font-family: Arial, Helvetica">UBS
    <FONT style="font-variant: SMALL-CAPS">Investment
    Bank</FONT></FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 16pt; font-family: Arial, Helvetica; font-variant: SMALL-CAPS">
    Barclays Capital</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 16pt; font-family: Arial, Helvetica; font-variant: SMALL-CAPS">
    J.P. Morgan</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 16pt; font-family: Arial, Helvetica; font-variant: SMALL-CAPS">Goldman,
    Sachs &#038;
    Co.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;Raymond
    James</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-family: Arial, Helvetica">The date of this
    prospectus supplement is April&#160;&#160;&#160;, 2011.
    </FONT>
</DIV>
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This document is in two parts. The first part is this prospectus
    supplement, which describes the specific terms of this offering
    of common units. The second part is the accompanying prospectus,
    which gives more general information, some of which may not
    apply to this offering of common units. Generally, when we refer
    to the &#147;prospectus,&#148; we refer to both parts combined.
    If information varies between this prospectus supplement and the
    accompanying prospectus, you should rely on the information in
    this prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information contained or
    incorporated by reference in this prospectus or any &#147;free
    writing prospectus&#148; we may authorize to be delivered to
    you. We have not authorized anyone to provide you with different
    information. If anyone provides you with additional, different
    or inconsistent information, you should not rely on it. You
    should not assume that the information contained in this
    prospectus or any &#147;free writing prospectus&#148; we may
    authorize to be delivered to you, as well as the information we
    previously filed with the Securities and Exchange Commission (or
    <I>SEC</I>) that is incorporated by reference herein, is
    accurate as of any date other than its respective date. Our
    business, financial condition, results of operations and
    prospects may have changed since such dates.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are offering to sell the common units, and are seeking offers
    to buy the common units, only in jurisdictions where offers and
    sales are permitted. The distribution of this prospectus and the
    offering of the common units in certain jurisdictions may be
    restricted by law. Persons outside the United States who come
    into possession of this prospectus must inform themselves about
    and observe any restrictions relating to the offering of the
    common units and the distribution of this prospectus outside the
    United States. This prospectus does not constitute, and may not
    be used in connection with, an offer or solicitation by anyone
    in any jurisdiction in which such offer or solicitation is not
    authorized or in which the person making such offer or
    solicitation is not qualified to do so or to any person to whom
    it is unlawful to make such offer or solicitation.
</DIV>
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<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>
<DIV align="left">
<!-- TOC -->
</DIV>

<DIV align="left">
<A name="O67390tocpage"></A>
</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
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<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Prospectus Supplement</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390201'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">ii</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390202'>Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-1</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390203'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-5</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390204'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-7</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390205'>Capitalization</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-8</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390206'>Price Range of Common Units and Distributions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-9</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390207'>Material U.S. Federal Income Tax
    Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-10</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390208'><FONT style="white-space: nowrap">Non-United</FONT>
    States Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-13</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390209'>Underwriting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-16</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390210'>Notice to Investors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-19</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390211'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-21</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390212'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-21</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390213'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-21</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390214'>Incorporation of Documents by Reference</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-22</FONT></B></A>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390215'>Expenses</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">S-23</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Prospectus</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    About This Prospectus
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">1</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Teekay LNG Partners L.P.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Where You Can Find More Information
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">3</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Incorporation of Documents by Reference
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">3</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Forward-Looking Statements
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">5</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Risk Factors
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">6</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Use of Proceeds
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">12</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Description of The Common Units
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">13</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash Distributions
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">18</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Material U.S. Federal Income Tax Considerations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">28</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <FONT style="white-space: nowrap">Non-United</FONT>
    States Tax Considerations
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">47</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Plan Of Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">49</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Service of Process and Enforcement of Civil Liabilities
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">51</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal Matters
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">51</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Experts
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">51</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">52</FONT></B>
</TD>
<TD>&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV align="left">
<!-- /TOC -->
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">i</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390201'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Forward-looking
    statements
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All statements, other than statements of historical fact,
    included in or incorporated by reference into this prospectus
    are forward-looking statements. In addition, we and our
    representatives may from time to time make other oral or written
    statements that are also forward-looking statements. Such
    statements include, in particular, statements about our plans,
    strategies, business prospects, changes and trends in our
    business, and the markets in which we operate. In some cases,
    you can identify the forward-looking statements by the use of
    words such as &#147;may,&#148; &#147;will,&#148;
    &#147;could,&#148; &#147;should,&#148; &#147;would,&#148;
    &#147;expect,&#148; &#147;plan,&#148; &#147;anticipate,&#148;
    &#147;intend,&#148; &#147;forecast,&#148; &#147;believe,&#148;
    &#147;estimate,&#148; &#147;predict,&#148; &#147;propose,&#148;
    &#147;potential,&#148; &#147;continue&#148; or the negative of
    these terms or other comparable terminology. Forward-looking
    statements include statements with respect to, among other
    things, those relating to our projects with future deliveries
    and our business strategies, and those set forth in the sections
    titled &#147;Material U.S.&#160;Federal Income Tax
    Considerations&#148; and
    <FONT style="white-space: nowrap">&#147;Non-United</FONT>
    States Tax Considerations&#148; in this prospectus supplement,
    including with respect to the ratio of taxable income to
    distributions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These and other forward-looking statements are made based upon
    management&#146;s current plans, expectations, estimates,
    assumptions and beliefs concerning future events affecting us
    and, therefore, involve a number of risks and uncertainties. The
    risks and uncertainties include those risks discussed in
    &#147;Risk Factors&#148; set forth in the prospectus and those
    discussed in other reports we file with the SEC and that are
    incorporated in this prospectus by reference, including our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010. The risks,
    uncertainties and assumptions involve known and unknown risks
    and are inherently subject to significant uncertainties and
    contingencies, many of which are beyond our control. We caution
    that forward-looking statements are not guarantees and that
    actual results could differ materially from those expressed or
    implied in the forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We undertake no obligation to update any forward-looking
    statement to reflect events or circumstances after the date on
    which such statement is made or to reflect the occurrence of
    unanticipated events. New factors emerge from time to time, and
    it is not possible for us to predict all of these factors.
    Further, we cannot assess the effect of each such factor on our
    business or the extent to which any factor, or combination of
    factors, may cause actual results to be materially different
    from those contained in any forward-looking statement.
</DIV>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">ii</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="width: 100%; height: 9in; border-top: 1px solid #000000; padding-top: 12pt; border-right: 1px solid #000000; padding-right: 12pt; border-bottom: 1px solid #000000; padding-bottom: 12pt; border-left: 1px solid #000000; padding-left: 12pt"><!-- Begin box 1 -->

<A name='O67390202'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Summary
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>The following summary highlights selected information
    contained elsewhere in this prospectus and the documents
    incorporated by reference in this prospectus and does not
    contain all the information you will need in making an
    investment decision. You should carefully read this entire
    prospectus supplement, the accompanying prospectus and the
    documents incorporated by reference in this prospectus. Unless
    otherwise specifically stated, the information presented in this
    prospectus supplement assumes that the underwriters have not
    exercised their over-allotment option.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Unless otherwise indicated, references in this prospectus to
    &#147;Teekay LNG Partners,&#148; &#147;we,&#148; &#147;us&#148;
    and &#147;our&#148; and similar terms refer to Teekay LNG
    Partners L.P.
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more of its subsidiaries, except that those terms, when used
    in this prospectus in connection with the common units described
    herein, shall mean specifically Teekay LNG Partners L.P.
    References in this prospectus to &#147;Teekay Corporation&#148;
    refer to Teekay Corporation
    <FONT style="white-space: nowrap">and/or</FONT> any
    one or more of its subsidiaries.</I>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">OVERVIEW</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are an international provider of marine transportation
    services for liquefied natural gas (or <I>LNG</I>), liquefied
    petroleum gas (or <I>LPG</I>) and crude oil. We were formed in
    2004 by Teekay Corporation, the world&#146;s largest owner and
    operator of medium-sized crude oil tankers, to expand its
    operations in the LNG shipping sector. Our primary growth
    strategy focuses on expanding our fleet of LNG and LPG carriers
    under long-term, fixed-rate charters. We intend to continue our
    practice of acquiring LNG and LPG carriers as needed for
    approved projects only after the long-term charters for the
    projects have been awarded to us, rather than on a speculative
    basis. In executing our growth strategy, we may engage in vessel
    or business acquisitions or enter into joint ventures and
    partnerships with companies that may provide increased access to
    emerging opportunities from global expansion of the LNG and LPG
    sectors. Our fleet, excluding newbuildings, currently consists
    of 17 LNG carriers, 10 Suezmax-class crude oil tankers, two LPG
    carriers and one Handymax product tanker, all of which are
    double-hulled and generally operate under long-term, fixed-rate
    time charters with major energy and utility companies. Although
    we may acquire additional crude oil tankers from
    <FONT style="white-space: nowrap">time-to-time,</FONT>
    we view our Suezmax tanker fleet primarily as a source of stable
    cash flow. We seek to leverage the expertise, relationships and
    reputation of Teekay Corporation and its affiliates to pursue
    growth opportunities in the LNG and LPG shipping sectors and may
    consider other opportunities to which our competitive strengths
    are well suited. As of April&#160;1, 2011, Teekay Corporation,
    which beneficially owns and controls our general partner,
    beneficially owned a 46.8% interest in us, including a 2%
    general partner interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our operations are conducted through, and our operating assets
    are owned by, our subsidiaries. We own our interests in our
    subsidiaries through our 100% ownership interest in our
    operating company, Teekay LNG Operating L.L.C., a Marshall
    Islands limited liability company. Our general partner, Teekay
    GP L.L.C., a Marshall Islands limited liability company, has an
    economic interest in us and manages our operations and
    activities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">BUSINESS
    STRATEGIES</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our primary business objective is to increase distributable cash
    flow per unit by executing the following strategies:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    <I>Acquire new LNG and LPG carriers built to project
    specifications after long-term, fixed-rate time charters have
    been awarded for the LNG and LPG projects</I>.&#160;&#160;Our
    LNG and LPG carriers were built or will be built to customer
    specifications included in the related long-term, fixed-rate
    time charters for the vessels. We intend to continue our
    practice of acquiring LNG and LPG carriers as needed for
    approved projects only after the long-term, fixed-rate time
    charters for the projects have been
</TD>
</TR>

</TABLE>
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<P>
</DIV><!-- End box 1 -->

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-1</FONT></B>
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<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD></TD>
    <TD align="left">
    awarded, rather than ordering vessels on a speculative basis. We
    believe this approach is preferable to speculative newbuilding
    because it:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    eliminates the risk of incremental or duplicative expenditures
    to alter newly-built LNG and LPG carriers to meet customer
    specifications;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    facilitates the financing of new LNG and LPG carriers based on
    their anticipated future revenues; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    ensures that new vessels will be employed upon acquisition,
    which should generate more stable cash flow.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    <I>Expand our LNG and LPG operations globally.</I>&#160;&#160;We
    seek to capitalize on opportunities emerging from the global
    expansion of the LNG and LPG sector by selectively targeting:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    long-term, fixed-rate time charters wherever there is
    significant growth in LNG and LPG trade;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    joint ventures and partnerships with companies that may provide
    increased access to opportunities in attractive LNG and LPG
    importing and exporting geographic regions; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    strategic vessel and business acquisitions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    <I>Provide superior customer service by maintaining high
    reliability, safety, environmental and quality
    standards.</I>&#160;&#160;LNG and LPG project operators seek LNG
    and LPG transportation partners that have a reputation for high
    reliability, safety, environmental and quality standards. We
    seek to leverage our own and Teekay Corporation&#146;s
    operational expertise to create a sustainable competitive
    advantage with consistent delivery of superior customer service.
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    <I>Manage our Suezmax tanker fleet to provide stable cash
    flows.</I>&#160;&#160;The remaining terms for our existing
    long-term Suezmax tanker charters are 5 to 15&#160;years. We
    believe the fixed-rate time charters for our oil tanker fleet
    provide us stable cash flows during their terms and a source of
    funding for expanding our LNG and LPG operations. Depending on
    prevailing market conditions during and at the end of each
    existing charter, we may seek to extend the charter, enter into
    a new charter, operate the vessel on the spot market or sell the
    vessel, in an effort to maximize returns on our Suezmax fleet
    while managing residual risk.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">2010
    ACQUISITIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Acquisition of
    Three Conventional Tankers</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In March 2010, we acquired from Teekay Corporation two
    2009-built 159,000 deadweight tonne Suezmax tankers, the
    <I>Bermuda Spirit </I>and the <I>Hamilton Spirit,</I> and a
    2007-built 40,083 deadweight tonne Handymax product tanker, the
    <I>Alexander Spirit</I>, and the associated fixed-rate contracts
    for a total cost of $160&#160;million. The remaining charter
    terms for these vessels are 10&#160;years, 10&#160;years and
    9&#160;years, respectively. We financed the acquisition by
    assuming $126&#160;million of debt, borrowing $24&#160;million
    under existing revolving credit facilities and using
    $10&#160;million of cash. In addition, we acquired approximately
    $15&#160;million of working capital in exchange for a short-term
    vendor loan from Teekay Corporation, which has since been repaid.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Exmar Joint
    Venture and Equity Registration</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In November 2010, we acquired a 50% interest in one regas LNG
    carrier and a 50% interest in one conventional LNG carrier
    (collectively the <I>Exmar Joint Venture</I>) from Exmar NV for
    a total purchase price of approximately $72.5&#160;million net
    of assumed debt. We paid $37.3&#160;million of the purchase
    price by issuing to Exmar NV approximately 1.1&#160;million of
    our common units and financed the balance by drawing on one of
    our revolving credit facilities. We registered Exmar NV&#146;s
    approximately 1.1&#160;million common units with the SEC in
    November 2010. As part of the acquisition, we agreed to
    guarantee 50% of the $206.3&#160;million of debt secured by the
    Exmar Joint Venture. Exmar NV retains the other 50% percent
    ownership interest in the Exmar Joint Venture. The two vessels
    acquired are the 2002-built <I>Excalibur,</I> a conventional LNG
    carrier, and the 2005-built <I>Excelsior</I>, a specialized gas
    carrier that
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-2</FONT></B>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    can both transport and regasify LNG onboard. Both vessels are on
    long-term, fixed-rate charter contracts to Excelerate Energy LP
    for firm periods until 2022 and 2025, respectively.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">FUTURE
    ACQUISITIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Skaugen LPG
    Project</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In December 2006, we agreed to acquire upon delivery three LPG
    carriers (or the <I>Skaugen LPG Carriers</I>) from subsidiaries
    of I.M. Skaugen ASA (or <I>Skaugen</I>), each of which has a
    purchase price of approximately $33&#160;million. The first two
    vessels were delivered in April and November 2009, and the
    remaining vessel is scheduled to be delivered in 2011. At
    delivery, each vessel is chartered at fixed rates for
    15&#160;years to Skaugen.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Skaugen Multigas
    Project</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In July 2008, Teekay Corporation signed contracts for the
    purchase from Skaugen of two technically-advanced 12,000-cubic
    meter newbuilding Multigas vessels (or the <I>Skaugen Multigas
    Carriers</I>) capable of carrying LNG, LPG or ethylene. We, in
    turn, agreed to acquire the vessels from Teekay Corporation upon
    delivery for a total cost of approximately $106&#160;million.
    Both vessels are scheduled to be delivered in 2011. Upon
    delivery, each vessel will commence service under
    <FONT style="white-space: nowrap">15-year</FONT>
    fixed-rate charters to Skaugen.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Angola LNG
    Project</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In December 2007, a consortium in which Teekay Corporation has a
    33% ownership interest agreed to charter four newbuilding
    160,400-cubic meter LNG carriers to the Angola LNG Project. The
    Angola LNG Project involves the collection and transportation of
    gas from offshore production facilities to an onshore LNG
    processing plant at Soyo, located in northwest Angola. The
    project is being developed by subsidiaries of Chevron
    Corporation, Sociedade Nacional de Combustiveis de Angola EP, BP
    Plc, Total S.A., and Eni SpA. Mitsui&#160;&#038; Co., Ltd. and
    NYK Bulkship (Europe) have 34% and 33% ownership interests in
    the consortium, respectively.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Teekay Corporation has offered to us, and we have agreed to
    purchase, its 33% ownership interest in the Angola LNG Project
    at a total equity purchase price of approximately
    $73&#160;million (net of assumed debt) subject to adjustment
    based on actual costs incurred at the time of delivery. We will
    acquire the ownership interests and pay a proportionate share of
    the purchase price as each vessel is delivered. The vessels are
    scheduled for delivery during the fall of 2011 and in the first
    quarter of 2012.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Each of the four newbuilding LNG carriers will be chartered at
    fixed rates, subject to inflation adjustments, to the Angola LNG
    Project for a period of 20&#160;years upon delivery from the
    shipyard, with two extension periods for five years each. The
    charterer has the option to terminate any charter upon
    120&#160;days notice and payment of an early termination fee,
    which would equal approximately 50% of the fully
    <FONT style="white-space: nowrap">built-up</FONT>
    cost of the applicable vessel. The charterer may also terminate
    the charter under other circumstances typical in our long-term
    charters, such as excessive off-hire during which we do not
    provide a replacement vessel, or certain force majeure events.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">OTHER RECENT
    DEVELOPMENTS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Sale of Dania
    Spirit</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On November&#160;5, 2010, we sold one of our LPG carriers, the
    <I>Dania Spirit</I>, for proceeds of $21.5&#160;million,
    resulting in a gain of $4.3&#160;million.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Cash
    Distribution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On February&#160;14, 2011, we paid a cash distribution of $0.63
    per unit for the fourth quarter of 2010 to all unitholders of
    record on February&#160;7, 2011.
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-3</FONT></B>
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    <FONT style="font-family: Arial, Helvetica">The Offering
    </FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="36%"></TD>
    <TD width="1%"></TD>
    <TD width="63%"></TD>
</TR>

<TR>
    <TD valign="top">
    Issuer</TD>
    <TD></TD>
    <TD valign="bottom">
    Teekay LNG Partners L.P.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common units offered by us</TD>
    <TD></TD>
    <TD valign="bottom">
    3,700,000 common units.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    4,255,000 common units if the underwriters exercise in full
    their option to purchase up to an additional 555,000 common
    units to cover any over-allotments.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Units outstanding after this offering</TD>
    <TD></TD>
    <TD valign="bottom">
    58,806,100 common units. 59,361,100 common units if the
    underwriters exercise their over-allotment option in full.</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We intend to use the net proceeds of approximately
    $146.2&#160;million from this offering, including our general
    partner&#146;s related capital contribution, to fund the equity
    purchase price of our acquisition of Teekay Corporation&#146;s
    33% interest in the Angola LNG Project as such payment becomes
    due, while using interim and remaining funds for the repayment
    of outstanding debt under one of our revolving credit
    facilities. Please read &#147;Use of Proceeds.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Estimated ratio of taxable income to distributions</TD>
    <TD></TD>
    <TD valign="bottom">
    We estimate that if you hold the common units you purchase in
    this offering through December&#160;31, 2013 you will be
    allocated, on a cumulative basis, an amount of U.S. federal
    taxable income for that period that will be 20% or less of the
    cash distributed to you with respect to that period. For a
    discussion of the basis for this estimate and of factors that
    may affect our ability to achieve this estimate, please read
    &#147;Material U.S. Federal Income Tax Considerations&#151;Ratio
    of Taxable Income to Distributions.&#148;</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    New York Stock Exchange Symbol</TD>
    <TD></TD>
    <TD valign="bottom">
    TGP</TD>
</TR>

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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-4</FONT></B>
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    <A name='O67390203'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Risk factors
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Before investing in our common units, you should carefully
    consider all of the information included or incorporated by
    reference into this prospectus. Although many of our business
    risks are comparable to those of a corporation engaged in a
    similar business, limited partner interests are inherently
    different from the capital stock of a corporation. When
    evaluating an investment in our common units, you should
    carefully consider those risks discussed under the caption
    &#147;Risk Factors&#148; beginning on page&#160;6 of the
    accompanying prospectus, as well as the discussion of risk
    factors beginning on page&#160;9 of our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010, which is incorporated
    by reference into this prospectus. If any of these risks or
    other risks incorporated by reference into this prospectus were
    to occur, our business, financial condition or operating results
    could be materially adversely affected. In that case, our
    ability to pay distributions on our common units may be reduced,
    the trading price of our common units could decline, and you
    could lose all or part of your investment. In addition, we are
    subject to the following risks and uncertainties.</I>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the following risk factors, you should read
    &#147;Material U.S.&#160;Federal Income Tax Considerations&#148;
    in this prospectus supplement and in the accompanying base
    prospectus for a more complete discussion of expected material
    U.S.&#160;federal income tax consequences of owning and
    disposing of our securities.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">When we acquire
    Teekay Corporation&#146;s interest in the four LNG carriers
    chartered to the Angola LNG Project, we will be exposed to the
    political and economic instability in Angola, and will assume a
    credit risk by entering a charter agreement with Angola LNG
    Supply Services LLC, an unrated entity who will pay us from
    revenue generated from its sale of gas.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have agreed to acquire Teekay Corporation&#146;s 33%
    ownership interest in four LNG carriers that will be used to
    collect and transport gas from offshore production facilities to
    an onshore LNG processing plant in Angola. This is our first
    long-term project in Angola. Angola is affected by political
    instability, a poor economy, poor infrastructure and high
    unemployment. These factors may disrupt the LNG carriers&#146;
    charters with the Angola LNG Project, including as a result of
    attacks on our vessels or the project, political unrest,
    strikes, hostile actions in the region, tariffs, trade embargoes
    and other economic sanctions by the United States or other
    countries and the Angola government requisitioning our ships.
    Any of these or other similar actions could harm our ability to
    realize the expected economic benefit from our acquisition of
    this interest in these LNG carriers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, the four LNG carriers are chartered to Angola LNG
    Supply Services LLC, an unrated entity. Angola LNG Supply
    Services LLC will use revenue generated from the sale of the
    shipped gas to pay its shipping and other operating expenses,
    including the charter fees. The price of the gas is subject to
    market fluctuations. If the revenue generated by the charterer
    is insufficient to pay the charter fees, we may be unable to
    realize the expected economic benefit from our acquisition of
    the interest in the LNG carriers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">The decision of
    the United States Court of Appeals for the Fifth Circuit in
    Tidewater Inc.&#160;v. United States creates some uncertainty as
    to whether we will be classified as a partnership for U.S.
    federal income tax purposes.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order for us to be classified as a partnership for
    U.S.&#160;federal income tax purposes, more than 90% of our
    gross income each year must be &#147;qualifying income&#148;
    under Section&#160;7704 of the U.S.&#160;Internal Revenue Code
    of 1986, as amended (the <I>Code</I>). For this purpose,
    &#147;qualifying income&#148; includes income from providing
    marine transportation services to customers with respect to
    crude oil, natural gas and certain products thereof, but may not
    include rental income from leasing vessels to customers.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The decision of the United States Court of Appeals for the Fifth
    Circuit in <I>Tidewater Inc.&#160;v. United&#160;States, </I>565
    F.3d 299 (5th&#160;Cir. 2009)&#160;held that income derived from
    certain time chartering
</DIV>
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<P>
<P>

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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-5</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Risk
    factors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    activities should be treated as rental income rather than
    services income for purposes of a foreign sales corporation
    provision of the Code. However, the Internal Revenue Service (or
    <I>IRS</I>) stated in an Action on Decision (AOD
    <FONT style="white-space: nowrap">2010-01)</FONT>
    that it disagrees with, and will not acquiesce to, the way that
    the rental versus services framework was applied to the facts in
    the <I>Tidewater </I>decision, and in its discussion stated that
    the time charters at issue in <I>Tidewater </I>would be treated
    as producing services income for purposes of the passive foreign
    investment company provisions of the Code. The IRS&#146;s
    statement with respect to <I>Tidewater </I>cannot be relied upon
    or otherwise cited as precedent by taxpayers. Consequently, in
    the absence of any binding legal authority specifically relating
    to the statutory provisions governing &#147;qualifying
    income&#148; under Section&#160;7704 of the Code, there can be
    no assurance that the IRS or a court would not follow the
    <I>Tidewater </I>decision in interpreting the &#147;qualifying
    income&#148; provisions under Section&#160;7704 of the Code.
    Nevertheless, our counsel, Perkins Coie LLP, is of the opinion
    that our time charter income should be &#147;qualifying
    income&#148; within the meaning of Section&#160;7704(d) of the
    Code and that we should (as opposed to will) be classified as a
    partnership for U.S.&#160;federal income tax purposes. No
    assurance can be given, however, that the opinion of Perkins
    Coie LLP would be sustained by a court if contested by the IRS.
    Please read &#147;Material U.S.&#160;Federal Income Tax
    Considerations&#151;Classification as a Partnership.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Certain of our
    lease arrangements contain provisions whereby we have provided a
    tax indemnification to third parties, which may result in
    increased lease payments or termination of favorable lease
    arrangements.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We and a joint venture partner are the lessee under
    <FONT style="white-space: nowrap">30-year</FONT>
    capital lease arrangements with a third party for three LNG
    carriers. Under the terms of these capital lease arrangements,
    the lessor claims tax depreciation on the capital expenditures
    it incurred to acquire these vessels. As is typical in these
    leasing arrangements, tax and change of law risks are assumed by
    the lessee. The rentals payable under the lease arrangements are
    predicated on the basis of certain tax and financial assumptions
    at the commencement of the leases. If an assumption proves to be
    incorrect or there is a change in the applicable tax legislation
    or the interpretation thereof by the U.K. taxing authority, the
    lessor is entitled to increase the rentals so as to maintain its
    agreed after-tax margin. We do not have the ability to pass
    these increased rentals onto our charter party. However, the
    terms of the lease arrangements enable us and our joint venture
    partner jointly to terminate the lease arrangement on a
    voluntary basis at any time. In the event of an early
    termination of the lease arrangements, the joint venture may be
    obliged to pay termination sums to the lessor sufficient to
    repay its investment in the vessels and to compensate it for the
    tax effect of the terminations, including recapture of tax
    depreciation, if any. Although the exact amount of any such
    payments upon termination would be negotiated between us and the
    lessor, we expect the amount would be significant.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Recently, the U.K. taxing authority has been urging lessors
    under capital lease arrangements that have tax benefits similar
    to the ones provided by the capital lease arrangements for our
    LNG carriers to terminate such capital lease arrangements and
    has in other circumstances challenged the use of similar tax
    structures, although under facts we believe are different from
    ours. As a result, our lessor has requested that we enter into
    negotiations for a mutually agreed upon termination of these
    leases. We have declined the request to negotiate. While, based
    on discussions with our counsel, we do not believe that the U.K.
    taxing authority would be able to successfully challenge the
    availability to the lessor of these benefits, if the challenge
    were successful, the joint venture, of which we own a 70%
    interest, could be subject to significant costs associated with
    the termination of the lease or increased lease payments to
    compensate the lessor for the lost tax benefits.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, the subsidiaries of another joint venture formed to
    service the Tangguh LNG project in Indonesia have entered into
    lease arrangements with a third party for two LNG carriers. We
    purchased Teekay Corporation&#146;s interest in this joint
    venture in 2009. The terms of the lease arrangements provide
    similar tax and change of law risk assumption by this joint
    venture as we have with the three LNG carriers above.
</DIV>
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<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-6</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390204'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Use of proceeds
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We expect to receive net proceeds of approximately
    $146.2&#160;million from the sale of common units we are
    offering, including from our general partners&#146; capital
    contribution to maintain its 2% general partner interest in us,
    after deducting the underwriting discount and estimated expenses
    payable by us. We base this amount on an assumed public offering
    price of $40.43 per share, the last reported sale price of our
    common units on the New York Stock Exchange on April&#160;1,
    2011. Based on the same assumed public offering price, we expect
    to receive net proceeds of approximately $168.2&#160;million if
    the underwriters&#146; option to acquire additional common units
    is exercised in full, including from our general partner&#146;s
    related capital contribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We intend to use the net proceeds from our sale of common units
    covered by this prospectus and the capital contribution by our
    general partner to fund the equity purchase price of our
    acquisition of Teekay Corporation&#146;s 33% interest in the
    Angola LNG Project as such payment becomes due, while using
    interim and remaining funds for the repayment of outstanding
    debt under one of our revolving credit facilities, which has a
    fluctuating interest rate based on the London Interbank Offered
    Rate (LIBOR) plus 0.55%. The credit facility matures on
    August&#160;23, 2018. In the past year, we drew on the facility
    to fund the acquisitions described under &#147;Summary&#151;2010
    Acquisitions&#148; above and for general partnership purposes.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-7</FONT></B>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390205'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Capitalization
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth our capitalization as of
    December&#160;31, 2010 on an historical basis and on an as
    adjusted basis to give effect to this offering, the capital
    contribution by our general partner to maintain its 2% general
    partner interest in us, and the application of the estimated net
    proceeds therefrom. Please read &#147;Use of Proceeds.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The historical data in the table is derived from and should be
    read in conjunction with our consolidated financial statements,
    including accompanying notes, incorporated by reference in this
    prospectus. You should also read this table in conjunction with
    the section entitled &#147;Management&#146;s Discussion and
    Analysis of Financial Condition and Results of Operations&#148;
    and our consolidated financial statements and the related notes
    thereto, which are incorporated by reference herein from our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="74%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="8%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">As of
    December&#160;31, 2010</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Actual</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">As
    adjusted<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="8" align="right" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">(in
    thousands)</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Cash and cash equivalents
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    81,055
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Restricted
    cash<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    572,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    572,138
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total cash and restricted cash
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    653,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    653,193
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Long-term debt, including current portion:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,399,115
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1,252,955
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Long-term obligations under capital
    leases<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    738,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    738,134
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total long-term debt
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2,137,249
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,991,089
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Equity:
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Non-controlling interest
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    17,123
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Partners&#146; equity
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    896,200
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,042,360
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 30pt">
    Total capitalization
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,050,572
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    3,050,572
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <I>(1) </I></TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Estimated net offering proceeds used to calculate the
    &#147;As Adjusted&#148; amounts are based on the issuance in
    this offering of 3,700,000 common units at an assumed public
    offering price of $40.43 per share, the last reported sales
    price of our common units on the New York Stock Exchange on
    April&#160;1, 2011.</I></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <I>(2) </I></TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Under certain capital lease arrangements, we maintain
    restricted cash deposits that, together with interest earned on
    the deposits, will equal the remaining scheduled payments we owe
    under the capital leases. The interest we receive from those
    deposits is used solely to pay interest associated with the
    capital leases, and the amount of interest we receive
    approximates the amount of interest we pay on the capital
    leases.</I></TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-8</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390206'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Price range of
    common units and distributions
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units were first offered on the New York Stock
    Exchange on May&#160;5, 2005, at an initial price of $22.00 per
    unit. Our common units are listed for trading on the New York
    Stock Exchange under the symbol &#147;TGP.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth, for the periods indicated, the
    high and low sales price per common unit, as reported on the New
    York Stock Exchange, and the amount of quarterly cash
    distributions declared per unit. The closing sales price of our
    common units on the New York Stock Exchange on April&#160;1,
    2011 was $40.43 per common unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="68%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="10%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">Price
    ranges</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Quarterly cash<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">High</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Low</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">distributions<SUP style="font-size: 85%; vertical-align: top">(1)</SUP></FONT></B>

