<SEC-DOCUMENT>0000950123-11-076928.txt : 20110812
<SEC-HEADER>0000950123-11-076928.hdr.sgml : 20110812
<ACCEPTANCE-DATETIME>20110812172648
ACCESSION NUMBER:		0000950123-11-076928
CONFORMED SUBMISSION TYPE:	424B5
PUBLIC DOCUMENT COUNT:		2
FILED AS OF DATE:		20110812
DATE AS OF CHANGE:		20110812

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PLAINS ALL AMERICAN PIPELINE LP
		CENTRAL INDEX KEY:			0001070423
		STANDARD INDUSTRIAL CLASSIFICATION:	PIPE LINES (NO NATURAL GAS) [4610]
		IRS NUMBER:				760582150
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B5
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-155673
		FILM NUMBER:		111032405

	BUSINESS ADDRESS:	
		STREET 1:		333 CLAY STREET
		STREET 2:		SUITE 1600
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
		BUSINESS PHONE:		7136544100

	MAIL ADDRESS:	
		STREET 1:		333 CLAY STREET
		STREET 2:		SUITE 1600
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B5
<SEQUENCE>1
<FILENAME>h84049b5e424b5.htm
<DESCRIPTION>424B5
<TEXT>
<HTML>
<HEAD>
<TITLE>e424b5</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

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

<DIV align="right" 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">Filed
    Pursuant to Rule&#160;424(b)(5)</FONT></B>
</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">

</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">
    <B>Registration
    <FONT style="white-space: nowrap">No.&#160;333-155673</FONT></B>
</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: 'Times New Roman', Times">PROSPECTUS
    SUPPLEMENT</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>(To Prospectus Dated December&#160;11, 2008)</B>
</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">
    <IMG src="h84049b5h8404901.gif" alt="(PLAINS LOGO)">
</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">
    <B><FONT style="font-size: 14pt">7,500,000 Common
    Units</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; 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: 14pt">Representing Limited Partner
    Interests</FONT></B>
</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">
    <B><FONT style="font-size: 14pt">$61.10 per Common
    Unit</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The selling unitholder, Vulcan Energy Corporation, is selling
    7,500,000 of our common units in this offering. We will not
    receive any proceeds from the sale of the common units by the
    selling unitholder in this offering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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;PAA.&#148; The last reported sale price of our
    common units on the New York Stock Exchange on August&#160;11,
    2011 was $63.18 per common unit.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in our common units involves risks. See &#147;Risk
    Factors&#148; on
    <FONT style="white-space: nowrap">page&#160;S-4</FONT>
    of this prospectus supplement.</B>
</DIV>

<DIV style="margin-top: 3pt; 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="71%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="6%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Per Common Unit</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Total</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Public offering price
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    61.10
</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">
    458,250,000
</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">
    Underwriting discount
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.80
</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">
    13,500,000
</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">
    Proceeds to selling unitholder (before expenses)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    59.30
</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">
    444,750,000
</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: 3pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Delivery of the common units is expected to be made on or about
    August&#160;17, 2011.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 supplement or the
    accompanying prospectus is truthful or complete. Any
    representation to the contrary is a criminal offense.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The selling unitholder has granted the underwriters a
    <FONT style="white-space: nowrap">30-day</FONT>
    option to purchase up to 1,125,000 additional common units on
    the same terms and conditions as set forth above to cover
    over-allotments.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Vulcan Energy Corporation and certain of its affiliates will be
    entering into lock-up agreements with the underwriters for a
    period of 45&#160;days from the date of this prospectus
    supplement. In addition, Vulcan Energy Corporation and certain
    of its affiliates will enter into lock-up agreements with us for
    terms of two years with respect to the units owned by Vulcan
    Energy Corporation and one year with respect to the units owned
    by Vulcan Capital Private Equity I LLC and Vulcan Capital
    Private Equity II LLC. See &#147;Underwriting (Conflicts of
    Interest)&#160;&#151;
    <FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements.&#148;
</DIV>

<DIV style="margin-top: 3pt; 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">
    <I>Joint Book-Running Managers</I>
</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: 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: 14pt; font-family: 'Times New Roman', Times">Citigroup</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 14pt; font-family: 'Times New Roman', Times">
    Barclays Capital</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 14pt; font-family: 'Times New Roman', Times">
    BofA Merrill Lynch</FONT></B></TD>
</TR>

</TABLE>

<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: Arial, Helvetica; color: #000000; background: transparent">

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 13pt; font-family: 'Times New Roman', Times">&#160;&#160;&#160;&#160;&#160;&#160;&#160;J.P.
    Morgan</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 13pt; font-family: 'Times New Roman', Times">
    UBS Investment
    Bank&#160;&#160;&#160;&#160;&#160;&#160;&#160;</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">
    <I>Senior Co-Manager</I>
</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: 12pt">Raymond James</FONT></B>
</DIV>

<DIV style="margin-top: 12pt; 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">
    <I>Junior Co-Managers</I>
</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: 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: 12pt; font-family: 'Times New Roman', Times">RBC
    Capital Markets</FONT></B></TD>
    <TD nowrap align="center">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">
    Sanders Morris Harris</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">
    Tudor, Pickering, Holt&#160;&#038; Co.</FONT></B></TD>
</TR>

</TABLE>

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

<TR>
    <TD width="50%"></TD>
    <TD width="50%"></TD>
</TR>

<TR valign="top">
    <TD nowrap align="left">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;BMO
    Capital Markets</FONT></B></TD>
    <TD nowrap align="right">    <B><FONT style="font-size: 12pt; font-family: 'Times New Roman', Times">
    Janney Montgomery
    Scott&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;</FONT></B></TD>
</TR>

</TABLE>

<DIV style="margin-top: 3pt; 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">
    The date of this prospectus supplement is August&#160;12, 2011.
</DIV>
<!-- XBRL Pagebreak Begin -->

<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: 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">TABLE OF
    CONTENTS<BR>
    </FONT></B>
</DIV>

<DIV style="margin-top: 12pt; 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">Prospectus
    Supplement</FONT></B>
</DIV>

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

<DIV align="left">
<A name="H84049tocpage"></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="95%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049120'>Important Notice About Information in this
    Prospectus Supplement and the Accompanying Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049121'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-ii
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049122'>Prospectus Supplement Summary</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049123'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049124'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049125'>Price Range of Common Units and Distributions</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049126'>Selling Unitholder</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049127'>Material U.S. Federal Income Tax Consequences</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049128'>Underwriting (Conflicts of Interest)</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049129'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049130'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-14
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049131'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    S-14
</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: 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">Prospectus</FONT></B>
</DIV>

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

<DIV align="left">
<A name="H84049tocpage"></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="96%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<!-- TableOutputHead -->
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049101'>About This Prospectus</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    i
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049102'>Where You Can Find More Information</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049103'>Forward-Looking Statements</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049104'>Who We Are</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049105'>Risk Factors</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049106'>Use of Proceeds</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049107'>Description of Our Common Units</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049108'>Cash Distribution Policy</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049109'>Description of Our Partnership Agreement</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049110'>Material Income Tax Considerations</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049111'>Selling Unitholders</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049112'>Plan of Distribution</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049113'>Legal Matters</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#H84049114'>Experts</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</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>
<!-- XBRL Pagebreak Begin -->

<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"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<A name='H84049120'>
<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">IMPORTANT
    NOTICE ABOUT INFORMATION IN THIS PROSPECTUS<BR>
    SUPPLEMENT AND THE ACCOMPANYING PROSPECTUS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>This document is in two parts. The first part is the
    prospectus supplement, which describes our business and the
    specific terms of this offering. The second part, the base
    prospectus, gives more general information, some of which may
    not apply to this offering. Generally, when we refer only to the
    &#147;prospectus,&#148; we are referring to both parts
    combined.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>If the description of the offering varies between the
    prospectus supplement and the base prospectus, you should rely
    on the information in the prospectus supplement.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>You should rely only on the information contained in or
    incorporated by reference in this prospectus or any free writing
    prospectus relating to this offering of common units. No other
    person has been authorized to provide you with different
    information. This prospectus is an offer to sell only the common
    units offered hereby, and only in jurisdictions where it is
    lawful to do so. You should not assume that the information
    contained in this prospectus, any free writing prospectus or in
    the documents incorporated by reference in this prospectus is
    accurate as of any date other than the date on the front of
    those documents.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>The information in this prospectus supplement is not
    complete. You should review carefully all of the detailed
    information appearing in this prospectus supplement, the
    accompanying prospectus and the documents we have incorporated
    by reference before making any investment decision.</B>
</DIV>

<A name='H84049121'>
<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">FORWARD-LOOKING
    STATEMENTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    All statements included or incorporated by reference in this
    prospectus supplement, other than statements of historical fact,
    are forward-looking statements, including but not limited to
    statements identified by the words &#147;anticipate,&#148;
    &#147;believe,&#148; &#147;estimate,&#148; &#147;expect,&#148;
    &#147;plan,&#148; &#147;intend&#148; and &#147;forecast,&#148;
    as well as similar expressions and statements regarding our
    business strategy, plans and objectives for future operations.
    The absence of these words, however, does not mean that the
    statements are not forward-looking. These statements reflect our
    current views with respect to future events, based on what we
    believe are reasonable assumptions. Certain factors could cause
    actual results to differ materially from results anticipated in
    the forward-looking statements. These factors include, but are
    not limited to:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to implement or capitalize on planned internal growth
    projects;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    maintenance of our credit rating and ability to receive open
    credit from our suppliers and trade counterparties;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    continued creditworthiness of, and performance by, our
    counterparties, including financial institutions and trading
    companies with which we do business;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the effectiveness of our risk management activities;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    unanticipated changes in crude oil market structure, grade
    differentials and volatility (or lack thereof);
</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>    &#149;&#160;
</TD>
    <TD align="left">
    environmental liabilities or events that are not covered by an
    indemnity, insurance or existing reserves;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    abrupt or severe declines or interruptions in outer continental
    shelf production located offshore California and transported on
    our pipeline systems;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    shortages or cost increases of supplies, materials or labor;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the availability of adequate third-party production volumes for
    transportation and marketing in the areas in which we operate
    and other factors that could cause declines in volumes shipped
    on our pipelines by us and third-party shippers, such as
    declines in production from existing oil and gas reserves or
    failure to develop additional oil and gas reserves;
</TD>
</TR>

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

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-ii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in refinery capacity in areas supplied by our
    mainlines and other factors affecting demand for various grades
    of crude oil, refined products and natural gas and resulting
    changes in pricing conditions or transportation throughput
    requirements;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the availability of, and our ability to consummate, acquisition
    or combination opportunities;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to obtain debt or equity financing on satisfactory
    terms to fund additional acquisitions, expansion projects,
    working capital requirements and the repayment or refinancing of
    indebtedness;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the successful integration and future performance of acquired
    assets or businesses and the risks associated with operating in
    lines of business that are distinct and separate from our
    historical operations;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of current and future laws, rulings, governmental
    regulations, accounting standards and statements and related
    interpretations;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the effects of competition;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    interruptions in service on third-party pipelines;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    increased costs or lack of availability of insurance;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in the debt and equity markets, including the price
    of our units at the time of vesting under our long-term
    incentive plans;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    the currency exchange rate of the Canadian dollar;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    weather interference with business operations or project
    construction;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    risks related to the development and operation of natural gas
    storage facilities;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    factors affecting demand for natural gas and natural gas storage
    services and rates;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    future developments and circumstances at the time distributions
    are declared;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    general economic, market or business conditions and the
    amplification of other risks caused by volatile financial
    markets, capital constraints and pervasive liquidity
    concerns;&#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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other factors and uncertainties inherent in the transportation,
    storage, terminalling and marketing of crude oil, refined
    products and liquefied petroleum gas and other natural gas
    related petroleum products.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Other factors described herein or incorporated by reference, or
    factors that are unknown or unpredictable, could also have a
    material adverse effect on future results. Please read
    &#147;Risk Factors&#148; on
    <FONT style="white-space: nowrap">page&#160;S-4</FONT>
    of this prospectus supplement and in Item&#160;1A. &#147;Risk
    Factors&#148; in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010 (File
    <FONT style="white-space: nowrap">No.&#160;001-14569),</FONT>
    which is incorporated in this prospectus supplement by
    reference. Except as required by applicable securities laws, we
    do not intend to update these forward-looking statements and
    information.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-iii
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<!-- XBRL Pagebreak End -->
<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='H84049122'>
<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">PROSPECTUS
    SUPPLEMENT SUMMARY</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>This summary highlights information contained elsewhere, or
    incorporated by reference, in this prospectus supplement and the
    accompanying prospectus. It does not contain all of the
    information that you should consider before making an investment
    decision. You should read this entire prospectus supplement, the
    accompanying prospectus and the documents incorporated herein by
    reference for a more complete understanding of this offering of
    common units. Please read &#147;Risk Factors&#148; on
    <FONT style="white-space: nowrap">page&#160;S-4</FONT>
    of this prospectus supplement and in our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, which is incorporated
    into this prospectus supplement by reference, for information
    regarding risks you should consider before investing in our
    common units.</I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Except as the context otherwise indicates, the information in
    this prospectus supplement assumes no exercise of the
    underwriters&#146; option to purchase additional common units
    from the selling unitholder.</I>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>For purposes of this prospectus supplement and the
    accompanying prospectus, unless the context clearly indicates
    otherwise, &#147;we,&#148; &#147;us,&#148; &#147;our&#148; and
    the &#147;Partnership&#148; refer to Plains All American
    Pipeline, L.P. and its subsidiaries. References to our
    &#147;general partner,&#148; as the context requires, include
    any or all of PAA GP&#160;LLC, Plains AAP, L.P. and Plains All
    American GP LLC.</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: 'Times New Roman', Times">Plains
    All American Pipeline, L.P.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are a Delaware limited partnership formed in September 1998.
    Our operations are conducted directly and indirectly through our
    primary operating subsidiaries. We are engaged in the
    transportation, storage, terminalling and marketing of crude
    oil, refined products and liquefied petroleum gas and other
    natural gas-related petroleum products. We refer to liquefied
    petroleum gas and other natural gas-related petroleum products
    collectively as &#147;LPG.&#148; We are also engaged in the
    development and operation of natural gas storage facilities
    through our direct and indirect ownership of PAA Natural Gas
    Storage, L. P. (&#147;PNG&#148;), which is a fee-based,
    growth-oriented Delaware limited partnership engaged in the
    ownership, acquisition, development, operation and commercial
    management of natural gas storage facilities. We own PNG&#146;s
    general partner, PNGS&#160;GP LLC (&#147;PNGS GP&#148;), which
    holds a 2% general partner interest in PNG and all of its
    incentive distributions rights. We also currently own an
    approximate 62% limited partner interest in PNG.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are one of the largest midstream crude oil companies in North
    America. We have an extensive network of pipeline
    transportation, terminalling, storage and gathering assets in
    key oil-producing basins and transportation corridors, and at
    major market hubs in the United States and Canada. We manage our
    operations through three primary operating segments:
    transportation, facilities and supply and logistics.
</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: 'Times New Roman', Times">Business
    Strategy</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our principal business strategy is to provide competitive and
    efficient midstream transportation, terminalling, storage and
    supply and logistics services to our producer, refiner and other
    customers. Toward this end, we endeavor to address regional
    supply and demand imbalances for crude oil, refined products,
    LPG&#160;and natural gas storage in the United States and Canada
    by combining the strategic location and capabilities of our
    transportation, terminalling and storage assets with our
    extensive supply, logistics and distribution expertise.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We believe successful execution of this strategy will enable us
    to generate sustainable earnings and cash flow. We intend to
    manage and grow our business by:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    optimizing our existing assets and realizing cost efficiencies
    through operational improvements;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    developing and implementing internal growth projects that
    (i)&#160;address evolving crude oil, refined products and LPG
    needs in the midstream transportation and infrastructure sector
    and (ii)&#160;are
    <FONT style="white-space: nowrap">well-positioned</FONT>
    to benefit from long-term industry trends and opportunities;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    utilizing our assets along the Gulf, West and East Coasts along
    with our terminals and leased assets to optimize our presence in
    the waterborne importation of foreign crude oil;
</TD>
</TR>