</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="12" align="right" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Years Ended</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2008
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    32.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    9.10
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2007
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.26
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2006
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.99
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.05
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Quarters Ended</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30,
    2011<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;31, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.630
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;30, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35.34
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    28.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.09
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19.75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    30.18
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    23.22
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.600
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    26.91
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22.68
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    September&#160;30, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    25.31
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    18.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    June&#160;30, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    19.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15.13
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;31, 2009
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    20.32
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15.21
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    0.570
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>Months Ended</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    April&#160;30,
    2011<SUP style="font-size: 85%; vertical-align: top">(2)</SUP>

</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41.20
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.42
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    March&#160;31, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    41.50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    February&#160;28, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39.90
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.69
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    January&#160;31, 2011
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    39.79
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34.00
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    December&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    38.25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.28
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    November&#160;30, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    36.56
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34.35
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    October&#160;31, 2010
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    34.41
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    31.45
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="2%"></TD>
    <TD width="1%"></TD>
    <TD width="97%"></TD>
</TR>

<TR>
    <TD align="right" valign="top">
    <I>(1) </I></TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Distributions are shown for the quarter with respect to which
    they were declared. Cash distributions were declared and paid
    within 45&#160;days following the close of each quarter.</I></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <I>(2) </I></TD>
    <TD></TD>
    <TD valign="bottom">
    <I>Based on trading prices on April&#160;1, 2011.</I></TD>
</TR>


<TR style="line-height: 3pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD align="right" valign="top">
    <I>. </I></TD>
    <TD></TD>
    <TD valign="bottom">
</TD>
</TR>
<!-- XBRL Paragraph Pagebreak -->

</TABLE>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-9</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390207'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For a discussion of the principal U.S.&#160;federal income tax
    considerations associated with our operations and the purchase,
    ownership and disposition of our common units, please read
    Item&#160;10&#151;Taxation&#151;United States Tax Consequences
    in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010 and &#147;Material
    U.S.&#160;Federal Income Tax Considerations&#148; beginning on
    page&#160;28 of the accompanying base prospectus, both of which
    are incorporated by reference into this prospectus. In addition,
    please consider the U.S.&#160;federal income tax considerations
    described below. To the extent of any inconsistencies among the
    discussions of U.S.&#160;federal income tax considerations
    below, in the annual report or in the base prospectus, the
    discussion in the annual report supersedes the discussion in the
    base prospectus, and the discussion below supersedes the
    discussions in both the annual report and the base prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The tax consequences to you of an investment in our common units
    will depend in part on your own tax circumstances. You are urged
    to consult with your own tax advisor about the federal, state,
    local and foreign tax consequences peculiar to your
    circumstances.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">CLASSIFICATION AS
    A PARTNERSHIP</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of U.S.&#160;federal income taxation, a partnership
    is not a taxable entity, and although it may be subject to
    withholding taxes on behalf of its partners under certain
    circumstances, a partnership itself incurs no U.S.&#160;federal
    income tax liability. Instead, each partner of a partnership is
    required to take into account his share of items of income,
    gain, loss, deduction and credit of the partnership in computing
    his U.S.&#160;federal income tax liability, regardless of
    whether cash distributions are made to him by the partnership.
    Distributions by a partnership to a partner generally are not
    taxable unless the amount of cash distributed exceeds the
    partner&#146;s adjusted tax basis in his partnership interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Section&#160;7704 of the Internal Revenue Code provides that
    publicly traded partnerships generally will be treated as
    corporations for U.S.&#160;federal income tax purposes. However,
    an exception, referred to as the &#147;Qualifying Income
    Exception,&#148; exists with respect to publicly traded
    partnerships whose &#147;qualifying income&#148; represents 90%
    or more of their gross income for every taxable year. Qualifying
    income includes income and gains derived from the transportation
    and storage of crude oil, natural gas and products thereof,
    including liquefied natural gas. Other types of qualifying
    income include interest (other than from a financial business),
    dividends, gains from the sale of real property and gains from
    the sale or other disposition of capital assets held for the
    production of qualifying income, including stock. We have
    received a ruling from the IRS that we requested in connection
    with our initial public offering that the income we derive from
    transporting LNG and crude oil pursuant to time charters
    existing at the time of our initial public offering is
    qualifying income within the meaning of Section&#160;7704. A
    ruling from the IRS, while generally binding on the IRS, may
    under certain circumstances be revoked or modified by the IRS
    retroactively. As to income that is not covered by the IRS
    ruling, we will rely upon the opinion of Perkins Coie LLP
    whether the income is qualifying income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We estimate that less than 5% of our current income is not
    qualifying income; however, this estimate could change from time
    to time for various reasons. Because we have not received an IRS
    ruling or an opinion of counsel that any (1)&#160;income we
    derive from transporting LPG, petrochemical gases and ammonia
    pursuant to charters that we have entered into or will enter
    into in the future, (2)&#160;income we derive from transporting
    crude oil, natural gas and products thereof, including LNG,
    pursuant to bareboat charters or (3)&#160;income or gain we
    recognize from foreign currency transactions, is qualifying
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-10</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    income, we are currently treating income from those sources as
    nonqualifying income. Under some circumstances, such as a
    significant change in foreign currency rates, the percentage of
    income or gain from foreign currency transactions in relation to
    our total gross income could be substantial. We do not expect
    income or gains from these sources and other income or gains
    that are not qualifying income to constitute 10% or more of our
    gross income for U.S.&#160;federal income tax purposes. However,
    it is possible that the operation of certain of our vessels
    pursuant to bareboat charters could, in the future, cause our
    non-qualifying income to constitute 10% or more of our future
    gross income if such vessels were held in a pass-through
    structure. In order to preserve our status as a partnership for
    U.S.&#160;federal income tax purposes, we have received a ruling
    from the IRS that effectively allows us to conduct our bareboat
    charter operations, as well as our LPG operations, in a
    subsidiary corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Perkins Coie LLP is of the opinion that, based upon the Internal
    Revenue Code, Treasury Regulations thereunder, published revenue
    rulings and court decisions, the IRS ruling and representations
    described below, we should be classified as a partnership for
    U.S.&#160;federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In rendering its opinion, Perkins Coie LLP has relied on factual
    representations made by us and the general partner. The
    representations made by us and our general partner upon which
    Perkins Coie LLP has relied are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    We have not elected and will not elect to be treated as a
    corporation for U.S.&#160;federal income tax purposes; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    For each taxable year, at least 90% of our gross income will be
    either (a)&#160;income to which the IRS ruling described above
    applies or (b)&#160;of a type that Perkins Coie LLP has opined
    or will opine should be &#147;qualifying income&#148; within the
    meaning of Section 7704(d) of the Internal Revenue Code.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The discussion that follows is based on the assumption that we
    will be treated as a partnership for U.S.&#160;federal income
    tax purposes. Please read &#147;Item&#160;10&#151;Additional
    Information&#151;Taxation&#151;United States Tax
    Consequences&#151;Possible Classification as a Corporation&#148;
    in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010 for a discussion of
    the consequences of our failing to be treated as a partnership
    for such purposes.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">RATIO OF TAXABLE
    INCOME TO DISTRIBUTIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We estimate that a purchaser of common units in this offering
    who owns those common units from the date of closing of this
    offering through December&#160;31, 2013, will be allocated an
    amount of U.S.&#160;federal taxable income for that period that
    will be 20% or less of the cash distributed with respect to that
    period. These estimates are based upon (1)&#160;assumptions as
    to the amount of our gross income from operations and
    distributions on all units, (2)&#160;the assumption that
    subsequent issuances of units, if any, during the period ending
    December&#160;31, 2013 will not be made under circumstances that
    would increase the ratio of taxable income allocated to units
    issued in this offering to distributions during the period
    ending December&#160;31, 2013 above 20%, (3)&#160;assumptions as
    to the amount of income we will earn from deposits with
    shipbuilders and from our subsidiaries classified as
    corporations for U.S.&#160;federal income tax purposes, which
    under the passive loss rules, generally cannot be offset by our
    losses (please read &#147;Item&#160;10&#151;Additional
    Information&#151;Taxation&#151;United States Tax
    Consequences&#151;Consequences of Unit
    Ownership&#151;Limitations on Deductibility of Losses&#148; in
    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010), (4)&#160;assumptions
    that our subsidiaries that are classified as corporations for
    U.S.&#160;federal income tax purposes are not treated as passive
    foreign investment companies (or <I>PFIC</I>s)&#160;and
    (5)&#160;other assumptions with respect to capital expenditures,
    foreign currency translation income, gains on foreign currency
    transactions, cash flow and anticipated cash distributions.
    These estimates and assumptions are subject to, among other
    things, numerous business, economic, regulatory, competitive and
    political uncertainties beyond our control. Further, the
    estimates are based on current U.S.&#160;federal income tax law
    and tax reporting positions that we will adopt and with which
    the IRS could disagree. Accordingly, we cannot assure you that
    the actual ratio of taxable income allocated to
</DIV>
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<P>

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    <BR>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    units in this offering to cash distributions on the common units
    during the period ending December&#160;31, 2013 will not be
    materially greater than our estimate of 20% or less. For
    example, the ratio of allocable taxable income to cash
    distributions could be greater, and perhaps substantially
    greater, than 20% with respect to the period described above if:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    gross income from operations exceeds the amount required to make
    our current level of distributions on all units, yet we continue
    to make distributions at the current levels; or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    we make a future offering of common units and use the proceeds
    of the offering in a manner that does not produce substantial
    additional deductions during the period described above, such as
    to repay indebtedness outstanding at the time of this offering
    or to acquire property that is not eligible for depreciation or
    amortization for U.S.&#160;federal income tax purposes or that
    is depreciable or amortizable, or produces deductions, at a rate
    significantly slower than the rate applicable to our assets at
    the time of this offering.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the ratio of allocable taxable income to cash distributions
    were to be materially greater than our estimate, the value of
    the common units could be materially adversely affected.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">POSSIBLE PFIC
    STATUS OF OUR SUBSIDIARY CORPORATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our subsidiaries Arctic Spirit L.L.C., Polar Spirit L.L.C. and
    Teekay LNG Holdco L.L.C. are classified as corporations for
    U.S.&#160;federal income tax purposes. As
    <FONT style="white-space: nowrap">non-U.S.&#160;entities</FONT>
    classified as corporations for U.S.&#160;federal income tax
    purposes, these subsidiaries could be considered PFICs. We
    received a ruling from the IRS that our subsidiary Teekay LNG
    Holdco L.L.C. will be classified as a controlled foreign
    corporation (<I>CFC</I>) rather than a PFIC as long as it is
    wholly-owned by a U.S.&#160;partnership. We have restructured
    our subsidiaries Arctic Spirit L.L.C. and Polar Spirit L.L.C.
    such that they are also owned by our U.S.&#160;partnership.
    Perkins Coie LLP is of the opinion that these two subsidiaries
    should be treated as CFCs rather than PFICs following this
    restructuring.
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-12</FONT></B>
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    <A name='O67390208'>
</DIV>

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<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica"><FONT style="white-space: nowrap">Non-United</FONT>
    States tax considerations
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">MARSHALL ISLANDS
    TAX CONSIDERATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion is based upon the opinion of Watson,
    Farley&#160;&#038; Williams (New York) LLP, our counsel as to
    matters of the laws of the Republic of The Marshall Islands, and
    the current laws of the Republic of The Marshall Islands
    applicable to persons who do not reside in, maintain offices in
    or engage in business in the Republic of The Marshall Islands.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because we and our subsidiaries do not, and we do not expect
    that we or any of our subsidiaries will, conduct business or
    operations in the Republic of The Marshall Islands, and because
    all documentation related to this offering will be executed
    outside of the Republic of The Marshall Islands, under current
    Marshall Islands law holders of our common units will not be
    subject to Marshall Islands taxation or withholding on
    distributions, including upon a return of capital, we make to
    our unitholders. In addition, our unitholders will not be
    subject to Marshall Islands stamp, capital gains or other taxes
    on the purchase, ownership or disposition of common units, and
    they will not be required by the Republic of The Marshall
    Islands to file a tax return relating to the common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is the responsibility of each unitholder to investigate the
    legal and tax consequences, under the laws of pertinent
    jurisdictions, including the Marshall Islands, of such
    unitholder&#146;s investment in us. Accordingly, each
    prospective unitholder is urged to consult its tax counsel or
    other advisor with regard to those matters. Further, it is the
    responsibility of each unitholder to file all state, local and
    <FONT style="white-space: nowrap">non-U.S.,</FONT> as
    well as U.S.&#160;federal tax returns, that may be required of
    such unitholder.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">CANADIAN FEDERAL
    INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion is a summary of the material Canadian
    federal income tax consequences under the <I>Income Tax Act
    </I>(Canada) (or the <I>Canada Tax Act</I>), as of the date of
    this prospectus, that we believe are relevant to holders of
    common units who, for the purposes of the Canada Tax Act and the
    Canada-United States Tax Convention 1980 (or the
    <I>Canada-U.S.&#160;Treaty</I>) are, at all relevant times,
    resident in the United States and entitled to all of the
    benefits of the Canada-U.S.&#160;Treaty and who deal at
    arm&#146;s length with us and Teekay Corporation (or
    <I>U.S.&#160;Resident Holders</I>). This discussion takes into
    account all proposed amendments to the Canada Tax Act and the
    regulations thereunder that have been publicly announced by or
    on behalf of the Minister of Finance (Canada) prior to the date
    hereof and assumes that such proposed amendments will be enacted
    substantially as proposed. However, no assurance can be given
    that such proposed amendments will be enacted in the form
    proposed or at all. This discussion assumes that we are, and
    will continue to be, classified as a partnership for United
    States federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Resident Holder will not be liable to tax under the
    Canada Tax Act on any income or gains allocated by us to the
    U.S.&#160;Resident Holder in respect of such U.S.&#160;Resident
    Holder&#146;s common units, provided that, for purposes of the
    Canada-U.S.&#160;Treaty, (a)&#160;we do not carry on business
    through a permanent establishment in Canada and (b)&#160;such
    U.S.&#160;Resident Holder does not hold such common units in
    connection with a business carried on by such U.S.&#160;Resident
    Holder through a permanent establishment in Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A U.S.&#160;Resident Holder will not be liable to tax under the
    Canada Tax Act on any income or gain from the sale, redemption
    or other disposition of such U.S.&#160;Resident Holder&#146;s
    common units, provided that, for purposes of the
    Canada-U.S.&#160;Treaty, such common units do not, and did not
    at any time in the twelve-month period preceding the date of
    disposition, form part of the business property of a permanent
    establishment in Canada of such U.S.&#160;Resident Holder.
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-13</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica"><FONT style="white-space: nowrap">Non-United</FONT>
    States tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In this regard, we believe that our activities and affairs can
    be conducted in a manner that we will not be carrying on
    business in Canada and that U.S.&#160;Resident Holders should
    not be considered to be carrying on business in Canada for
    purposes of the Canada Tax Act or the Canada-U.S.&#160;Treaty
    solely by reason of the acquisition, holding, disposition or
    redemption of their common units. We intend that this is and
    continues to be the case, notwithstanding that certain services
    will be provided to Teekay LNG Partners L.P., indirectly through
    arrangements with Teekay Shipping Limited (a subsidiary of
    Teekay Corporation that is resident and based in Bermuda), by
    Canadian service providers, as discussed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the Canada Tax Act, a resident of Canada (which may
    include a foreign corporation the central management and control
    of which is in Canada) is subject to Canadian tax on its
    world-wide income, subject to any relief that may be provided by
    any relevant tax treaty. A non-resident corporation or
    individual that carries on a business in Canada directly or
    through a partnership is, subject to any relevant tax treaty,
    subject to tax in Canada on income attributable to its business
    (or that of the partnership, as the case may be) carried on in
    Canada. The Canada Tax Act contains special rules that provide
    that qualifying international shipping corporations will not be
    considered resident in Canada even if they are, in whole or in
    part, managed from Canada. Further, the Canada Tax Act and many
    of the tax treaties to which Canada is a party also contain
    special exemptions for profits derived from international
    shipping operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have entered into an agreement with Teekay Shipping Limited
    for the provision of administrative services, and certain of our
    operating subsidiaries have entered into agreements with:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    Teekay Shipping Limited for the provision of advisory,
    technical, ship management and administrative services; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    Teekay LNG Projects Ltd., a Canadian subsidiary of Teekay
    Corporation, for the provision of strategic advisory and
    consulting services.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain of the services that Teekay Shipping Limited provides to
    us and our operating subsidiaries under the services agreements
    are and will be obtained by Teekay Shipping Limited through
    subcontracts with a Canadian subsidiary of Teekay Corporation.
    The special rules in the Canada Tax Act and various relevant tax
    treaties relating to qualifying international shipping
    corporations and income from international shipping operations
    may provide relief to our operating subsidiaries to the extent
    that the services provided to them by Canadian entities would
    otherwise result in such operating subsidiaries being considered
    to be resident in Canada or to be taxable in Canada on income
    from such operations by virtue of carrying on business in
    Canada. However, such rules would not apply to us, as a holding
    limited partnership, or to our general partner or unitholders.
    While we do not believe it to be the case, if the arrangements
    we have entered into result in our being considered to carry on
    business in Canada for purposes of the Canada Tax Act, our
    unitholders would be considered to be carrying on business in
    Canada and would be required to file Canadian tax returns and,
    subject to any relief provided in any relevant treaty
    (including, in the case of U.S.&#160;Resident Holders, the
    Canada-U.S.&#160;Treaty), would be subject to taxation in Canada
    on any income that is considered to be attributable to the
    business carried on by us in Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We believe that we can conduct our activities and affairs in a
    manner so that our unitholders should not be considered to be
    carrying on business in Canada solely as a consequence of the
    acquisition, holding, disposition or redemption of common units.
    Consequently, we believe our unitholders should not be subject
    to tax filing or other tax obligations in Canada under the
    Canada Tax Act. However, although we do not intend to do so,
    there can be no assurance that the manner in which we carry on
    our activities will not change from time to time as
    circumstances dictate or warrant in a manner that may cause our
    unitholders to be carrying on business in Canada for purposes of
    the Canada Tax Act. Further, the relevant Canadian federal
    income tax law may change by legislation or judicial
    interpretation and the Canadian taxing authorities may take a
    different view than we have of the current law.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-14</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica"><FONT style="white-space: nowrap">Non-United</FONT>
    States tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is the responsibility of each unitholder to investigate the
    legal and tax consequences, under the laws of pertinent
    jurisdictions, including Canada, of an investment in us.
    Accordingly, each prospective unitholder is urged to consult,
    and depend upon, the unitholder&#146;s tax counsel or other
    advisor with regard to those matters. Further, it is the
    responsibility of each unitholder to file all state, local and
    <FONT style="white-space: nowrap">non-U.S.,</FONT> as
    well as U.S.&#160;federal tax returns, that may be required of
    the unitholder.
</DIV>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-15</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390209'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Underwriting
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    UBS Securities LLC, Barclays Capital Inc. and J.P.&#160;Morgan
    Securities LLC are acting as joint book-running managers of this
    offering and as representatives for the other underwriters named
    below. Subject to the terms and conditions stated in the
    underwriting agreement, dated the date of this prospectus
    supplement, each underwriter named below has severally agreed to
    purchase, and we have agreed to sell to that underwriter, the
    number of common units set forth opposite the underwriter&#146;s
    name.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="87%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="9%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Number of<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Underwriter</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">common
    units</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="4" align="right" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    UBS Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Barclays Capital Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    J.P. Morgan Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Goldman, Sachs&#160;&#038; Co.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Raymond James&#160;&#038; Associates, Inc.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3,700,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The business address of UBS Securities LLC is 299 Park Avenue,
    New York, NY 10171. The business address of Barclays Capital
    Inc. is 200 Park Avenue Floor 3w, New York, NY
    <FONT style="white-space: nowrap">10166-2199.</FONT>
    The business address of J.P.&#160;Morgan Securities LLC is 383
    Madison Avenue, New York, NY 10179.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriting agreement provides that the obligations of the
    underwriters to purchase the units included in this offering are
    subject to approval of legal matters by counsel and to other
    conditions. The underwriters are obligated to purchase all the
    units (other than those covered by their option to purchase
    additional units described below) if they purchase any of the
    units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriters propose to offer some of the common units
    directly to the public at the public offering price set forth on
    the cover page of this prospectus supplement and some of the
    common units to dealers at the public offering price less a
    concession not to exceed $&#160;&#160;&#160;&#160;&#160; per
    common unit. If all of the common units are not sold at the
    initial offering price, the representatives may change the
    public offering price and the other selling terms. The offering
    of the units by the underwriters is subject to receipt and
    acceptance and subject to the underwriters&#146; right to reject
    any order in whole or in part.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have granted to the underwriters an option, exercisable for
    30&#160;days from the date of this prospectus supplement, to
    purchase up to 555,000 additional common units at the public
    offering price less the underwriting discount. The underwriters
    may exercise the option solely for the purpose of covering
    over-allotments, if any, in connection with this offering. To
    the extent the option is exercised, each underwriter must
    purchase a number of additional units approximately
    proportionate to that underwriter&#146;s initial purchase
    commitment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We, together with Teekay Holdings Limited and our general
    partner and the executive officers and directors of our general
    partner, have agreed that, for a period of 60&#160;days from the
    date of this prospectus supplement, we and they will not,
    without the prior written consent of the representatives,
    dispose of or hedge any of our common units or any securities
    convertible into or exchangeable for our common units. The
    representatives in their sole discretion may release any of the
    securities subject to these
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements at any time without notice.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units are traded on the New York Stock Exchange under
    the symbol &#147;TGP.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-16</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Underwriting</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table summarizes the underwriting discounts and
    commissions we will pay to the underwriters in connection with
    this offering. These amounts are shown assuming both no exercise
    and full exercise of the underwriters&#146; option to purchase
    additional common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="77%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">No
    exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Full
    exercise</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="8" align="right" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">

</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In connection with the offering, the representatives, on behalf
    of the underwriters, may purchase and sell common units in the
    open market. These transactions may include short sales,
    syndicate covering transactions and stabilizing transactions.
    Short sales involve syndicate sales of common units in excess of
    the number of units to be purchased by the underwriters in the
    offering, which creates a syndicate short position.
    &#147;Covered&#148; short sales are sales of units made in an
    amount up to the number of units represented by the
    underwriters&#146; over-allotment option. In determining the
    source of units to close out the covered syndicate short
    position, the underwriters will consider, among other things,
    the price of units available for purchase in the open market as
    compared to the price at which they may purchase units through
    their option to purchase common units through the over-allotment
    option. Transactions to close out the covered syndicate short
    position involve either purchases of the common units in the
    open market after the distribution has been completed or the
    exercise of the over-allotment option. The underwriters may also
    make &#147;naked&#148; short sales of units in excess of the
    over-allotment option. The underwriters must close out any naked
    short position by purchasing common units in the open market. A
    naked short position is more likely to be created if the
    underwriters are concerned that there may be downward pressure
    on the price of the units in the open market after pricing that
    could adversely affect investors who purchase in the offering.
    Stabilizing transactions consist of bids for or purchases of
    units in the open market while the offering is in progress.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriters also may impose a penalty bid. Penalty bids
    permit the underwriters to reclaim a selling concession from a
    syndicate member when an underwriter repurchases units
    originally sold by that syndicate member in order to cover
    syndicate short positions or make stabilizing purchases.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any of these activities may have the effect of preventing or
    retarding a decline in the market price of the common units.
    They may also cause the price of the common units to be higher
    than the price that would otherwise exist in the open market in
    the absence of these transactions. The underwriters may conduct
    these transactions on the New York Stock Exchange or in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market, or otherwise. If the underwriters commence any of these
    transactions, they may discontinue them at any time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We estimate that our portion of the total expenses of this
    offering will be approximately $300,000 (exclusive of
    underwriting discounts and commissions).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Financial Industry Regulatory Authority (or
    <I>FINRA</I>) views the common units offered hereby as interests
    in a direct participation program, the offering is being made in
    compliance with FINRA Rule&#160;2310. Investor suitability with
    respect to the common units should be judged similarly to the
    suitability with respect to other securities that are listed for
    trading on a national securities exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The underwriters and their respective affiliates are full
    service financial institutions engaged in various activities,
    which may include securities trading, commercial and investment
    banking, financial advisory, investment management, investment
    research, principal investment, hedging, financing and brokerage
    activities. The underwriters and their related entities have
    engaged and may engage in commercial and investment banking
    transactions with Teekay Corporation and its affiliates, our
    general partner and us in the ordinary course of its business.
    They have received and may receive customary compensation and
    expenses for these commercial and investment banking
    transactions. An affiliate of J.P. Morgan
</DIV>
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<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-17</FONT></B>
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Underwriting</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Securities LLC is a participant in a credit facility for our
    subsidiary Teekay Shipping Spain, S.L. and received customary
    fees in connection with such lending service.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the ordinary course of their various business activities, the
    underwriters and their respective affiliates may make or hold a
    broad array of investments and actively trade debt and equity
    securities (or related derivative securities) and financial
    instruments (including bank loans) for their own account and for
    the accounts of their customers, and such investment and
    securities activities may involve securities
    <FONT style="white-space: nowrap">and/or</FONT>
    instruments of the issuer. The underwriters and their respective
    affiliates may also make investment recommendations
    <FONT style="white-space: nowrap">and/or</FONT>
    publish or express independent research views in respect of such
    securities or instruments and may at any time hold, or recommend
    to clients that they acquire, long
    <FONT style="white-space: nowrap">and/or</FONT> short
    positions in such securities and instruments.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A prospectus in electronic format may be made available on the
    websites maintained by one or more of the underwriters. The
    representatives may agree to allocate a number of common units
    to underwriters for sale to their online brokerage account
    holders. The representatives will allocate units to underwriters
    that may make Internet distributions on the same basis as other
    allocations. In addition, common units may be sold by the
    underwriters to securities dealers who resell units to online
    brokerage account holders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Other than the prospectus in electronic format, the information
    on any underwriter&#146;s or selling group member&#146;s website
    and any information contained in any other website maintained by
    any underwriter or selling group member is not part of the
    prospectus or the registration statement of which this
    prospectus supplement forms a part, has not been approved
    <FONT style="white-space: nowrap">and/or</FONT>
    endorsed by us or any underwriter or selling group member in its
    capacity as underwriter or selling group member and should not
    be relied upon by investors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have agreed to indemnify the several underwriters against
    certain liabilities, including liabilities under the Securities
    Act of 1933, or to contribute to payments that may be required
    to be made in respect of these liabilities.
</DIV>
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<P>
<P>

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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-18</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <A name='O67390210'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Notice to investors
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">NOTICE TO
    PROSPECTIVE INVESTORS IN THE EUROPEAN ECONOMIC AREA</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In relation to each member state of the European Economic Area
    that has implemented the Prospectus Directive (as defined below)
    (each, a relevant member state), with effect from and including
    the date on which the Prospectus Directive is implemented in
    that relevant member state (the relevant implementation date),
    an offer of securities described in this prospectus may not be
    made to the public in that relevant member state other than:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    to any legal entity which is a qualified investor as defined in
    the Prospectus Directive;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    to fewer than 100 or, if the relevant member state has
    implemented the relevant provision of the 2010 PD Amending
    Directive, 150, natural or legal persons (other than qualified
    investors as defined in the Prospectus Directive), as permitted
    under the Prospectus Directive, subject to obtaining the prior
    consent of the relevant dealer or dealers nominated by the
    issuer for any such offer; or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    in any other circumstances failing within Article&#160;3(2) of
    the Prospectus Directive,
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    provided that no such offer of securities shall require us or
    any underwriter to publish a prospectus pursuant to
    Article&#160;3 of the Prospectus Directive.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of this provision, the expression an &#147;offer of
    securities to the public&#148; in any relevant member state
    means the communication in any form and by any means of
    sufficient information on the terms of the offer and the
    securities to be offered so as to enable an investor to decide
    to purchase or subscribe for the securities, as the expression
    may be varied in that member state by any measure implementing
    the Prospectus Directive in that member state, and the
    expression &#147;Prospectus Directive&#148; means Directive
    2003/71/EC (and amendments thereto, including the 2010 PD
    Amending Directive, to the extent implemented in the relevant
    member state) and includes any relevant implementing measure in
    each relevant member state. The expression &#147;2010 PD
    Amending Directive&#148; means Directive 2010/73/EU.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have not authorized and do not authorize the making of any
    offer of securities through any financial intermediary on their
    behalf, other than offers made by the underwriters with a view
    to the final placement of the securities as contemplated in this
    prospectus. Accordingly, no purchaser of the securities, other
    than the underwriters, is authorized to make any further offer
    of the securities on behalf of us or the underwriters.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">NOTICE TO
    PROSPECTIVE INVESTORS IN THE UNITED KINGDOM</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership may constitute a &#147;collective investment
    scheme&#148; as defined by section&#160;235 of the Financial
    Services and Markets Act 2000 (&#147;FSMA&#148;) that is not a
    &#147;recognized collective investment scheme&#148; for the
    purposes of FSMA (&#147;CIS&#148;) and that has not been
    authorized or otherwise approved. As an unregulated scheme, it
    cannot be marketed in the United Kingdom to the general public,
    except in accordance with FSMA. This prospectus is only being
    distributed in the United Kingdom to, and is only directed at:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (i)&#160;&#160;if our partnership is a CIS and is marketed by a
    person who is an authorized person under FSMA,
    (a)&#160;investment professionals falling within
    Article&#160;14(5) of the Financial Services and Markets Act
    2000 (Promotion of Collective Investment Schemes) Order 2001, as
    amended (the &#147;CIS Promotion Order&#148;) or (b)&#160;high
    net worth companies and other persons falling with
    Article&#160;22(2)(a) to (d)&#160;of the CIS Promotion
    Order;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (ii)&#160;&#160;otherwise, if marketed by a person who is not an
    authorized person under FSMA, (a)&#160;persons who fall within
    Article&#160;19(5) of the Financial Services and Markets Act
    2000 (Financial Promotion) Order 2005, as amended (the
    &#147;Financial Promotion Order&#148;) or
    (b)&#160;Article&#160;49(2)(a) to (d)&#160;of the Financial
    Promotion Order;&#160;and
</DIV>
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<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-19</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Notice to
    investors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (iii)&#160;&#160;in both cases (i)&#160;and (ii)&#160;to any
    other person to whom it may otherwise lawfully be made (all such
    persons together being referred to as &#147;relevant
    persons&#148;). Our partnership&#146;s common units are only
    available to, and any invitation, offer or agreement to
    subscribe, purchase or otherwise acquire such common units will
    be engaged in only with, relevant persons. Any person who is not
    a relevant person should not act or rely on this document or any
    of its contents.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An invitation or inducement to engage in investment activity
    (within the meaning of Section&#160;21 of FSMA) in connection
    with the issue or sale of any common units which are the subject
    of the offering contemplated by this prospectus will only be
    communicated or caused to be communicated in circumstances in
    which Section&#160;21(1) of FSMA does not apply to our
    partnership.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">NOTICE TO
    PROSPECTIVE INVESTORS IN GERMANY</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus has not been prepared in accordance with the
    requirements for a securities or sales prospectus under the
    German Securities Prospectus Act (Wertpapierprospektgesetz), the
    German Sales Prospectus Act (Verkaufsprospektgesetz), or the
    German Investment Act (Investmentgesetz). Neither the German
    Federal Financial Services Supervisory Authority (Bundesanstalt
    f&#252;r Finanzdienstleistungsaufsicht-BaFin) nor any other
    German authority has been notified of the intention to
    distribute our common units in Germany. Consequently, our common
    units may not be distributed in Germany by way of public
    offering, public advertisement or in any similar manner and this
    prospectus and any other document relating to this offering, as
    well as information or statements contained therein, may not be
    supplied to the public in Germany or used in connection with any
    offer for subscription of the common units to the public in
    Germany or any other means of public marketing. Our common units
    are being offered and sold in Germany only to qualified
    investors which are referred to in Section&#160;3,
    paragraph&#160;2 no.&#160;1, in connection with Section&#160;2,
    no.&#160;6, of the German Securities Prospectus Act,
    Section&#160;8f paragraph&#160;2 no.&#160;4 of the German Sales
    Prospectus Act, and in Section&#160;2 paragraph&#160;11 sentence
    2 no.&#160;1 of the German Investment Act. This prospectus is
    strictly for use of the person who has received it. It may not
    be forwarded to other persons or published in Germany.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This offering of our common units does not constitute an offer
    to sell or the solicitation or an offer to buy our common units
    in any circumstances in which such offer or solicitation is
    unlawful.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">NOTICE TO
    PROSPECTIVE INVESTORS IN THE NETHERLANDS</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units may not be offered or sold, directly or
    indirectly, in the Netherlands, other than to qualified
    investors (gekwalificeerde beleggers) within the meaning of
    Article&#160;1:1 of the Dutch Financial Supervision Act (Wet op
    het financieel toezicht).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">NOTICE TO
    PROSPECTIVE INVESTORS IN SWITZERLAND</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus is being communicated in Switzerland to a small
    number of selected investors only. Each copy of this prospectus
    is addressed to a specifically named recipient and may not be
    copied, reproduced, distributed or passed on to third parties.
    Our common units are not being offered to the public in
    Switzerland, and neither this prospectus, nor any other offering
    materials relating to our common units may be distributed in
    connection with any such public offering.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have not been registered with the Swiss Financial Market
    Supervisory Authority FINMA as a foreign collective investment
    scheme pursuant to Article&#160;120 of the Collective Investment
    Schemes Act of June&#160;23, 2006 (&#147;CISA&#148;).
    Accordingly, our common units may not be offered to the public
    in or from Switzerland, and neither this prospectus, nor any
    other offering materials relating to our common units may be
    made available through a public offering in or from Switzerland.
    Our common units may only be offered and this prospectus may
    only be distributed in or from Switzerland by way of private
    placement exclusively to qualified investors (as this term is
    defined in the CISA and its implementing ordinance).
</DIV>
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<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-20</FONT></B>
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390211'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Legal matters
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The validity of the common units offered hereby and certain
    other legal matters with respect to the laws of the Republic of
    The Marshall Islands will be passed upon for us by our counsel
    as to Marshall Islands law, Watson, Farley&#160;&#038; Williams
    (New York) LLP. Certain other legal matters will be passed upon
    for us by Perkins Coie LLP, Portland, Oregon, which may rely on
    the opinions of Watson, Farley&#160;&#038; Williams (New York)
    LLP for all matters of Marshall Islands law. Baker Botts L.L.P.,
    Houston, Texas, will pass upon certain legal matters in
    connection with the offering on behalf of the underwriters.
</DIV>

<A name='O67390212'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Experts
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The consolidated financial statements of Teekay LNG Partners
    L.P., the effectiveness of Teekay LNG Partners L.P.&#146;s
    internal control over financial reporting as of
    December&#160;31, 2010, and the consolidated financial
    statements of Teekay Nakilat (III)&#160;Corporation for the year
    ended December&#160;31, 2010 filed as Exhibit&#160;15.2,
    appearing in Teekay LNG Partners L.P.&#146;s Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010, have been audited by
    Ernst&#160;&#038; Young LLP, an independent registered public
    accounting firm, as set forth in their reports thereon included
    therein, and incorporated herein by reference. Such financial
    statements as of December&#160;31, 2010 are incorporated herein
    by reference in reliance upon such reports of Ernst&#160;&#038;
    Young LLP given on the authority of such firm as experts in
    accounting and auditing.
</DIV>

<A name='O67390213'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Where you can find
    more information
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    regarding the securities covered by this prospectus supplement.
    This prospectus supplement does not contain all of the
    information found in the registration statement. For further
    information regarding us and the securities offered in this
    prospectus supplement, you may wish to review the full
    registration statement, including its exhibits. In addition, we
    file annual, quarterly and other reports with and furnish
    information to the SEC. You may inspect and copy any document we
    file with or furnish to the SEC at the public reference
    facilities maintained by the SEC at 100&#160;F&#160;Street, NE,
    Washington,&#160;D.C. 20549. Copies of this material can also be
    obtained upon written request from the Public Reference Section
    of the SEC at that address, at prescribed rates, or from the
    SEC&#146;s web site at www.sec.gov free of charge. Please call
    the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on public reference rooms. You can also
    obtain information about us at the offices of the New York Stock
    Exchange, Inc., 20&#160;Broad Street, New York, New York 10005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a foreign private issuer, we are exempt under the
    U.S.&#160;Securities Exchange Act of 1934 (or the <I>Exchange
    Act</I>) from, among other things, certain rules prescribing the
    furnishing and content of proxy statements, and our executive
    officers, directors and principal unitholders are exempt from
    the reporting and short-swing profit recovery provisions
    contained in Section&#160;16 of the Exchange Act. In addition,
    we are not required under the Exchange Act to file periodic
    reports and financial statements with the SEC as frequently or
    as promptly as U.S.&#160;companies whose securities are
    registered under the Exchange Act, including the filing of
    quarterly reports or current reports on
    <FONT style="white-space: nowrap">Form&#160;8-K.</FONT>
    However, we intend to make available quarterly reports
    containing our unaudited interim financial information for the
    first three fiscal quarters of each fiscal year.
</DIV>
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<P>
<P>

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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-21</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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    <A name='O67390214'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Incorporation of
    documents by reference
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The SEC allows us to &#147;incorporate by reference&#148;
    information that we file with the SEC. This means that we can
    disclose important information to you without actually including
    the specific information in this prospectus by referring you to
    other documents filed separately with the SEC. The information
    incorporated by reference is an important part of this
    prospectus. Information that we later provide to the SEC, and
    which is deemed to be &#147;filed&#148; with the SEC,
    automatically will update information previously filed with the
    SEC, and may replace information in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We incorporate by reference into this prospectus the documents
    listed below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2010;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    all of our subsequent Reports on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    filed prior to the termination of this offering that we identify
    in such Reports as being incorporated by reference into the
    registration statement of which this prospectus is a part; and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the description of our common units contained in our
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A/A</FONT>
    filed on September&#160;29, 2006, including any subsequent
    amendments or reports filed for the purpose of updating such
    description.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These reports contain important information about us, our
    financial condition and our results of operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You may obtain any of the documents incorporated by reference in
    this prospectus from the SEC through its public reference
    facilities or its website at the addresses provided above. You
    also may request a copy of any document incorporated by
    reference in this prospectus (excluding any exhibits to those
    documents, unless the exhibit is specifically incorporated by
    reference in this document), at no cost by visiting our website
    at www.teekaylng.com, or by writing or calling us at the
    following address:
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: 'Times New Roman', Times">Teekay
    LNG Partners L.P.<BR>
    4th Floor, Belvedere Building<BR>
    69 Pitts Bay Road<BR>
    Hamilton, HM 08, Bermuda<BR>
    Attn: Corporate Secretary<BR>
    <FONT style="white-space: nowrap">(441)&#160;298-2530</FONT></FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information incorporated by
    reference or provided in this prospectus or any prospectus
    supplement. We have not authorized anyone else to provide you
    with any information. You should not assume that the information
    incorporated by reference or provided in this prospectus or any
    prospectus supplement is accurate as of any date other than the
    date on the front of each document. The information contained in
    our website is not part of this prospectus.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-22</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
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    <A name='O67390215'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Expenses
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth estimated costs and expenses,
    other than any underwriting discounts and commissions, we expect
    to incur in connection with the issuance and distribution of the
    common units covered by this prospectus. Other than the
    U.S.&#160;Securities and Exchange Commission registration fee
    which is set forth in the base prospectus, all amounts are
    estimated.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="89%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="7%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    350,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    100,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    35,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer agent fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    15,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">S-23</FONT></B>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 89%; margin-left: 5%"><!-- BEGIN PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="font-size: 8pt; font-family: Arial, Helvetica">PROSPECTUS
    </FONT>
</DIV>

<DIV style="margin-top: 18pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">$400,000,000</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <IMG src="o67390o6739000.gif" alt="(TEEKAY LNG PARTNERS L.P. LOGO)"><B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">
    </FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 26pt; font-family: Arial, Helvetica">Teekay
    LNG Partners L.P.</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-size: 14pt; font-family: Arial, Helvetica">Common
    Units</FONT></B>
</DIV>

<DIV style="font-size: 24pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may offer from time to time common units, which represent
    limited partnership interests in Teekay LNG Partners L.P.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The common units we may offer will have a maximum aggregate
    offering price of $400,000,000 and will be offered at prices and
    on terms to be set forth in one or more accompanying prospectus
    supplements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may offer these securities directly or to or through
    underwriters, dealers or other agents. The names of any
    underwriters or dealers will be set forth in the applicable
    prospectus supplement.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units trade on the New York Stock Exchange under the
    symbol &#147;TGP.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus provides you with a general description of the
    securities we may offer. Each time we offer to sell securities
    we will provide a prospectus supplement that will contain
    specific information about those securities and the terms of
    that offering. The prospectus supplement may also add, update or
    change information contained in this prospectus. This prospectus
    may be used to offer and sell securities only if accompanied by
    a prospectus supplement. You should read this prospectus and any
    prospectus supplement carefully before you invest. You should
    also read the documents we refer to in the &#147;Where You Can
    Find More Information&#148; and &#147;Incorporation of Documents
    by Reference&#148; sections of this prospectus for information
    about us and our financial statements.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Limited partnerships are inherently different than
    corporations. You should carefully consider each of the factors
    described under &#147;Risk Factors&#148; beginning on
    page&#160;6 of this prospectus before you make an investment in
    our securities.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Neither the Securities and Exchange Commission nor any state
    securities commission has approved or disapproved of these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.</B>
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    October&#160;29, 2009
</DIV>
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</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">TABLE OF
    CONTENTS</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>



<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="4%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="3%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390101'><B>About This Prospectus</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">1</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390102'><B>Teekay LNG Partners L.P.</B>&#160;</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">2</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390103'><B>Where You Can Find More Information</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">3</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390104'><B>Incorporation of Documents by Reference</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">3</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390105'><B>Forward-Looking Statements</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">5</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390106'><B>Risk Factors</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">6</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390107'>Risks Inherent in an Investment in Us</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">6</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390108'>Risks Relating to the Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">9</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390109'>Tax Risks</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">10</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390110'><B>Use of Proceeds</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">12</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390111'><B>Description of The Common Units</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">13</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390112'>Number of Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">13</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390113'>Issuance of Additional Securities</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">13</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390114'>Meetings; Voting</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">13</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390115'>Call Right</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">15</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390116'>Exchange Listing</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">15</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390117'>Transfer Agent and Registrar</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">15</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390118'>Transfer of Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">15</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390119'>Other Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">16</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390120'>Summary of Our Partnership Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">17</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390121'><B>Cash Distributions</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">18</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390122'>Distributions of Available Cash</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">18</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390123'>Operating Surplus and Capital Surplus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">18</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390124'>Subordination Period</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">21</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390125'>Distributions of Available Cash From Operating
    Surplus During the Subordination Period</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">23</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390126'>Distributions of Available Cash From Operating
    Surplus After the Subordination Period</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">23</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390127'>Incentive Distribution Rights</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">23</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390128'>Percentage Allocations of Available Cash From
    Operating Surplus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">24</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390129'>Distributions From Capital Surplus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">24</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390130'>Adjustment to the Minimum Quarterly Distribution
    and Target Distribution Levels</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">25</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390131'>Distributions of Cash Upon Liquidation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">25</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390132'><B>Material U.S. Federal Income Tax
    Considerations</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">28</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390133'>Classification as a Partnership</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">29</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390134'>Status as a Partner</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">30</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390135'>Consequences of Unit Ownership</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">30</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390136'>Tax Treatment of Operations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">35</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390137'>Disposition of Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">35</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390138'>Foreign Tax Credit Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">37</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390139'>Tax-Exempt Organizations and
    <FONT style="white-space: nowrap">Non-U.S.</FONT>
    Investors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">38</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390140'>Functional Currency</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">39</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390141'>Administrative Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">40</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390142'>Possible Classification as a Corporation</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">42</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390143'>Taxation of our Subsidiary Corporations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">46</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390144'><B><FONT style="white-space: nowrap">Non-United</FONT>
    States Tax Considerations</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">47</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390145'>Marshall Islands Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">47</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    <A HREF='#O67390146'>Canadian Federal Income Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">47</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390147'><B>Plan Of Distribution</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">49</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390148'><B>Service of Process and Enforcement of Civil
    Liabilities</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">51</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390149'><B>Legal Matters</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">51</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390150'><B>Experts</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">51</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#O67390151'><B>Expenses</B></A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">52</FONT></B>
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<CENTER style="font-size: 1pt; width: 100%; border-bottom: 1pt solid #000000"></CENTER>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information contained in this
    prospectus, any prospectus supplement and the documents
    incorporated by reference in this prospectus. We have not
    authorized anyone else to give you different information. If
    anyone provides you with different or inconsistent information,
    you should not rely on it. We are not offering these securities
    in any jurisdiction where the offer or sale is not permitted.
    You should not assume that the information in this prospectus or
    any prospectus supplement is accurate as of any date other than
    the date on the front of those documents. We will disclose
    material changes in our affairs in an amendment to this
    prospectus, a prospectus supplement or a future filing with the
    U.S.&#160;Securities and Exchange Commission (or <I>SEC</I>)
    incorporated by reference in this prospectus.
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">i</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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    <A name='O67390101'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">About this prospectus
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus is part of a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    that we have filed with the SEC using a &#147;shelf&#148;
    registration process. Under this shelf registration process, we
    may sell, in one or more offerings, up to $400,000,000 in total
    aggregate offering price of the securities described in this
    prospectus. This prospectus generally describes us and the
    securities we may offer. Each time we offer securities with this
    prospectus, we will provide this prospectus and a prospectus
    supplement that will describe, among other things, the specific
    amounts and prices of the securities being offered and the terms
    of the offering. The prospectus supplement may also add to,
    update or change information in this prospectus. If there is any
    inconsistency between the information in this prospectus and any
    prospectus supplement, you should rely on the information in the
    prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise indicated, references in this prospectus to
    &#147;Teekay LNG Partners,&#148; &#147;we,&#148; &#147;us&#148;
    and &#147;our&#148; and similar terms refer to Teekay LNG
    Partners L.P.
    <FONT style="white-space: nowrap">and/or</FONT> one
    or more of its subsidiaries, except that those terms, when used
    in this prospectus in connection with the common units described
    herein, shall mean Teekay LNG Partners L.P. References in this
    prospectus to &#147;Teekay Corporation&#148; refer to Teekay
    Corporation
    <FONT style="white-space: nowrap">and/or</FONT> any
    one or more of its subsidiaries.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise indicated, all references in this prospectus to
    &#147;dollars&#148; and &#147;$&#148; are to, and amounts are
    presented in, U.S.&#160;Dollars, and financial information
    presented in this prospectus is prepared in accordance with
    accounting principles generally accepted in the United States
    (or <I>GAAP</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The information in this prospectus is accurate as of its date.
    You should read carefully this prospectus, any prospectus
    supplement, and the additional information described below under
    the heading &#147;Where You Can Find More Information&#148; and
    &#147;Incorporation of Documents by Reference.&#148;
</DIV>
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<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">1</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390102'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Teekay LNG Partners
    L.P.
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Teekay LNG Partners L.P. is an international provider of marine
    transportation services for liquefied natural gas (or
    <I>LNG</I>), liquefied petroleum gas (or <I>LPG</I>) and crude
    oil. We were formed in 2004 by Teekay Corporation (NYSE: TK),
    the world&#146;s largest owner and operator of medium sized
    crude oil tankers, to expand its operations in the LNG shipping
    sector. Our primary growth strategy focuses on expanding our
    fleet of LNG and LPG carriers under long-term, fixed-rate time
    charters. We intend to continue our practice of acquiring LNG
    and LPG carriers as needed for approved projects only after the
    long-term charters for the projects have been awarded to us,
    rather than ordering vessels on a speculative basis. In
    executing our growth strategy, we may engage in vessel or
    business acquisitions or enter into joint ventures and
    partnerships with companies that may provide increased access to
    emerging opportunities from global expansion of the LNG and LPG
    sectors. We seek to leverage the expertise, relationships and
    reputation of Teekay Corporation and its affiliates to pursue
    these opportunities in the LNG and LPG sectors and may consider
    other opportunities to which our competitive strengths are well
    suited. Teekay Corporation owns and controls our general partner
    and owns a substantial limited partner interest in us. As of the
    date of this prospectus, our fleet includes LNG and LPG carriers
    and Suezmax-class crude oil tankers, all of which are
    double-hulled and generally operate under long-term, fixed rate
    time charters with major energy and utility companies. We view
    our Suezmax tanker fleet primarily as a source of stable cash
    flow.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our operations are conducted through, and our operating assets
    are owned by, our subsidiaries. We own our interests in our
    subsidiaries through our 100% ownership interest in our
    operating company, Teekay LNG Operating L.L.C., a Marshall
    Islands limited liability company. Our general partner, Teekay
    GP L.L.C., a Marshall Islands limited liability company, has an
    economic interest in us and manages our operations and
    activities. Our general partner does not receive any management
    fee or other compensation in connection with its management of
    our business, but it is entitled to be reimbursed for all direct
    and indirect expenses incurred on our behalf.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are incorporated under the laws of the Republic of The
    Marshall Islands as Teekay LNG Partners L.P. and maintain our
    principal executive headquarters at 4th&#160;Floor, Belvedere
    Building, 69 Pitts Bay Road, Hamilton, HM 08, Bermuda. Our
    telephone number at such address is
    <FONT style="white-space: nowrap">(441)&#160;298-2530.</FONT>
    Our website is <U>www.teekaylng.com</U>. The information on our
    website is not part of this prospectus supplement.
</DIV>
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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">2</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390103'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Where you can find
    more information
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have filed with the SEC a registration statement on
    <FONT style="white-space: nowrap">Form&#160;F-3</FONT>
    regarding the securities covered by this prospectus. This
    prospectus does not contain all of the information found in the
    registration statement. For further information regarding us and
    the securities offered in this prospectus, you may wish to
    review the full registration statement, including its exhibits.
    In addition, we file annual, quarterly and other reports with
    and furnish information to the SEC. You may inspect and copy any
    document we file with or furnish to the SEC at the public
    reference facilities maintained by the SEC at
    100&#160;F&#160;Street, NE, Washington,&#160;D.C. 20549. Copies
    of this material can also be obtained upon written request from
    the Public Reference Section of the SEC at that address, at
    prescribed rates, or from the SEC&#146;s web site on the
    Internet at <U>www.sec.gov</U> free of charge. Please call the
    SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330</FONT>
    for further information on public reference rooms. You can also
    obtain information about us at the offices of the New York Stock
    Exchange, Inc., 20&#160;Broad Street, New York, New&#160;York
    10005.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a foreign private issuer, we are exempt under the
    U.S.&#160;Securities Exchange Act of 1934 (or the <I>Exchange
    Act</I>) from, among other things, certain rules prescribing the
    furnishing and content of proxy statements, and our executive
    officers, directors and principal unitholders are exempt from
    the reporting and short-swing profit recovery provisions
    contained in Section&#160;16 of the Exchange Act. In addition,
    we are not required under the Exchange Act to file periodic
    reports and financial statements with the SEC as frequently or
    as promptly as U.S.&#160;companies whose securities are
    registered under the Exchange Act, including the filing of
    quarterly reports or current reports on
    <FONT style="white-space: nowrap">Form&#160;8-K.</FONT>
    However, we intend to make available quarterly reports
    containing our unaudited interim financial information for the
    first three fiscal quarters of each fiscal year.
</DIV>

<A name='O67390104'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Incorporation of
    documents by reference
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The SEC allows us to &#147;incorporate by reference&#148; into
    this prospectus information that we file with the SEC. This
    means that we can disclose important information to you without
    actually including the specific information in this prospectus
    by referring you to other documents filed separately with the
    SEC. The information incorporated by reference is an important
    part of this prospectus. Information that we later provide to
    the SEC, and which is deemed to be &#147;filed&#148; with the
    SEC, automatically will update information previously filed with
    the SEC, and may replace information in this prospectus.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We incorporate by reference into this prospectus the documents
    listed below:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2008;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    all subsequent Annual Reports on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    filed prior to the termination of this offering;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our Reports on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    furnished to the SEC on August&#160;3, 2009 and
    September&#160;30, 2009, respectively;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    all subsequent Reports on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    furnished prior to the termination of this offering that we
    identify in such Reports as being incorporated by reference into
    the registration statement of which this prospectus is a
    part;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the description of our common units contained in our
    Registration Statement on
    <FONT style="white-space: nowrap">Form&#160;8-A/A</FONT>
    filed on September&#160;29, 2006, including any subsequent
    amendments or reports filed for the purpose of updating such
    description.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These reports contain important information about us, our
    financial condition and our results of operations.
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">3</FONT></B>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You may obtain any of the documents incorporated by reference in
    this prospectus from the SEC through its public reference
    facilities or its website at the addresses provided above. You
    also may request a copy of any document incorporated by
    reference in this prospectus (excluding any exhibits to those
    documents, unless the exhibit is specifically incorporated by
    reference in this document), at no cost, by visiting our
    Internet website at <U>www.teekaylng.com</U>, or by writing or
    calling us at the following address:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Teekay LNG Partners L.P.
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    4th Floor, Belvedere Building,
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    69 Pitts Bay Road,
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Hamilton, HM 08, Bermuda
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Attention: Corporate Secretary
</DIV>

<DIV align="center" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">(441)&#160;298-2530</FONT>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You should rely only on the information incorporated by
    reference or provided in this prospectus or any prospectus
    supplement. We have not authorized anyone else to provide you
    with any information. You should not assume that the information
    incorporated by reference or provided in this prospectus or any
    prospectus supplement is accurate as of any date other than the
    date on the front of each document.
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">4</FONT></B>
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    <A name='O67390105'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Forward-looking
    statements
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All statements, other than statements of historical fact,
    included in or incorporated by reference into this prospectus
    and any prospectus supplements are forward-looking statements.
    In addition, we and our representatives may from time to time
    make other oral or written statements that are also
    forward-looking statements. Such statements include, in
    particular, statements about our plans, strategies, business
    prospects, changes and trends in our business, and the markets
    in which we operate. In some cases, you can identify the
    forward-looking statements by the use of words such as
    &#147;may,&#148; &#147;will,&#148; &#147;could,&#148;
    &#147;should,&#148; &#147;would,&#148; &#147;expect,&#148;
    &#147;plan,&#148; &#147;anticipate,&#148; &#147;intend,&#148;
    &#147;forecast,&#148; &#147;believe,&#148; &#147;estimate,&#148;
    &#147;predict,&#148; &#147;propose,&#148; &#147;potential,&#148;
    &#147;continue&#148; or the negative of these terms or other
    comparable terminology.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    These and other forward-looking statements are subject to risks,
    uncertainties and assumptions, including those risks discussed
    in &#147;Risk Factors&#148; below and those risks discussed in
    other reports we file with the SEC and that are incorporated in
    this prospectus by reference, including, without limitation, our
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2008. The risks,
    uncertainties and assumptions involve known and unknown risks
    and are inherently subject to significant uncertainties and
    contingencies, many of which are beyond our control.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Forward-looking statements are made based upon management&#146;s
    current plans, expectations, estimates, assumptions and beliefs
    concerning future events affecting us and, therefore, involve a
    number of risks and uncertainties, including those risks
    discussed in &#147;Risk Factors.&#148; We caution that forward-
    looking statements are not guarantees and that actual results
    could differ materially from those expressed or implied in the
    forward-looking statements.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We undertake no obligation to update any forward-looking
    statement to reflect events or circumstances after the date on
    which such statement is made or to reflect the occurrence of
    unanticipated events. New factors emerge from time to time, and
    it is not possible for us to predict all of these factors.
    Further, we cannot assess the effect of each such factor on our
    business or the extent to which any factor, or combination of
    factors, may cause actual results to be materially different
    from those contained in any forward-looking statement.
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">5</FONT></B>
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    <A name='O67390106'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Risk factors
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Before investing in our common units, you should carefully
    consider all of the information included or incorporated by
    reference into this prospectus. Although many of our business
    risks are comparable to those of a corporation engaged in a
    similar business, limited partner interests are inherently
    different from the capital stock of a corporation. When
    evaluating an investment in our common units, you should
    carefully consider the discussion of risk factors in our Annual
    Report on
    <FONT style="white-space: nowrap">Form&#160;20-F,</FONT>
    which is incorporated by reference into this prospectus. If any
    of these risks or other risks incorporated by reference into
    this prospectus were to occur, our business, financial condition
    or operating results could be materially adversely affected. In
    that case, our ability to pay distributions on our common units
    may be reduced, the trading price of our common units could
    decline, and you could lose all or part of your investment. In
    addition we are subject to the following risks and
    uncertainties.</I>
</DIV>