</TABLE>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<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 -->
<!-- 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    capitalizing on the anticipated long-term growth in demand for
    natural gas storage services in North&#160;America by owning and
    operating high-quality natural gas storage facilities and
    providing our current and future customers reliable, competitive
    and flexible natural gas storage and related services;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    selectively pursuing strategic and accretive acquisitions that
    complement our existing asset base and distribution
    capabilities;&#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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    using our terminalling and storage assets in conjunction with
    our supply and logistic activities to capitalize on inefficient
    energy markets and to address physical market imbalances,
    mitigate inherent risks and increase margin.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We intend to utilize PNG as the primary vehicle through which we
    will participate in the natural gas storage business. We believe
    PNG&#146;s natural gas storage assets are also well-positioned
    to benefit from long-term industry trends and opportunities.
    PNG&#146;s growth strategies are to develop and implement
    internal growth projects and to selectively pursue strategic and
    accretive acquisitions of natural gas storage projects and
    facilities. Through execution of such growth strategies, we
    intend to expand the scale and scope of our natural gas storage
    business. We may also prudently and economically leverage our
    asset base, knowledge base and skill sets to participate in
    other energy-related businesses that have characteristics and
    opportunities similar to, or that otherwise complement, our
    existing 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: 'Times New Roman', Times">Ongoing
    Acquisition Activities</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Consistent with our business strategy, we are continuously
    engaged in discussions with potential sellers regarding the
    possible purchase of assets and operations that are strategic
    and complementary to our existing operations. In addition, we
    have in the past evaluated and pursued, and intend in the future
    to evaluate and pursue, other energy related assets that have
    characteristics and opportunities similar to our business lines
    and enable us to leverage our asset base, knowledge base and
    skill sets. Such acquisition efforts may involve participation
    by us in processes that have been made public and involve a
    number of potential buyers, commonly referred to as
    &#147;auction&#148; processes, as well as situations in which we
    believe we are the only party or one of a limited number of
    potential buyers in negotiations with the potential seller.
    These acquisition efforts often involve assets which, if
    acquired, could have a material effect on our financial
    condition and results of operations. Even after we have reached
    agreement on a purchase price with a potential seller,
    confirmatory due diligence or negotiations regarding other terms
    of the acquisition can cause discussions to be terminated.
    Accordingly, we typically do not announce a transaction until
    after we have executed a definitive acquisition agreement.
    Although we expect the acquisitions we make to be accretive in
    the long term, we can provide no assurance that our expectations
    will ultimately be realized.
</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: 'Times New Roman', Times">Our
    Principal Executive Offices</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Our executive offices are located at 333 Clay Street,
    Suite&#160;1600, Houston, Texas 77002. Our telephone number is
    <FONT style="white-space: nowrap">(713)&#160;646-4100.</FONT>
    We maintain a website at <I>www.paalp.com </I>that provides
    information about our business and operations. Information
    contained on or available through our website is not
    incorporated into or otherwise a part of this prospectus
    supplement or the accompanying base prospectus.
</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: 'Times New Roman', Times">Additional
    Information</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For additional information about us, including our partnership
    structure and management, please see our Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010 and our subsequently
    filed Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    and Current Reports on
    <FONT style="white-space: nowrap">Form&#160;8-K.</FONT>
    Please refer to the section in this prospectus supplement
    entitled &#147;Where You Can Find More Information.&#148;
</DIV>
<!-- XBRL Pagebreak Begin -->
</DIV><!-- End box 1 -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<DIV style="margin-top: 12pt; 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">THE
    OFFERING</FONT></B>
</DIV>

<DIV style="margin-top: 4pt; 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">
    Common units offered by selling unitholder</TD>
    <TD></TD>
    <TD valign="bottom">
    7,500,000 common units (8,625,000 common units if the
    underwriters exercise in full their option to purchase
    additional common units).</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Common units outstanding before and after this offering</TD>
    <TD></TD>
    <TD valign="bottom">
    149,357,119 common units.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Use of proceeds</TD>
    <TD></TD>
    <TD valign="bottom">
    We will not receive any proceeds from the sale of our common
    units by the selling unitholder in this offering.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Cash distributions</TD>
    <TD></TD>
    <TD valign="bottom">
    Under our partnership agreement, we must distribute all of our
    cash on hand at the end of each quarter, less reserves
    established by our general partner in its discretion. We refer
    to this cash as &#147;available cash,&#148; and we define its
    meaning in our partnership agreement.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Under the quarterly incentive distribution provisions in our
    partnership agreement, generally our general partner is
    entitled, following the distribution of our minimum quarterly
    distribution of $0.45 per common unit and without duplication,
    to 15% of amounts we distribute until each unitholder receives a
    total of $0.495 per common unit, 25% of amounts we distribute
    until each unitholder receives a total of $0.675 per common unit
    and 50% thereafter. For a description of our cash distribution
    policy, please read &#147;Cash Distribution Policy&#148; in the
    accompanying prospectus.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    On July&#160;11, 2011, we declared a cash distribution of
    $0.9825 per unit ($3.93 per unit on an annualized basis) payable
    on August&#160;12, 2011 to holders of record of such units at
    the close of business on August&#160;2, 2011. The distribution
    represents an increase of approximately 1.3% over the quarterly
    distribution of $0.97 per unit ($3.88 per unit on an annualized
    basis) we paid in May 2011.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    Purchasers in this offering will not be entitled to receive the
    distribution payable on August&#160;12, 2011.</TD>
</TR>


<TR style="line-height: 4pt; 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 own the common units you purchase in
    this offering through the record date for the distribution for
    the period ending December&#160;31, 2013, you will be allocated,
    on a cumulative basis, an amount of federal taxable income for
    that period that will be less than 20% of the cash distributed
    to you with respect to that period. Please read &#147;Material
    U.S. Federal Income Tax Consequences&#148; in this prospectus
    supplement for the basis of this estimate.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    Conflicts of interest</TD>
    <TD></TD>
    <TD valign="bottom">
    Certain of the underwriters and their affiliates have performed
    investment and commercial banking and advisory services for us
    and our affiliates and for the selling unitholder and its
    affiliates from time to time for which they have received
    customary fees and expenses. The underwriters and their
    affiliates may, from time to time, engage in transactions with
    and perform services for us, the selling unitholder or our and
    the selling unitholders&#146; respective affiliates in the
    ordinary course of their business. In particular, affiliates of
    certain of the underwriters are lenders under our credit
    facilities.</TD>
</TR>


<TR style="line-height: 4pt; font-size: 1pt"><TD>&nbsp;</TD></TR>

<TR>
    <TD valign="top">
    New York Stock Exchange symbol</TD>
    <TD></TD>
    <TD valign="bottom">
    PAA.</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><!-- End box 1 -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<A name='H84049123'>
<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">RISK
    FACTORS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Before making an investment in the common units offered
    hereby, you should carefully consider the risk factors included
    in Item&#160;1A. &#147;Risk Factors&#148; in our Annual Report
    on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, which is incorporated
    in this prospectus supplement by reference, together with all of
    the other information included or incorporated by reference in
    this prospectus. If any of these risks were to occur, our
    business, financial condition or results of operations could be
    materially adversely affected. In such case, the trading price
    of our common units could decline, and you could lose all or
    part of your investment.</I>
</DIV>

<A name='H84049124'>
<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">USE OF
    PROCEEDS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We will not receive any proceeds from the sale of our common
    units by the selling unitholder in this offering.
</DIV>

<A name='H84049125'>
<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">PRICE
    RANGE OF COMMON UNITS AND DISTRIBUTIONS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    As of August 10, 2011, we had 149,357,119 common units
    outstanding, held by approximately 134,000 holders, including
    common units held in street name. Our common units are traded on
    the New York Stock Exchange under the symbol &#147;PAA.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 prices for our common units, as reported on
    the New York Stock Exchange Composite Transactions Tape, and
    quarterly cash distributions declared per common unit. The last
    reported sale price of common units on the New York Stock
    Exchange on August&#160;11, 2011 was $63.18 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="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="2%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="2%" align="left">&nbsp;</TD>	<!-- colindex=03 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=04 type=gutter -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=04 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="4%" 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom">
    <B>Common Unit<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Cash<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="7" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Price Range</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Distributions<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>High</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Low</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>per Unit(1)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom" style="background: #CCEEFF">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <B>2009</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" 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="right" 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="right" 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: 20pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    40.98
</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">
    34.00
</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">
    0.9050
</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">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    45.52
</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">
    36.25
</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">
    0.9050
</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">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    50.33
</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">
    42.50
</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">
    0.9200
</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">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    53.37
</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">
    45.45
</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">
    0.9275
</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">
    <B>2010</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" 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="right" 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="right" 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">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    57.11
</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">
    49.82
</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">
    0.9350
</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">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    60.06
</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">
    44.12
</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">
    0.9425
</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">
    Third Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    64.21
</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">
    57.33
</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">
    0.9500
</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">
    Fourth Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    65.20
</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">
    60.91
</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">
    0.9575
</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">
    <B>2011</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" 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="right" 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="right" 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: 20pt">
    First Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    65.96
</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">
    60.21
</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">
    0.9700
</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">
    Second Quarter
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    65.69
</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">
    57.80
</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">
    0.9825
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Third Quarter (through August&#160;11, 2011)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    64.98
</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">
    56.41
</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">

</TD>
<TD nowrap align="left" valign="bottom">
    (3)
</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: 13%;  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">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Represents cash distributions attributable to the quarter and
    paid within 45&#160;days after the quarter end.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Cash distributions in respect of the second quarter of 2011 will
    be paid on August&#160;12, 2011. Purchasers in this offering
    will not be entitled to receive the distribution payable on
    August&#160;12, 2011.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Cash distributions in respect of the third quarter of 2011 have
    not been declared or paid.</TD>
</TR>

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

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<A name='H84049126'>
<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">SELLING
    UNITHOLDER</FONT></B>
</DIV>
</A>
<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: 'Times New Roman', Times">Ownership</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table sets forth information concerning the
    ownership of our common units by the selling unitholder as of
    August&#160;10, 2011. As of August&#160;10, 2011, we had
    149,357,119 common units outstanding. The information set forth
    below is based on written representations provided to us by the
    selling unitholder.
</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="43%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="6%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="6%" 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 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=05 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="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Percentage of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Beneficially<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Owned Prior<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Owned After<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Owned After<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Selling Unitholder</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to the Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to be Offered(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>the Offering(1)</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>the Offering(1)</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vulcan Energy Corporation(2)(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,390,120
</TD>
<TD nowrap align="left" valign="bottom">
    (2)
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500,000
</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">
    4,890,120
</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">
    3.27
</TD>
<TD nowrap align="left" valign="bottom">
    %
</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: 13%;  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">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Assumes the underwriters will not exercise their option to
    purchase up to an additional 1,125,000 common units.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Paul G. Allen owns approximately 80% of the outstanding shares
    of the selling unitholder and exercises sole voting and
    dispositive powers with respect to the units owned by the
    selling unitholder. Mr.&#160;Allen also controls Vulcan Capital
    Private Equity I LLC (&#147;Vulcan Capital I&#148;), which is
    the record holder of 3,706,044 of our common units, and Vulcan
    Capital Private Equity&#160;II LLC (&#147;Vulcan Capital
    II&#148;), which is the record holder of 197,215 of our common
    units, which common units are not included in the number of
    common units beneficially owned by Vulcan Energy Corporation.
    The address for the selling unitholder is 505&#160;Fifth Avenue
    S, Suite&#160;900, Seattle, Washington 98104.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    Following this offering, John T. Raymond, a member of the board
    of directors of our general partner and a stockholder of the
    selling unitholder, and another stockholder of the selling
    unitholder agreed to purchase 200,354 and 852,218 common units,
    respectively, from the selling unitholder in a direct registered
    offering. Mr. Raymond and the other stockholder also agreed to
    purchase up to 69,759 and 132,281 additional common units,
    respectively, if the underwriters exercise their over-allotment
    option.</TD>
</TR>