<A name='O67390107'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">RISKS INHERENT IN
    AN INVESTMENT IN US</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Our partnership
    agreement limits our general partner&#146;s fiduciary duties to
    our unitholders and restricts the remedies available to
    unitholders for actions taken by our general partner.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership agreement contains provisions that reduce the
    standards to which our general partner would otherwise be held
    by Marshall Islands law. For example, our partnership agreement:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    permits our general partner to make a number of decisions in its
    individual capacity, as opposed to in its capacity as our
    general partner. Where our partnership agreement permits, our
    general partner may consider only the interests and factors that
    it desires, and in such cases it has no duty or obligation to
    give any consideration to any interest of, or factors affecting
    us, our affiliates or any limited partner;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    provides that our general partner is entitled to make other
    decisions in &#147;good faith&#148; if it reasonably believes
    that the decision is in our best interests;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    generally provides that affiliated transactions and resolutions
    of conflicts of interest not approved by the conflicts committee
    of the board of directors of our general partner and not
    involving a vote of unitholders must be on terms no less
    favorable to us than those generally being provided to or
    available from unrelated third parties or be &#147;fair and
    reasonable&#148; to us and that, in determining whether a
    transaction or resolution is &#147;fair and reasonable,&#148;
    our general partner may consider the totality of the
    relationships between the parties involved, including other
    transactions that may be particularly advantageous or beneficial
    to us;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    provides that our general partner and its officers and directors
    will not be liable for monetary damages to us, our limited
    partners or assignees for any acts or omissions unless there has
    been a final and non-appealable judgment entered by a court of
    competent jurisdiction determining that the general partner or
    those other persons acted in bad faith or engaged in fraud,
    willful misconduct or gross negligence
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to become a limited partner of our partnership, a
    common unitholder is required to agree to be bound by the
    provisions in the partnership agreement, including the
    provisions discussed above.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Fees and cost
    reimbursements, which our general partner determines for
    services provided to us and certain of our subsidiaries, are
    substantial and reduce our cash available to make required
    payments on our debt securities and for distribution to our
    common unitholders.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to making any distribution on the common units, we pay
    fees for services provided to us and certain of our subsidiaries
    by certain subsidiaries of Teekay Corporation, and we reimburse
    our general partner for all expenses it incurs on our behalf.
    These fees are negotiated on our behalf by our general partner,
    and our general partner also determines the amounts it is
    reimbursed. These fees and expenses
</DIV>
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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">6</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Risk
    factors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    include all costs incurred in providing certain advisory, ship
    management, technical and administrative services to us and
    certain of our subsidiaries. In addition, our general partner
    and its affiliates may provide us with other services for which
    the general partner or its affiliates may charge us fees, and we
    may pay Teekay Corporation &#147;incentive fees&#148; pursuant
    to the omnibus agreement with it to reward and motivate Teekay
    Corporation for pursuing LNG/LPG projects that we may elect to
    undertake. The payment of fees to Teekay Corporation and its
    subsidiaries and reimbursement of expenses to our general
    partner could adversely affect our ability to make required
    payments on our debt securities and to pay cash distributions to
    our common unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Even if
    unitholders are dissatisfied, they cannot remove our general
    partner without its consent.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unlike the holders of common stock in a corporation, unitholders
    have only limited voting rights on matters affecting our
    business and, therefore, limited ability to influence
    management&#146;s decisions regarding our business. Unitholders
    did not elect our general partner or its board of directors and
    will have no right to elect our general partner or its board of
    directors on an annual or other continuing basis. The board of
    directors of our general partner is chosen by Teekay
    Corporation. Furthermore, if the unitholders are dissatisfied
    with the performance of our general partner, they will have
    little ability to remove our general partner. As a result of
    these limitations, the price at which the common units will
    trade could be diminished because of the absence or reduction of
    a takeover premium in the trading price.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The vote of the holders of at least
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    of all outstanding units voting together as a single class is
    required to remove the general partner. As of the date of this
    prospectus, Teekay Corporation owned a sufficient number of
    units to prevent the removal of the general partner. Also, if
    the general partner is removed without cause during the
    subordination period and units held by the general partner and
    Teekay Corporation are not voted in favor of that removal, all
    remaining subordinated units will automatically convert into
    common units and any existing arrearages on the common units
    will be extinguished. A removal of the general partner under
    these circumstances would adversely affect the common units by
    prematurely eliminating their distribution and liquidation
    preference over the subordinated units, which would otherwise
    have continued until we had met certain distribution and
    performance tests. Cause is narrowly defined to mean that a
    court of competent jurisdiction has entered a final,
    non-appealable judgment finding the general partner liable for
    actual fraud or willful or wanton misconduct in its capacity as
    our general partner. Cause does not include most cases of
    charges of poor management of the business, so the removal of
    the general partner because of the unitholders&#146;
    dissatisfaction with the general partner&#146;s performance in
    managing our partnership will most likely result in the
    termination of the subordination period.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Furthermore, unitholders&#146; voting rights are further
    restricted by the partnership agreement provision providing that
    any units held by a person that owns 20% or more of any class of
    units then outstanding, other than the general partner, its
    affiliates, their transferees, and persons who acquired such
    units with the prior approval of the board of directors of the
    general partner, cannot vote on any matter. Our partnership
    agreement also contains provisions limiting the ability of
    unitholders to call meetings or to acquire information about our
    operations, as well as other provisions limiting the
    unitholders&#146; ability to influence the manner or direction
    of management.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">The control of
    our general partner may be transferred to a third party without
    unitholder consent.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our general partner may transfer its general partner interest to
    a third party in a merger or in a sale of all or substantially
    all of its assets without the consent of the unitholders. In
    addition, our partnership agreement does not restrict the
    ability of the members of our general partner from transferring
    their respective membership interests in our general partner to
    a third party. In the event of any such transfer,
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">7</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Risk
    factors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    the new members of our general partner would be in a position to
    replace the board of directors and officers of our general
    partner with their own choices and to control the decisions
    taken by the board of directors and officers.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">In establishing
    cash reserves, our general partner may reduce the amount of cash
    available for distribution to the common unitholders.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership agreement requires our general partner to deduct
    from operating surplus cash reserves that it determines are
    necessary to fund our future operating expenditures. These
    reserves affect the amount of cash available for distribution to
    our common unitholders. Our general partner may establish
    reserves for distributions on the subordinated units, but only
    if those reserves will not prevent us from distributing the full
    minimum quarterly distribution, plus any arrearages, on the
    common units for the following four quarters. The partnership
    agreement requires our general partner each quarter to deduct
    from operating surplus estimated maintenance capital
    expenditures, as opposed to actual expenditures, which could
    reduce the amount of available cash for distribution to the
    common unitholders.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">We can borrow
    money to pay distributions, which would reduce the amount of
    credit available to operate our business.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership agreement allows us to make working capital
    borrowings to pay distributions. Accordingly, we can make
    distributions on all our units even though cash generated by our
    operations may not be sufficient to pay such distributions. We
    are required to reduce all working capital borrowings for this
    purpose under our revolving credit agreement to zero for a
    period of at least 15 consecutive days once each
    <FONT style="white-space: nowrap">12-month</FONT>
    period. Any working capital borrowings by us to make
    distributions may reduce the amount of working capital
    borrowings we can make for operating our business.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Unitholders may
    have liability to repay distributions.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under some circumstances, unitholders may have to repay amounts
    wrongfully distributed to them. Under the Marshall Islands
    Limited Partnership Act (or <I>Marshall Islands Act</I>), we may
    not make a distribution to our unitholders if the distribution
    would cause our liabilities to exceed the fair value of our
    assets. Marshall Islands law provides that for a period of three
    years from the date of the impermissible distribution limited
    partners who received the distribution and who knew at the time
    of the distribution that it violated Marshall Islands law will
    be liable to the limited partnership for the distribution
    amount. Assignees of partnership interests who become limited
    partners are liable for the obligations of the assignor to make
    contributions to the partnership that are known to the assignee
    at the time it became a limited partner and for unknown
    obligations if the liabilities could be determined from the
    partnership agreement. Liabilities to partners on account of
    their partnership interest and liabilities that are non-recourse
    to the partnership are not counted for purposes of determining
    whether a distribution is permitted.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">We have been
    organized as a limited partnership under the laws of the
    Republic of The Marshall Islands, which does not have a
    well-developed body of partnership law.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership affairs are governed by our partnership
    agreement and by the Marshall Islands Act. The provisions of the
    Marshall Islands Act resemble provisions of the limited
    partnership laws of a number of states in the United States,
    most notably Delaware. The Marshall Islands Act also provides
    that it is to be interpreted according to the non-statutory law
    of the State of Delaware. There have been, however, few, if any,
    court cases in the Marshall Islands interpreting the Marshall
    Islands Act, in contrast to Delaware, which has a fairly
    <FONT style="white-space: nowrap">well-developed</FONT>
    body of case law interpreting its limited partnership statute.
    Accordingly, we cannot predict whether Marshall Islands courts
    would reach the same conclusions as the
</DIV>
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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">8</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Risk
    factors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    courts in Delaware. For example, the rights of our unitholders
    and the fiduciary responsibilities of our general partner under
    Marshall Islands law are not as clearly established as under
    judicial precedent in existence in Delaware. As a result,
    unitholders may have more difficulty in protecting their
    interests in the face of actions by our general partner and its
    officers and directors than would unitholders of a limited
    partnership formed in the United States.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Because we are
    organized under the laws of the Marshall Islands, it may be
    difficult to serve us with legal process or enforce judgments
    against us and certain of our directors or our
    management.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are organized under the laws of the Marshall Islands, and all
    of our assets are located outside of the United States. Our
    business is operated primarily from our offices in Bermuda and
    Spain. In addition, our general partner is a Marshall Islands
    limited liability company and many of its directors and officers
    are
    <FONT style="white-space: nowrap">non-residents</FONT>
    of the United States, and all or a substantial portion of the
    assets of these non-residents are located outside the United
    States. As a result, it may be difficult or impossible for you
    to bring an action against us or against these individuals in
    the United States if you believe that your rights have been
    infringed under securities laws or otherwise. Even if you are
    successful in bringing an action of this kind, the laws of the
    Marshall Islands and of other jurisdictions may prevent or
    restrict you from enforcing a judgment against our assets or the
    assets of our general partner or its directors and officers.
</DIV>

<A name='O67390108'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">RISKS RELATING TO
    THE COMMON UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">We may issue
    additional common units without the approval of the common
    unitholders, which would dilute their ownership
    interests.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our general partner, without the approval of our unitholders,
    may cause us to issue an unlimited number of additional units or
    other equity securities of equal or senior rank. The issuance by
    us of additional common units or other equity securities will
    have the following effects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our unitholders&#146; proportionate ownership interest in us
    will decrease;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the amount of cash available for distribution on each unit may
    decrease;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    because a lower percentage of total outstanding units will be
    subordinated units, the risk that a shortfall in the payment of
    the minimum quarterly distribution will be borne by our common
    unitholders will increase;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the relative voting strength of each previously outstanding unit
    may be diminished;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the market price of the common units may decline;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the ratio of taxable income to distributions may increase.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Our general
    partner has a call right that may require common unitholders to
    sell their common units at an undesirable time or
    price.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If at any time our general partner and its affiliates own more
    than 80% of the common units, our general partner will have the
    right, but not the obligation (which it may assign to any of its
    affiliates or to us), to acquire all, but not less than all, of
    the common units held by unaffiliated persons at a price not
    less than their then-current market price. As a result, common
    unitholders may be required to sell their common units at an
    undesirable time or price and may not receive any return on
    their investment. Common unitholders may also incur a tax
    liability upon a sale of their units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of the date of this prospectus, Teekay Corporation owned
    approximately 43% of our common units. At the end of the
    subordination period (assuming no additional issuances of common
    units and conversion of our subordinated units into common
    units), Teekay Corporation will own 52% of the common units.
    Teekay Corporation may acquire additional common units if it
    receives common units in
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">9</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Risk
    factors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    satisfaction of obligations owed to it by us, including under
    any vessel purchase transactions between Teekay Corporation and
    us. Accordingly, our general partner and its affiliates at some
    point may own a sufficient percentage of our common units to
    enable our general partner to exercise its call right.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Our partnership
    agreement restricts the voting rights of unitholders owning 20%
    or more of our common units.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership agreement restricts unitholders&#146; voting
    rights by providing that any units held by a person that owns
    20% or more of any class of units then outstanding, other than
    our general partner, its affiliates, their transferees and
    persons who acquired such units with the prior approval of the
    board of directors of our general partner, cannot vote on any
    matter. The partnership agreement also contains provisions
    limiting the ability of unitholders to call meetings or to
    acquire information about our operations, as well as other
    provisions limiting the unitholders&#146; ability to influence
    the manner or direction of management.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Common
    unitholders may not have limited liability if a court finds that
    unitholder action constitutes control of our business.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a limited partner in a partnership organized under the laws
    of the Marshall Islands, common unitholders could be held liable
    for our obligations to the same extent as a general partner if
    they participate in the &#147;control&#148; of our business. Our
    general partner generally has unlimited liability for the
    obligations of the partnership, such as its debts and
    environmental liabilities, except for those contractual
    obligations of the partnership that are expressly made without
    recourse to our general partner. In addition, the Marshall
    Islands Act provides that, under some circumstances, a
    unitholder may be liable to us for the amount of a distribution
    for a period of three years from the date of the distribution.
    In addition, the limitations on the liability of holders of
    limited partner interests for the obligations of a limited
    partnership have not been clearly established in some
    jurisdictions in which we do business.
</DIV>

<A name='O67390109'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Tax
    Risks</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the following risk factors, you should read
    &#147;Material U.S.&#160;Federal Income Tax Considerations&#148;
    for a more complete discussion of expected material
    U.S.&#160;federal income tax considerations of owning and
    disposing of our securities.
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Some of our
    subsidiaries are classified as corporations for U.S. federal
    income tax purposes, which could result in additional
    tax.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain of our subsidiaries are classified as corporations for
    U.S.&#160;federal income tax purposes. As such, these
    subsidiaries would be subject to U.S.&#160;federal income tax on
    the U.S.&#160;source portion of our income attributable to
    transportation that begins or ends (but not both) in the United
    States if they fail to qualify for an exemption from
    U.S.&#160;federal income tax. While we believe that these
    subsidiaries qualify for this exemption as of the date of this
    prospectus, we anticipate that subsequent offerings of our
    common units could cause these subsidiaries to fail to qualify
    for this exemption. The resulting imposition of
    U.S.&#160;federal income taxes would result in decreased cash
    available for distribution to common unitholders. Please read
    &#147;Material U.S.&#160;Federal Income Tax
    Considerations&#151;Taxation of Our Subsidiary
    Corporations&#148; and &#147;Material U.S.&#160;Federal Income
    Tax Considerations&#151;Possible Classification as a
    Corporation.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, these subsidiaries could be treated as passive
    foreign investment companies (or <I>PFICs</I>) for
    U.S.&#160;federal income tax purposes. U.S.&#160;shareholders of
    a PFIC are subject to an adverse U.S.&#160;federal income tax
    regime with respect to the income derived by the PFIC, the
    distributions they receive from the PFIC, and the gain, if any,
    they derive from the sale or other disposition of their
    interests in the PFIC. For a discussion of the consequences of
    possible PFIC classification on our unitholders, please
</DIV>
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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">10</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Risk
    factors</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    read &#147;Material U.S.&#160;Federal Income Tax
    Considerations&#151;Possible Classification as a
    Corporation&#151;Consequences of Possible PFIC
    Classification&#148; and &#147;Material U.S.&#160;Federal Income
    Tax Considerations&#151;Taxation of Our Subsidiary
    Corporations.&#148;
</DIV>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">The Internal
    Revenue Service (or IRS) may challenge the manner in which we
    value our assets in determining the amount of income, gain, loss
    and deduction allocable to the unitholders, which could
    adversely affect the value of the common units.</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A unitholder&#146;s taxable income or loss with respect to a
    common unit each year will depend upon a number of factors,
    including the nature and fair market value of our assets at the
    time the holder acquired the common unit, whether we issue
    additional units or whether we engage in certain other
    transactions, and the manner in which our items of income, gain,
    loss and deduction are allocated among our partners. For this
    purpose, we determine the value of our assets and the relative
    amounts of our items of income, gain, loss and deduction
    allocable to our unitholders and our general partner as holder
    of the incentive distribution rights by reference to the value
    of our interests, including the incentive distribution rights.
    The IRS may challenge any valuation determinations that we make,
    particularly as to the incentive distribution rights, for which
    there is no public market. In addition, the IRS could challenge
    certain other aspects of the manner in which we determine the
    relative allocations made to our unitholders and to the general
    partner as holder of our incentive distribution rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A successful IRS challenge to our valuation or allocation
    methods could increase the amount of net taxable income and gain
    realized by a unitholder with respect to a common unit. Any such
    IRS challenge, whether or not successful, could adversely affect
    the value of our common units.
</DIV>
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<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">11</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390110'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Use of proceeds
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless we specify otherwise in any prospectus supplement, we
    will use the net proceeds from our sale of securities covered by
    this prospectus for general partnership purposes, which may
    include, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    paying or refinancing all or a portion of our indebtedness
    outstanding at the time;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    funding working capital, capital expenditures or acquisitions.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The actual application of proceeds from the sale of any
    particular offering of securities covered by this prospectus
    will be described in the applicable prospectus supplement
    relating to the offering.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">12</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390111'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Description of the
    common units
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units and our subordinated units represent limited
    partner interests in us. The holders of units are entitled to
    participate in partnership distributions and exercise the rights
    and privileges available to limited partners under our
    partnership agreement. For a description of the relative rights
    and privileges of holders of common units, holders of
    subordinated units and our general partner in and to partnership
    distributions, together with a description of the circumstances
    under which subordinated units convert into common units, please
    read &#147;Cash Distributions.&#148;
</DIV>

<A name='O67390112'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">NUMBER OF
    UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of the date of this prospectus, we had 41,021,963 common
    units outstanding, of which 23,180,975 were held by the public
    and 17,840,988 are held by Teekay Corporation, which owns our
    general partner. We also had 7,367,286 subordinated units
    outstanding, for which there is no established public trading
    market, all of which were held by Teekay Corporation. The common
    units and the subordinated units represent an aggregate 98%
    limited partner interest and the general partner interest
    represents a 2% general partner interest in us.
</DIV>

<A name='O67390113'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">ISSUANCE OF
    ADDITIONAL SECURITIES</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership agreement authorizes us to issue an unlimited
    number of additional partnership securities and rights to buy
    partnership securities for the consideration and on the terms
    and conditions determined by our general partner without the
    approval of our unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may fund acquisitions through the issuance of additional
    common units or other equity securities. Holders of any
    additional common units we issue will be entitled to share
    equally with the then-existing holders of common units in our
    distributions of available cash. In addition, the issuance of
    additional common units or other equity securities interests may
    dilute the value of the interests of the then-existing holders
    of common units in our net assets.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In accordance with Marshall Islands law and the provisions of
    our partnership agreement, we may also issue additional
    partnership securities interests that, as determined by the
    general partner, have special voting or other rights to which
    the common units are not entitled.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Upon issuance of additional partnership securities, our general
    partner will be required to make additional capital
    contributions to the extent necessary to maintain its 2% general
    partner interest in us. In addition, our general partner and its
    affiliates have the right, which it may from time to time assign
    in whole or in part to any of its affiliates, to purchase common
    units, subordinated units or other equity securities whenever,
    and on the same terms that, we issue those securities to persons
    other than our general partner and its affiliates, to the extent
    necessary to maintain its and its affiliates&#146; percentage
    interest, including its interest represented by common units and
    subordinated units, that existed immediately prior to each
    issuance. Other holders of common units do not have similar
    preemptive rights to acquire additional common units or other
    partnership securities.
</DIV>

<A name='O67390114'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">MEETINGS;
    VOTING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unlike the holders of common stock in a corporation, the holders
    of our units have only limited voting rights on matters
    affecting our business. They have no right to elect our general
    partner (who manages our operations and activities) or the
    directors of our general partner on an annual or other
    continuing basis. On those matters that are submitted to a vote
    of unitholders, each record holder of a unit may vote according
    to the holder&#146;s percentage interest in us, although
    additional limited partner interests having special voting
    rights could be issued. However, if at any time any person or
    group, other than our general partner and its affiliates (or a
    direct or subsequently approved transferee of our general
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">13</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Description of
    the common units</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    partner or its affiliates or a transferee approved by the board
    of directors of our general partner) acquires, in the aggregate,
    beneficial ownership of 20% or more of any class of units then
    outstanding, that person or group will lose voting rights on all
    of its units and the units may not be voted on any matter and
    will not be considered to be outstanding when sending notices of
    a meeting of unitholders, calculating required votes,
    determining the presence of a quorum, or for other similar
    purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Holders of our subordinated units sometimes vote as a single
    class together with the holders of our common units and
    sometimes vote as a class separate from the holders of common
    units. Holders of subordinated units, like holders of common
    units, have very limited voting rights. During the subordination
    period, common units (excluding common units held by our general
    partner and its affiliates) and subordinated units each vote
    separately as a class generally on the following matters:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    a merger of our partnership;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    a sale or exchange of all or substantially all of our assets;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the election of a successor general partner in connection with
    certain withdrawals of our general partner;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    dissolution or reconstitution of our partnership;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    some amendments to our partnership agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    some amendments to the operating agreement of our operating
    company or action taken by us as a member of the operating
    company if such amendment or action would materially and
    adversely affect our limited partners.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Neither the subordinated units nor any common units held by our
    general partners or any of its affiliates are entitled to vote
    on approval of the withdrawal of our general partner or the
    transfer by our general partner of its general partner interest
    or incentive distribution rights under some circumstances.
    Removal of our general partner requires:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    a
    66<FONT style="vertical-align: text-top; font-size: 70%;">2</FONT>/<FONT style="font-size: 70%;">3</FONT>%
    vote of all outstanding units, voting as a single class;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the election of a successor general partner by the holders of a
    majority of the outstanding common units and subordinated units,
    voting as separate classes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except as described above regarding a person or group owning 20%
    or more of any class of units then outstanding, unitholders or
    assignees who are record holders of units on the record date
    will be entitled to notice of, and to vote at, any meetings of
    our limited partners and to act upon matters for which approvals
    may be solicited. Common units that are owned by an assignee who
    is a record holder, but who has not yet been admitted as a
    limited partner, will be voted by the general partner at the
    written direction of the record holder. Absent direction of this
    kind, the common units will not be voted, except that, in the
    case of common units held by our general partner on behalf of
    unpermitted citizen assignees, our general partner will
    distribute the votes on those common units in the same ratios as
    the votes of limited partners with respect to other units are
    cast.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any action that is required or permitted to be taken by the
    unitholders may be taken either at a meeting of the unitholders
    or without a meeting if consents in writing describing the
    action so taken are signed by holders of the number of units
    necessary to authorize or take that action at a meeting.
    Meetings of the unitholders may be called by our general partner
    or by unitholders owning at least 20% of the outstanding units
    of the class for which a meeting is proposed. Unitholders may
    vote either in person or by proxy at meetings. The holders of a
    majority of the outstanding units of the class or classes for
    which a meeting has been called, represented in person or by
    proxy, will constitute a quorum unless any action by the
    unitholders requires approval by holders of a greater percentage
    of the units, in which case the quorum will be the greater
    percentage.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">14</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Description of
    the common units</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Common units held in nominee or street name account will be
    voted by the broker or other nominee in accordance with the
    instruction of the beneficial owner unless the arrangement
    between the beneficial owner and his nominee provides otherwise.
</DIV>

<A name='O67390115'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">CALL
    RIGHT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If at any time our general partner and its affiliates hold more
    than 80% of the then-issued and outstanding partnership
    securities of any class, our general partner will have the
    right, which it may assign in whole or in part to any of its
    affiliates or to us, to acquire all, but not less than all, of
    the remaining partnership securities of the class held by
    unaffiliated persons as of a record date to be selected by our
    general partner, on at least 10 but not more than
    60&#160;days&#146; notice. The purchase price in this event is
    the greater of (1)&#160;the highest cash price paid by either
    the general partner or any of its affiliates for any partnership
    securities of the class purchased within the 90&#160;days
    preceding the date on which our general partner first mails
    notice of its election to purchase those partnership securities;
    and (2)&#160;the current market price as of the date three days
    before the date the notice is mailed.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As a result of our general partner&#146;s right to purchase
    outstanding partnership securities, a holder of partnership
    securities may have the holder&#146;s partnership securities
    purchased at an undesirable time or price. The tax consequences
    to a unitholder of the exercise of this call right are the same
    as a sale by that unitholder of common units in the market.
    Please read &#147;Material U.S.&#160;Federal Income Tax
    Considerations&#151;Disposition of Common Units.&#148;
</DIV>

<A name='O67390116'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">EXCHANGE
    LISTING</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our common units are listed on the New York Stock Exchange,
    where they trade under the symbol &#147;TGP.&#148;
</DIV>

<A name='O67390117'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">TRANSFER AGENT
    AND REGISTRAR</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    BNY Mellon Shareowner Services serves as registrar and transfer
    agent for our common units. We pay all fees charged by the
    transfer agent for transfers of common units, except the
    following, which must be paid by unitholders:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    surety bond premiums to replace lost or stolen certificates,
    taxes and other governmental charges;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    special charges for services requested by a holder of a common
    unit;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    other similar fees or charges.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    There is no charge to unitholders for disbursements of our cash
    distributions. We will indemnify the transfer agent, its agents
    and each of their stockholders, directors, officers and
    employees against all claims and losses that may arise out of
    acts performed or omitted for its activities in that capacity,
    except for any liability due to any gross negligence or
    intentional misconduct of the indemnified person or entity.
</DIV>

<A name='O67390118'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">TRANSFER OF
    COMMON UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Transfers of a common unit will not be recorded by the transfer
    agent or recognized by us unless the transferee executes and
    delivers a transfer application. By executing and delivering a
    transfer application, the transferee of common units:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    becomes the record holder of the common units and is an assignee
    until admitted into our partnership as a substituted limited
    partner;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    automatically requests admission as a substituted limited
    partner in the partnership;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    agrees to be bound by the terms and conditions of, and executes,
    our partnership agreement;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">15</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Description of
    the common units</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    represents that the transferee has the capacity, power and
    authority to enter into our partnership agreement;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    grants powers of attorney to officers of our general partner and
    any liquidator of us as specified in our partnership
    agreement;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    gives the consents and approvals contained in our partnership
    agreement.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An assignee will become a substituted limited partner of our
    partnership for the transferred common units automatically upon
    the recording of the transfer on our books and records. Our
    general partner will cause any unrecorded transfers for which a
    completed and duly executed transfer application has been
    received to be recorded on our books and records no less
    frequently than quarterly.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A transferee&#146;s broker, agent or nominee may complete,
    execute and deliver a transfer application. We are entitled to
    treat the nominee holder of a common unit as the absolute owner.
    In that case, the beneficial holder&#146;s rights are limited
    solely to those that it has against the nominee holder as a
    result of any agreement between the beneficial owner and the
    nominee holder.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Common units are securities and are transferable according to
    the laws governing transfer of securities. In addition to other
    rights acquired upon transfer, the transferor gives the
    transferee the right to request admission as a substituted
    limited partner in our partnership for the transferred common
    units. A purchaser or transferee of common units who does not
    execute and deliver a transfer application obtains only:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the right to assign the common unit to a purchaser or other
    transferee;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the right to transfer the right to seek admission as a
    substituted limited partner in our partnership for the
    transferred common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Thus, a purchaser or transferee of common units who does not
    execute and deliver a transfer application:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    will not receive cash distributions or U.S.&#160;federal income
    tax allocations, unless the common units are held in a nominee
    or &#147;street name&#148; account and the nominee or broker has
    executed and delivered a transfer application;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    may not receive some U.S.&#160;federal income tax information or
    reports furnished to record holders of common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The transferor of common units has a duty to provide the
    transferee with all information that may be necessary to
    transfer the common units. The transferor does not have a duty
    to ensure the execution of the transfer application by the
    transferee and has no liability or responsibility if the
    transferee neglects or chooses not to execute and forward the
    transfer application to the transfer agent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Until a common unit has been transferred on our books, we and
    the transfer agent may treat the record holder of the unit as
    the absolute owner for all purposes, except as otherwise
    required by law or stock exchange regulations.
</DIV>

<A name='O67390119'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">OTHER
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Merger, Sale, or Other Disposition of
    Assets.</I></B>&#160;&#160;A merger or consolidation of us
    requires the consent of our general partner, in addition to the
    unitholder vote described above under &#147;&#151;Meetings;
    Voting.&#148; However, our general partner will have no duty or
    obligation to consent to any merger or consolidation and may
    decline to do so free of any fiduciary duty or obligation
    whatsoever to us or the limited partners, including any duty to
    act in good faith or in the best interests of us or the limited
    partners. In addition, although our partnership agreement
    generally requires the unitholder vote described above
    &#147;&#151;Meetings; Voting&#148; for the sale, exchange or
    other disposition of all or substantially all of our assets in a
    single transaction or a series of related transactions, our
    general partner may mortgage, pledge,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">16</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Description of
    the common units</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    hypothecate or grant a security interest in all or substantially
    all of our assets without that approval. Our general partner may
    also sell all or substantially all of our assets under a
    foreclosure or other realization upon those encumbrances without
    that approval. The unitholders are not entitled to
    dissenters&#146; rights of appraisal under our partnership
    agreement or applicable law in the event of a conversion, merger
    or consolidation, a sale of all or substantially all of our
    assets, or any other transaction or event.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Registration Rights.</I></B>&#160;&#160;Under our
    partnership agreement, we have agreed to register for resale
    under the U.S.&#160;Securities Act of 1933 and applicable state
    securities laws any common units, subordinated units or other
    partnership securities proposed to be sold by our general
    partner or any of its affiliates or their assignees if an
    exemption from the registration requirements is not otherwise
    available or advisable. These registration rights continue for
    two years following any withdrawal or removal of Teekay GP
    L.L.C. as our general partner. We are obligated to pay all
    expenses incidental to the registration, excluding underwriting
    discounts and commissions.
</DIV>

<A name='O67390120'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">SUMMARY OF OUR
    PARTNERSHIP AGREEMENT</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A copy of our partnership agreement is filed as an exhibit to
    the registration statement of which this prospectus is a part. A
    summary of the important provisions of our partnership agreement
    and the rights and privileges of our unitholders is included in
    our registration statement on
    <FONT style="white-space: nowrap">Form&#160;8-A/A</FONT>
    as filed with the SEC on September&#160;29, 2006, including any
    subsequent amendments or reports filed for the purpose of
    updating such description. Please read &#147;Where You Can Find
    More Information.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">17</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390121'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Cash distributions
    </FONT>
</DIV>

</A>
<A name='O67390122'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">DISTRIBUTIONS OF
    AVAILABLE CASH</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our partnership agreement provides that within approximately
    45&#160;days after the end of each quarter we will distribute
    all of our available cash to unitholders of record on the
    applicable record date.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Definition of
    available cash</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Available cash generally means, for each fiscal quarter, all
    cash on hand at the end of the quarter (including our
    proportionate share of cash on hand of certain subsidiaries we
    do not wholly own):
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    less the amount of cash reserves (including our proportionate
    share of cash reserves of certain subsidiaries we do not wholly
    own) established by our general partner to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="2%"></TD>
    <TD width="96%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    provide for the proper conduct of our business (including
    reserves for future capital expenditures and for our anticipated
    credit needs);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    comply with applicable law, any of our debt instruments, or
    other agreements;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    -&#160;
</TD>
    <TD align="left">
    provide funds for distributions to our unitholders and to our
    general partner for any one or more of the next four quarters;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    plus all cash on hand (including our proportionate share of cash
    on hand of certain subsidiaries we do not wholly own) on the
    date of determination of available cash for the quarter
    resulting from working capital borrowings made after the end of
    the quarter. Working capital borrowings are generally borrowings
    that are made under our credit agreement and in all cases are
    used solely for working capital purposes or to pay distributions
    to partners.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Minimum quarterly
    distribution</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Common unitholders are entitled under our partnership agreement
    to receive a quarterly distribution of $0.4125 per unit, or
    $1.65 per year, prior to any distribution on our subordinated
    units to the extent we have sufficient cash from our operations
    after establishment of cash reserves and payment of fees and
    expenses, including payments to our general partner. Our general
    partner has the authority to determine the amount of our
    available cash for any quarter. This determination, as well as
    all determinations made by the general partner, must be made in
    good faith. Subsequent to our initial public offering in May
    2005, our general partner&#146;s board of directors has declared
    increases in our quarterly distribution to $0.57 per unit, or
    $2.28 per year. There is no guarantee that we will pay the
    quarterly distribution in this amount or the minimum quarterly
    distribution on the common units in any quarter, and we will be
    prohibited from making any distributions to unitholders if it
    would cause an event of default, or an event of default is
    existing, under our credit facilities.
</DIV>

<A name='O67390123'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">OPERATING SURPLUS
    AND CAPITAL SURPLUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All cash distributed to unitholders is characterized as either
    &#147;operating surplus&#148; or &#147;capital surplus.&#148; We
    treat distributions of available cash from operating surplus
    differently than distributions of available cash from capital
    surplus.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">18</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Definition of
    operating surplus</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Operating surplus for any period generally means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our cash balance (including our proportionate share of cash
    balances of certain subsidiaries we do not wholly own) on
    May&#160;10, 2005, the closing date of our initial public
    offering, other than cash reserved to terminate interest rate
    swap agreements; plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    $10&#160;million (as described below); plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    all of our cash receipts (including our proportionate share of
    cash receipts of certain subsidiaries we do not wholly own)
    after the closing of our initial public offering, excluding cash
    from (1)&#160;borrowings, other than working capital borrowings,
    (2)&#160;sales of equity and debt securities, (3)&#160;sales or
    other dispositions of assets outside the ordinary course of
    business, (4)&#160;termination of interest rate swap agreements,
    (5)&#160;capital contributions or (6)&#160;corporate
    reorganizations or restructurings; plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    working capital borrowings (including our proportionate share of
    working capital borrowings by certain subsidiaries we do not
    wholly own) made after the end of a quarter but before the date
    of determination of operating surplus for the quarter; plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    interest paid on debt incurred (including periodic net payments
    under related interest rate swap agreements) and cash
    distributions paid on equity securities issued, in each case, to
    finance all or any portion of the construction, replacement or
    improvement of a capital asset such as vessels during the period
    from such financing until the earlier to occur of the date the
    capital asset is put into service or the date that it is
    abandoned or disposed of; plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    interest paid on debt incurred (including periodic net payments
    under related interest rate swap agreements) and cash
    distributions paid on equity securities issued, in each case, to
    pay the construction period interest on debt incurred, or to pay
    construction period distributions on equity issued, to finance
    the construction projects described in the immediately preceding
    bullet; less
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    all of our cash operating expenditures (including our
    proportionate share of cash operating expenditures of certain
    subsidiaries we do not wholly own) after the closing of our
    initial public offering and the repayment of working capital
    borrowings, but not (1)&#160;the repayment of other borrowings,
    (2)&#160;actual maintenance capital expenditures or expansion
    capital expenditures, (3)&#160;transaction expenses (including
    taxes) related to interim capital transactions or
    (4)&#160;distributions; less
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    estimated maintenance capital expenditures and the amount of
    cash reserves (including our proportionate share of cash
    reserves of certain subsidiaries we do not wholly own)
    established by our general partner to provide funds for future
    operating expenditures.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As described above, operating surplus does not only reflect
    actual cash on hand that is available for distribution to our
    unitholders. For example, it also includes a provision that
    enables us, if we choose, to distribute as operating surplus up
    to $10&#160;million of cash we may receive from non-operating
    sources, such as asset sales, issuances of securities and
    long-term borrowings, that would otherwise be distributed as
    capital surplus. In addition, the effect of including, as
    described above, certain cash distributions on equity securities
    or interest payments on debt in operating surplus is to increase
    operating surplus by the amount of any such cash distributions
    or interest payments. As a result, we may also distribute as
    operating surplus up to the amount of any such cash
    distributions or interest payments of cash we receive from
    non-operating sources.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Capital
    expenditures</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of determining operating surplus, maintenance
    capital expenditures are those capital expenditures required to
    maintain over the long term the operating capacity of or the
    revenue generated by our capital assets, and expansion capital
    expenditures are those capital expenditures that increase the
</DIV>
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<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">19</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    operating capacity of or the revenue generated by our capital
    assets. To the extent, however, that capital expenditures
    associated with acquiring a new vessel increase the revenues or
    the operating capacity of our fleet, those capital expenditures
    are classified as expansion capital expenditures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Examples of maintenance capital expenditures include capital
    expenditures associated with dry-docking a vessel or acquiring a
    new vessel to the extent such expenditures are incurred to
    maintain the operating capacity of or the revenue generated by
    our fleet. Maintenance capital expenditures also include
    interest (and related fees) on debt incurred and distributions
    on equity issued to finance the construction of a replacement
    vessel and paid during the construction period, which we define
    as the period beginning on the date that we enter into a binding
    construction contract and ending on the earlier of the date that
    the replacement vessel commences commercial service or the date
    that the replacement vessel is abandoned or disposed of. Debt
    incurred to pay or equity issued to fund construction period
    interest payments, and distributions on such equity, also are
    considered maintenance capital expenditures.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because our maintenance capital expenditures can be very large
    and vary significantly in timing, the amount of our actual
    maintenance capital expenditures may differ substantially from
    period to period, which could cause similar fluctuations in the
    amounts of operating surplus, adjusted operating surplus, and
    available cash for distribution to our unitholders if we
    subtracted actual maintenance capital expenditures from
    operating surplus each quarter. Accordingly, to eliminate the
    effect on operating surplus of these fluctuations, our
    partnership agreement requires that an amount equal to an
    estimate of the average quarterly maintenance capital
    expenditures necessary to maintain the operating capacity of or
    the revenue generated by our capital assets over the long term
    be subtracted from operating surplus each quarter, as opposed to
    the actual amounts spent. The amount of estimated maintenance
    capital expenditures deducted from operating surplus is subject
    to review and change by the board of directors of our general
    partner at least once a year, provided that any change must be
    approved by our conflicts committee. The estimate is made at
    least annually and whenever an event occurs that is likely to
    result in a material adjustment to the amount of our maintenance
    capital expenditures, such as a major acquisition or the
    introduction of new governmental regulations that affects our
    fleet. For purposes of calculating operating surplus, any
    adjustment to this estimate is prospective only.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The use of estimated maintenance capital expenditures in
    calculating operating surplus has the following effects:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    it reduces the risk that actual maintenance capital expenditures
    in any one quarter will be large enough to make operating
    surplus less than the minimum quarterly distribution to be paid
    on all the units for that quarter and subsequent quarters;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    it reduces the need for us to borrow under our working capital
    facility to pay distributions;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    it is more difficult for us to raise our distribution on our
    units above the minimum quarterly distribution and pay incentive
    distributions to our general partner;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    it reduces the likelihood that a large maintenance capital
    expenditure in a period will prevent the general partner&#146;s
    affiliates from being able to convert some or all of their
    subordinated units into common units since the effect of an
    estimate is to spread the expected expense over several periods,
    mitigating the effect of the actual payment of the expenditure
    on any single period.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Definition of
    capital surplus</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Capital surplus generally is generated only by:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    borrowings other than working capital borrowings;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    sales of debt and equity securities;&#160;and
</TD>
</TR>

</TABLE>
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<P>

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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">20</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    sales or other dispositions of assets for cash, other than
    inventory, accounts receivable and other current assets sold in
    the ordinary course of business or non-current assets sold as
    part of normal retirements or replacements of assets.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Characterization
    of cash distributions</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We treat all available cash distributed as coming from operating
    surplus until the sum of all available cash distributed since we
    began operations equals the operating surplus as of the most
    recent date of determination of available cash. We treat any
    amount distributed in excess of operating surplus, regardless of
    its source, as capital surplus. We do not anticipate that we
    will make any distributions from capital surplus.
</DIV>

<A name='O67390124'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">SUBORDINATION
    PERIOD</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    During the subordination period, which we define below, the
    common units have the right to receive distributions of
    available cash from operating surplus in an amount equal to the
    minimum quarterly distribution of $0.4125 per quarter, plus any
    arrearages in the payment of the minimum quarterly distribution
    on the common units from prior quarters, before any
    distributions of available cash from operating surplus may be
    made on the subordinated units. The purpose of the subordinated
    units is to increase the likelihood that during the
    subordination period there will be available cash to be
    distributed on the common units.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Definition of
    subordination period</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The subordination period generally will extend until the first
    day of any quarter, beginning after March&#160;31, 2010, that
    each of the following tests are met:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    distributions of available cash from operating surplus on each
    of the outstanding common units and subordinated units equaled
    or exceeded the minimum quarterly distribution for each of the
    three consecutive, non-overlapping four-quarter periods
    immediately preceding that date;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the &#147;adjusted operating surplus&#148; (as defined below)
    generated during each of the three consecutive, non-overlapping
    four-quarter periods immediately preceding that date equaled or
    exceeded the sum of the minimum quarterly distributions on all
    of the outstanding common units and subordinated units during
    those periods on a fully-diluted basis and the related
    distribution on the 2% general partner interest during those
    periods;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    there are no arrearages in payment of the minimum quarterly
    distribution on the common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the unitholders remove our general partner without cause, the
    subordination period may end before March&#160;31, 2010.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Early conversion
    of subordinated units</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Before the end of the subordination period, 50% of the original
    subordinated units, or up to 7,367,286 subordinated units, may
    convert into common units on a
    <FONT style="white-space: nowrap">one-for-one</FONT>
    basis immediately after the distribution of available cash to
    the partners in respect of any quarter ending on or after:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    March&#160;31, 2008 with respect to 25% of the subordinated
    units outstanding immediately after our initial public
    offering;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    March&#160;31, 2009 with respect to a further 25% of the
    subordinated units outstanding immediately after our initial
    public offering.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">21</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The early conversions will occur if at the end of the applicable
    quarter each of the following occurs:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    distributions of available cash from operating surplus on each
    of the outstanding common units and subordinated units equaled
    or exceeded the minimum quarterly distribution for each of the
    three consecutive, non-overlapping four-quarter periods
    immediately preceding that date;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the adjusted operating surplus generated during each of the
    three consecutive, non-overlapping four-quarter periods
    immediately preceding that date equaled or exceeded the sum of
    the minimum quarterly distributions on all of the outstanding
    common units and subordinated units during those periods on a
    fully diluted basis and the related distribution on the 2%
    general partner interest during those periods;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    there are no arrearages in payment of the minimum quarterly
    distribution on the common units.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    However, the second early conversion of the subordinated units
    may not occur until at least one year following the first early
    conversion of the subordinated units. On May&#160;19, 2009, a
    total of 3,683,643 subordinated units were converted into an
    equal number of common units as provided for under the terms
    described above.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of determining whether sufficient adjusted
    operating surplus has been generated under these conversion
    tests, the conflicts committee of our general partner&#146;s
    board of directors may adjust adjusted operating surplus upwards
    or downwards if it determines in good faith that the estimated
    amount of maintenance capital expenditures used in the
    determination of operating surplus was materially incorrect,
    based on circumstances prevailing at the time of original
    determination of the estimate.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Definition of
    adjusted operating surplus</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Adjusted operating surplus for any period generally means:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    operating surplus generated with respect to that period; less
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any net increase in working capital borrowings with respect to
    that period; less
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any net reduction in cash reserves for operating expenditures
    with respect to that period not relating to an operating
    expenditure made with respect to that period; plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any net decrease in working capital borrowings with respect to
    that period; plus
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any net increase in cash reserves for operating expenditures
    with respect to that period required by any debt instrument for
    the repayment of principal, interest or premium.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Adjusted operating surplus is intended to reflect the cash
    generated from operations during a particular period and
    therefore excludes net increases in working capital borrowings
    and net drawdowns of reserves of cash generated in prior periods.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Effect of
    expiration of the subordination period</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Upon expiration of the subordination period, each outstanding
    subordinated unit will convert into one common unit and will
    then participate pro rata with the other common units in
    distributions of available cash. In addition, if the unitholders
    remove our general partner other than for cause and units held
    by our general partner and its affiliates are not voted in favor
    of such removal:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the subordination period will end and each subordinated unit
    will immediately convert into one common unit;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any existing arrearages in payment of the minimum quarterly
    distribution on the common units will be extinguished;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our general partner will have the right to convert its general
    partner interest and, if any, its incentive distribution rights
    into common units or to receive cash in exchange for those
    interests.
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">22</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<A name='O67390125'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">DISTRIBUTIONS OF
    AVAILABLE CASH FROM OPERATING SURPLUS DURING THE SUBORDINATION
    PERIOD</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We make distributions of available cash from operating surplus
    for any quarter during the subordination period in the following
    manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    first, 98% to the common unitholders, pro rata, and 2% to our
    general partner, until we distribute for each outstanding common
    unit an amount equal to the minimum quarterly distribution for
    that quarter;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    second, 98% to the common unitholders, pro rata, and 2% to our
    general partner, until we distribute for each outstanding common
    unit an amount equal to any arrearages in payment of the minimum
    quarterly distribution on the common units for any prior
    quarters during the subordination period;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    third, 98% to the subordinated unitholders, pro rata, and 2% to
    our general partner, until we distribute for each subordinated
    unit an amount equal to the minimum quarterly distribution for
    that quarter;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    thereafter, in the manner described in &#147;Incentive
    Distribution Rights&#148; below.
</TD>
</TR>

</TABLE>

<A name='O67390126'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">DISTRIBUTIONS OF
    AVAILABLE CASH FROM OPERATING SURPLUS AFTER THE SUBORDINATION
    PERIOD</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will make distributions of available cash from operating
    surplus for any quarter after the subordination period in the
    following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    first, 98% to all unitholders, pro rata, and 2% to our general
    partner, until we distribute for each outstanding unit an amount
    equal to the minimum quarterly distribution for that
    quarter;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    thereafter, in the manner described in &#147;Incentive
    Distribution Rights&#148; below.
</TD>
</TR>

</TABLE>

<A name='O67390127'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">INCENTIVE
    DISTRIBUTION RIGHTS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Incentive distribution rights represent the right to receive an
    increasing percentage of quarterly distributions of available
    cash from operating surplus after the minimum quarterly
    distribution and the target distribution levels have been
    achieved. Our general partner currently holds the incentive
    distribution rights, but may transfer these rights separately
    from its general partner interest, subject to restrictions in
    the partnership agreement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If for any quarter:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    we have distributed available cash from operating surplus to the
    common and subordinated unitholders in an amount equal to the
    minimum quarterly distribution;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    we have distributed available cash from operating surplus on
    outstanding common units in an amount necessary to eliminate any
    cumulative arrearages in payment of the minimum quarterly
    distribution;
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    then, we distribute any additional available cash from operating
    surplus for that quarter among the unitholders and our general
    partner in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    first, 98% to all unitholders, pro rata, and 2% to our general
    partner, until each unitholder receives a total of $0.4625 per
    unit for that quarter (the &#147;first target
    distribution&#148;);
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    second, 85% to all unitholders, pro rata, and 15% to our general
    partner, until each unitholder receives a total of $0.5375 per
    unit for that quarter (the &#147;second target
    distribution&#148;);
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">23</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    third, 75% to all unitholders, pro rata, and 25% to our general
    partner, until each unitholder receives a total of $0.6500 per
    unit for that quarter (the &#147;third target
    distribution&#148;);&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    thereafter, 50% to all unitholders, pro rata, and 50% to our
    general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In each case, the amount of the target distribution set forth
    above is exclusive of any distributions to common unitholders to
    eliminate any cumulative arrearages in payment of the minimum
    quarterly distribution. The percentage interests set forth above
    for our general partner include its 2% general partner interest
    and assume the general partner has not transferred the incentive
    distribution rights.
</DIV>

<A name='O67390128'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">PERCENTAGE
    ALLOCATIONS OF AVAILABLE CASH FROM OPERATING SURPLUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table illustrates the percentage allocations of
    the additional available cash from operating surplus among the
    unitholders and our general partner up to the various target
    distribution levels. The amounts set forth under &#147;Marginal
    Percentage Interest in Distributions&#148; are the percentage
    interests of the unitholders and our general partner in any
    available cash from operating surplus we distribute up to and
    including the corresponding amount in the column &#147;Total
    Quarterly Distribution Target Amount,&#148; until available cash
    from operating surplus we distribute reaches the next target
    distribution level, if any. The percentage interests shown for
    the unitholders and our general partner for the minimum
    quarterly distribution are also applicable to quarterly
    distribution amounts that are less than the minimum quarterly
    distribution. The percentage interests shown for our general
    partner include its 2% general partner interest and assume the
    general partner has not transferred the incentive distribution
    rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="44%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="28%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="4%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Marginal
    percentage interest in<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Total quarterly
    distribution target<BR>
    </FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" nowrap align="right" valign="bottom" style="border-bottom: 1px solid #000000">
    <B><FONT style="font-family: Arial, Helvetica">distributions</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">amount</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">Unitholders</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="right" valign="bottom">
    <B><FONT style="font-family: Arial, Helvetica">General
    partner</FONT></B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 1pt" valign="bottom" align="center">
<TD colspan="10" nowrap align="right" valign="bottom" style="font-size: 1pt; border-bottom: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Minimum Quarterly Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    $0.4125
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    First Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    up to $0.4625
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    98
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    2
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Second Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    above $0.4625 up to $0.5375
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    85
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    15
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Third Target Distribution
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD align="center" valign="bottom">
    above $0.5375 up to $0.6500
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    75
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    25
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Thereafter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    above $0.6500
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<A name='O67390129'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">DISTRIBUTIONS
    FROM CAPITAL SURPLUS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">How distributions
    from capital surplus will be made</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will make distributions of available cash from capital
    surplus, if any, in the following manner:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    first, 98% to all unitholders, pro rata, and 2% to our general
    partner, until we distribute for each common unit that was
    issued in this offering, an amount of available cash from
    capital surplus equal to the initial public offering price;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    second, 98% to the common unitholders, pro rata, and 2% to our
    general partner, until we distribute for each common unit, an
    amount of available cash from capital surplus equal to any
    unpaid arrearages in payment of the minimum quarterly
    distribution on the common units;&#160;and
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    thereafter, we will make all distributions of available cash
    from capital surplus as if they were from operating surplus.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Effect of a
    distribution from capital surplus</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The partnership agreement treats a distribution of capital
    surplus as the repayment of the initial unit price from our
    initial public offering on May&#160;10, 2005, which is a return
    of capital. That initial public offering price less any
    distributions of capital surplus per unit is referred to as the
    &#147;unrecovered initial unit price.&#148; Each time a
    distribution of capital surplus is made, the minimum quarterly
    distribution and the target distribution levels will be reduced
    in the same proportion as the corresponding reduction in
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">24</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    the unrecovered initial unit price. Because distributions of
    capital surplus will reduce the minimum quarterly distribution,
    after any of these distributions are made, it may be easier for
    our general partner to receive incentive distributions and for
    the subordinated units to convert into common units. However,
    any distribution of capital surplus before the unrecovered
    initial unit price is reduced to zero cannot be applied to the
    payment of the minimum quarterly distribution or any arrearages.
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Once we distribute capital surplus on a unit issued in our
    initial public offering in an amount equal to the initial public
    offering price for our initial public offering, we will reduce
    the minimum quarterly distribution and the target distribution
    levels to zero. We will then make all future distributions from
    operating surplus, with 50% being paid to the holders of units
    and 50% to our general partner. The percentage interests shown
    for our general partner include its 2% general partner interest
    and assume the general partner has not transferred the incentive
    distribution rights.
</DIV>

<A name='O67390130'>
<DIV style="margin-top: 8pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">ADJUSTMENT TO THE
    MINIMUM QUARTERLY DISTRIBUTION AND TARGET DISTRIBUTION
    LEVELS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to adjusting the minimum quarterly distribution and
    target distribution levels to reflect a distribution of capital
    surplus, if we combine our units into fewer units or subdivide
    our units into a greater number of units, we will
    proportionately adjust:
</DIV>

<DIV style="margin-top: 4pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the minimum quarterly distribution;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the target distribution levels;
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the unrecovered initial unit price;&#160;and
</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the number of common units issuable during the subordination
    period without a unitholder vote.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For example, if a
    <FONT style="white-space: nowrap">two-for-one</FONT>
    split of the common units should occur, the minimum quarterly
    distribution, the target distribution levels and the unrecovered
    initial unit price would each be reduced to 50% of its initial
    level and the number of common units issuable during the
    subordination period without a unitholder vote would double. We
    will not make any adjustment by reason of the issuance of
    additional units for cash or property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, if legislation is enacted or if existing law is
    modified or interpreted by a governmental taxing authority so
    that we become taxable as a corporation or otherwise subject to
    taxation as an entity for U.S.&#160;federal, state, local or
    <FONT style="white-space: nowrap">non-U.S.&#160;income</FONT>
    tax purposes, we will reduce the minimum quarterly distribution
    and the target distribution levels for each quarter by
    multiplying each distribution level by a fraction, the numerator
    of which is available cash for that quarter and the denominator
    of which is the sum of available cash for that quarter plus the
    general partner&#146;s estimate of our aggregate liability for
    the quarter for such income taxes payable by reason of such
    legislation or interpretation. To the extent that the actual tax
    liability differs from the estimated tax liability for any
    quarter, the difference will be accounted for in subsequent
    quarters.
</DIV>

<A name='O67390131'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">DISTRIBUTIONS OF
    CASH UPON LIQUIDATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">General</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we dissolve in accordance with the partnership agreement, we
    will sell or otherwise dispose of our assets in a process called
    liquidation. We will first apply the proceeds of liquidation to
    the payment of our creditors. We will distribute any remaining
    proceeds to the unitholders and our general partner, in
    accordance with their capital account balances, as adjusted to
    reflect any gain or loss upon the sale or other disposition of
    our assets in liquidation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The allocations of gain and loss upon liquidation are intended,
    to the extent possible, to entitle the holders of outstanding
    common units to a preference over the holders of outstanding
    subordinated units upon our liquidation, to the extent required
    to permit common unitholders to receive their unrecovered
    initial unit price plus the minimum quarterly distribution for
    the quarter during which liquidation occurs plus any unpaid
    arrearages in payment of the minimum quarterly distribution on
    the common
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">25</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    units. However, there may not be sufficient gain upon our
    liquidation to enable the holders of common units to fully
    recover all of these amounts, even though there may be cash
    available for distribution to the holders of subordinated units.
    Any further net gain recognized upon liquidation will be
    allocated in a manner that takes into account the incentive
    distribution rights of our general partner.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Manner of
    adjustments for gain</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The manner of the adjustment for gain is set forth in the
    partnership agreement. If our liquidation occurs before the end
    of the subordination period, we will allocate any gain to the
    partners in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    first, to our general partner and the holders of units who have
    negative balances in their capital accounts to the extent of and
    in proportion to those negative balances;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    second, 98% to the common unitholders, pro rata, and 2% to our
    general partner, until the capital account for each common unit
    is equal to the sum of:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;&#160;the unrecovered initial unit price;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;&#160;the amount of any unpaid minimum quarterly
    distribution for the quarter during which our liquidation
    occurs;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (3)&#160;&#160;any unpaid arrearages in payment of the minimum
    quarterly distribution;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    third, 98% to the subordinated unitholders, pro rata, and 2% to
    our general partner until the capital account for each
    subordinated unit is equal to the sum of:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;&#160;the unrecovered initial unit price;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;&#160;the amount of any unpaid minimum quarterly
    distribution for the quarter during which our liquidation occurs;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    fourth, 98% to all unitholders, pro rata, and 2% to our general
    partner, until we allocate under this paragraph an amount per
    unit equal to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;&#160;the first target distribution per unit over the
    minimum quarterly distribution per unit for each quarter of our
    existence;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;&#160;the cumulative amount per unit of any
    distributions of available cash from operating surplus in excess
    of the minimum quarterly distribution per unit that we
    distributed 98% to the unitholders, pro rata, and 2% to our
    general partner, for each quarter of our existence;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    fifth, 85% to all unitholders, pro rata, and 15% to our general
    partner, until we allocate under this paragraph an amount per
    unit equal to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;&#160;the sum of the excess of the second target
    distribution per unit over the first target distribution per
    unit for each quarter of our existence; less
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;&#160;the cumulative amount per unit of any
    distributions of available cash from operating surplus in excess
    of the first target distribution per unit that we distributed
    85% to the unitholders, pro rata, and 15% to our general partner
    for each quarter of our existence;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    sixth, 75% to all unitholders, pro rata, and 25% to our general
    partner, until we allocate under this paragraph an amount per
    unit equal to:
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;&#160;the sum of the excess of the third target
    distribution per unit over the second target distribution per
    unit for each quarter of our existence; less
</DIV>
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<P>

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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">26</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Cash
    distributions</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;&#160;the cumulative amount per unit of any
    distributions of available cash from operating surplus in excess
    of the second target distribution per unit that we distributed
    75% to the unitholders, pro rata, and 25% to our general partner
    for each quarter of our existence;&#160;and
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    thereafter, 50% to all unitholders, pro rata, and 50% to our
    general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The percentage interests set forth above for our general partner
    include its 2% general partner interest and assume the general
    partner has not transferred the incentive distribution rights.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the liquidation occurs after the end of the subordination
    period, the distinction between common units and subordinated
    units will disappear, so that clause&#160;(3) of the second
    bullet point above and all of the third bullet point above will
    no longer be applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Manner of
    adjustments for losses</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If our liquidation occurs before the end of the subordination
    period, we will generally allocate any loss to our general
    partner and the unitholders in the following manner:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    first, 98% to holders of subordinated units in proportion to the
    positive balances in their capital accounts and 2% to our
    general partner, until the capital accounts of the subordinated
    unitholders have been reduced to zero;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    second, 98% to the holders of common units in proportion to the
    positive balances in their capital accounts and 2% to our
    general partner, until the capital accounts of the common
    unitholders have been reduced to zero;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    thereafter, 100% to our general partner.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If the liquidation occurs after the end of the subordination
    period, the distinction between common units and subordinated
    units will disappear, so that the first bullet point above will
    no longer be applicable.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Adjustments to
    capital accounts</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will make adjustments to capital accounts upon the issuance
    of additional units. In doing so, we will allocate any
    unrealized and, for tax purposes, unrecognized gain or loss
    resulting from the adjustments to the existing unitholders and
    our general partner in the same manner as we allocate gain or
    loss upon liquidation. In the event that we make positive
    adjustments to the capital accounts upon the issuance of
    additional units, we will allocate any later negative
    adjustments to the capital accounts resulting from the issuance
    of additional units or upon our liquidation in a manner which
    results, to the extent possible, in our general partner&#146;s
    and unitholders&#146; capital account balances equaling the
    amount which they would have been if no earlier positive
    adjustments to the capital accounts had been made.
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">27</FONT></B>
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    <A name='O67390132'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This section is a discussion of the material U.S.&#160;federal
    income tax considerations that may be relevant to prospective
    common unitholders who are individual citizens or residents of
    the United States and, unless otherwise noted in the following
    discussion, is the opinion of Perkins Coie LLP, counsel to the
    general partner and us, insofar as it relates to matters of
    U.S.&#160;federal income tax law and legal conclusions with
    respect to those matters. This section is based upon provisions
    of the U.S.&#160;Internal Revenue Code of 1986 (or the
    <I>Internal Revenue Code</I>) as in effect on the date of this
    prospectus, existing final, temporary and proposed regulations
    thereunder (or <I>Treasury Regulations</I>) and current
    administrative rulings and court decisions, all of which are
    subject to change. Changes in these authorities may cause the
    tax consequences to vary substantially from the consequences
    described below. Unless the context otherwise requires,
    references in this section to &#147;we&#148;, &#147;our&#148; or
    &#147;us&#148; are references to Teekay LNG Partners L.P. and
    its direct or indirect wholly owned subsidiaries that have
    properly elected to be disregarded as entities separate from
    their owners for U.S.&#160;federal tax purposes other than
    subsidiaries which have properly elected to be disregarded as
    entities separate from any of our corporate subsidiaries for
    U.S. federal tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion does not comment on all
    U.S.&#160;federal income tax matters affecting us or the
    unitholders. Moreover, the discussion focuses on unitholders who
    are individual citizens or residents of the United States and
    hold their units as capital assets and has only limited
    application to corporations, estates, trusts,
    <FONT style="white-space: nowrap">non-U.S.&#160;persons</FONT>
    or other unitholders subject to specialized tax treatment, such
    as tax-exempt entities (including IRAs), regulated investment
    companies (mutual funds) and real estate investment trusts (or
    <I>REITs</I>). Accordingly, we urge each prospective unitholder
    to consult, and rely on, his own tax advisor in analyzing the
    U.S.&#160;federal, state, local and
    <FONT style="white-space: nowrap">non-U.S.&#160;tax</FONT>
    consequences particular to him of the ownership or disposition
    of common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All statements as to matters of law and legal conclusions, but
    not as to factual matters, contained in this section, unless
    otherwise noted, are the opinion of Perkins Coie LLP and are
    based on the accuracy of the representations made by us to
    Perkins Coie LLP for purposes of their opinion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Except as described below under &#147;&#151;Classification as a
    Partnership,&#148; no ruling has been or will be requested from
    the IRS regarding any matter affecting us or prospective
    unitholders. Instead, we will rely on opinions of Perkins Coie
    LLP. Unlike a ruling, an opinion of counsel represents only that
    counsel&#146;s best legal judgment and does not bind the IRS or
    the courts. Accordingly, the opinions of Perkins Coie LLP may
    not be sustained by a court if contested by the IRS. Any contest
    of this nature with the IRS may materially and adversely impact
    the market for the common units and the prices at which common
    units trade. In addition, the costs of any contest with the IRS,
    principally legal, accounting and related fees, will result in a
    reduction in cash available for distribution to our unitholders
    and our general partner and thus will be borne indirectly by our
    unitholders and our general partner. Furthermore, our tax
    treatment, or the tax treatment of an investment in us, may be
    significantly modified by future legislative or administrative
    changes or court decisions. Any modifications may or may not be
    retroactively applied.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For the reasons described below, Perkins Coie LLP has not
    rendered an opinion with respect to the following specific
    U.S.&#160;federal income tax issues: (1)&#160;the treatment of a
    unitholder whose common units are loaned to a short seller to
    cover a short sale of common units (please read
    &#147;&#151;Consequences of Unit Ownership&#151;Treatment of
    Short Sales&#148;); (2)&#160;whether our method for depreciating
    Section&#160;743 adjustments is sustainable in certain cases
    (please read &#147;&#151;Consequences of Unit
    Ownership&#151;Section&#160;754 Election&#148;); and
    (3)&#160;whether our monthly convention for allocating taxable
    income and losses is permitted by existing Treasury Regulations
    (please read &#147;&#151;Disposition of Common
    Units&#151;Allocations Between Transferors and
    Transferees&#148;). Perkins Coie LLP has not rendered an opinion
    on any state, local or
    <FONT style="white-space: nowrap">non-U.S.&#160;tax</FONT>
    matters.
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">28</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<A name='O67390133'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">CLASSIFICATION AS
    A PARTNERSHIP</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of U.S.&#160;federal income taxation, a partnership
    is not a taxable entity, and although it may be subject to
    withholding taxes on behalf of its partners under certain
    circumstances, a partnership itself incurs no U.S.&#160;federal
    income tax liability. Instead, each partner of a partnership is
    required to take into account his share of items of income,
    gain, loss, deduction and credit of the partnership in computing
    his U.S.&#160;federal income tax liability, regardless of
    whether cash distributions are made to him by the partnership.
    Distributions by a partnership to a partner generally are not
    taxable unless the amount of cash distributed exceeds the
    partner&#146;s adjusted tax basis in his partnership interest.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Section&#160;7704 of the Internal Revenue Code provides that
    publicly traded partnerships, as a general rule, will be treated
    as corporations for U.S.&#160;federal income tax purposes.
    However, an exception, referred to as the &#147;Qualifying
    Income Exception,&#148; exists with respect to publicly traded
    partnerships whose &#147;qualifying income&#148; represents 90%
    or more of their gross income for every taxable year. Qualifying
    income includes income and gains derived from the transportation
    and storage of crude oil, natural gas and products thereof,
    including liquefied natural gas. Other types of qualifying
    income include interest (other than from a financial business),
    dividends, gains from the sale of real property and gains from
    the sale or other disposition of capital assets held for the
    production of qualifying income, including stock. We have
    received a ruling from the IRS that we requested in connection
    with our initial public offering that the income we derive from
    transporting LNG and crude oil pursuant to time charters
    existing at the time of our initial public offering is
    qualifying income within the meaning of Section&#160;7704. A
    ruling from the IRS, while generally binding on the IRS, may
    under certain circumstances be revoked or modified by the IRS
    retroactively. As to income that is not covered by the IRS
    ruling, we will rely upon the opinion of Perkins Coie LLP
    whether the income is qualifying income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We estimate that less than 5% of our current income is not
    qualifying income; however, this estimate could change from time
    to time for various reasons. Because we have not received an IRS
    ruling or an opinion of counsel that (1)&#160;any income we
    derive from transporting LPG, petrochemical gases and ammonia
    pursuant to charters that we have entered into or will enter
    into in the future, (2)&#160;income we derive from transporting
    crude oil, natural gas and products thereof, including LNG,
    pursuant to bareboat charters or (3)&#160;income or gain we
    recognize from foreign currency transactions, is qualifying
    income, we are currently treating income from those sources as
    nonqualifying income. Under some circumstances, such as a
    significant change in foreign currency rates, the percentage of
    income or gain from foreign currency transactions or from
    interest rate swaps in relation to our total gross income could
    be substantial. We do not expect income or gains from these
    sources and other income or gains that are not qualifying income
    to constitute 10% or more of our gross income for
    U.S.&#160;federal income tax purposes. However, it is possible
    that the operation of certain of our vessels pursuant to
    bareboat charters could, in the future, cause our non-qualifying
    income to constitute 10% or more of our future gross income if
    such vessels were held in a pass-through structure. In order to
    preserve our status as a partnership for U.S.&#160;federal
    income tax purposes, we have received a ruling from the IRS that
    effectively allows us to conduct our bareboat charter
    operations, as well as our LPG operations, in a subsidiary
    corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Perkins Coie LLP is of the opinion that, based upon the Internal
    Revenue Code, Treasury Regulations thereunder, published revenue
    rulings and court decisions, the IRS ruling and representations
    described below, we should be classified as a partnership for
    U.S.&#160;federal income tax purposes.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In rendering its opinion, Perkins Coie LLP has relied on factual
    representations made by us and the general partner. The
    representations made by us and our general partner upon which
    Perkins Coie LLP has relied are:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    We have not elected and will not elect to be treated as a
    corporation for U.S.&#160;federal income tax purposes;&#160;and
</TD>
</TR>