</TABLE>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The common units to be offered and sold pursuant to this
    prospectus supplement were acquired by the selling unitholder in
    connection with its merger with Plains Resources, Inc., which
    was the owner of our original general partner, and a wholly
    owned subsidiary of the selling unitholder.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The selling unitholder is neither a U.S.&#160;registered
    broker-dealer nor an affiliate of a U.S.&#160;registered
    broker-dealer.
</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: 'Times New Roman', Times">Material
    Relationships with the Selling Unitholder</FONT></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Sale
    of our General Partner Interest</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In December 2010, the selling unitholder sold its 50.1% interest
    in our general partner. Substantially all of the interest was
    acquired by existing owners of our general partner or their
    affiliates. A voting rights agreement previously entered into by
    the selling unitholder was terminated in connection with this
    sale. Further, the selling unitholder has agreed that prior to
    the earlier of December&#160;23, 2015 and the date, if any, of
    certain changes in our senior-most management, it will not vote
    any of its limited partner interests in favor of any proposal to
    remove our general partner.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Natural
    Gas Storage Investment</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In September 2005, we and Vulcan Gas Storage LLC (&#147;Vulcan
    Gas Storage&#148;), a subsidiary of both Vulcan Capital I and
    Vulcan Capital II, each an entity controlled by Mr.&#160;Allen,
    formed PAA/Vulcan Gas Storage, LLC (&#147;PAA/Vulcan&#148;) to
    acquire Energy Center Investments, LLC (now known as PAA Natural
    Gas Storage, LLC (&#147;PNGS&#148;)), then an indirect
    subsidiary of Sempra Energy, for approximately
    $250&#160;million. We and Vulcan Gas Storage each made an
    initial cash investment of approximately $113&#160;million and
    Bluewater Natural Gas Holdings, LLC, a subsidiary of PAA/Vulcan,
    entered into a $90&#160;million credit facility.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    From September 2005 until September&#160;3, 2009, we owned 50%
    of PAA/Vulcan and Vulcan Gas Storage LLC owned the other 50%.
    Giving effect to all contributions and distributions made during
    the period from January&#160;1,
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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">
    2007 through September&#160;3, 2009, we and Vulcan Gas Storage
    each made a net contribution of $39&#160;million. Such
    contributions and distributions did not result in an increase or
    decrease to our ownership interest.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On September&#160;3, 2009, one of our subsidiaries acquired the
    remaining 50% interest in PAA/Vulcan from Vulcan Gas Storage,
    which resulted in our ownership of a 100% interest in
    PAA/Vulcan. The purchase price for the transaction consisted of
    $90&#160;million in cash paid at closing, 1,907,305 common units
    issued to Vulcan Capital&#160;I and Vulcan Capital&#160;II at
    closing, and up to $40&#160;million of deferred/contingent cash
    consideration. The deferred/contingent consideration is payable
    in cash in two installments of $20&#160;million upon achievement
    of certain performance milestones and other events. The first of
    these installments was paid in May 2010. At closing of the
    acquisition, we repaid all of PNGS&#146;s outstanding debt.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Designated
    Directors</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Prior to December&#160;23, 2010, the selling unitholder had and
    exercised the right to designate one director to the board of
    directors of our general partner. Each director designated by
    the selling unitholder served during such director&#146;s tenure
    on the compensation committee of the board of directors of our
    general partner.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Board
    Observer Rights</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    For so long as Vulcan, Inc. and its affiliates
    (&#147;Vulcan&#148;) hold in excess of 12&#160;million of our
    common units, the selling unitholder may send an individual (who
    must be a senior member of Vulcan&#146;s management) to attend
    board meetings in an observer capacity. If at any time after
    December&#160;23, 2015 the number of common units held by Vulcan
    is less than 5% of our outstanding common units, we have the
    right to terminate the selling unitholder&#146;s board observer
    rights. Effective on June&#160;17, 2011, the selling unitholder
    waived its board observer rights and since then has been
    restricted from receiving the information provided to our board
    of directors. Subject to the continued satisfaction of the
    ownership requirement, the selling unitholder could exercise its
    board observer rights in the future. However, this offering will
    reduce Vulcan&#146;s ownership below the required ownership
    threshold, thus terminating the selling unitholder&#146;s board
    observer rights.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Board
    Affiliation</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    John T. Raymond, a member of the board of directors of our
    general partner, serves as a director of, and owns approximately
    7% of the outstanding equity interests in, the selling
    unitholder.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Following this offering, Mr. Raymond agreed to purchase up to
    270,113 common units in a direct registered transaction with the
    selling unitholder using a portion of the after-tax net proceeds
    attributable to his interest in the selling unitholder.
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Other
    Transactions</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    On October&#160;14, 2005, Plains All American GP LLC (&#147;GP
    LLC&#148;) and the selling unitholder entered into an
    Administrative Services Agreement, effective as of
    September&#160;1, 2005 (the &#147;Services Agreement&#148;).
    Pursuant to the Services Agreement, GP LLC provided
    administrative services to the selling unitholder for
    consideration of an annual fee of $1&#160;million, plus certain
    expenses. The Services Agreement was terminated in December 2010
    in connection with the sale by the selling unitholder of its
    interest in our general partner. However, we agreed to provide
    transition services and assistance to the selling unitholder
    until June 2011 for consideration of a $1&#160;million fee.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In 2001, in connection with the transfer of interests in our
    general partner, the selling unitholder (as successor in
    interest to the owner of our former general partner) agreed to
    indemnify us for (i)&#160;any claims relating to securities laws
    or regulations in connection with the upstream or midstream
    businesses, based on acts or omissions, or alleged acts or
    omissions, occurring on or prior to June&#160;8, 2001, or
    (ii)&#160;any claims relating to the operation of the upstream
    business, whenever arising. In addition, we agreed to indemnify
    the selling unitholder for any claims relating to the operation
    of the midstream business, whenever arising.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<A name='H84049127'>
<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">MATERIAL
    U.S. FEDERAL INCOME TAX CONSEQUENCES</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: 4%; 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. For a
    discussion of the material U.S.&#160;federal income tax
    consequences associated with our operations and the purchase,
    ownership and disposition of our common units, please read
    &#147;Material Income Tax Considerations&#148; in the
    accompanying prospectus, as updated and supplemented by the
    discussion included herein. You are urged to consult with your
    own tax advisor about the federal, state, local and foreign tax
    consequences particular 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: 'Times New Roman', Times">Tax
    Consequences of Unit Ownership</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Ratio of Taxable Income to Distributions.</I>&#160;&#160;We
    estimate that a purchaser of common units in this offering who
    holds those common units from the date of closing of this
    offering through the record date for the period ending
    December&#160;31, 2013 will be allocated an amount of federal
    taxable income for that period that will be less than 20% of the
    cash distributed to the unitholder with respect to that period.
    Thereafter, we anticipate that the ratio of allocable taxable
    income to cash distributions to the unitholders will increase.
    These estimates are based upon the assumption that gross income
    from operations will approximate the amount required to make the
    current quarterly distribution on all units and other
    assumptions with respect to capital expenditures, cash flow, net
    working capital and anticipated cash distributions. These
    estimates and assumptions are subject to, among other things,
    numerous business, economic, regulatory, legislative,
    competitive and political uncertainties beyond our control.
    Further, the estimates are based on current tax law and tax
    reporting positions that we will adopt and with which the
    Internal Revenue Service could disagree. Accordingly, we cannot
    assure you that these estimates will prove to be correct. The
    ratio of taxable income to distributions could be higher or
    lower than expected, and any differences could be material and
    could materially affect the value of the common units. For
    example, the ratio of taxable income to cash distributions to a
    purchaser of common units in this offering will be higher, and
    perhaps substantially higher, than our estimate with respect to
    the period described above if our gross income from operations
    exceeds the amount required to maintain the current distribution
    level on all units, yet we only distribute the current
    distribution amount on all units; or 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
    federal income tax purposes or that is depreciable or
    amortizable at a rate significantly slower than the rate
    applicable to our assets at the time of this offering.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, our interest in PNG and our other operations are
    generally required to be treated as separate activities for
    purposes of applying the passive loss limitations. Income from
    one activity may not be offset with losses from the other
    activity. This inability to treat our interest in PNG and our
    other operations as a single activity could result in a higher
    than expected 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Tax Rates.</I>&#160;&#160;Under current law, the highest
    marginal federal income tax rate applicable to ordinary income
    of individuals is 35% and the highest marginal federal income
    tax rate applicable to long-term capital gains (generally,
    capital gains on certain assets held for more than
    12&#160;months) of individuals is 15%. However, absent new
    legislation extending the current rates, beginning
    January&#160;1, 2013, the highest marginal federal income tax
    rate applicable to ordinary income and long-term capital gains
    of individuals will increase to 39.6% and 20%, respectively.
    Moreover, these rates are subject to change by new legislation
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    A 3.8% Medicare tax on certain investment income earned by
    individuals, estates, and trusts is scheduled to apply for
    taxable years beginning after December&#160;31, 2012. For these
    purposes, investment income generally includes a
    unitholder&#146;s allocable share of our income and gain
    realized by a unitholder from a sale of units. In the case of an
    individual, the tax will be imposed on the lesser of
    (i)&#160;the unitholder&#146;s net investment income from all
    investments, or (ii)&#160;the amount by which the
    unitholder&#146;s modified adjusted gross income exceeds
    $250,000 (if the unitholder is married and filing jointly or a
    surviving spouse), $125,000 (if the unitholder is married and
    filing separately) or $200,000 (in any other case). In the case
    of an estate or trust, the tax will be imposed on the lesser of
    (i)&#160;undistributed net investment income, or (ii)&#160;the
    excess
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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">
    adjusted gross income over the dollar amount at which the
    highest income tax bracket applicable to an estate or trust
    begins.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Tax-Exempt Organizations and Other
    Investors.</I>&#160;&#160;Ownership of common units by
    tax-exempt entities and
    <FONT style="white-space: nowrap">non-U.S.&#160;investors</FONT>
    raises issues unique to such persons. Tax-exempt entities and
    <FONT style="white-space: nowrap">non-U.S.&#160;investors</FONT>
    are encouraged to consult with your own tax advisor about the
    federal, state, local and foreign tax consequences particular to
    your circumstances before investing. Please read &#147;Material
    Income Tax Considerations &#151;&#160;Tax-Exempt Organizations
    and Other Investors&#148; in the accompanying prospectus.
</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: 'Times New Roman', Times">Administrative
    Matters</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <I>Nominee Reporting.</I>&#160;&#160;Persons who hold an
    interest in us as a nominee for another person are required to
    furnish to us:
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (a)&#160;the name, address and taxpayer identification number of
    the beneficial owner and the nominee;
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (b)&#160;a statement regarding whether the beneficial owner is:
</DIV>

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

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    i.&#160;a person that is not a U.S.&#160;person;
</DIV>

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

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    ii.&#160;a foreign government, an international organization or
    any wholly-owned agency or instrumentality of either of the
    foregoing;&#160;or
</DIV>