</TABLE>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">29</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;</TD>
    <TD align="left">
    For each taxable year, at least 90% of our gross income will be
    either (a)&#160;income to which the IRS ruling described above
    applies or (b)&#160;of a type that Perkins Coie LLP has opined
    or will opine is &#147;qualifying income&#148; within the
    meaning of Section&#160;7704(d) of the Internal Revenue Code.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The discussion that follows is based on the assumption that we
    will be treated as a partnership for U.S.&#160;federal income
    tax purposes. Please read &#147;&#151;Possible Classification as
    a Corporation&#148; below for a discussion of the consequences
    of our failing to be treated as a partnership for such purposes.
</DIV>

<A name='O67390134'>
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    <B><FONT style="font-family: Arial, Helvetica">STATUS AS A
    PARTNER</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The treatment of unitholders described in this section applies
    only to unitholders treated as partners in us for
    U.S.&#160;federal income tax purposes. Unitholders who have been
    properly admitted as limited partners of Teekay LNG Partners
    L.P. will be treated as partners in us for U.S.&#160;federal
    income tax purposes. Also:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    assignees of common units who have executed and delivered
    transfer applications, and are awaiting admission as limited
    partners;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    unitholders whose common units are held in street name or by a
    nominee and who have the right to direct the nominee in the
    exercise of all substantive rights attendant to the ownership of
    their common units will be treated as partners in us for
    U.S.&#160;federal income tax purposes.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because no direct authority addresses the status of assignees of
    common units who are entitled to execute and deliver transfer
    applications and thereby become entitled to direct the exercise
    of attendant rights, but who fail to execute and deliver
    transfer applications, Perkins Coie LLP&#146;s opinion does not
    extend to these persons. Furthermore, a purchaser or other
    transferee of common units who does not execute and deliver a
    transfer application may not receive some U.S.&#160;federal
    income tax information or reports furnished to record holders of
    common units, unless the common units are held in a nominee or
    street name account and the nominee or broker has executed and
    delivered a transfer application for those common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under certain circumstances, a beneficial owner of common units
    whose units have been loaned to another may lose his status as a
    partner with respect to those units for U.S.&#160;federal income
    tax purposes. Please read &#147;&#151;Consequences of Unit
    Ownership&#151;Treatment of Short Sales&#148; below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In general, a person who is not a partner in a partnership for
    U.S.&#160;federal income tax purposes is not required or
    permitted to report any share of the partnership&#146;s income,
    gain, deductions or losses for such purposes, and any cash
    distributions received by such a person from the partnership
    therefore may be fully taxable as ordinary income. Unitholders
    not described here are urged to consult their own tax advisors
    with respect to their status as partners in us for
    U.S.&#160;federal income tax purposes.
</DIV>

<A name='O67390135'>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">CONSEQUENCES OF
    UNIT OWNERSHIP</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Flow-through of Taxable Income.</I></B>&#160;&#160;Each
    unitholder is required to include in computing his taxable
    income his allocable share of our items of income, gain, loss,
    deduction and credit for our taxable year ending with or within
    his taxable year, without regard to whether we make
    corresponding cash distributions to him. Our taxable year ends
    on December&#160;31. Consequently, we may allocate income to a
    unitholder as of December 31 of a given year, and the unitholder
    will be required to report this income on his tax return for his
    tax year that ends on or includes such date, even if he has not
    received a cash distribution from us as of that date.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Treatment of
    Distributions.</I></B>&#160;&#160;Distributions by us to a
    unitholder generally will not be taxable to the unitholder for
    U.S.&#160;federal income tax purposes to the extent of his tax
    basis in his common units immediately before the distribution.
    Our cash distributions in excess of a unitholder&#146;s tax
    basis generally will be considered to be gain from the sale or
    exchange of the common units, taxable in accordance with the
    rules described under &#147;&#151;Disposition of Common
    Units&#148; below. Any reduction in a unitholder&#146;s share
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">30</FONT></B>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    of our liabilities for which no partner, including the general
    partner, bears the economic risk of loss, known as
    &#147;nonrecourse liabilities,&#148; will be treated as a
    distribution of cash to that unitholder. To the extent our
    distributions cause a unitholder&#146;s &#147;at risk&#148;
    amount to be less than zero at the end of any taxable year, he
    must recapture any losses deducted in previous years. Please
    read &#147;&#151;Limitations on Deductibility of Losses.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A decrease in a unitholder&#146;s percentage interest in us
    because of our issuance of additional common units will decrease
    his share of our nonrecourse liabilities, and thus will result
    in a corresponding deemed distribution of cash. A non-pro rata
    distribution of money or property may result in ordinary income
    to a unitholder, regardless of his tax basis in his common
    units, if the distribution reduces the unitholder&#146;s share
    of our &#147;unrealized receivables,&#148; including
    depreciation recapture,
    <FONT style="white-space: nowrap">and/or</FONT>
    substantially appreciated &#147;inventory items,&#148; both as
    defined in the Internal Revenue Code (or, collectively,
    <I>Section&#160;751 Assets</I>). To that extent, he will be
    treated as having been distributed his proportionate share of
    the Section&#160;751 Assets and having exchanged those assets
    with us in return for the non-pro rata portion of the actual
    distribution made to him. This latter deemed exchange generally
    will result in the unitholder&#146;s realization of ordinary
    income, which will equal the excess of (1)&#160;the non-pro rata
    portion of that distribution over (2)&#160;the unitholder&#146;s
    tax basis for the share of Section&#160;751 Assets deemed
    relinquished in the exchange.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Basis of Common Units.</I></B>&#160;&#160;A
    unitholder&#146;s initial U.S.&#160;federal income tax basis for
    his common units will be the amount he paid for the common units
    plus his share of our nonrecourse liabilities. That basis will
    be increased by his share of our income and by any increases in
    his share of our nonrecourse liabilities. That basis will be
    decreased, but not below zero, by distributions from us, by the
    unitholder&#146;s share of our losses, by any decreases in his
    share of our nonrecourse liabilities and by his share of our
    expenditures that are not deductible in computing taxable income
    and are not required to be capitalized. A unitholder will have
    no share of our debt that is recourse to the general partner,
    but will have a share, generally based on his share of profits,
    of our nonrecourse liabilities. Please read
    &#147;&#151;Disposition of Common Units&#151;Recognition of Gain
    or Loss.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Limitations on Deductibility of
    Losses.</I></B>&#160;&#160;The deduction by a unitholder of his
    share of our losses will be limited to the tax basis in his
    units and, in the case of an individual unitholder or a
    corporate unitholder, if more than 50% of the value of the
    corporate unitholder&#146;s stock is owned directly or
    indirectly by five or fewer individuals or some tax-exempt
    organizations, to the amount for which the unitholder is
    considered to be &#147;at risk&#148; with respect to our
    activities, if that is less than his tax basis. A unitholder
    must recapture losses deducted in previous years to the extent
    that distributions cause his at risk amount to be less than zero
    at the end of any taxable year. Losses disallowed to a
    unitholder or recaptured as a result of these limitations will
    carry forward and will be allowable to the extent that his tax
    basis or at risk amount, whichever is the limiting factor, is
    subsequently increased. Upon the taxable disposition of a unit,
    any gain recognized by a unitholder can be offset by losses that
    were previously suspended by the at risk limitation but may not
    be offset by losses suspended by the basis limitation. Any
    excess suspended loss above that gain is no longer utilizable.
    In general, a unitholder will be at risk to the extent of the
    tax basis of his units, excluding any portion of that basis
    attributable to his share of our nonrecourse liabilities,
    reduced by any amount of money he borrows to acquire or hold his
    units, if the lender of those borrowed funds owns an interest in
    us, is related to the unitholder or can look only to the units
    for repayment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The passive loss limitations generally provide that individuals,
    estates, trusts and some closely-held corporations and personal
    service corporations can deduct losses from a passive activity
    only to the extent of the taxpayer&#146;s income from the same
    passive activity. Passive activities generally are corporate or
    partnership activities in which the taxpayer does not materially
    participate. The passive loss limitations are applied separately
    with respect to each publicly traded partnership. Consequently,
    any passive losses we generate only will be available to offset
    our passive income generated in the future and will not be
    available to offset income from other passive activities or
    investments, including our investments or
</DIV>
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<P>

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    <BR>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    investments in other publicly traded partnerships, or salary or
    active business income. Passive losses that are not deductible
    because they exceed a unitholder&#146;s share of income we
    generate may be deducted in full when he disposes of his entire
    investment in us in a fully taxable transaction with an
    unrelated party. The passive activity loss rules are applied
    after other applicable limitations on deductions, including the
    at risk rules and the basis limitation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Dual consolidated loss restrictions also may apply to limit the
    deductibility by a corporate unitholder of losses we incur.
    Corporate unitholders are urged to consult their own tax
    advisors regarding the applicability and effect to them of dual
    consolidated loss restrictions.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Limitations on Interest Deductions.</I></B>&#160;&#160;The
    deductibility of a non-corporate taxpayer&#146;s
    &#147;investment interest expense&#148; generally is limited to
    the amount of that taxpayer&#146;s &#147;net investment
    income.&#148; Investment interest expense includes:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    interest on indebtedness properly allocable to property held for
    investment;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    our interest expense attributed to portfolio income;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the portion of interest expense incurred to purchase or carry an
    interest in a passive activity to the extent attributable to
    portfolio income.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The computation of a unitholder&#146;s investment interest
    expense will take into account interest on any margin account
    borrowing or other loan incurred to purchase or carry a unit.
    Net investment income includes gross income from property held
    for investment and amounts treated as portfolio income under the
    passive loss rules, less deductible expenses, other than
    interest, directly connected with the production of investment
    income, but generally does not include gains attributable to the
    disposition of property held for investment. The IRS has
    indicated that net passive income earned by a publicly traded
    partnership will be treated as investment income to its
    unitholders. In addition, the unitholder&#146;s share of our
    portfolio income will be treated as investment income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Entity-Level&#160;Collections.</I></B>&#160;&#160;If we
    are required or elect under applicable law to pay any
    U.S.&#160;federal, state or local or foreign income or
    withholding taxes on behalf of any present or former unitholder
    or the general partner, we are authorized to pay those taxes
    from our funds. That payment, if made, will be treated as a
    distribution of cash to the partner on whose behalf the payment
    was made. If the payment is made on behalf of a person whose
    identity cannot be determined, we are authorized to treat the
    payment as a distribution to all current unitholders. We are
    authorized to amend the partnership agreement in the manner
    necessary to maintain uniformity of intrinsic tax
    characteristics of units and to adjust later distributions, so
    that after giving effect to these distributions, the priority
    and characterization of distributions otherwise applicable under
    the partnership agreement are maintained as nearly as is
    practicable. Payments by us as described above could give rise
    to an overpayment of tax on behalf of an individual partner, in
    which event the partner would be required to file a claim in
    order to obtain a credit or refund of tax paid.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Allocation of Income, Gain, Loss, Deduction and
    Credit.</I></B>&#160;&#160;In general, if we have a net profit,
    our items of income, gain, loss, deduction and credit will be
    allocated among the general partner and the unitholders in
    accordance with their percentage interests in us. At any time
    that distributions are made to the common units in excess of
    distributions to the subordinated units, or incentive
    distributions are made to the general partner, gross income will
    be allocated to the recipients to the extent of these
    distributions. If we have a net loss for the entire year, that
    loss generally will be allocated first to the general partner
    and the unitholders in accordance with their percentage
    interests in us to the extent of their positive capital accounts
    and, second, to the general partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Specified items of our income, gain, loss and deduction will be
    allocated to account for any difference between the tax basis
    and fair market value of any property held by the partnership
    immediately prior to an offering of common units, referred to in
    this discussion as &#147;Adjusted Property.&#148; The effect of
    these allocations to a unitholder purchasing common units in an
    offering will be essentially the same as
</DIV>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

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    if the tax basis of our assets were equal to their fair market
    value at the time of the offering. In addition, items of
    recapture income will be allocated to the extent possible to the
    partner who was allocated the deduction giving rise to the
    treatment of that gain as recapture income in order to minimize
    the recognition of ordinary income by some unitholders. Finally,
    although we do not expect that our operations will result in the
    creation of negative capital accounts, if negative capital
    accounts nevertheless result, items of our income and gain will
    be allocated in an amount and manner to eliminate the negative
    balance as quickly as possible.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    An allocation of items of our income, gain, loss, deduction or
    credit, other than an allocation required by the Internal
    Revenue Code to eliminate the difference between a
    partner&#146;s &#147;book&#148; capital account, which is
    credited with the fair market value of Adjusted Property, and
    &#147;tax&#148; capital account, which is credited with the tax
    basis of Adjusted Property, referred to in this discussion as
    the &#147;Book-Tax Disparity,&#148; will generally be given
    effect for U.S.&#160;federal income tax purposes in determining
    a partner&#146;s share of an item of income, gain, loss,
    deduction or credit only if the allocation has substantial
    economic effect. In any other case, a partner&#146;s share of an
    item will be determined on the basis of his interest in us,
    which will be determined by taking into account all the facts
    and circumstances, including:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

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    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    his relative contributions to us;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the interests of all the partners in profits and losses;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the interest of all the partners in cash flow;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the rights of all the partners to distributions of capital upon
    liquidation.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A unitholder&#146;s taxable income or loss with respect to a
    common unit each year will depend upon a number of factors,
    including (1)&#160;the nature and fair market value of our
    assets at the time the holder acquired the common unit,
    (2)&#160;whether we issue additional units or we engage in
    certain other transactions and (3)&#160;the manner in which our
    items of income, gain, loss, deduction and credit are allocated
    among our partners. For this purpose, we determine the value of
    our assets and the relative amounts of our items of income,
    gain, loss, deduction and credit allocable to our unitholders
    and our general partner as holder of the incentive distribution
    rights by reference to the value of our interests, including the
    incentive distribution rights. The IRS may challenge any
    valuation determinations that we make, particularly as to the
    incentive distribution rights, for which there is no public
    market. In addition, the IRS could challenge certain other
    aspects of the manner in which we determine the relative
    allocations made to our unitholders and to the general partner
    as holder of our incentive distribution rights. A successful IRS
    challenge to our valuation or allocation methods could increase
    the amount of net taxable income and gain realized by a
    unitholder with respect to a common unit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Perkins Coie LLP is of the opinion that, with the exception of
    the issues described in the preceding paragraph and in
    &#147;&#151;Consequences of Unit Ownership&#151;Section&#160;754
    Election,&#148; &#147;&#151;Tax Treatment of
    Operations&#151;Valuation and Tax Basis of our Properties&#148;
    and &#147;&#151;Disposition of Common Units&#151;Allocations
    Between Transferors and Transferees,&#148; allocations under our
    partnership agreement will be given effect for U.S.&#160;federal
    income tax purposes in determining a partner&#146;s share of an
    item of income, gain, loss, deduction or credit.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Treatment of Short Sales.</I></B>&#160;&#160;A unitholder
    whose units are loaned to a &#147;short seller&#148; who sells
    such units may be considered to have disposed of those units. If
    so, he would no longer be a partner with respect to those units
    until the termination of the loan and may recognize gain or loss
    from the disposition. As a result:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any of our income, gain, loss, deduction or credit with respect
    to the units may not be reportable by the unitholder who loaned
    them;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any cash distributions received by such unitholder with respect
    to those units may be fully taxable as ordinary income.
</TD>
</TR>

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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Perkins Coie LLP has not rendered an opinion regarding the
    treatment of a unitholder whose common units are loaned to a
    short seller. Therefore, unitholders desiring to assure their
    status as partners and avoid the risk of gain recognition from a
    loan to a short seller are urged to ensure that any applicable
    brokerage account agreements prohibit their brokers from
    borrowing their units. The IRS has announced that it is actively
    studying issues relating to the tax treatment of short sales of
    partnership interests. Please also read &#147;&#151;Disposition
    of Common Units&#151;Recognition of Gain or Loss.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Alternative Minimum Tax.</I></B>&#160;&#160;Each
    unitholder will be required to take into account his
    distributive share of any items of our income, gain, loss,
    deduction or credit for purposes of the alternative minimum tax.
    The current minimum tax rate for noncorporate taxpayers is 26%
    on the first $175,000 of alternative minimum taxable income in
    excess of the exemption amount and 28% on any additional
    alternative minimum taxable income. Prospective unitholders are
    urged to consult with their tax advisors as to the impact of an
    investment in units on their liability for the alternative
    minimum tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Tax Rates.</I></B>&#160;&#160;The highest statutory rate
    of U.S.&#160;federal income tax for individuals currently is
    35%, and the highest statutory rate of U.S.&#160;federal income
    tax imposed on net capital gains of an individual currently is
    15% if the asset disposed of was held for more than one year at
    the time of disposition.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Section&#160;754 Election.</I></B>&#160;&#160;We have made
    an election under Section&#160;754 of the Internal Revenue Code
    to adjust a common unit purchaser&#146;s U.S.&#160;federal
    income tax basis in our assets (or <I>inside basis</I>) to
    reflect the purchaser&#146;s purchase price (or a
    <I>Section&#160;743(b) adjustment</I>). The Section&#160;743(b)
    adjustment belongs to the purchaser and not to other unitholders
    and does not apply to unitholders who acquire their common units
    directly from us. For purposes of this discussion, a
    unitholder&#146;s inside basis in our assets will be considered
    to have two components: (1)&#160;his share of our tax basis in
    our assets (or <I>common basis</I>) and (2)&#160;his
    Section&#160;743(b) adjustment to that basis.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In general, a purchaser&#146;s common basis is depreciated or
    amortized according to the existing method utilized by us. A
    positive Section&#160;743(b) adjustment to that basis generally
    is depreciated or amortized in the same manner as property of
    the same type that has been newly placed in service by us. A
    negative Section&#160;743(b) adjustment to that basis generally
    is recovered over the remaining useful life of the
    partnership&#146;s recovery property.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A Section&#160;743(b) adjustment is advantageous if the
    purchaser&#146;s tax basis in his units is higher than the
    units&#146; share of the aggregate tax basis of our assets
    immediately prior to the transfer. In that case, as a result of
    the adjustment, the purchaser would have, among other items, a
    greater amount of depreciation and amortization&#160;deductions
    and his share of any gain or loss on a sale of our assets would
    be less. Conversely, a Section&#160;743(b) adjustment is
    disadvantageous if the purchaser&#146;s tax basis in his units
    is lower than those units&#146;&#160;share of the aggregate tax
    basis of our assets immediately prior to the purchase. Thus, the
    fair market value&#160;of the units may be affected either
    favorably or unfavorably by the Section&#160;743(b) adjustment.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The calculations involved in the Section&#160;743(b) adjustment
    are complex and will be made on the basis of assumptions as to
    the value of our assets and in accordance with the Internal
    Revenue Code and applicable Treasury Regulations. We cannot
    assure you that the determinations we make will not be
    successfully challenged by the IRS and that the deductions
    resulting from them will not be reduced or disallowed
    altogether. Should the IRS require a different basis adjustment
    to be made, and should, in our judgment, the expense of
    compliance exceed the benefit of the election, we may seek
    consent from the IRS to revoke our Section&#160;754 election. If
    such consent is given, a subsequent purchaser of units may be
    allocated more income than he would have been allocated had the
    election not been revoked. A basis&#160;adjustment is required
    regardless of whether a Section&#160;754 election is made in the
    case of a transfer on an interest in us if we have a substantial
    built-in loss immediately after the transfer, or if we
    distribute property and have a substantial&#160;basis reduction.
    Generally, a built-in loss or a basis reduction is substantial
    if it exceeds&#160;$250,000.
</DIV>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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    <B><FONT style="font-family: Arial, Helvetica">TAX TREATMENT OF
    OPERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Accounting Method and Taxable Year.</I></B>&#160;&#160;We
    use the year ending December 31 as our taxable year and the
    accrual method of accounting for U.S.&#160;federal income tax
    purposes. Each unitholder will be required to include in income
    his share of our income, gain, loss, deduction and credit for
    our taxable year ending within or with his taxable year. In
    addition, a unitholder who disposes of all of his units must
    include his share of our income, gain, loss, deduction and
    credit through the date of disposition in income for his taxable
    year that includes the date of disposition, with the result that
    a unitholder who has a taxable year ending on a date other than
    December 31 and who disposes of all of his units following the
    close of our taxable year but before the close of his taxable
    year must include his share of more than one year of our income,
    gain, loss, deduction and credit in income for the year of the
    disposition. Please read &#147;&#151;Disposition of Common
    Units&#151;Allocations Between Transferors and Transferees.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Asset Tax Basis, Depreciation and
    Amortization.</I></B>&#160;&#160;The tax basis of our assets
    will be used for purposes of computing depreciation and cost
    recovery deductions and, ultimately, gain or loss on the
    disposition of these assets. The U.S.&#160;federal income tax
    burden associated with any difference between the fair market
    value of our assets and their tax basis immediately prior to
    this offering will be borne by the general partner and the
    existing limited partners. Please read &#147;&#151;Consequences
    of Unit Ownership&#151;Allocation of Income, Gain, Loss,
    Deduction and Credit.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    To the extent allowable, we may elect to use the depreciation
    and cost recovery methods that will result in the largest
    deductions being taken in the early years after assets are
    placed in service. Property we subsequently acquire or construct
    may be depreciated using any method permitted by the Internal
    Revenue Code.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we dispose of depreciable property by sale, foreclosure or
    otherwise, all or a portion of any gain, determined by reference
    to the amount of depreciation previously deducted and the nature
    of the property, may be subject to the recapture rules and taxed
    as ordinary income rather than capital gain. Similarly, a
    unitholder who has taken cost recovery or depreciation
    deductions with respect to property we own will likely be
    required to recapture some or all of those deductions as
    ordinary income upon a sale of his interest in us. Please read
    &#147;&#151;Consequences of Unit Ownership&#151;Allocation of
    Income, Gain, Loss, Deduction and Credit&#148; and
    &#147;&#151;Disposition of Common Units&#151;Recognition of Gain
    or Loss.&#148;
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The costs incurred by us in selling our units (or <I>syndication
    expenses</I>) must be capitalized and cannot be deducted
    currently, ratably or upon our termination. There are
    uncertainties regarding the classification of costs as
    syndication expenses. The underwriting discounts and commissions
    we incur will be treated as syndication expenses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Valuation and Tax Basis of Our
    Properties.</I></B>&#160;&#160;The U.S.&#160;federal income tax
    consequences of the ownership and disposition of units will
    depend in part on our estimates of the relative fair market
    values, and the initial tax bases, of our assets. Although we
    may from time to time consult with professional appraisers
    regarding valuation matters, we will make many of the relative
    fair market value estimates ourselves. These estimates and
    determinations of basis are subject to challenge and will not be
    binding on the IRS or the courts. If the estimates of fair
    market value or basis are later found to be incorrect, the
    character and amount of items of income, gain, loss, deductions
    or credits previously reported by unitholders might change, and
    unitholders might be required to adjust their tax liability for
    prior years and incur interest and penalties with respect to
    those adjustments.
</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">DISPOSITION OF
    COMMON UNITS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Recognition of Gain or Loss.</I></B>&#160;&#160;In
    general, gain or loss will be recognized on a sale of units
    equal to the difference between the amount realized and the
    unitholder&#146;s tax basis in the units sold. A
    unitholder&#146;s amount realized will be measured by the sum of
    the cash, the fair market value of other property
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">35</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    received by him and his share of our nonrecourse liabilities.
    Because the amount realized includes a unitholder&#146;s share
    of our nonrecourse liabilities, the gain recognized on the sale
    of units could result in a tax liability in excess of any cash
    or property received from the sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior distributions from us in excess of cumulative net taxable
    income for a common unit that decreased a unitholder&#146;s tax
    basis in that common unit will, in effect, become taxable income
    if the common unit is sold at a price greater than the
    unitholder&#146;s tax basis in that common unit, even if the
    price received is less than his original cost. Except as noted
    below, gain or loss recognized by a unitholder on the sale or
    exchange of a unit generally will be taxable as capital gain or
    loss. Capital gain recognized by an individual on the sale of
    units held more than one year generally will be taxed at a
    maximum rate of 15% under current law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A portion of a unitholder&#146;s amount realized may be
    allocable to &#147;unrealized receivables&#148; or to
    &#147;inventory items&#148; we own. The term &#147;unrealized
    receivables&#148; includes potential recapture items, including
    depreciation and amortization recapture. A unitholder will
    recognize ordinary income or loss to the extent of the
    difference between the portion of the unitholder&#146;s amount
    realized allocable to unrealized receivables or inventory items
    and the unitholder&#146;s share of our basis in such receivables
    or inventory items. Ordinary income attributable to unrealized
    receivables, inventory items and depreciation or amortization
    recapture may exceed net taxable gain realized upon the sale of
    a unit and may be recognized even if a net taxable loss is
    realized on the sale of a unit. Thus, a unitholder may recognize
    both ordinary income and a capital loss upon a sale of units.
    Net capital losses generally may only be used to offset capital
    gains. An exception permits individuals to offset up to $3,000
    of net capital losses against ordinary income in any given year.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The IRS has ruled that a partner who acquires interests in a
    partnership in separate transactions must combine those
    interests and maintain a single adjusted tax basis for all those
    interests. Upon a sale or other disposition of less than all of
    those interests, a portion of that tax basis must be allocated
    to the interests sold using an &#147;equitable
    apportionment&#148; method. Treasury Regulations under
    Section&#160;1223 of the Internal Revenue Code allow a selling
    unitholder who can identify common units transferred with an
    ascertainable holding period to elect to use the actual holding
    period of the common units transferred. Thus, according to the
    ruling, a common unitholder will be unable to select high or low
    basis common units to sell as would be the case with corporate
    stock, but, according to the regulations, may designate specific
    common units sold for purposes of determining the holding period
    of units transferred. A unitholder electing to use the actual
    holding period of common units transferred must consistently use
    that identification method for all subsequent sales or exchanges
    of common units. A unitholder considering the purchase of
    additional units or a sale of common units purchased in separate
    transactions is urged to consult his tax advisor as to the
    possible consequences of this ruling and application of the
    regulations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Specific provisions of the Internal Revenue Code affect the
    taxation of some financial products and securities, including
    partnership interests, by treating a taxpayer as having sold an
    &#147;appreciated&#148; partnership interest, one in which gain
    would be recognized if it were sold, assigned or terminated at
    its fair market value, if the taxpayer or related persons
    enter(s) into:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    a short sale;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    an offsetting notional principal contract;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    a futures or forward contract with respect to the partnership
    interest or substantially identical property.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Moreover, if a taxpayer has previously entered into a short
    sale, an offsetting notional principal contract or a futures or
    forward contract with respect to the partnership interest, the
    taxpayer will be treated as having sold that position if the
    taxpayer or a related person then acquires the partnership
    interest or substantially identical property. The Secretary of
    the Treasury is also authorized to issue regulations that
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">36</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

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<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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    treat a taxpayer that enters into transactions or positions that
    have substantially the same effect as the preceding transactions
    as having constructively sold the financial position.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Allocations Between Transferors and
    Transferees.</I></B>&#160;&#160;In general, our taxable income
    or loss will be determined annually, will be prorated on a
    monthly basis and will be subsequently apportioned among the
    unitholders in proportion to the number of units owned by each
    of them as of the opening of the applicable exchange on the
    first business day of the month. However, gain or loss realized
    on a sale or other disposition of our assets other than in the
    ordinary course of business will be allocated among the
    unitholders on the first business day of the month in which that
    gain or loss is recognized. As a result of the foregoing, a
    unitholder transferring units may be allocated items of income,
    gain, loss, deduction and credit realized after the date of
    transfer.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The use of this method for allocating income and deductions
    among unitholders may not be permitted under existing Treasury
    Regulations. Accordingly, Perkins Coie LLP is unable to opine on
    its validity. If this method were disallowed or applied only to
    transfers of less than all of the unitholder&#146;s interest,
    our taxable income or loss may be reallocated among the
    unitholders. We are authorized to revise our method of
    allocation to conform to a method permitted under any future
    Treasury Regulations or administrative guidance.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A unitholder who owns units at any time during a calendar
    quarter and who disposes of them prior to the record date set
    for a cash distribution for that quarter will be allocated items
    of our income, gain, loss, deductions and credit attributable to
    months within that quarter in which the units were held but will
    not be entitled to receive that cash distribution.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Transfer Notification Requirements.</I></B>&#160;&#160;A
    unitholder who sells any of his units, other than through a
    broker, generally is required to notify us in writing of that
    sale within 30&#160;days after the sale (or, if earlier, January
    15 of the year following the sale). A unitholder who acquires
    units generally is required to notify us in writing of that
    acquisition within 30&#160;days after the purchase, unless a
    broker or nominee will satisfy such requirement. We are required
    to notify the IRS of any such transfers of units and to furnish
    specified information to the transferor and transferee. Failure
    to notify us of a transfer of units may lead to the imposition
    of substantial penalties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Constructive Termination.</I></B>&#160;&#160;We will be
    considered to have been terminated for U.S.&#160;federal income
    tax purposes if there is a sale or exchange of 50% or more of
    the total interests in our capital and profits within a
    <FONT style="white-space: nowrap">12-month</FONT>
    period. A constructive termination results in the closing of our
    taxable year for all unitholders. In the case of a unitholder
    reporting on a taxable year other than a fiscal year ending
    December&#160;31, the closing of our taxable year may result in
    more than 12&#160;months of our taxable income or loss being
    includable in his taxable income for the year of termination. We
    would be required to make new tax elections after a termination,
    including a new election under Section&#160;754 of the Internal
    Revenue Code, and a termination would result in a deferral of
    our deductions for depreciation. A termination could also result
    in penalties if we were unable to determine that the termination
    had occurred. Moreover, a termination might either accelerate
    the application of, or subject us to, tax legislation applicable
    to a newly formed partnership.
</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">FOREIGN TAX
    CREDIT CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Subject to detailed limitations set forth in the Internal
    Revenue Code, a unitholder may elect to claim a credit against
    his liability for U.S.&#160;federal income tax for his share of
    foreign income taxes (and certain foreign taxes imposed in lieu
    of a tax based upon income) paid by us. Income allocated to
    unitholders likely will constitute foreign source income falling
    in the general foreign tax credit category for purposes of the
    U.S.&#160;foreign tax credit limitation. The rules relating to
    the determination of the foreign tax credit are complex and
    prospective unitholders are urged to consult their own tax
    advisors to determine whether or to what extent they would be
    entitled to such credit. Unitholders who do not elect to claim
    foreign tax credits may instead claim a deduction for their
    shares of foreign taxes paid by us.
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">37</FONT></B>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

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    <B><FONT style="font-family: Arial, Helvetica">TAX-EXEMPT
    ORGANIZATIONS AND
    <FONT style="white-space: nowrap">NON-U.S.</FONT>
    INVESTORS</FONT></B>
</DIV>
</A>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Investments in units by employee benefit plans, other tax-exempt
    organizations and
    <FONT style="white-space: nowrap">non-U.S.&#160;persons,</FONT>
    including nonresident aliens of the United States,
    <FONT style="white-space: nowrap">non-U.S.&#160;corporations</FONT>
    and
    <FONT style="white-space: nowrap">non-U.S.&#160;trusts</FONT>
    and estates (collectively,
    <I><FONT style="white-space: nowrap">non-U.S.&#160;unitholders</FONT></I>)
    raise issues unique to those investors and, as described below,
    may result in substantially adverse tax consequences to them.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Employee benefit plans and most other organizations exempt from
    U.S.&#160;federal income tax, including individual retirement
    accounts and other retirement plans, are subject to
    U.S.&#160;federal income tax on unrelated business taxable
    income. Virtually all of our income allocated to a unitholder
    that is a tax-exempt organization will be unrelated business
    taxable income to them subject to U.S.&#160;federal income tax.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    may be subject to a 4% U.S.&#160;federal income tax on his share
    of the U.S.&#160;source portion of our gross income attributable
    to transportation that begins or ends (but not both) in the
    United States, unless either (a)&#160;an exemption applies and
    he files a U.S.&#160;federal income tax return to claim that
    exemption or (b)&#160;that income is effectively connected with
    the conduct of a trade or business in the United States (or
    <I>U.S.&#160;effectively connected income</I>). For this
    purpose, transportation income includes income from the use,
    hiring or leasing of a vessel to transport cargo, or the
    performance of services directly related to the use of any
    vessel to transport cargo. The U.S.&#160;source portion of our
    transportation income is deemed to be 50% of the income
    attributable to voyages that begin or end in the United States.
    Generally, no amount of the income from voyages that begin and
    end outside the United States is treated as U.S.&#160;source,
    and consequently none of our transportation income attributable
    to such voyages is subject to U.S.&#160;federal income tax.
    Although the entire amount of transportation income from voyages
    that begin and end in the United States would be fully taxable
    in the United States, we currently do not expect to have any
    transportation income from voyages that begin and end in the
    United States; however, there is no assurance that such voyages
    will not occur.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    may be entitled to an exemption from the 4% U.S.&#160;federal
    income tax or a refund of tax withheld on U.S.&#160;effectively
    connected income that constitutes transportation income if any
    of the following applies: (1)&#160;such
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    qualifies for an exemption from this tax under an income tax
    treaty between the United States and the country where such
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    is resident; (2)&#160;in the case of an individual
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder,</FONT>
    he qualifies for the exemption from tax under
    Section&#160;872(b)(1) of the Internal Revenue Code as a
    resident of a country that grants an equivalent exemption from
    tax to residents of the United States; or (3)&#160;in the case
    of a corporate
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder,</FONT>
    it qualifies for the exemption from tax under Section&#160;883
    of the Internal Revenue Code (or the <I>Section&#160;883
    Exemption</I>) (for the rules relating to qualification for the
    Section&#160;883 Exemption, please read below under
    &#147;&#151;Possible Classification as a Corporation&#151;The
    Section&#160;883 Exemption&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may be required to withhold U.S.&#160;federal income tax,
    computed at the highest statutory rate, from cash distributions
    to
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholders</FONT>
    with respect to their shares of our income that is
    U.S.&#160;effectively connected income. Our transportation
    income generally should not be treated as U.S.&#160;effectively
    connected income unless we have a fixed place of business in the
    United States involved in the earning of that transportation
    income and certain other requirements are satisfied. While we do
    not expect to have a fixed place of business in the United
    States, there can be no guarantee that this will not change.
    Under a ruling of the IRS, a portion of any gain recognized on
    the sale or other disposition of a unit by a
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    may be treated as U.S.&#160;effectively connected income to the
    extent we have a fixed place of business in the United States
    and a sale of our assets would have given rise to
    U.S.&#160;effectively connected income. A
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    would be required to file a U.S.&#160;federal income tax return
    to report his U.S.&#160;effectively connected income (including
    his share of any such income earned by us) and to pay
    U.S.&#160;federal income tax, or claim a credit or refund for
    tax withheld on such income. Further, unless an exemption
    applies, a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    investing in units may be subject
</DIV>
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    <BR>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

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    to a branch profits tax, at a 30% rate or lower rate prescribed
    by a treaty, with respect to its U.S.&#160;effectively connected
    income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <FONT style="white-space: nowrap">Non-U.S.&#160;unitholders</FONT>
    must apply for and obtain a U.S.&#160;taxpayer identification
    number in order to file U.S.&#160;federal income tax returns and
    must provide that identification number to us for purposes of
    any U.S.&#160;federal income tax information returns we may be
    required to file.
    <FONT style="white-space: nowrap">Non-U.S.&#160;unitholders</FONT>
    are encouraged to consult with their own tax advisors regarding
    the U.S.&#160;federal, state and local tax consequences of an
    investment in units and any filing requirements related thereto.
</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">FUNCTIONAL
    CURRENCY</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are required to determine the functional currency of any of
    our operations that constitute a separate qualified business
    unit (or <I>QBU</I>) for U.S.&#160;federal income tax purposes
    and report the affairs of any QBU in this functional currency to
    our unitholders. Any transactions conducted by us other than in
    the U.S.&#160;dollar or by a QBU other than in its functional
    currency may give rise to foreign currency exchange gain or
    loss. Further, if a QBU is required to maintain a functional
    currency other than the U.S.&#160;dollar, a unitholder may be
    required to recognize foreign currency translation gain or loss
    upon a distribution of money or property from a QBU or upon the
    sale of common units, and items or income, gain, loss or
    deduction allocated to the unitholder in such functional
    currency must be translated into the unitholder&#146;s
    functional currency.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For purposes of the foreign currency rules, a QBU includes a
    separate trade or business owned by a partnership in the event
    separate books and records are maintained for that separate
    trade or business. The functional currency of a QBU is
    determined based upon the economic environment in which the QBU
    operates. Thus, a QBU whose revenues and expenses are primarily
    determined in a currency other than the U.S.&#160;dollar will
    have a
    <FONT style="white-space: nowrap">non-U.S.&#160;dollar</FONT>
    functional currency. We believe our primary operations
    constitute a QBU whose functional currency is the
    U.S.&#160;dollar, but certain of our operations constitute
    separate QBUs whose functional currencies are other than the
    U.S.&#160;dollar.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under recently proposed regulations (or the <I>Section&#160;987
    Proposed Regulations</I>), the amount of foreign currency
    translation gain or loss recognized upon a distribution of money
    or property from a QBU or upon the sale of common units will
    reflect the appreciation or depreciation in the functional
    currency value of certain assets and liabilities of the QBU
    between the time the unitholder purchased his common units and
    the time we receive distributions from such QBU or the
    unitholder sells his common units. Foreign currency translation
    gain or loss will be treated as ordinary income or loss. A
    unitholder must adjust the U.S.&#160;federal income tax basis in
    his common units to reflect such income or loss prior to
    determining any other U.S.&#160;federal income tax consequences
    of such distribution or sale. Please read
    &#147;&#151;Consequences of Unit Ownership&#151;Basis of Common
    Units.&#148; A unitholder who owns less than a five percent
    interest in our capital or profits generally may elect not to
    have these rules apply by attaching a statement to his tax
    return for the first taxable year the unitholder intends the
    election to be effective. Further, for purposes of computing his
    taxable income and U.S.&#160;federal income tax basis in his
    common units, a unitholder will be required to translate into
    his own functional currency items of income, gain, loss or
    deduction of such QBU and his share of such QBU&#146;s
    liabilities. If finalized, we intend to provide such information
    based on generally applicable U.S.&#160;exchange rates as is
    necessary for unitholders to comply with the requirements of the
    Section&#160;987 Proposed Regulations as part of the
    U.S.&#160;federal income tax information we will furnish
    unitholders each year. Please read &#147;&#151;Administrative
    Matters&#151;Information Returns and Audit Procedures.&#148;
    However, a unitholder may be entitled to make an election to
    apply an alternative exchange rate with respect to the foreign
    currency translation of certain items. Unitholders who desire to
    make such an election should consult their own tax advisors.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Based upon our current projections of the capital invested in
    and profits of the
    <FONT style="white-space: nowrap">non-U.S.&#160;dollar</FONT>
    QBUs, we believe that unitholders will be required to recognize
    only a nominal amount of foreign currency
</DIV>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

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    translation gain or loss each year and upon their sale of units.
    Nonetheless, the rules for determining the amount of translation
    gain or loss are not entirely clear at present as the
    Section&#160;987 Proposed Regulations currently are not
    effective. Please consult your own tax advisor for specific
    advice regarding the application of the rules for recognizing
    foreign currency translation gain or loss under your own
    circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to a unitholder&#146;s recognition of foreign
    currency translation gain or loss, the U.S.&#160;dollar QBU will
    engage in certain transactions denominated in the Euro, which
    will give rise to a certain amount of foreign currency exchange
    gain or loss each year. This foreign currency exchange gain or
    loss will be treated as ordinary income or loss.
</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">ADMINISTRATIVE
    MATTERS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Information Returns and Audit
    Procedures.</I></B>&#160;&#160;We intend to furnish to each
    unitholder, within 90&#160;days after the close of each calendar
    year, specific U.S.&#160;federal income tax information,
    including a document in the form of IRS Form&#160;1065,
    <FONT style="white-space: nowrap">Schedule&#160;K-1,</FONT>
    which sets forth his share of our items of income, gain, loss,
    deduction and credit as computed for U.S.&#160;federal income
    tax purposes for our preceding taxable year. In preparing this
    information, which will not be reviewed by counsel, we will take
    various accounting and reporting positions, some of which have
    been mentioned earlier, to determine his share of such income,
    gain, loss, deduction and credit. We cannot assure you that
    those positions will yield a result that conforms to the
    requirements of the Internal Revenue Code, Treasury Regulations
    or administrative interpretations of the IRS. Neither we nor
    Perkins Coie LLP can assure prospective unitholders that the IRS
    will not successfully contend that those positions are
    impermissible. Any challenge by the IRS could negatively affect
    the value of the units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will be obligated to file U.S.&#160;federal income tax
    information returns with the IRS for any year in which we earn
    any U.S.&#160;source income or U.S.&#160;effectively connected
    income. In the event we were obligated to file a
    U.S.&#160;federal income tax information return but failed to do
    so, unitholders would not be entitled to claim any deductions,
    losses or credits for U.S.&#160;federal income tax purposes
    relating to us. Consequently, we may file U.S.&#160;federal
    income tax information returns for any given year. The IRS may
    audit any such information returns that we file. Adjustments
    resulting from an IRS audit of our return may require each
    unitholder to adjust a prior year&#146;s tax liability, and may
    result in an audit of his return. Any audit of a
    unitholder&#146;s return could result in adjustments not related
    to our returns as well as those related to our returns. Any IRS
    audit relating to our items of income, gain, loss, deduction or
    credit for years in which we are not required to file and do not
    file a U.S.&#160;federal income tax information return would be
    conducted at the partner-level, and each unitholder may be
    subject to separate audit proceedings relating to such items.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For years in which we file or are required to file
    U.S.&#160;federal income tax information returns, we will be
    treated as a separate entity for purposes of any
    U.S.&#160;federal income tax audits, as well as for purposes of
    judicial review of administrative adjustments by the IRS and tax
    settlement proceedings. For such years, the tax treatment of
    partnership items of income, gain, loss, deduction and credit
    will be determined in a partnership proceeding rather than in
    separate proceedings with the partners. The Internal Revenue
    Code requires that one partner be designated as the &#147;Tax
    Matters Partner&#148; for these purposes. The partnership
    agreement names Teekay GP L.L.C. as our Tax Matters Partner.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Tax Matters Partner will make some U.S.&#160;federal tax
    elections on our behalf and on behalf of unitholders. In
    addition, the Tax Matters Partner can extend the statute of
    limitations for assessment of tax deficiencies against
    unitholders for items reported in the information returns we
    file. The Tax Matters Partner may bind a unitholder with less
    than a 1% profits interest in us to a settlement with the IRS
    with respect to these items unless that unitholder elects, by
    filing a statement with the IRS, not to give that authority to
    the Tax Matters Partner. The Tax Matters Partner may seek
    judicial review, by which all the unitholders are bound, of a
    final partnership administrative adjustment and, if the Tax
</DIV>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Matters Partner fails to seek judicial review, judicial review
    may be sought by any unitholder having at least a 1% interest in
    profits or by any group of unitholders having in the aggregate
    at least a 5% interest in profits. However, only one action for
    judicial review will go forward, and each unitholder with an
    interest in the outcome may participate.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A unitholder must file a statement with the IRS identifying the
    treatment of any item on his U.S.&#160;federal income tax return
    that is not consistent with the treatment of the item on an
    information return that we file. Intentional or negligent
    disregard of this consistency requirement may subject a
    unitholder to substantial penalties.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Special Reporting Requirements for Owners of
    <FONT style="white-space: nowrap">Non-U.S.&#160;Partnerships.</FONT></I></B>&#160;&#160;A
    U.S.&#160;person who either contributes more than $100,000 to us
    (when added to the value of any other property contributed to us
    by such person or a related person during the previous
    12&#160;months), or following a contribution owns, directly,
    indirectly or by attribution from certain related persons, at
    least a 10% interest in us, is required to file IRS
    Form&#160;8865 with his U.S.&#160;federal income tax return for
    the year of the contribution to report the contribution and
    provide certain details about himself and certain related
    persons, us and any persons that own a 10% or greater direct
    interest in us. We will provide each unitholder with the
    necessary information about us and those persons who own a 10%
    or greater direct interest in us along with the
    <FONT style="white-space: nowrap">Schedule&#160;K-1</FONT>
    information described previously.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition to the foregoing, a U.S.&#160;person who directly
    owns at least a 10% interest in us may be required to make
    additional disclosures on IRS Form&#160;8865 in the event such
    person acquires, disposes or has his interest in us
    substantially increased or reduced. Further, a U.S.&#160;person
    who directly, indirectly or by attribution from certain related
    persons, owns at least a 10% interest in us may be required to
    make additional disclosures on IRS Form&#160;8865 in the event
    such person, when considered together with any other
    U.S.&#160;persons who own at least a 10% interest in us, owns a
    greater than 50% interest in us. For these purposes, an
    &#147;interest&#148; in us generally is defined to include an
    interest in our capital or profits or an interest in our
    deductions or losses.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Significant penalties may apply for failing to satisfy IRS
    Form&#160;8865 filing requirements and thus unitholders are
    advised to contact their tax advisors to determine the
    application of these filing requirements under their own
    circumstances.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><I>Accuracy-related Penalties.</I></B>&#160;&#160;An
    additional tax equal to 20% of the amount of any portion of an
    underpayment of U.S.&#160;federal income tax attributable to one
    or more specified causes, including negligence or disregard of
    rules or regulations and substantial understatements of income
    tax, is imposed by the Internal Revenue Code. No penalty will be
    imposed, however, for any portion of an underpayment if it is
    shown that there was a reasonable cause for that portion and
    that the taxpayer acted in good faith regarding that portion.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A substantial understatement of income tax in any taxable year
    exists if the amount of the understatement exceeds the greater
    of 10% of the tax required to be shown on the return for the
    taxable year or $5,000. The amount of any understatement subject
    to penalty generally is reduced if any portion is attributable
    to a position adopted on the return:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#160;&#160;for which there is, or was, &#147;substantial
    authority&#148;;&#160;or
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#160;&#160;as to which there is a reasonable basis and the
    pertinent facts of that position are disclosed on the return.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    More stringent rules, including additional penalties and
    extended statutes of limitations, may apply as a result of our
    participation in &#147;listed transactions&#148; or
    &#147;reportable transactions with a significant tax avoidance
    purpose.&#148; While we do not anticipate participating in such
    transactions, if any item of income, gain, loss, deduction or
    credit included in the distributive shares of unitholders for a
    given year might result in an &#147;understatement&#148; of
    income relating to such a transaction, we will disclose the
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">41</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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    pertinent facts on a U.S.&#160;federal income tax information
    return for such year. In such event, we also will make a
    reasonable effort to furnish sufficient information for
    unitholders to make adequate disclosure on their returns and to
    take other actions as may be appropriate to permit unitholders
    to avoid liability for penalties.
</DIV>