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

<DIV align="left" style="margin-left: 8%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    iii.&#160;a tax-exempt entity;
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (c)&#160;the amount and description of common units held,
    acquired or transferred for the beneficial owner;&#160;and
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (d)&#160;specific information including the dates of
    acquisitions and transfers, means of acquisitions and transfers,
    and acquisition cost for purchases, as well as the amount of net
    proceeds from sales.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Brokers and financial institutions are required to furnish
    additional information, including whether they are
    U.S.&#160;persons and specific information on common units they
    acquire, hold or transfer for their own account. A penalty of
    $100 per failure, up to a maximum of $1,500,000 per calendar
    year, is imposed by the Internal Revenue Code of 1986, as
    amended, for failure to report that information to us. The
    nominee is required to supply the beneficial owner of the common
    units with the information furnished by us.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<A name='H84049128'>
<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">UNDERWRITING</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Citigroup Global Markets Inc., Barclays Capital Inc., Merrill
    Lynch, Pierce, Fenner &#038; Smith Incorporated, J.P. Morgan
    Securities LLC and UBS Securities LLC are acting as joint
    book-running managers of the underwritten offering and
    representatives of the 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 agreed to purchase from the selling unitholder, and
    the selling unitholder has 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="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="9%" 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="3" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom">
    <B>Common<BR>
    </B>
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Underwriter</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</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="top">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Citigroup Global Markets Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    &#160;&#160;1,650,000
</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">
    Barclays Capital Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,200,000
</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: -51pt; margin-left: 51pt">
    Merrill Lynch, Pierce, Fenner&#160;&#038; Smith<BR>
    Incorporated
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,012,500
</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">
    J.P. Morgan Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,200,000
</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">
    UBS Securities LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,200,000
</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">
    Raymond James&#160;&#038; Associates, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    487,500
</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">
    RBC Capital Markets, LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    187,500
</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">
    Sanders Morris Harris Inc.
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    187,500
</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">
    Tudor, Pickering, Holt&#160;&#038; Co. Securities, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    187,500
</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">
    BMO Capital Markets Corp.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    140,625
</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">
    Janney Montgomery Scott LLC
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    46,875
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD style="border-top: 1px solid #000000">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="top">
<DIV style="text-indent: -10pt; margin-left: 20pt">
    Total
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7,500,000
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
</TR>
<TR valign="bottom" style="font-size: 1pt">
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&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 align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 common 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 of the common units (other than those covered by the
    over-allotment option to purchase additional common units
    described below) if they purchase any of 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: 4%; 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 $1.15 per common unit. If all of the
    common units are not sold at the initial offering price, the
    underwriters may change the public offering price and the other
    selling terms.
</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: 'Times New Roman', Times">Overallotment
    Option</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The selling unitholder has granted to the underwriters an
    option, exercisable for 30&#160;days from the date of this
    prospectus supplement, to purchase up to 1,125,000 additional
    common units at the public offering price less the underwriting
    discount. To the extent the option is exercised, each
    underwriter must purchase a number of additional common units
    approximately proportionate to that underwriter&#146;s initial
    purchase commitment.
</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: 'Times New Roman', Times"><FONT style="white-space: nowrap">Lock-Up</FONT>
    Agreements</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We, our general partner, certain officers and directors of our
    general partner and certain of their affiliates and Vulcan
    Energy Corporation, Vulcan Capital Private Equity I LLC and
    Vulcan Capital Private Equity&#160;II LLC have agreed that, for
    a period of 45&#160;days from the date of this prospectus
    supplement, we and they will not, without the prior written
    consent of Citigroup Global Markets Inc., offer, sell, contract
    to sell, pledge or otherwise dispose of any common units or any
    securities convertible into, or exercisable or exchangeable for
    or that represent the right to receive common units or any
    securities that are senior to or pari passu with common units,
    including, including, with respect to us and our controlled
    affiliates, the grant of any options or warrants to purchase
    common units. Certain Kayne Anderson entities, which
    collectively own approximately
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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">
    5.6&#160;million common units and which are affiliated with
    Robert V. Sinnott, a director of our general partner, are not
    subject to this agreement and may sell some or all of their
    common units during the
    <FONT style="white-space: nowrap">lock-up</FONT>
    period. With respect to us, our general partner, certain
    officers and directors of our general partner and certain of
    their affiliates, the agreement will not apply to grants under
    existing employee benefit plans (including long-term incentive
    plans adopted by our general partner, Plains AAP, L.P. or Plains
    All American GP LLC), to issuances of common units or any
    securities convertible or exchangeable into common units as
    payment of any part of the purchase price in connection with
    acquisitions by us and our affiliates or any third parties (with
    any transferees in such acquisitions agreeing to be bound by the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement for the remainder of its term), to certain sales of
    common units by the officers or directors of the company that
    controls our general partner to pay tax liabilities associated
    with the vesting of units, or to issuances or deliveries of
    common units in connection with the conversion, vesting or
    exercise of securities (including long-term incentive plan
    awards, options and warrants) currently outstanding. With
    respect to Vulcan Energy Corporation, Vulcan Capital Private
    Equity I LLC and Vulcan Capital Private Equity&#160;II LLC, the
    agreement will not apply to distributions to stockholders or
    members of such entities, bona fide gifts or dispositions to any
    trust, family limited partnership or family limited liability
    company for the direct or indirect benefit of such entities
    <FONT style="white-space: nowrap">and/or</FONT> the
    immediate family of affiliates of such entities (in each such
    case, any transferees will agree to be bound by the
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreement for the remainder of its term) or to the expected sale
    to Mr.&#160;Raymond and the other stockholder of the selling
    unitholder. Citigroup Global Markets Inc., in its sole
    discretion, may release any of the common units 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    In addition, Vulcan Energy Corporation, Vulcan Capital Private
    Equity I LLC and Vulcan Capital Private Equity&#160;II LLC have
    entered into
    <FONT style="white-space: nowrap">lock-up</FONT>
    agreements with us, with restrictions similar to those set forth
    above, for terms of two years with respect to the units owned by
    Vulcan Energy Corporation and one year with respect to the units
    owned by Vulcan Capital Private Equity I LLC and Vulcan Capital
    Private Equity&#160;II LLC. We may waive these restrictions at
    any time or from time to time in our discretion.
</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: 'Times New Roman', Times">Listing</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: 4%; 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;PAA.&#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: 'Times New Roman', Times">Commissions
    and Expenses</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The following table shows the underwriting discounts and
    commissions that the selling unitholder is to 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="73%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=02 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=02 type=body -->
    <TD width="5%" align="left">&nbsp;</TD>	<!-- colindex=02 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=03 type=gutter -->
    <TD width="5%" align="right">&nbsp;</TD>	<!-- colindex=03 type=lead -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=03 type=body -->
    <TD width="5%" 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="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>No Exercise</B>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="3" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Full Exercise</B>
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<!-- TableOutputBody -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Per Common Unit
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    $
</TD>
<TD nowrap align="right" valign="bottom">
    1.80
</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">
    1.80
</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">
    13,500,000
</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">
    15,525,000
</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: 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: 'Times New Roman', Times">Price
    Stabilizations, Short Positions and Penalty Bids</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: 4%; 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 common units to be purchased by the underwriters
    in the offering, which creates a syndicate short position.
    &#147;Covered&#148; short sales are sales of common units made
    in an amount up to the number of common units represented by the
    underwriters&#146; overallotment option. In determining the
    source of common units to close out the covered syndicate short
    position, the underwriters will consider, among other things,
    the price of common units available for purchase in the open
    market as compared to the price at which they may purchase 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 overallotment option. The
    underwriters may also make &#147;naked&#148; short sales of
    common units in excess of the overallotment 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 common units in the open market after pricing that
</DIV>
<!-- XBRL Paragraph Pagebreak -->
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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">
    could adversely affect investors who purchase in the offering.
    Stabilizing transactions consist of bids for or purchases of
    common 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: 4%; 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 the representatives repurchase common
    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: 4%; 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: 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: 'Times New Roman', Times">Partnership
    Expenses</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We estimate that our total expenses of this offering payable by
    us (which exclude underwriting discounts and commissions) will
    be approximately $230,000.
</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: 'Times New Roman', Times">Conflicts
    of Interest</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Certain of the underwriters and their affiliates have performed
    investment and commercial banking and advisory services for us
    and our affiliates and for the selling unitholder and its
    affiliates from time to time for which they have received
    customary fees and expenses. The underwriters and their
    affiliates may, from time to time, engage in transactions with
    and perform services for us, the selling unitholder or our and
    the selling unitholders&#146; respective affiliates in the
    ordinary course of their business. In particular, affiliates of
    certain of the underwriters are lenders under our credit
    facilities.
</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: 'Times New Roman', Times">Electronic
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This prospectus supplement and the accompanying prospectus in
    electronic format may be made available on the websites
    maintained by one or more of the underwriters. The underwriters
    may agree to allocate a number of common units for sale to their
    online brokerage account holders. The common units will be
    allocated 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 common 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Other than this prospectus supplement and the accompanying
    prospectus in electronic format, information contained in any
    website maintained by an underwriter is not part of this
    prospectus supplement or the accompanying prospectus or
    registration statement of which the accompanying prospectus
    forms a part, has not been endorsed by us and should not be
    relied on by investors in deciding whether to purchase common
    units. The underwriters are not responsible for information
    contained in websites that they do not maintain.
</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: 'Times New Roman', Times">Indemnification</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We, together with our subsidiary operating partnerships and
    their general partner, our general partner and the entities that
    control our general partner and the selling unitholder, have
    agreed to indemnify the underwriters against certain
    liabilities, including liabilities under the Securities Act of
    1933, as amended, or to contribute to payments the underwriters
    may be required to make because of any of those liabilities.
</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: 'Times New Roman', Times">FINRA
    Conduct Rule</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Because the Financial Industry Regulatory Authority views our
    common units as interests in a direct participation program,
    this offering is being made in compliance with Rule&#160;2310 of
    the FINRA Rules. Investor suitability with respect to the common
    units will be judged similarly to the suitability with respect
    to other securities that are listed for trading on a national
    securities exchange.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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: 'Times New Roman', Times">Notice to
    Investors</FONT></B>
</DIV>

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

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    to Prospective Investors in the EEA</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 (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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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>&nbsp;</TD>
    <TD>    &#149;&#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;&#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>    &#149;&#160;
</TD>
    <TD align="left">
    in any other circumstances falling 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: 4%; 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
    <FONT style="white-space: nowrap">2003/71/EC</FONT>
    (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 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: 4%; 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: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    to Prospective Investors in the United Kingdom</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 (FSMA) that is not a
    &#147;recognized collective investment scheme&#148; for the
    purposes of FSMA (CIS) 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: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (1)&#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 CIS Promotion
    Order) or (b)&#160;high net worth companies and other persons
    falling within 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: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (2)&#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 Financial
    Promotion Order) or (b)&#160;Article 49(2)(a) to (d)&#160;of the
    Financial Promotion Order;&#160;and
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    (3)&#160;in both cases (1)&#160;and (2)&#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;).
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    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: 4%; 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: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    to Prospective Investors in Switzerland</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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. 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 (CISA). 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>

<DIV style="margin-top: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    to Prospective Investors in Germany</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    This document has not been prepared in accordance with the
    requirements for a securities or sales prospectus under the
    German Securities Prospectus Act
    (<I>Wertpapierprospektgesetz</I>), the German Sales Prospectus
    Act (<I>Verkaufsprospektgesetz</I>), or the German Investment
    Act (<I>Investmentgesetz</I>). Neither the German Federal
    Financial Services Supervisory Authority (<I>Bundesanstalt
    f&#252;r Finanzdienstleistungsaufsicht&#160;&#151; </I>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 document and any other document relating
    to the 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 our 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 document 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The offering 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: 9pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 2%; margin-right: 0%; font-size: 10pt; font-family: Arial, Helvetica; color: #000000; background: transparent">

    <B><I><FONT style="font-family: 'Times New Roman', Times">Notice
    to Prospective Investors in the Netherlands</FONT></I></B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 (<I>gekwalificeerde beleggers</I>) within the meaning
    of Article&#160;1:1 of the Dutch Financial Supervision Act
    (<I>Wet op het financieel toezicht</I>).
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<A name='H84049129'>
<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">LEGAL
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Vinson&#160;&#038; Elkins L.L.P. will issue opinions about the
    validity of the common units offered hereby and various other
    legal matters in connection with the offering on our behalf.
    Baker Botts L.L.P., the underwriters&#146; counsel, will issue
    opinions about various legal matters in connection with the
    offering on behalf of the underwriters. Skadden, Arps, Slate,
    Meagher, &#038; Flom LLP, the selling unitholder&#146;s counsel,
    will also issue opinions about various legal matters in
    connection with this offering on behalf of the selling
    unitholder.
</DIV>

<A name='H84049130'>
<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">EXPERTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    The financial statements of Plains All American Pipeline, L.P.
    and management&#146;s assessment of the effectiveness of
    internal control over financial reporting (which is included in
    Management&#146;s Report on Internal Control over Financial
    Reporting) incorporated in this prospectus supplement by
    reference to the Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2010, have been
    incorporated in reliance on the report of PricewaterhouseCoopers
    LLP, an independent registered public accounting firm, given on
    the authority of said firm as experts in auditing and accounting.
</DIV>

<A name='H84049131'>
<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">WHERE YOU
    CAN FIND MORE INFORMATION</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    We are &#147;incorporating by reference&#148; into this
    prospectus supplement information we file with the Securities
    and Exchange Commission, or SEC. This procedure means that we
    can disclose important information to you by referring you to
    documents filed with the SEC. The information we incorporate by
    reference is part of this prospectus supplement and later
    information that we file with the SEC will automatically update
    and supersede this information. We incorporate by reference the
    documents listed below and any future filings we make with the
    SEC under Sections&#160;13(a), 13(c), 14 or 15(d) of the
    Exchange Act (excluding any information furnished and not filed
    pursuant to any Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K)</FONT>
    until the offering and sale of the common units contemplated by
    this prospectus supplement are complete:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended March&#160;31, 2011;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    Quarterly Report on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarter ended June&#160;30, 2011;
</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>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on January&#160;7, 2011 (documentation
    related to
    <FONT style="white-space: nowrap">364-day</FONT>
    credit facility);
</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>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on January&#160;11, 2011 (documentation
    related to debt 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>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on March&#160;10, 2011 (documentation related
    to equity 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    You may request a copy of these filings (other than any exhibits
    unless specifically incorporated by reference into this
    prospectus supplement and the accompanying prospectus) at no
    cost by making written or telephone requests for copies to:
</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">
    Plains All American Pipeline, L.P.<BR>
    333 Clay Street, Suite&#160;1600<BR>
    Houston, Texas 77002<BR>
    Attention: Tim Moore<BR>
    Telephone:
    <FONT style="white-space: nowrap">(713)&#160;646-4100</FONT>
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Additionally, you may read and copy any materials that we have
    filed with the SEC at the SEC&#146;s Public Reference Room at
    100&#160;F&#160;Street, N.E., Room&#160;1580,
    Washington,&#160;D.C. 20549. You may obtain information on the
    operation of the Public Reference Room by calling the SEC at
    <FONT style="white-space: nowrap">1-800-SEC-0330.</FONT>
    The SEC maintains an internet site that contains reports, proxy
    and information statements, and other information regarding us.
    The SEC&#146;s website address is www.sec.gov.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 supplement. We have
    not, and the underwriters 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 supplement or the accompanying prospectus is accurate
    as of any date other than its date.
</DIV>
<!-- XBRL Pagebreak Begin -->

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <BR>
    S-15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></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">
    <B>PROSPECTUS</B>
</DIV>

<DIV style="margin-top: 18pt; 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: 14pt">17,646,478 Common
    Units</FONT></B>
</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">
    <B><FONT style="font-size: 14pt">Representing Limited Partner
    Interests</FONT></B>
</DIV>