<A name='O67390142'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">POSSIBLE
    CLASSIFICATION AS A CORPORATION</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we fail to meet the Qualifying Income Exception described
    previously with respect to our classification as a partnership
    for U.S.&#160;federal income tax purposes, other than a failure
    that is determined by the IRS to be inadvertent and that is
    cured within a reasonable time after discovery, we will be
    treated as a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    for U.S.&#160;federal income tax purposes. If previously treated
    as a partnership, our change in status would be deemed to have
    been effected by our transfer of all of our assets, subject to
    liabilities, to a newly formed
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation,</FONT>
    in return for stock in that corporation, and then our
    distribution of that stock to our unitholders and other owners
    in liquidation of their interests in us. Unitholders that are
    U.S.&#160;persons would be required to file IRS Form&#160;926 to
    report these deemed transfers and any other transfers they made
    to us while we were treated as a corporation and may be required
    to recognize income or gain for U.S.&#160;federal income tax
    purposes to the extent of certain prior deductions or losses and
    other items. Substantial penalties may apply for failure to
    satisfy these reporting requirements, unless the person
    otherwise required to report shows such failure was due to
    reasonable cause and not willful neglect.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we were treated as a corporation in any taxable year, either
    as a result of a failure to meet the Qualifying Income Exception
    or otherwise, our items of income, gain, loss, deduction and
    credit would not pass through to unitholders. Instead, we would
    be subject to U.S.&#160;federal income tax based on the rules
    applicable to foreign corporations, not partnerships, and such
    items would be treated as our own. Any distribution made to a
    unitholder would be treated as taxable dividend income to the
    extent of our current or accumulated earnings and profits, a
    nontaxable return of capital to the extent of the
    unitholder&#146;s tax basis in his common units, and taxable
    capital gain thereafter. Section&#160;743(b) adjustments to the
    basis of our assets would no longer be available to purchasers
    in the marketplace. Please read &#147;&#151;Consequences of Unit
    Ownership&#151;Section&#160;754 Election.&#148;
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Taxation of
    operating income</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In the event we were treated as a corporation, our operating
    income may be subject to U.S.&#160;federal income taxation under
    one of two alternative tax regimes (the 4% gross basis tax or
    the net basis tax, as described below).
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">The 4% gross
    basis tax</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may be subject to a 4% U.S.&#160;federal income tax on the
    U.S.&#160;source portion of our gross income (without benefit of
    deductions) attributable to transportation that begins or ends
    (but not both) in the United States, unless the Section&#160;883
    Exemption applies (as more fully described below under
    &#147;&#151;The Section&#160;883 Exemption&#148;) and we file a
    U.S.&#160;federal income tax return to claim that exemption. For
    this purpose, gross income attributable to transportation (or
    <I>transportation income</I>) includes income from the use,
    hiring or leasing of a vessel to transport cargo, or the
    performance of services directly related to the use of any
    vessel to transport cargo, and thus includes time charter or
    bareboat charter income. The U.S.&#160;source portion of our
    transportation income is deemed to be 50% of the income
    attributable to voyages that begin or end (but not both) in the
    United States. Generally, no amount of the income from voyages
    that begin and end outside the United States is treated as
    U.S.&#160;source, and consequently none of the transportation
    income attributable to such voyages is subject to
    U.S.&#160;federal income tax. Although the entire amount of
    transportation income from voyages that begin and end in the
    United States would be fully taxable in the United States, we
    currently do not expect to have any transportation income
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">42</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    from voyages that begin and end in the United States; however,
    there is no assurance that such voyages will not occur.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Net income tax
    and branch tax regime</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We currently do not expect to have a fixed place of business in
    the United States. Nonetheless, if this were to change or we
    otherwise were treated as having such a fixed place of business
    involved in earning U.S.&#160;source transportation income, such
    transportation income may be treated as U.S.&#160;effectively
    connected income. Any income that we earn that is treated as
    U.S.&#160;effectively connected income would be subject to
    U.S.&#160;federal corporate income tax (the highest statutory
    rate is currently 35%), unless the Section&#160;883 Exemption
    (as discussed below) applied. The 4% U.S.&#160;federal income
    tax described above is inapplicable to U.S.&#160;effectively
    connected income.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless the Section&#160;883 Exemption applied, a 30% branch
    profits tax imposed under Section&#160;884 of the Internal
    Revenue Code also would apply to our earnings that result from
    U.S.&#160;effectively connected income, and a branch interest
    tax could be imposed on certain interest paid or deemed paid by
    us. Furthermore, on the sale of a vessel that has produced
    U.S.&#160;effectively connected income, we could be subject to
    the net basis corporate income tax and to the 30% branch profits
    tax with respect to our gain not in excess of certain prior
    deductions for depreciation that reduced U.S.&#160;effectively
    connected income. Otherwise, we would not be subject to
    U.S.&#160;federal income tax with respect to gain realized on
    sale of a vessel because it is expected that any sale of a
    vessel will be structured so that it is considered to occur
    outside of the United States and so that it is not attributable
    to an office or other fixed place of business in the United
    States.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">The
    section&#160;883 exemption</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In general, if a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    satisfies the requirements of Section&#160;883 of the Internal
    Revenue Code and the regulations thereunder (or the Final
    Section&#160;883 Regulations), it will not be subject to the 4%
    gross basis tax or the net basis tax described above on its
    U.S.&#160;source transportation income attributable to voyages
    that begin or end (but not both) in the United States (or
    <I>U.S.&#160;Source International Shipping Income</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    will qualify for the Section&#160;883 Exemption if, among other
    things, it is organized in a jurisdiction outside the United
    States that grants an equivalent exemption from tax to
    corporations organized in the United States (or an <I>Equivalent
    Exemption</I>), it meets one of three tests described below:
    (1)&#160;the more than 50% ownership test (or the <I>Ownership
    Test</I>); (2)&#160;the &#147;<I>Publicly Traded Test</I>&#148;;
    or (3)&#160;the controlled foreign corporation test (or the
    <I>CFC Test</I>)&#151;and certain substantiation, reporting and
    other requirements are met.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In order to satisfy the Ownership Test, a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    must be able to substantiate that more than 50% of the value of
    its stock is owned, directly or indirectly applying attribution
    rules, by &#147;qualified shareholders&#148; for at least half
    of the number of days in the
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation&#146;s</FONT>
    taxable year, and the
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    must comply with certain substantiation and reporting
    requirements. For this purpose, qualified shareholders are
    individuals who are residents (as defined for U.S.&#160;federal
    income tax purposes) of countries that grant an Equivalent
    Exemption,
    <FONT style="white-space: nowrap">non-U.S.&#160;corporations</FONT>
    that meet the Publicly Traded Test of the Final Section&#160;883
    Regulations and are organized in countries that grant an
    Equivalent Exemption, or certain foreign governments, non profit
    organizations and certain beneficiaries of foreign pension
    funds. Unitholders who are citizens or residents of the United
    States or are domestic corporations are not qualified
    shareholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, a corporation claiming the Section&#160;883
    Exemption based on the Ownership Test must obtain statements
    from the holders relied upon to satisfy the Ownership Test,
    signed under penalty of perjury, including the owner&#146;s
    name, permanent address and country where the individual is
    fully liable to tax, if any, a description of the owner&#146;s
    ownership interest in the
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation,</FONT>
    including
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">43</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    information regarding ownership in any intermediate entities,
    and certain other information. In addition, we would be required
    to file a U.S.&#160;federal income tax return and list on our
    U.S.&#160;federal income tax return the name and address of each
    unitholder holding 5% or more of the value of our units who is
    relied upon to meet the Ownership Test.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The Publicly Traded Test requires that one or more classes of
    equity representing more than 50% of the voting power and value
    in a
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    be &#147;primarily and regularly traded&#148; on an established
    securities market either in the U.S.&#160;or in a foreign
    country that grants an Equivalent Exemption. For this purpose,
    if one or more 5% shareholders (i.e., a shareholder holding,
    actually or constructively, at least 5% of the vote and value of
    a class of equity) own in the aggregate 50% or more of the vote
    and value of a class of equity, such class of equity will not be
    treated as primarily and regularly traded on an established
    securities market.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The CFC Test requires that the
    <FONT style="white-space: nowrap">non-U.S.&#160;corporation</FONT>
    be treated as a controlled foreign corporation for
    U.S.&#160;federal income tax purposes and a qualified
    U.S.&#160;person ownership test is met (for the definition of
    &#147;controlled foreign corporation&#148; please read the
    discussion below under &#147;&#151;Consequences of Possible
    Controlled Foreign Corporation Classification&#148;).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are organized under the laws of the Republic of The Marshall
    Islands. The U.S.&#160;Treasury Department has recognized the
    Republic of The Marshall Islands as a jurisdiction that grants
    an Equivalent Exemption. Consequently, in the event we were
    treated as a corporation for U.S.&#160;federal income tax
    purposes, our U.S.&#160;Source International Shipping Income
    (including for this purpose, any such income earned by our
    subsidiaries that have properly elected to be treated as
    partnerships or disregarded as entities separate from us for
    U.S.&#160;federal income tax purposes), would be exempt from
    U.S.&#160;federal income taxation provided we meet the Ownership
    Test or we satisfy either the CFC Test or the Publicly Traded
    Test. We do not believe that we will meet the CFC Test, as we do
    not expect to be a CFC (please read below under
    &#147;&#151;Consequences of Possible Controlled Foreign
    Corporation Classification&#148;), and while not completely
    clear, we may not meet the Publicly Traded Test due to Teekay
    Corporation&#146;s substantial indirect ownership of us.
    Nonetheless, as of the date of this prospectus, we believe that
    we should satisfy the Ownership Test based upon Teekay
    Corporation&#146;s current ownership of more than 50% of our
    value.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Based on information provided by Teekay Corporation, Teekay
    Corporation is organized in the Republic of The Marshall Islands
    and meets the Publicly Traded Test under current law and under
    the Final Section&#160;883 Regulations. As long as Teekay
    Corporation owns more than 50% of the value of us and satisfies
    the Publicly Traded Test, we will satisfy the Ownership Test and
    will qualify for the Section&#160;883 Exemption, provided that
    Teekay Corporation provides properly completed ownership
    statements to us as required under the Final Section&#160;883
    Regulations and we satisfy certain substantiation and
    documentation requirements. As of the date hereof, Teekay
    Corporation would be willing to provide us with such ownership
    statements as long as it is a qualifying shareholder. There is
    no assurance that Teekay Corporation will continue to satisfy
    the requirements for being a qualified shareholder of us (i.e.,
    it will meet the Publicly Traded Test) or that it alone will own
    more than 50% of the value of our units. As of the date of this
    prospectus, Teekay Corporation owns a 53% interest in us,
    including a 2% general partner interest. Subsequent issuances of
    common units by us, including pursuant to offerings under this
    prospectus, may reduce Teekay Corporation&#146;s ownership below
    50% of our value. At some time in the future, it may become
    necessary for us to look to our other
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholders</FONT>
    to determine whether more than 50% of our units, by value, are
    owned by
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholders</FONT>
    who are qualifying shareholders and certain
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholders</FONT>
    may be asked to provide ownership statements, signed under
    penalty of perjury, with respect to their investment in our
    units in order for us to qualify for the Section&#160;883
    Exemption. Consequently, in the event we were treated as a
    corporation for U.S. federal income tax purposes, and we cannot
    obtain these statements from unitholders holding, in the
    aggregate, more than 50% of the value of our units, under the
    Final Section&#160;883 Regulations, we may not be eligible to
    claim the Section&#160;883 Exemption, and, therefore, we would
    be required to pay a 4% tax on the gross
</DIV>
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">44</FONT></B>
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    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    amount of our U.S.&#160;Source International Shipping Income,
    thereby reducing the amount of cash available for distribution
    to unitholders.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The determination of whether we will satisfy the Ownership Test
    at any given time depends upon a multitude of factors, including
    Teekay Corporation&#146;s ownership of us, whether Teekay
    Corporation&#146;s stock is publicly traded, the concentration
    of ownership of Teekay Corporation&#146;s own stock and the
    satisfaction of various substantiation and documentation
    requirements. There can be no assurance that we will satisfy
    these requirements at any given time and thus that our
    U.S.&#160;Source International Shipping Income would be exempt
    from U.S.&#160;federal income taxation by reason of
    Section&#160;883 in any of our taxable years if we were treated
    as a corporation.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Consequences of
    possible PFIC classification</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A <FONT style="white-space: nowrap">non-United</FONT>
    States entity treated as a corporation for U.S.&#160;federal
    income tax purposes will be a PFIC in any taxable year in which,
    after taking into account the income and assets of the
    corporation and certain subsidiaries pursuant to a &#147;look
    through&#148; rule, either (1)&#160;at least 75% of its gross
    income is &#147;passive&#148; income (or the <I>income test</I>)
    or (2)&#160;at least 50% of the average value of its assets is
    attributable to assets that produce passive income or are held
    for the production of passive income (or the <I>assets test</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Based upon our current assets and operations, we do not believe
    that we would be considered to be a PFIC even if we were treated
    as a corporation. No assurance can be given, however, that the
    IRS would accept this position or that we would not constitute a
    PFIC for any future taxable year if we were treated as a
    corporation and there were to be changes in our assets, income
    or operations. In addition, a recent decision of the United
    States Court of Appeals for the Fifth Circuit in <I>Tidewater
    Inc.&#160;v. United States</I>, 565&#160;F.3d 299 (5th&#160;Cir.
    Apr.&#160;13, 2009), held that income derived from certain time
    chartering activities should be treated as rental income rather
    than services income for purposes of a foreign sales corporation
    provision of the Internal Revenue Code. However, the
    court&#146;s ruling was contrary to the position of the IRS and
    it is currently uncertain whether the IRS will follow the Fifth
    Circuit&#146;s time charter analysis in <I>Tidewater </I>for
    purposes of making PFIC determinations. In addition, we believe
    that the nature of our time chartering activities, as well as
    our time charter contracts, differ in certain material respects
    from those at issue in <I>Tidewater</I>. Consequently, while
    there are uncertainties involved in the determination, we
    believe that we would not been a PFIC even if we were treated as
    a corporation.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If we were classified as a PFIC, for any year during which a
    unitholder owns units, he generally will be subject to special
    rules (regardless of whether we continue thereafter to be a
    PFIC) with respect to (1)&#160;any &#147;excess
    distribution&#148; (generally, any distribution received by a
    unitholder in a taxable year that is greater than 125% of the
    average annual distributions received by the unitholder in the
    three preceding taxable years or, if shorter, the
    unitholder&#146;s holding period for the units) and (2)&#160;any
    gain realized upon the sale or other disposition of units. Under
    these rules:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the excess distribution or gain will be allocated ratably over
    the unitholder&#146;s holding period;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the amount allocated to the current taxable year and any year
    prior to the first year in which we were a PFIC will be taxed as
    ordinary income in the current year;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the amount allocated to each of the other taxable years in the
    unitholder&#146;s holding period will be subject to
    U.S.&#160;federal income tax at the highest rate in effect for
    the applicable class of taxpayer for that year;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    an interest charge for the deemed deferral benefit will be
    imposed with respect to the resulting tax attributable to each
    of these other taxable years.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain elections, such as a qualified electing fund (or
    <I>QEF</I>) election or mark to market election, may be
    available to a unitholder if we were classified as a PFIC. If we
    determine that we are or will be a
</DIV>
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<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">45</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Material U.S.
    federal income tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    PFIC, we will provide unitholders with information concerning
    the potential availability of such elections.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under current law, dividends received by individual citizens or
    residents of the United States from domestic corporations and
    qualified foreign corporations generally are treated as net
    capital gains and subject to U.S.&#160;federal income tax at
    reduced rates (currently 15%). However, if we were classified as
    a PFIC for our taxable year in which we pay a dividend, we would
    not be considered a qualified foreign corporation, and
    individuals receiving such dividends would not be eligible for
    the reduced rate of U.S.&#160;federal income tax.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">Consequences of
    possible controlled foreign corporation classification</FONT></B>
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If more than 50% of either the total combined voting power of
    our outstanding units entitled to vote or the total value of all
    of our outstanding units were owned, actually or constructively,
    by citizens or residents of the United States,
    U.S.&#160;partnerships or corporations, or U.S.&#160;estates or
    trusts (as defined for U.S.&#160;federal income tax purposes),
    each of which owned, actually or constructively, 10% or more of
    the total combined voting power of our outstanding units
    entitled to vote (each, a <I>U.S.&#160;Shareholder</I>), we
    could be treated as a controlled foreign corporation (or
    <I>CFC</I>) at any such time as we are properly classified as a
    corporation for U.S.&#160;federal income tax purposes.
    U.S.&#160;Shareholders of a CFC are treated as receiving current
    distributions of their shares of certain income of the CFC (not
    including, under current law, certain undistributed earnings
    attributable to shipping income) without regard to any actual
    distributions and are subject to other burdensome
    U.S.&#160;federal income tax and administrative requirements but
    generally are not also subject to the requirements generally
    applicable to owners of a PFIC. Although we do not believe we
    will be a CFC following the Offering, U.S.&#160;persons
    purchasing a substantial interest in us should consider the
    potential implications of being treated as a
    U.S.&#160;Shareholder in the event we were a CFC in the future.
</DIV>

<A name='O67390143'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">TAXATION OF OUR
    SUBSIDIARY CORPORATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our subsidiaries Arctic Spirit L.L.C., Polar Spirit L.L.C. and
    Teekay Tangguh Holdco L.L.C. are classified as corporations for
    U.S.&#160;federal income tax purposes and are subject to
    U.S.&#160;federal income tax based on the rules applicable to
    foreign corporations described above, including, but not limited
    to, the 4% gross basis tax or the net basis tax if the
    Section&#160;883 Exemption does not apply. We believe that the
    Section&#160;883 Exemption would apply to our corporate
    subsidiaries to the extent that it would apply to us if we were
    to be treated as a corporation. As such, as of the date of this
    prospectus, we believe that the Section&#160;883 Exemption would
    apply and these subsidiaries would not be subject to either the
    4% gross basis tax or the net basis tax. At some time in the
    future, however, we may not satisfy all of the requirements of
    the Section&#160;883 Exemption and either the 4% gross basis tax
    or the net basis tax could apply to our subsidiary corporations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our counsel, Perkins Coie LLP, is of the opinion that it is more
    likely than not that neither of our subsidiaries Arctic Spirit
    L.L.C. or Polar Spirit L.L.C. will be considered to be a PFIC
    based on certain representations that we have made to them
    regarding our relationship to Teekay Corporation, and the
    composition of the assets and the nature of the activities and
    other operations of those subsidiaries, and Teekay Corporation
    with respect to the vessels under time charters with those
    subsidiaries. As described above, legal uncertainties are
    involved in this determination, including the ruling of the
    United States Court of Appeals for the Fifth Circuit in
    <I>Tidewater</I>, and there is no assurance that the IRS or a
    court would agree with the opinion we have received from Perkins
    Coie LLP. In addition, there is no assurance that our
    relationship to Teekay Corporation, the composition of the
    assets and the nature of the activities and other operations of
    these subsidiaries, or Teekay Corporation with respect to the
    vessels under time charters with those subsidiaries, will remain
    the same in the future. With respect to Teekay Tangguh Holdco
    L.L.C., we have received a ruling from the IRS that causes this
    subsidiary to be classified as a CFC rather than as a PFIC
    because it is wholly-owned by a U.S. partnership.
</DIV>
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<P>

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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">46</FONT></B>
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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    <A name='O67390144'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica"><FONT style="white-space: nowrap">Non-United</FONT>
    States tax considerations
    </FONT>
</DIV>

</A>
<A name='O67390145'>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">MARSHALL ISLANDS
    TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion is based upon the opinion of Watson,
    Farley&#160;&#038; Williams (New York) LLP, our counsel as to
    matters of the laws of the Republic of The Marshall Islands, and
    the current laws of the Republic of The Marshall Islands
    applicable to persons who do not reside in, maintain offices in
    or engage in business in the Republic of The Marshall Islands.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because we and our subsidiaries do not, and we do not expect
    that we or any of our subsidiaries will, conduct business or
    operations in the Republic of The Marshall Islands, and because
    all documentation related to this offering will be executed
    outside of the Republic of The Marshall Islands, under current
    Marshall Islands law holders of our common units will not be
    subject to Marshall Islands taxation or withholding on
    distributions, including upon a return of capital, we make to
    our unitholders. In addition, our unitholders will not be
    subject to Marshall Islands stamp, capital gains or other taxes
    on the purchase, ownership or disposition of common units, and
    they will not be required by the Republic of The Marshall
    Islands to file a tax return relating to the common units.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is the responsibility of each unitholder to investigate the
    legal and tax consequences, under the laws of pertinent
    jurisdictions, including the Marshall Islands, of his investment
    in us. Accordingly, each prospective unitholder is urged to
    consult its tax counsel or other advisor with regard to those
    matters. Further, it is the responsibility of each unitholder to
    file all state, local and
    <FONT style="white-space: nowrap">non-U.S.,</FONT> as
    well as U.S.&#160;federal tax returns, that may be required of
    such unitholder.
</DIV>

<A name='O67390146'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><FONT style="font-family: Arial, Helvetica">CANADIAN FEDERAL
    INCOME TAX CONSIDERATIONS</FONT></B>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following discussion is a summary of the material Canadian
    federal income tax consequences under the <I>Income Tax Act
    </I>(Canada) (or the <I>Canada Tax Act</I>), as of the date of
    this prospectus, that we believe are relevant to holders of our
    common units who are, at all relevant times, for the purposes of
    the Canada Tax Act and the Canada-United States Tax Convention
    1980 (or the <I>Canada-U.S.&#160;Treaty</I>) resident in the
    United States and entitled to all the benefits under the
    Canada-U.S.&#160;Treaty and who deal at arm&#146;s length with
    us and Teekay Corporation (or <I>U.S.&#160;Resident Holders</I>).
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the Canada Tax Act, no taxes on income (including taxable
    capital gains) are payable by U.S.&#160;Resident Holders in
    respect of the acquisition, holding, disposition or redemption
    of the common units, provided that we do not carry on business
    in Canada and such U.S.&#160;Resident Holders do not, for the
    purposes of the Canada-U.S.&#160;Treaty, otherwise have a
    permanent establishment or fixed base in Canada to which such
    common units pertain and, in addition, do not use or hold and
    are not deemed or considered to use or hold such common units in
    the course of carrying on a business in Canada and, in the case
    of any U.S.&#160;Resident Holders that carry on an insurance
    business in Canada and elsewhere, such U.S.&#160;Resident
    Holders establish that the common units are not effectively
    connected with their insurance business carried on in Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In this connection, we believe that our activities and affairs
    can be conducted in a manner that we will not be carrying on
    business in Canada and that U.S.&#160;Resident Holders should
    not be considered to be carrying on business in Canada for
    purposes of the Canada Tax Act solely by reason of the
    acquisition, holding, disposition or redemption of their common
    units. We intend that this is and continues to be the case,
    notwithstanding that certain services will be provided to Teekay
    LNG Partners L.P., indirectly through arrangements with Teekay
    Shipping Limited (a subsidiary of Teekay Corporation that is
    resident and based in Bermuda), by Canadian service providers,
    as discussed below.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Under the Canada Tax Act, a resident of Canada (which may
    include a foreign corporation the central management and control
    of which is in Canada) is subject to Canadian tax on its
    world-wide income,
</DIV>
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<P>

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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">47</FONT></B>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica"><FONT style="white-space: nowrap">Non-United</FONT>
    States tax considerations</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    subject to any relief that may be provided by any relevant tax
    treaty. A non-resident corporation or individual that carries on
    a business in Canada directly or through a partnership is,
    subject to any relevant tax treaty, subject to tax in Canada on
    income attributable to its business (or that of the partnership,
    as the case may be) carried on in Canada. The Canada Tax Act
    contains special rules that provide assurance to qualifying
    international shipping corporations that they will not be
    considered resident in Canada even if they are, in whole or in
    part, managed from Canada. Further, the Canada Tax Act and many
    of the tax treaties to which Canada is a party also contain
    special exemptions for profits derived from international
    shipping operations.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We have entered into an agreement with Teekay Shipping Limited
    for the provision of administrative services, and certain of our
    operating subsidiaries have entered into agreements with:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    Teekay Shipping Limited for the provision of advisory,
    technical, ship management and administrative services;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    Teekay LNG Projects Ltd., a Canadian subsidiary of Teekay
    Corporation, for the provision of strategic advisory and
    consulting services.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain of the services that Teekay Shipping Limited provides to
    us and our operating subsidiaries under the services agreements
    are and will be obtained by Teekay Shipping Limited through
    subcontracts with a Canadian subsidiary of Teekay Corporation.
    The special rules in the Canada Tax Act and various relevant tax
    treaties relating to qualifying international shipping
    corporations and income from international shipping operations
    may provide relief to our operating subsidiaries to the extent
    that the services provided to them by Canadian entities would
    otherwise result in such operating subsidiaries being considered
    to be resident in Canada or to be taxable in Canada on income
    from such operations by virtue of carrying on business in
    Canada. However, such rules would not apply to us, as a holding
    limited partnership, or to our general partner or unitholders.
    While we do not believe it to be the case, if the arrangements
    we have entered into result in our being considered to carry on
    business in Canada for purposes of the Canada Tax Act, our
    unitholders would be considered to be carrying on business in
    Canada and would be required to file Canadian tax returns and,
    subject to any relief provided in any relevant treaty
    (including, in the case of U.S.&#160;Resident Holders, the
    Canada-U.S.&#160;treaty), would be subject to taxation in Canada
    on any income that is considered to be attributable to the
    business carried on by us in Canada.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We believe that we can conduct our activities and affairs in a
    manner so that our unitholders should not be considered to be
    carrying on business in Canada solely as a consequence of the
    acquisition, holding, disposition or redemption of our common
    units. Consequently, we believe our unitholders should not be
    subject to tax filing or other tax obligations in Canada under
    the Canada Tax Act. However, although we do not intend to do so,
    there can be no assurance that the manner in which we carry on
    our activities will not change from time to time as
    circumstances dictate or warrant in a manner that may cause our
    unitholders to be carrying on business in Canada for purposes of
    the Canada Tax Act. Further, the relevant Canadian federal
    income tax law may change by legislation or judicial
    interpretation and the Canadian taxing authorities may take a
    different view than we have of the current law.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    It is the responsibility of each unitholder to investigate the
    legal and tax consequences, under the laws of pertinent
    jurisdictions, including Canada, of an investment in us.
    Accordingly, each prospective unitholder is urged to consult,
    and depend upon, the unitholder&#146;s tax counsel or other
    advisor with regard to those matters. Further, it is the
    responsibility of each unitholder to file all state, local and
    <FONT style="white-space: nowrap">non-U.S.,</FONT> as
    well as U.S.&#160;federal tax returns, that may be required of
    the unitholder.
</DIV>
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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">48</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390147'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Plan of distribution
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We may sell the securities offered by this prospectus and
    applicable prospectus supplements:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    through underwriters or dealers;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    through agents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    directly to purchasers;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    through a combination of any such methods of sale.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If underwriters are used to sell securities, we will enter into
    an underwriting agreement or similar agreement with them at the
    time of the sale to them. In that connection, underwriters may
    receive compensation from us in the form of underwriting
    discounts or commissions and may also receive commissions from
    purchasers of the securities for whom they may act as agent. Any
    such underwriter, dealer or agent may be deemed to be an
    underwriter within the meaning of the U.S.&#160;Securities Act
    of 1933.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The applicable prospectus supplement relating to the securities
    will set forth, among other things:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the offering terms, including the name or names of any
    underwriters, dealers or agents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    the purchase price of the securities and the proceeds to us from
    such sale;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any underwriting discounts, concessions, commissions and other
    items constituting compensation to underwriters, dealers or
    agents;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any initial public offering price;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any discounts or concessions allowed or reallowed or paid by
    underwriters or dealers to other dealers;&#160;and
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    any securities exchanges on which the securities may be listed.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If underwriters or dealers are used in the sale, the securities
    will be acquired by the underwriters or dealers for their own
    account and may be resold from time to time in one or more
    transactions in accordance with the rules of the New York Stock
    Exchange:
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0">

<TR>
    <TD width="2%"></TD>
    <TD width="98%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    at a fixed price or prices that may be changed;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    at market prices prevailing at the time of sale;
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    at prices related to such prevailing market prices;&#160;or
</TD>
</TR>


<TR style="line-height: 6pt; font-size: 1pt"><TD>&nbsp;</TD></TR>


<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>    <FONT style="font-size: 8pt"><FONT style="font-family: Wingdings; font-variant: normal">&#216;</FONT></FONT>&#160;
</TD>
    <TD align="left">    at negotiated prices.
</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The securities may be offered to the public either through
    underwriting syndicates represented by one or more managing
    underwriters or directly by one or more of such firms. Unless
    otherwise set forth in an applicable prospectus supplement, the
    obligations of underwriters or dealers to purchase the
    securities will be subject to certain conditions precedent and
    the underwriters or dealers will be obligated to purchase all
    the securities if any are purchased. Any public offering price
    and any discounts or concessions allowed or reallowed or paid by
    underwriters or dealers to other dealers may be changed from
    time to time.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Securities may be sold directly by us or through agents
    designated by us from time to time, at prevailing market prices
    or otherwise. Any agent involved in the offer or sale of the
    securities in respect of which this prospectus and a prospectus
    supplement is delivered will be named, and any commissions
    payable by us to such agent will be set forth, in the prospectus
    supplement. Unless otherwise indicated in the prospectus
    supplement, any such agent will be acting on a best efforts
    basis for the period of its appointment.
</DIV>
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<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">49</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B><FONT style="font-family: Arial, Helvetica">Plan of
    distribution</FONT></B>
</DIV>

<DIV style="font-size: 4pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="margin-top: 0pt; font-size: 1pt">&nbsp;</DIV>
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    If so indicated in the prospectus supplement, we will authorize
    underwriters, dealers or agents to solicit offers from certain
    specified institutions to purchase securities from us at the
    public offering price set forth in the prospectus supplement
    pursuant to delayed delivery contracts providing for payment and
    delivery on a specified date in the future. Such contracts will
    be subject to any conditions set forth in the prospectus
    supplement and the prospectus supplement will set forth the
    commissions payable for solicitation of such contracts. The
    underwriters and other persons soliciting such contracts will
    have no responsibility for the validity or performance of any
    such contracts.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Underwriters, dealers and agents may be entitled under
    agreements entered into with us to be indemnified by us against
    certain civil liabilities, including liabilities under the
    U.S.&#160;Securities Act of 1933, or to contribution by us to
    payments which they may be required to make. The terms and
    conditions of such indemnification will be described in an
    applicable prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Underwriters, dealers and agents may be customers of, engage in
    transactions with, or perform services for us or our affiliates
    in the ordinary course of business.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Any underwriters to whom securities are sold by us for public
    offering and sale may make a market in such securities, but such
    underwriters will not be obligated to do so and may discontinue
    any market making at any time without notice. No assurance can
    be given as to the liquidity of the trading market for any
    securities.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain persons participating in any offering of securities may
    engage in transactions that stabilize, maintain or otherwise
    affect the price of the securities offered. In connection with
    any such offering, the underwriters or agents, as the case may
    be, may purchase and sell securities in the open market. These
    transactions may include over-allotment and stabilizing
    transactions and purchases to cover syndicate short positions
    created in connection with the offering. Stabilizing
    transactions consist of certain bids or purchases for the
    purpose of preventing or retarding a decline in the market price
    of the securities and syndicate short positions involve the sale
    by the underwriters or agents, as the case may be, of a greater
    number of securities than they are required to purchase from us
    in the offering. The underwriters may also impose a penalty bid,
    whereby selling concessions allowed to syndicate members or
    other broker-dealers for the securities sold for their account
    may be reclaimed by the syndicate if such securities are
    repurchased by the syndicate in stabilizing or covering
    transactions. These activities may stabilize, maintain or
    otherwise affect the market price of the securities, which may
    be higher than the price that might otherwise prevail in the
    open market, and if commenced, may be discontinued at any time.
    These transactions may be effected on the New York Stock
    Exchange, in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market or otherwise. These activities will be described in more
    detail in the applicable prospectus supplement.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The aggregate maximum compensation the underwriters will receive
    in connection with the sale of any securities under this
    prospectus and the registration statement of which it forms a
    part will not exceed 10% of the gross proceeds from the sale.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Financial Industry Regulatory Authority (or
    <I>FINRA</I>) views our common units as interests in a direct
    participation program, any offering of common units under the
    registration statement of which this prospectus forms a part
    will be made in compliance with Rule&#160;2310 of the FINRA
    Rules.
</DIV>
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<P>

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">50</FONT></B>
</DIV><!-- END PAGE WIDTH -->
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<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
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<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390148'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Service of process
    and enforcement of civil liabilities
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Teekay LNG Partners L.P. is organized under the laws of the
    Republic of The Marshall Islands as a limited partnership. Our
    general partner is organized under the laws of the Republic of
    The Marshall Islands as a limited liability company. The
    Republic of the Marshall Islands has a less developed body of
    securities laws as compared to the United States and provides
    protections for investors to a significantly lesser extent.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Most of the directors and officers of our general partner and
    those of our subsidiaries are residents of countries other than
    the United States. Substantially all of our and our
    subsidiaries&#146; assets and a substantial portion of the
    assets of the directors and officers of our general partner are
    located outside the United States. As a result, it may be
    difficult or impossible for United States investors to effect
    service of process within the United States upon us, our general
    partner, our subsidiaries or the directors and officers of our
    general partner or to realize against us or them judgments
    obtained in United States courts, including judgments predicated
    upon the civil liability provisions of the securities laws of
    the United States or any state in the United States. However, we
    have expressly submitted to the jurisdiction of the
    U.S.&#160;federal and New York state courts sitting in the City
    of New York for the purpose of any suit, action or proceeding
    arising under the securities laws of the United States or any
    state in the United States, and we have appointed Watson,
    Farley&#160;&#038; Williams (New York) LLP to accept service of
    process on our behalf in any such action.
</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Watson, Farley&#160;&#038; Williams (New York) LLP, our counsel
    as to Marshall Islands law, has advised us that there is
    uncertainty as to whether the courts of the Republic of The
    Marshall Islands would (1)&#160;recognize or enforce against us,
    our general partner or our general partner&#146;s directors or
    officers judgments of courts of the United States based on civil
    liability provisions of applicable U.S.&#160;federal and state
    securities laws or (2)&#160;impose liabilities against us, our
    general partner or our general partner&#146;s directors and
    officers in original actions brought in the Republic of The
    Marshall Islands, based on these laws.
</DIV>

<A name='O67390149'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Legal matters
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Unless otherwise stated in the applicable prospectus supplement,
    the validity of the securities and certain other legal matters
    with respect to the laws of the Republic of The Marshall Islands
    will be passed upon for us by our counsel as to Marshall Islands
    law, Watson, Farley&#160;&#038; Williams (New York) LLP. Certain
    other legal matters may be passed upon for us by Perkins Coie
    LLP, Portland, Oregon, who may rely upon the opinion of Watson,
    Farley&#160;&#038; Williams (New York) LLP, for all matters of
    Marshall Islands law. Any underwriter will be advised about
    other issues relating to any offering by its own legal counsel.
</DIV>

<A name='O67390150'>
<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Experts
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The consolidated financial statements of Teekay LNG Partners
    L.P. appearing in its Annual Report on
    <FONT style="white-space: nowrap">Form&#160;20-F</FONT>
    for the year ended December&#160;31, 2008 and the effectiveness
    of Teekay LNG Partners L.P.&#146;s internal controls over
    financial reporting as of December&#160;31, 2008, have been
    audited by Ernst&#160;&#038; Young LLP, an independent
    registered public accounting firm, as set forth in their reports
    thereon included therein, and incorporated herein by reference.
    Such consolidated financial statements and the effectiveness of
    Teekay LNG Partners L.P. internal control over financial
    reporting as of December&#160;31, 2008 are incorporated herein
    by reference in reliance upon such reports of Ernst&#160;&#038;
    Young LLP (to the extent covered by consents filed with the
    SEC), given on the authority of such firm as experts in
    accounting and auditing.
</DIV>
<!-- XBRL Pagebreak Begin -->
<P>

<DIV style="font-size: -12pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>
<P>

<P align="right" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">51</FONT></B>
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

    <A name='O67390151'>
</DIV>

<DIV style="font-size: 7pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 14pt; font-size: 1pt">&nbsp;</DIV>



<DIV align="left" style="margin-left: 0%; margin-right: 0%; font-size: 16pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <FONT style="font-family: Arial, Helvetica">Expenses
    </FONT>
</DIV>
</A>
<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth costs and expenses, other than
    any underwriting discounts and commissions, we expect to incur
    in connection with the issuance and distribution of the
    securities covered by this prospectus. All amounts are estimated
    except the SEC registration fee.
</DIV>

<DIV style="margin-top: 12pt; font-size: 1pt">&nbsp;</DIV>

<TABLE border="0" width="100%" align="center" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="91%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    U.S. Securities and Exchange Commission registration fee
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    22,320
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Legal fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Accounting fees and expenses
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Printing costs
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Transfer agent fees
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="center" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
    $
</TD>
<TD nowrap align="center" valign="bottom">
    *
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD style="border-top: 3px double #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
</TABLE>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 0%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV>

<DIV style="margin-top: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV style="font-size: 1pt; margin-left: 0%; width: 10%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>



<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

<TR>
    <TD width="1%"></TD>
    <TD width="1%"></TD>
    <TD width="98%"></TD>
</TR>

<TR>
    <TD valign="top">
    <I>* </I></TD>
    <TD></TD>
    <TD valign="bottom">
    <I>To be provided in a prospectus supplement or in a Report on
    <FONT style="white-space: nowrap">Form&#160;6-K</FONT>
    subsequently incorporated by reference into this prospectus.</I></TD>
</TR>

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<!-- XBRL Pagebreak Begin -->
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    <BR>
    <B><FONT style="font-size: 8pt; font-family: Arial, Helvetica">52</FONT></B>
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    <IMG src="o67390o6739000.gif" alt="(TEEKAY LNG PARTNERS L.P. LOGO)"><I>
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<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</DIV>
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