<DIV style="margin-top: 18pt; 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: 24pt">Plains All American Pipeline,
    L.P.</FONT></B>
</DIV>

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

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

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    Up to 17,646,478 of our common units may be offered from time to
    time by the selling unitholders named in this prospectus. The
    selling unitholders may sell the common units at various times
    and in various types of transactions, including sales in the
    open market, sales in negotiated transactions and sales by a
    combination of methods. We will not receive any proceeds from
    the sale of common units by the selling unitholders.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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;PAA.&#148;
</DIV>

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

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

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 5%; font-size: 12pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">
    <B>Investing in our common units involves risks. Limited
    partnerships are inherently different from corporations. You
    should carefully consider the factors described under &#147;Risk
    Factors&#148; beginning on page&#160;5 of this prospectus before
    you make an investment in our securities.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; 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 these
    securities or determined if this prospectus is truthful or
    complete. Any representation to the contrary is a criminal
    offense.
</DIV>

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

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

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

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

<DIV style="margin-top: 3pt; font-size: 1pt">&nbsp;</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">
    The date of this prospectus is December&#160;11, 2008.
</DIV>

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

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

<CENTER><DIV style="font-size: 1pt; width: 18%; border-bottom: 1pt solid #000000"></DIV></CENTER>

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

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

<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 -->

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

    <B><FONT style="font-family: 'Times New Roman', Times">Table of
    Contents</FONT></B>
</DIV>

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

<DIV align="left">
<A name="X84049tocpage"></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: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="97%">&nbsp;</TD>	<!-- colindex=01 type=maindata -->
    <TD width="2%">&nbsp;</TD>	<!-- colindex=02 type=gutter -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadleft -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=maindata -->
    <TD width="1%">&nbsp;</TD>	<!-- colindex=02 type=quadright -->
</TR>
<!-- Table Width Row END -->
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049101'>ABOUT THIS PROSPECTUS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    i
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049102'>WHERE YOU CAN FIND MORE INFORMATION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049103'>FORWARD-LOOKING STATEMENTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    3
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049104'>WHO WE ARE</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    4
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049105'>RISK FACTORS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    5
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049106'>USE OF PROCEEDS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    6
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049107'>DESCRIPTION OF OUR COMMON UNITS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    7
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049108'>CASH DISTRIBUTION POLICY</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    9
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049109'>DESCRIPTION OF OUR PARTNERSHIP AGREEMENT</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    13
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049110'>MATERIAL INCOME TAX CONSIDERATIONS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    16
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049111'>SELLING UNITHOLDERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    30
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049112'>PLAN OF DISTRIBUTION</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    32
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049113'>LEGAL MATTERS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</TD>
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom">
<TD nowrap align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    <A HREF='#X84049114'>EXPERTS</A>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD>&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    34
</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: #FFFFFF">

</DIV>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>In making your investment decision, you should rely only on
    the information contained or incorporated by reference in this
    prospectus. We have not authorized anyone to provide you with
    any other information. If anyone provides you with different or
    inconsistent information, you should not rely on it.</B>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>You should not assume that the information contained in this
    prospectus is accurate as of any date other than the date on the
    front cover of this prospectus. You should not assume that the
    information contained in the documents incorporated by reference
    in this prospectus is accurate as of any date other than the
    respective dates of those documents. Our business, financial
    condition, results of operations and prospects may have changed
    since those dates.</B>
</DIV>
<A name='X84049101'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">ABOUT
    THIS PROSPECTUS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus is part of a registration statement that we have
    filed with the Securities and Exchange Commission using a
    &#147;shelf&#148; registration process. Under this shelf
    registration process, the selling unitholders may, over time,
    offer and sell up to 17,646,478 of our common units. In
    connection with certain sales of securities hereunder, a
    prospectus supplement may accompany this prospectus. The
    prospectus supplement may also add to, update or change
    information contained in this prospectus. Before you invest in
    our securities, you should carefully read this prospectus and
    any prospectus supplement and the additional information
    described under the heading &#147;Where You Can Find More
    Information.&#148; To the extent information in this prospectus
    is inconsistent with information contained in a prospectus
    supplement, you should rely on the information in the prospectus
    supplement. You should read both this prospectus and any
    prospectus supplement, together with additional information
    described under the heading &#147;Where You Can Find More
    Information,&#148; and any additional information you may need
    to make your investment decision.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    i
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049102'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHERE YOU
    CAN FIND MORE INFORMATION</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We have filed a registration statement with the SEC under the
    Securities Act of 1933 that registers the securities offered by
    this prospectus. The registration statement, including the
    attached exhibits, contains additional relevant information
    about us. The rules and regulations of the SEC allow us to omit
    some information included in the registration statement from
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, we file annual, quarterly and other reports and
    other information with the SEC. You may read and copy any
    document we file at the SEC&#146;s public reference room at
    100&#160;F&#160;Street, N.E., Washington,&#160;D.C. 20549.
    Please call the SEC at
    <FONT style="white-space: nowrap">1-800-732-0330</FONT>
    for further information on the operation of the SEC&#146;s
    public reference room. Our SEC filings are available on the
    SEC&#146;s web site at
    <FONT style="white-space: nowrap">http://www.sec.gov.</FONT>
    We also make available free of charge on our website, at
    <FONT style="white-space: nowrap">http://www.paalp.com,</FONT>
    all materials that we file electronically with the SEC,
    including our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K,</FONT>
    quarterly reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q,</FONT>
    current reports on
    <FONT style="white-space: nowrap">Form&#160;8-K,</FONT>
    Section&#160;16 reports and amendments to these reports as soon
    as reasonably practicable after such materials are
    electronically filed with, or furnished to, the SEC.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The SEC allows us to &#147;incorporate by reference&#148; the
    information we have filed 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. These other
    documents contain important information about us, our financial
    condition and results of operations. The information
    incorporated by reference is an important part of this
    prospectus. Information that we file later with the SEC will
    automatically update and may replace information in this
    prospectus and information previously filed with the SEC. We
    incorporate by reference the documents listed below and any
    future filings made by Plains All American Pipeline, L.P. with
    the SEC under Sections&#160;13(a), 13(c), 14 or 15(d) of the
    Securities Exchange Act of 1934 (excluding any information
    furnished and not filed with the SEC) until all offerings under
    this shelf registration statement are completed or after the
    date on which the registration statement that includes this
    prospectus was initially filed with the SEC and before the
    effectiveness of such registration statement:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Quarterly Reports on
    <FONT style="white-space: nowrap">Form&#160;10-Q</FONT>
    for the quarters ended March&#160;31, 2008, June&#160;30, 2008
    and September&#160;30, 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on January&#160;4, 2008 (amendment of the
    Limited Partnership Agreement of Plains AAP, L.P. and the
    Limited Liability Company Agreement of Plains All American
    GP&#160;LLC, modifications to the Class&#160;B Restricted Units
    Agreements and assignment of general partnership interest of the
    general partnership interest in Plains AAP, L.P.);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on March&#160;10, 2008 (audited balance sheet
    of PAA GP LLC as of December&#160;31, 2007);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Items&#160;7.01 and 9.01, which were
    furnished) with the SEC on April&#160;7, 2008 (execution of
    Rainbow Pipe Line Company Ltd. acquisition 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on April&#160;15, 2008 (amendment of the
    Limited Partnership Agreement of Plains All American Pipeline,
    L.P.);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Item&#160;7.01, which was furnished) with the
    SEC on April&#160;18, 2008 (announcement of debt 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Items&#160;7.01 and 9.01, which were
    furnished) with the SEC on April&#160;18, 2008 (announcement of
    Rainbow IDR reduction);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Item&#160;7.01, which was furnished) with the
    SEC on April&#160;23, 2008 (documentation related to debt
    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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Item&#160;7.01, which was furnished) with the
    SEC on May&#160;12, 2008 (execution of underwriting agreement
    related to equity offering);
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    1
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;20, 2008 (unaudited consolidated
    balance sheet of PAA GP LLC as of March&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on May&#160;30, 2008 (amendment of the
    Limited Partnership Agreement of Plains All American Pipeline,
    L.P.);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on July&#160;28, 2008 (officer title changes);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Item&#160;7.01, which was furnished) with the
    SEC on August&#160;7, 2008 (amendment of the Limited Partnership
    Agreement of Plains AAP, L.P. and the Limited Liability Company
    Agreement of Plains All American GP LLC);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on August&#160;19, 2008 (unaudited
    consolidated balance sheet of PAA GP LLC as of June&#160;30,
    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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on October&#160;31, 2008 (extension of
    exchange offer of senior notes);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on November&#160;7, 2008 (second restated
    credit 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed with the SEC on November&#160;14, 2008 (unaudited
    consolidated balance sheet of PAA GP LLC as of
    September&#160;30, 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Current Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    filed (other than Item&#160;7.01, which was furnished) with the
    SEC on November&#160;14, 2008 (board of director
    changes);&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the description of our common units contained in our
    <FONT style="white-space: nowrap">Form&#160;8-A/A</FONT>
    dated November&#160;3, 1998 and any subsequent amendment thereto
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    You may obtain any of the documents incorporated by reference in
    this prospectus from the SEC through the SEC&#146;s website at
    the address provided above. You also may request a copy of any
    document incorporated by reference in this prospectus (including
    exhibits to those documents specifically incorporated by
    reference in this document), at no cost, by visiting our
    internet website at www.paalp.com, or by writing or calling us
    at the following address:
</DIV>

<DIV style="margin-top: 12pt; 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: #FFFFFF">
    Plains All American Pipeline, 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: #FFFFFF">
    333 Clay Street, Suite&#160;1600
</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: #FFFFFF">
    Houston, Texas 77002
</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: #FFFFFF">
    Attention: Tim Moore
</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: #FFFFFF">
    Telephone:
    <FONT style="white-space: nowrap">(713)&#160;646-4100</FONT>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    2
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049103'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">FORWARD-LOOKING
    STATEMENTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All statements included or incorporated by reference in this
    prospectus or the accompanying prospectus supplement, other than
    statements of historical fact, are forward-looking statements,
    including but not limited to statements identified by the words
    &#147;anticipate,&#148; &#147;believe,&#148;
    &#147;estimate,&#148; &#147;expect,&#148; &#147;plan,&#148;
    &#147;intend&#148; and &#147;forecast,&#148; as well as similar
    expressions and statements regarding our business strategy,
    plans and objectives of our management for future operations.
    The absence of these words, however, does not mean that the
    statements are not forward-looking. These statements reflect our
    current views with respect to future events, based on what we
    believe are reasonable assumptions. Certain factors could cause
    actual results to differ materially from results anticipated in
    the forward-looking statements. These factors include, but are
    not limited&#160;to:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    failure to implement or capitalize on planned internal growth
    projects;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    maintenance of our credit rating and ability to receive open
    credit from our suppliers and trade counterparties;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    continued creditworthiness of, and performance by, our
    counterparties, including financial institutions and trading
    companies with which we do business;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the success of our risk management activities;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    environmental liabilities or events that are not covered by an
    indemnity, insurance or existing reserves;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    abrupt or severe declines or interruptions in outer continental
    shelf production located offshore California and transported on
    our pipeline systems;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    shortages or cost increases of power supplies, materials or
    labor;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the availability of adequate third-party production volumes for
    transportation and marketing in the areas in which we operate,
    and other factors that could cause declines in volumes shipped
    on our pipelines by us and third-party shippers, such as
    declines in production from existing oil and gas reserves or
    failure to develop additional oil and gas reserves;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in refinery capacity in areas supplied by our
    mainlines, and other factors affecting demand for various grades
    of crude oil, refined products and natural gas and resulting
    changes in pricing conditions or transportation throughput
    requirements;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the availability of, and our ability to consummate, acquisition
    or combination opportunities;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our ability to obtain debt or equity financing on satisfactory
    terms to fund additional acquisitions, expansion projects,
    working capital requirements and the repayment or refinancing of
    indebtedness;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the successful integration and future performance of acquired
    assets or businesses and the risks associated with operating in
    lines of business that are distinct and separate from our
    historical operations;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    unanticipated changes in crude oil market structure and
    volatility (or lack thereof);
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the impact of current and future laws, rulings, governmental
    regulations and interpretations;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the effects of competition;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    interruptions in service and fluctuations in tariffs or volumes
    on third-party pipelines;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    increased costs or lack of availability of insurance;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    fluctuations in the debt and equity markets, including the price
    of our units at the time of vesting under our long-term
    incentive plans;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the currency exchange rate of the Canadian dollar;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    weather interference with business operations or project
    construction;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    3
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    risks related to the development and operation of natural gas
    storage facilities;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    future developments and circumstances at the time distributions
    are declared;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    general economic, market or business conditions;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other factors and uncertainties inherent in the transportation,
    storage, terminalling and marketing of crude oil, refined
    products and liquefied petroleum gas and other natural gas
    related petroleum products.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Other factors described herein or incorporated by reference, or
    factors that are unknown or unpredictable, could also have a
    material adverse effect on future results. Please read
    &#147;Risk Factors&#148; beginning on page&#160;5 of this
    prospectus and in Item&#160;1A. &#147;Risk Factors&#148; in our
    annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007. Except as required by
    securities laws applicable to the documents incorporated by
    reference, we do not intend to update these forward-looking
    statements and information.
</DIV>
<A name='X84049104'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">WHO WE
    ARE</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are a Delaware limited partnership formed in September 1998.
    Our operations are conducted directly and indirectly through our
    operating subsidiaries. We are engaged in the transportation,
    storage, terminalling and marketing of crude oil, refined
    products and liquefied petroleum gas and other natural gas
    related petroleum products. We own an extensive network of
    pipeline transportation, terminalling, storage and gathering
    assets in key oil producing basins, transportation corridors and
    at major market hubs in the United&#160;States and Canada. In
    addition, through our 50% equity ownership in PAA/Vulcan Gas
    Storage, LLC, we are also engaged in the development and
    operation of natural gas storage facilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For purposes of this prospectus, unless the context clearly
    indicates otherwise, &#147;we,&#148; &#147;us,&#148;
    &#147;our,&#148; &#147;Plains All American Pipeline&#148; and
    similar terms refer to Plains All American Pipeline, L.P. and
    its subsidiaries. References to our &#147;general partner,&#148;
    as the context requires, includes any or all of PAA GP LLC,
    Plains AAP, L.P. and Plains All American GP LLC.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our executive offices are located at 333 Clay Street,
    Suite&#160;1600, Houston, Texas 77002 and our telephone number
    is
    <FONT style="white-space: nowrap">(713)&#160;646-4100.</FONT>
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For additional information as to our business, properties and
    financial condition, please refer to the documents cited in
    &#147;Where You Can Find More Information.&#148;
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    4
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049105'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">RISK
    FACTORS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An investment in our securities involves a high degree of risk.
    You should carefully consider the risk factors and all of the
    other information included in, or incorporated by reference
    into, this prospectus, including those in Item&#160;1A.
    &#147;Risk Factors&#148; in our annual report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    for the year ended December&#160;31, 2007, in evaluating an
    investment in our securities. If any of these risks were to
    occur, our business, financial condition or results of
    operations could be adversely affected. In that case, the
    trading price of our common units could decline and you could
    lose all or part of your investment. When we offer and sell any
    securities pursuant to a prospectus supplement, we may include
    additional risk factors relevant to such securities in the
    prospectus supplement.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    5
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049106'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">USE OF
    PROCEEDS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will not receive any proceeds from the sale of common units
    by the selling unitholders.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    6
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049107'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    OF OUR 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Generally, our common units represent limited partner interests
    that entitle the holders to participate in our cash
    distributions and to exercise the rights and privileges
    available to limited partners under our partnership agreement.
    For a description of the relative rights and preferences of
    holders of common units and our general partner in and to cash
    distributions. See &#147;Cash Distribution Policy.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our outstanding common units are listed on the NYSE under the
    symbol &#147;PAA.&#148; Any additional common units we issue
    will also be listed on the NYSE.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The transfer agent and registrar for our common units is
    American Stock Transfer&#160;&#038; Trust&#160;Company.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Meetings/Voting</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each holder of common units is entitled to one vote for each
    common unit on all matters submitted to a vote of the
    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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Status as
    Limited Partner or Assignee</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as described below under &#147;&#151;&#160;Limited
    Liability,&#148; the common units will be fully paid, and
    unitholders will not be required to make additional capital
    contributions to us.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each purchaser of common units offered by this prospectus must
    execute a transfer application whereby the purchaser requests
    admission as a substituted limited partner and makes
    representations and agrees to provisions stated in the transfer
    application. If this action is not taken, a purchaser will not
    be registered as a record holder of common units on the books of
    our transfer agent or issued a common unit certificate.
    Purchasers may hold common units in nominee accounts.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An assignee, pending its admission as a substituted limited
    partner, is entitled to an interest in us equivalent to that of
    a limited partner with respect to the right to share in
    allocations and distributions, including liquidating
    distributions. Our general partner will vote and exercise other
    powers attributable to common units owned by an assignee who has
    not become a substituted limited partner at the written
    direction of the assignee. A nominee or broker who has executed
    a transfer application with respect to common units held in
    street name or nominee accounts will receive distributions and
    reports pertaining to its 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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Liability</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Assuming that a limited partner does not participate in the
    control of our business within the meaning of the Delaware
    Revised Uniform Limited Partnership Act (the &#147;Delaware
    Act&#148;) and that he otherwise acts in conformity with the
    provisions of our partnership agreement, his liability under the
    Delaware Act will be limited, subject to some possible
    exceptions, generally to the amount of capital he is obligated
    to contribute to us in respect of his units plus his share of
    any undistributed profits and assets.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under the Delaware Act, a limited partnership may not make a
    distribution to a partner to the extent that at the time of the
    distribution, after giving effect to the distribution, all
    liabilities of the partnership, other than liabilities to
    partners on account of their partnership interests and
    liabilities for which the recourse of creditors is limited to
    specific property of the partnership, exceed the fair value of
    the assets of the limited partnership. For the purposes of
    determining the fair value of the assets of a limited
    partnership, the Delaware Act provides that the fair value of
    the property subject to liability of which recourse of creditors
    is limited shall be included in the assets of the limited
    partnership only to the extent that the fair value of that
    property exceeds the nonrecourse liability. The Delaware Act
    provides that a limited partner who receives a distribution and
    knew at the time of the distribution that the distribution was
    in violation of the Delaware Act is liable to the limited
    partnership for the amount of the distribution for three years
    from the date of the distribution.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reports
    and Records</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    As soon as practicable, but in no event later than 120&#160;days
    after the close of each fiscal year, our general partner will
    furnish or make available to each unitholder of record (as of a
    record date selected by our general
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    7
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    partner) an annual report containing our audited financial
    statements for the past fiscal year. These financial statements
    will be prepared in accordance with generally accepted
    accounting principles. In addition, no later than 45&#160;days
    after the close of each quarter (except the fourth quarter), our
    general partner will furnish or make available to each
    unitholder of record (as of a record date selected by our
    general partner) a report containing our unaudited financial
    statements and any other information required by law.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner will use all reasonable efforts to furnish
    each unitholder of record information reasonably required for
    tax reporting purposes within 90&#160;days after the close of
    each fiscal year. Our general partner&#146;s ability to furnish
    this summary tax information will depend on the cooperation of
    unitholders in supplying information to our general partner.
    Each unitholder will receive information to assist him in
    determining his U.S.&#160;federal and state and Canadian federal
    and provincial tax liability and filing his U.S.&#160;federal
    and state and Canadian federal and provincial income tax returns.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A limited partner can, for a purpose reasonably related to the
    limited partner&#146;s interest as a limited partner, upon
    reasonable demand and at his own expense, have furnished to him:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a current list of the name and last known address of each
    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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a copy of our tax returns;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    information as to the amount of cash and a description and
    statement of the agreed value of any other property or services,
    contributed or to be contributed by each partner and the date on
    which each became a 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    copies of our partnership agreement, our certificate of limited
    partnership, amendments to either of them and powers of attorney
    which have been executed under 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    information regarding the status of our business and financial
    condition;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any other information regarding our affairs as is just and
    reasonable.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may, and intends to, keep confidential from
    the limited partners trade secrets and other information the
    disclosure of which our general partner believes in good faith
    is not in our best interest or which we are required by law or
    by agreements with third parties to keep confidential.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    8
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049108'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">CASH
    DISTRIBUTION POLICY</FONT></B>
</DIV>
</A>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;We will distribute to our
    unitholders, on a quarterly basis, all of our available cash in
    the manner described below.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Definition of Available Cash.</I>&#160;&#160;Available cash
    generally means, for any quarter ending prior to liquidation,
    all cash on hand at the end of that quarter less the amount of
    cash reserves that are necessary or appropriate in the
    reasonable discretion of the general partner to:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide for the proper conduct of our business;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    comply with applicable law or any partnership debt instrument or
    other agreement;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    provide funds for distributions to unitholders and the general
    partner in respect of any one or more of the next four quarters.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Operating
    Surplus and 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;Cash distributions to our unitholders
    will be characterized as either operating surplus or capital
    surplus. We distribute available cash from operating surplus
    differently than available cash from capital surplus. See
    &#147;&#151;&#160;Quarterly Distributions of Available
    Cash.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Definition of Operating Surplus.</I>&#160;&#160;Operating
    surplus refers generally to:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    our cash balances on the closing date of our initial public
    offering; 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    $25&#160;million; 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all of our cash receipts from operations, excluding cash that is
    capital surplus; 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all of our operating expenses, debt service payments, (but not
    including payments required with the sale of assets or any
    refinancing with the proceeds of new indebtedness or an equity
    offering,) maintenance capital expenditures and reserves
    established for future operations.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Definition of Capital Surplus.</I>&#160;&#160;Capital surplus
    will generally be 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sales of debt and equity securities;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    sales or other dispositions of assets for cash, other than
    inventory, accounts receivable and other assets in the ordinary
    course of business.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will treat all available cash distributed as coming from
    operating surplus until the sum of all available cash
    distributed since we began equals the operating surplus as of
    the end of the quarter prior to the distribution. Any available
    cash in excess of operating surplus, regardless of its source,
    will be treated as capital surplus.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we distribute available cash from capital surplus for each
    common unit in an aggregate amount per common unit equal to the
    initial public offering price of the common units, there will
    not be a distinction between operating surplus and capital
    surplus, and all distributions of available cash will be treated
    as operating surplus. We do not anticipate that we will make
    distributions from capital surplus.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Incentive
    Distribution Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The 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. The target distribution levels are based on the
    amounts of available cash from operating surplus distributed
    above the payments made under the minimum quarterly
    distribution, if any, and the related 2% distribution to the
    general partner.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    9
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Effect of
    Issuance of Additional 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We can issue additional common units or other equity securities
    for consideration and under terms and conditions approved by our
    general partner in its sole discretion and without the approval
    of our unitholders. We may fund acquisitions through the
    issuance of additional common units or other equity securities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Holders of any additional common units that we issue will be
    entitled to share equally with our then-existing unitholders in
    distributions of available cash. In addition, the issuance of
    additional interests may dilute the value of the interests of
    the then-existing unitholders. If we issue additional
    partnership interests, our general partner will be required to
    make an additional capital contribution to us.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Quarterly
    Distributions 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make quarterly distributions to our partners prior to
    our liquidation in an amount equal to 100% of our available cash
    for that quarter. We expect to make distributions of all
    available cash within approximately 45&#160;days after the end
    of each quarter to holders of record on the applicable record
    date. The minimum quarterly distribution and the target
    distribution levels are also subject to certain other
    adjustments as described below under
    &#147;&#151;&#160;Distributions from Capital Surplus&#148; and
    &#147;&#151;&#160;Adjustment to the Minimum Quarterly
    Distribution and Target Distribution Levels.&#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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    From 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will make distributions of available cash from operating
    surplus 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First, 98% to all unitholders, pro rata, and 2% to the general
    partner, until we distribute for each 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thereafter, in the manner described in
    &#147;&#151;&#160;Incentive Distribution Rights&#148; below.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Incentive
    Distribution Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For any quarter that we distribute available cash from operating
    surplus to the common unitholders in an amount equal to the
    minimum quarterly distribution on all units, then we will
    distribute any additional available cash from operating surplus
    in that quarter among the unitholders and the 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First, 85% to all unitholders, pro rata, and 15% to the general
    partner, until each unitholder receives a total of $0.495 for
    that quarter for each outstanding unit (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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Second, 75% to all unitholders, pro rata, and 25% to the general
    partner, until each unitholder receives a total of $0.675 for
    that quarter for each outstanding unit (the &#147;second 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thereafter, 50% to all unitholders, pro rata, and 50% to the
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our distributions to the general partner above, other than in
    its capacity as holders of units, that are in excess of its
    aggregate 2% general partner interest represent the incentive
    distribution rights. The right to receive incentive distribution
    rights is not part of its general partner interest and may be
    transferred separately from that interest, subject to certain
    restrictions.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Adjustments
    to Incentive Distribution Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with acquisitions or similar transactions, we have
    and may in the future modify the incentive distribution rights
    to, among other reasons, accelerate the accretion or other
    benefits of the transaction to limited partners.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon closing of the Pacific and Rainbow acquisitions, our
    general partner agreed to reduce the amounts due it as incentive
    distributions. The total reduction in incentive distributions
    related to these acquisitions will be $75&#160;million.
    Following our distribution in November 2008, the remaining
    incentive distribution reductions related to Pacific and Rainbow
    totaled approximately $38&#160;million.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    10
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Distributions
    from 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>How Distributions from Capital Surplus Will Be
    Made.</I>&#160;&#160;We will make distributions of available
    cash from capital surplus 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First, 98% to all unitholders, pro rata, and 2% to the general
    partner, until we distribute, for each common unit issued in
    this offering, available cash from capital surplus in an
    aggregate amount per common unit equal to the initial public
    offering price;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: 6pt; font-size: 1pt">&nbsp;</DIV>

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Effect of a Distribution from Capital
    Surplus.</I>&#160;&#160;Our partnership agreement treats a
    distribution of available cash from capital surplus as the
    repayment of the initial unit price. To show that repayment, the
    minimum quarterly distribution and the target distribution
    levels will be reduced by multiplying each amount by a fraction,
    the numerator of which is the unrecovered capital of the common
    units immediately after giving effect to that repayment and the
    denominator of which is the unrecovered capital of the common
    units immediately prior to that repayment.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>When Payback Occurs.</I>&#160;&#160;When &#147;payback&#148;
    of the reduced initial unit price has occurred, i.e., when the
    unrecovered capital of the common units is zero, then
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the minimum quarterly distribution and the target distribution
    levels will be reduced to zero for 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all distributions of available cash will be treated as operating
    surplus;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the general partner will be entitled to receive 50% of
    distributions of available cash in its capacities as general
    partner and as holder of the incentive distribution rights.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Distributions of available cash from capital surplus will not
    reduce the minimum quarterly distribution or target distribution
    levels for the quarter in which they are distributed.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Adjustment
    to the Minimum Quarterly Distribution and Target Distribution
    Levels</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>How We Adjust the Minimum Quarterly Distribution and Target
    Distribution Levels.</I>&#160;&#160;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 (but not if we issue additional common units for
    cash or property), we will proportionately adjust:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the minimum quarterly distribution;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the target distribution levels;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the unrecovered capital;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    other amounts calculated on a per unit basis.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For example, in the event of a
    <FONT style="white-space: nowrap">two-for-one</FONT>
    split of the common units (assuming no prior adjustments), the
    minimum quarterly distribution, each of the target distribution
    levels and the unrecovered capital of the common units would
    each be reduced to 50% of its initial level.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>If We Became Subject to Taxation.</I>&#160;&#160;If
    legislation is enacted or if existing law is modified or
    interpreted by the relevant governmental authority so that we
    become taxable as a corporation or otherwise subject to taxation
    as an entity for federal, state or local income tax purposes, we
    will adjust the minimum quarterly distribution and each of the
    target distribution levels, respectively, to equal the product
    obtained by multiplying the amount thereof by:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    one minus the sum of (x)&#160;the maximum effective federal
    income tax rate to which we as an entity were subject plus
    (y)&#160;any increase in state and local income taxes to which
    we are subject for the taxable
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    11
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>
</TD>
    <TD align="left">
    year of the event, after adjusting for any allowable deductions
    for federal income tax purposes for the payment of state and
    local income taxes.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For example, assuming we were not previously subject to state
    and local income tax, if we become taxable as an entity for
    federal income tax purposes and became subject to a maximum
    marginal federal, and effective state and local, income tax rate
    of 38%, then the minimum quarterly distribution and the target
    distribution levels would each be reduced to 62% of the amount
    immediately prior to that adjustment.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Distribution
    of Cash Upon Liquidation</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>General.</I>&#160;&#160;If we dissolve and liquidate, we will
    sell our assets or otherwise dispose of our assets and we will
    adjust the partners&#146; capital account balances to show any
    resulting gain or loss. We will first apply the proceeds of
    liquidation to the payment of our creditors in the order of
    priority provided in our partnership agreement and by law and,
    thereafter, distribute to the unitholders and the general
    partner in accordance with their adjusted capital account
    balances.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Manner of Adjustment.</I>&#160;&#160;If we liquidate, we
    would allocate any loss to the general partner and each
    unitholder as follows:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    First, 98% to the holders of common units who have positive
    balances in their capital accounts in proportion to those
    positive balances and 2% to the 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    Thereafter, 100% to the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Interim Adjustments to Capital Accounts.</I>&#160;&#160;If we
    issued additional security interests or made distributions of
    property, interim adjustments to capital accounts would also be
    made. These adjustments would be based on the fair market value
    of the interests or the property distributed and any gain or
    loss would be allocated to the unitholders and the general
    partner in the same way that a gain or loss is allocated upon
    liquidation. If positive interim adjustments are made to the
    capital accounts, any subsequent negative adjustments to the
    capital accounts resulting from our issuance of additional
    interests, distributions of property, or upon our liquidation,
    would be allocated in a way that, to the extent possible, in the
    capital account balances of the general partner equaling the
    amount which would have been the general partner&#146;s capital
    account balances if no prior positive adjustments to the capital
    accounts had been made.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    12
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049109'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">DESCRIPTION
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following is a summary of the material provisions of our
    partnership agreement. The following provisions of our
    partnership agreement are summarized elsewhere in this
    prospectus:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    distributions of our available cash are described under
    &#147;Cash Distribution Policy;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    allocations of taxable income and other tax matters are
    described under &#147;Material Income Tax
    Considerations;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    rights of holders of common units are described under
    &#147;Description of Our Common Units.&#148;
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Purpose</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our purpose under our partnership agreement is to serve as a
    partner of our operating partnerships and to engage in any
    business activities that may be engaged in by our operating
    partnerships or that are approved by our general partner. The
    partnership agreements of our operating partnerships provide
    that they may engage in any activity that was engaged in by our
    predecessors at the time of our initial public offering or
    reasonably related thereto and any other activity approved by
    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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Power of
    Attorney</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Each limited partner, and each person who acquires a unit from a
    unitholder and executes and delivers a transfer application,
    grants to our general partner and, if appointed, a liquidator, a
    power of attorney to, among other things, execute and file
    documents required for our qualification, continuance or
    dissolution. The power of attorney also grants the authority for
    the amendment of, and to make consents and waivers under, our
    partnership agreement.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Reimbursements
    of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner does not receive any compensation for its
    services as our general partner. It is, however, entitled to be
    reimbursed for all of its costs incurred in managing and
    operating our business. Our partnership agreement provides that
    our general partner will determine the expenses that are
    allocable to us in any reasonable manner determined by our
    general partner in its sole discretion.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Issuance
    of Additional Securities</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement authorizes us to issue an unlimited
    number of additional limited partner interests and other equity
    securities that are equal in rank with or junior to our common
    units on terms and conditions established by our general partner
    in its sole discretion without the approval of any limited
    partners.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    It is likely that we will 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 cash distributions. In addition, the issuance of additional
    partnership 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In accordance with Delaware law and the provisions of our
    partnership agreement, we may also issue additional partnership
    interests that, in the sole discretion of our general partner,
    may have special voting rights to which 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner has the right, which it may from time to
    time assign in whole or in part to any of its affiliates, to
    purchase common 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 their percentage interests in us that
    existed immediately prior to the issuance. The holders of common
    units will not have preemptive rights to acquire additional
    common units or other partnership interests in us.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    13
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Amendments
    to Our Partnership Agreement</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Amendments to our partnership agreement may be proposed only by
    our general partner. Any amendment that materially and adversely
    affects the rights or preferences of any type or class of
    limited partner interests in relation to other types or classes
    of limited partner interests or our general partner interest
    will require the approval of at least a majority of the type or
    class of limited partner interests or general partner interests
    so affected. However, in some circumstances, more particularly
    described in our partnership agreement, our general partner may
    make amendments to our partnership agreement without the
    approval of our limited partners or assignees.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Withdrawal
    or Removal of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner has agreed not to withdraw voluntarily as
    our general partner prior to December&#160;31, 2008 without
    obtaining the approval of the holders of a majority of our
    outstanding common units, excluding those held by our general
    partner and its affiliates, and furnishing an opinion of counsel
    regarding limited liability and tax matters. On or after
    December&#160;31, 2008, our general partner may withdraw as
    general partner without first obtaining approval of any
    unitholder by giving 90&#160;days&#146; written notice, and that
    withdrawal will not constitute a violation of our partnership
    agreement. In addition, our general partner may withdraw without
    unitholder approval upon 90&#160;days&#146; notice to our
    limited partners if at least 50% of our outstanding common units
    are held or controlled by one person and its affiliates other
    than our general partner and its affiliates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon the voluntary withdrawal of our general partner, the
    holders of a majority of our outstanding common units, excluding
    the common units held by the withdrawing general partner and its
    affiliates, may elect a successor to the withdrawing general
    partner. If a successor is not elected, or is elected but an
    opinion of counsel regarding limited liability and tax matters
    cannot be obtained, we will be dissolved, wound up and
    liquidated, unless within 90&#160;days after that withdrawal,
    the holders of a majority of our outstanding units, excluding
    the common units held by the withdrawing general partner and its
    affiliates, agree to continue our business and to appoint a
    successor 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our general partner may not be removed unless that removal is
    approved by the vote of the holders of not less than two-thirds
    of our outstanding units, including units held by our general
    partner and its affiliates, and we receive an opinion of counsel
    regarding limited liability and tax matters. Any removal of this
    kind is also subject to the approval of a successor general
    partner by the vote of the holders of a majority of our
    outstanding common units, including those held by our general
    partner and its affiliates.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    While our partnership agreement limits the ability of our
    general partner to withdraw, it allows the general partner
    interest and incentive distribution rights to be transferred to
    an affiliate or to a third party in conjunction with a merger or
    sale of all or substantially all of the assets of our 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, our partnership agreement expressly permits the
    sale, in whole or in part, of the ownership of our general
    partner. Our general partner may also transfer, in whole or in
    part, the common units it owns.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Liquidation
    and Distribution of Proceeds</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Upon our dissolution, unless we are reconstituted and continued
    as a new limited partnership, the person authorized to wind up
    our affairs (the liquidator) will, acting with all the powers of
    our general partner that the liquidator deems necessary or
    desirable in its good faith judgment, liquidate our assets. The
    proceeds of the liquidation will be applied as follows:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    first, towards the payment of all of our creditors and the
    creation of a reserve for contingent liabilities;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    then, to all partners in accordance with the positive balance in
    the respective capital accounts.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under some circumstances and subject to some limitations, the
    liquidator may defer liquidation or distribution of our assets
    for a reasonable period of time. If the liquidator determines
    that a sale would be impractical or would cause a loss to our
    partners, our general partner may distribute assets in kind to
    our partners.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    14
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Change of
    Management Provisions</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Our partnership agreement contains the following specific
    provisions that are intended to discourage a person or group
    from attempting to remove our general partner or otherwise
    change management:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    generally, if a person acquires 20% or more of any class of
    units then outstanding other than from our general partner or
    its affiliates, the units owned by such person cannot be voted
    on any matter;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    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.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Call Right</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If at any time our general partner and its affiliates own 80% or
    more of the issued and outstanding limited partner interests of
    any class, our general partner will have the right to purchase
    all, but not less than all, of the outstanding limited partner
    interests of that class that are held by non-affiliated persons.
    The record date for determining ownership of the limited partner
    interests would be selected by our general partner on at least
    10 but not more than 60&#160;days&#146; notice. The purchase
    price in the event of a purchase under these provisions would be
    the greater of (1)&#160;the current market price (as defined in
    our agreement) of the limited partner interests of the class as
    of the date three days prior to the date that notice is mailed
    to the limited partners as provided in our partnership agreement
    and (2)&#160;the highest cash price paid by our general partner
    or any of its affiliates for any limited partner interest of the
    class purchased within the 90&#160;days preceding the date our
    general partner mails notice of its election to purchase the
    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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Indemnification</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, in most circumstances, we will
    indemnify our general partner, its affiliates and their officers
    and directors to the fullest extent permitted by law, from and
    against all losses, claims or damages any of them may suffer by
    reason of their status as general partner, officer or director,
    as long as the person seeking indemnity acted in good faith and
    in a manner reasonably believed to be in or (in the case of an
    indemnitee other than the general partner) not opposed to our
    best interest. Any indemnification under these provisions will
    only be out of our assets. Our general partner shall not be
    personally liable for, or have any obligation to contribute or
    loan funds or assets to us to enable us to effectuate any
    indemnification.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are authorized to purchase insurance against liabilities
    asserted against and expenses incurred by persons for our
    activities, regardless of whether we would have the power to
    indemnify the person against liabilities under our partnership
    agreement.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Registration
    Rights</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under our partnership agreement, we have agreed to register for
    resale under the Securities Act and applicable state securities
    laws any common 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. We are obligated to pay
    all expenses incidental to the registration, excluding
    underwriting discounts and commissions.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    15
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049110'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">MATERIAL
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This section is a discussion of the material tax considerations
    that may be relevant to prospective unitholders who are
    individual citizens or residents of the United States and,
    unless otherwise noted in the following discussion, is the
    opinion of Vinson&#160;&#038; Elkins L.L.P., counsel to our
    general partner and us, insofar as it relates to legal
    conclusions with respect to matters of United States federal
    income tax law. This section is based upon current provisions of
    the Internal Revenue Code, existing and proposed regulations,
    current administrative rulings and court decisions, all of which
    are subject to change. Later 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;us&#148; or
    &#147;we&#148; are references to Plains All American Pipeline,
    L.P.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The following discussion does not comment on all 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 has only limited application
    to corporations, estates, trusts, nonresident aliens or other
    unitholders subject to specialized tax treatment, such as
    tax-exempt institutions, foreign persons, individual retirement
    accounts (IRAs), real estate investment trusts (REITs) or mutual
    funds. Accordingly, we urge each prospective unitholder to
    consult, and depend on, his own tax advisor in analyzing the
    federal, state, local and foreign tax 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 Vinson&#160;&#038; Elkins
    L.L.P. and are based on the accuracy of the representations made
    by us.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 Vinson&#160;&#038; Elkins L.L.P. 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 and statements made herein
    may not be sustained by a court if contested by the IRS. Any
    contest of this sort with the IRS may materially and adversely
    impact the market for our 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, the tax treatment of us, or 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For the reasons described below, Vinson&#160;&#038; Elkins
    L.L.P. has not rendered an opinion with respect to the following
    specific 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 see
    &#145;&#145;&#151;&#160;Tax Consequences of Unit
    Ownership&#160;&#151; Treatment of Short Sales&#148;);
    (2)&#160;whether our monthly convention for allocating taxable
    income and losses is permitted by existing Treasury Regulations
    (please see &#147;&#151;&#160;Disposition of Common
    Units&#160;&#151; Allocations Between Transferors and
    Transferees&#148;); and (3)&#160;whether our method for
    depreciating Section&#160;743 adjustments is sustainable in
    certain cases (please see &#147;&#151;&#160;Tax Consequences of
    Unit Ownership&#160;&#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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Partnership
    Status</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A partnership is not a taxable entity and incurs no federal
    income tax liability. Instead, each partner of a partnership is
    required to take into account his share of items of income,
    gain, loss and deduction of the partnership in computing his
    federal income tax liability, regardless of whether cash
    distributions are made to him by the partnership. Distributions
    by a partnership to a partner are generally not taxable to the
    partnership or to the partner unless the amount of cash
    distributed is in excess of the partner&#146;s adjusted 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Section&#160;7704 of the Internal Revenue Code provides that
    publicly traded partnerships will, as a general rule, be taxed
    as corporations. However, an exception, referred to as the
    &#147;Qualifying Income Exception,&#148; exists with respect to
    publicly traded partnerships of which 90% or more of the gross
    income for every taxable year
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    16
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    consists of &#147;qualifying income.&#148; Qualifying income
    includes income and gains derived from the transportation,
    storage, terminalling and marketing of crude oil, natural gas
    and products thereof. 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
    income that otherwise constitutes qualifying income. Moreover,
    recently enacted legislation has modified
    Section&#160;7704(d)(1)(E) of the Internal Revenue Code to
    expand the definition of qualifying income to include income
    from the storage and transportation of certain alternative fuels
    and, among other things, the transportation and marketing of
    industrial source carbon dioxide. We estimate that less than 5%
    of our current gross income is not qualifying income; however,
    this estimate could change from time to time. Based upon and
    subject to this estimate, the factual representations made by us
    and the general partner and a review of the applicable legal
    authorities, Vinson&#160;&#038; Elkins L.L.P. is of the opinion
    that at least 90% of our current gross income constitutes
    qualifying income. The portion of our income that is qualifying
    income may change 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    No ruling has been or will be sought from the IRS and the IRS
    has made no determination as to our status or the status of the
    operating partnerships for federal income tax purposes or
    whether our operations generate &#147;qualifying income&#148;
    under Section&#160;7704 of the Internal Revenue Code. Instead,
    we will rely on the opinion of Vinson&#160;&#038; Elkins L.L.P.
    on such matters. It is the opinion of Vinson&#160;&#038; Elkins
    L.L.P. that, based upon the Internal Revenue Code, its
    regulations, published revenue rulings and court decisions and
    the representations described below, we will be classified as a
    partnership and the operating partnerships will be treated as
    partnerships or disregarded as entities separate from us for
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In rendering its opinion, Vinson&#160;&#038; Elkins L.L.P. has
    relied on factual representations made by us and our general
    partner. The representations made by us and our general partner
    upon which Vinson&#160;&#038; Elkins L.L.P. has relied are:
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (a)&#160;Neither we nor the operating partnerships have elected
    or will elect to be treated as a corporation;
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (b)&#160;For each taxable year, more than 90% of our gross
    income has been and will be income that Vinson&#160;&#038;
    Elkins L.L.P. has opined or will opine is &#147;qualifying
    income&#148; within the meaning of Section&#160;7704(d) of the
    Internal Revenue Code;&#160;and
</DIV>

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

<DIV align="left" style="margin-left: 4%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    (c)&#160;Each hedging transaction that we treat as resulting in
    qualifying income has been and will be appropriately identified
    as a hedging transaction pursuant to applicable Treasury
    Regulations, and has been and will be associated with oil, gas,
    or products thereof that are held or to be held by us in
    activities that Vinson&#160;&#038; Elkins L.L.P. has opined or
    will opine result in 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we fail to meet the Qualifying Income Exception, other than a
    failure that is determined by the IRS to be inadvertent and that
    is cured within a reasonable time after discovery (in which case
    the IRS may also require us to make adjustments with respect to
    our unitholders or pay other amounts), we will be treated as if
    we had transferred all of our assets, subject to liabilities, to
    a newly formed corporation, on the first day of the year in
    which we fail to meet the Qualifying Income Exception, in return
    for stock in that corporation, and then distributed that stock
    to the unitholders in liquidation of their interests in us. This
    deemed contribution and liquidation should be tax-free to
    unitholders and us so long as we, at that time, do not have
    liabilities in excess of the tax basis of our assets.
    Thereafter, we would be treated as a corporation for 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If we were treated as an association taxable 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 and deduction would be reflected only on our tax
    return rather than being passed through to the unitholders, and
    our net income would be taxed to us at corporate rates. In
    addition, any distribution made to a unitholder would be treated
    as either taxable dividend income, to the extent of our current
    or accumulated earnings and profits, or, in the absence of
    earnings and profits, a nontaxable return of capital, to the
    extent of the unitholder&#146;s tax basis in his common units,
    or taxable capital gain, after the unitholder&#146;s tax basis
    in his common units is reduced to zero. Accordingly, taxation as
    a corporation would result in a material reduction in a
    unitholder&#146;s cash flow and after-tax return and thus would
    likely result in a substantial reduction of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The discussion below is based on Vinson&#160;&#038; Elkins
    L.L.P.&#146;s opinion that we will be classified as a
    partnership for federal income tax purposes.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    17
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Limited
    Partner Status</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Unitholders who have become limited partners of Plains All
    American Pipeline, L.P. will be treated as partners of Plains
    All American Pipeline, L.P. for federal income tax purposes.
    Also, 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 of Plains All
    American Pipeline, L.P. for 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A beneficial owner of common units whose units have been
    transferred to a short seller to complete a short sale would
    appear to lose his status as a partner with respect to those
    units for federal income tax purposes. Please see
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Treatment of Short Sales.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Income, gain, deductions or losses would not appear to be
    reportable by a unitholder who is not a partner for federal
    income tax purposes, and any cash distributions received by a
    unitholder who is not a partner for federal income tax purposes
    would therefore appear to be fully taxable as ordinary income.
    These holders are urged to consult their own tax advisors with
    respect to their tax consequences of holding common units in
    Plains All American Pipeline, L.P.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The references to &#147;unitholders&#148; in the discussion that
    follows are to persons who are treated as partners in Plains All
    American Pipeline, L.P. for federal income tax 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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Consequences of Unit Ownership</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Flow-Through of Taxable Income.</I>&#160;&#160;We will not
    pay any federal income tax. Instead, each unitholder will be
    required to report on his income tax return his share of our
    income, gains, losses and deductions without regard to whether
    corresponding cash distributions are received by him.
    Consequently, we may allocate income to a unitholder even if he
    has not received a cash distribution. Each unitholder will be
    required to include in income his allocable share of our income,
    gains, losses and deductions for our taxable year ending with or
    within his taxable year. Our taxable year ends on
    December&#160;31.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Treatment of Distributions.</I>&#160;&#160;Distributions by
    us to a unitholder generally will not be taxable to the
    unitholder for federal income tax purposes, except to the extent
    the amount of any such cash distribution exceeds 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 our common units, taxable in accordance with the
    rules described under &#145;&#145;&#151;&#160;Disposition of
    Common Units.&#148; Any reduction in a unitholder&#146;s share
    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 see
    &#147;&#151;&#160;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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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. This deemed
    distribution may constitute a non-pro rata distribution. 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, and collectively,
    &#147;Section&#160;751 Assets.&#148; To that extent, he will be
    treated as having been distributed his proportionate share of
    the Section&#160;751 Assets and then 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
    will generally 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 (generally zero) 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Basis of Common Units.</I>&#160;&#160;A unitholder&#146;s
    initial tax basis for his common units will be the amount he
    paid for our 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
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    18
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    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 our general partner,
    but will have a share, generally based on his share of profits,
    of our nonrecourse liabilities. Please see
    &#147;&#151;&#160;Disposition of Common Units&#160;&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitations on Deductibility of Losses.</I>&#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, estate, trust, or corporate unitholder
    (if more than 50% of the value of the corporate
    unitholder&#146;s stock is owned directly or indirectly by or
    for 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 common unitholder subject to these
    limitations 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 as a deduction to the
    extent that his at-risk amount is subsequently increased
    provided such losses do not exceed such common unitholders&#146;
    tax basis in his common units. 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 loss previously suspended by the at-risk
    limitation in excess of that gain would no longer be utilizable.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 (i)&#160;any portion of that basis representing
    amounts otherwise protected against loss because of a guarantee,
    stop loss agreement or other similar arrangement and
    (ii)&#160;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. A unitholder&#146;s at-risk amount will increase
    or decrease as the tax basis of the unitholder&#146;s units
    increases or decreases, other than tax basis increases or
    decreases attributable to increases or decreases in his share of
    our nonrecourse liabilities.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to the basis and at-risk limitations on the
    deductibility of losses, the passive loss limitations generally
    provide that individuals, estates, trusts and some closely-held
    corporations and personal service corporations can deduct losses
    from passive activities, which are generally trade or business
    activities in which the taxpayer does not materially
    participate, only to the extent of the taxpayer&#146;s income
    from those passive activities. The passive loss limitations are
    applied separately with respect to each publicly traded
    partnership. Consequently, any passive losses we generate will
    only 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
    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 loss limitations 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder&#146;s share of our net income may be offset by any
    of our suspended passive losses, but it may not be offset by any
    other current or carryover losses from other passive activities,
    including those attributable to other publicly traded
    partnerships.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Limitations on Interest Deductions.</I>&#160;&#160;The
    deductibility of a non-corporate taxpayer&#146;s
    &#147;investment interest expense&#148; is generally 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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    19
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 or qualified
    dividend income. The IRS has indicated that the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Entity-Level&#160;Collections.</I>&#160;&#160;If we are
    required or elect under applicable law to pay any federal,
    state, local or foreign income tax on behalf of any unitholder
    or our general partner or any former unitholder, 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 our 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 our partnership
    agreement is 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allocation of Income, Gain, Loss and
    Deduction.</I>&#160;&#160;In general, if we have a net profit,
    our items of income, gain, loss and deduction will be allocated
    among our general partner and the unitholders in accordance with
    their percentage interests in us. At any time that distributions
    are made to our common units in excess of distributions to the
    subordinated units, or incentive distributions are made to our
    general partner, gross income will be allocated to the
    recipients to the extent of these distributions. If we have a
    net loss, that loss 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Specified items of our income, gain, loss and deduction will be
    allocated to account for the difference between the tax basis
    and fair market value of our assets at the time of an offering,
    referred to in this discussion as &#147;Contributed
    Property.&#148; The effect of these allocations, referred to as
    Section&#160;704(c) Allocations, to a unitholder purchasing
    common units from us in an offering will be essentially the same
    as if the tax basis of our assets were equal to their fair
    market value at the time of such offering. In the event we issue
    additional common units or engage in certain other transactions
    in the future &#147;reverse Section&#160;704(c)
    Allocations,&#148; similar to the Section&#160;704(c)
    Allocations described above, will be made to all holders of
    partnership interests immediately prior to such other
    transactions to account for the difference between the
    &#147;book&#148; basis for purposes of maintaining capital
    accounts and the fair market value of all property held by us at
    the time of the future transaction. 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 as is needed 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    An allocation of items of our income, gain, loss or deduction,
    other than an allocation required by the Internal Revenue Code
    to eliminate the difference between a partner&#146;s
    &#147;book&#148; capital account, credited with the fair market
    value of Contributed Property, and &#147;tax&#148; capital
    account, credited with the tax basis of Contributed Property,
    referred to in this discussion as the &#147;Book-Tax
    Disparity,&#148; will generally be given effect for federal
    income tax purposes in determining a partner&#146;s share of an
    item of income, gain, loss or deduction 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">

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    his relative contributions to us;
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    20
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Vinson&#160;&#038; Elkins L.L.P. is of the opinion that, with
    the exception of the issues described in
    &#145;&#145;&#151;&#160;Section&#160;754 Election&#148; and
    &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Allocations Between Transferors and Transferees,&#148;
    allocations under our partnership agreement will be given effect
    for federal income tax purposes in determining a partner&#146;s
    share of an item of income, gain, loss or deduction.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Treatment of Short Sales.</I>&#160;&#160;A unitholder whose
    units are loaned to a &#147;short seller&#148; to cover a short
    sale of units may be considered as having disposed of those
    units. If so, he would no longer be treated for tax purposes as
    a partner with respect to those units during the period of the
    loan and may recognize gain or loss from the disposition. As a
    result, during this period:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any of our income, gain, loss or deduction with respect to those
    units would not be reportable by the unitholder;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    any cash distributions received by the unitholder as to those
    units would be fully taxable;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    all of these distributions would appear to be ordinary 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Vinson&#160;&#038; Elkins L.L.P. has not rendered an opinion
    regarding the treatment of a unitholder where common units are
    loaned to a short seller to cover a short sale of common units;
    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 modify any applicable brokerage
    account agreements to 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;&#160;Disposition of Common Units&#160;&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Alternative Minimum Tax.</I>&#160;&#160;Each unitholder will
    be required to take into account his distributive share of any
    items of our income, gain, loss or deduction 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Tax Rates.</I>&#160;&#160;Under current law, the highest
    marginal U.S.&#160;federal income tax rate applicable to
    ordinary income of individuals is 35% and the highest marginal
    U.S.&#160;federal income tax rate applicable to long-term
    capital gains (generally, capital gains on certain assets held
    for more than 12&#160;months) of individuals is 15%. However,
    absent new legislation extending the current rates, beginning
    January&#160;1, 2011, the highest marginal U.S.&#160;federal
    income tax rate applicable to ordinary income and long-term
    capital gains of individuals will increase to 39.6% and 20%,
    respectively. Moreover, these rates are subject to change by new
    legislation 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Section&#160;754 Election.</I>&#160;&#160;We will make the
    election permitted by Section&#160;754 of the Internal Revenue
    Code. That election is irrevocable without the consent of the
    IRS. The election will generally permit us to adjust a common
    unit purchaser&#146;s tax basis in our assets (&#147;inside
    basis&#148;) under Section&#160;743(b) of the Internal Revenue
    Code to reflect his purchase price. This election does not apply
    to a person who purchases common units directly from us. The
    Section&#160;743(b) adjustment belongs to the purchaser and not
    to other unitholders. 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 (&#147;common basis&#148;) 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Where the remedial allocation method is adopted (which we have
    generally adopted as to all of our properties), the Treasury
    Regulations under Section&#160;743 of the Internal Revenue Code
    require a portion of the Section&#160;743(b) adjustment that is
    attributable to recovery property under Section&#160;168 of the
    Internal Revenue Code whose book basis is in excess of its tax
    basis to be depreciated over the remaining cost recovery period
    for the Section&#160;704(c) built in gain. Under Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6),</FONT>
    a Section&#160;743(b)
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    21
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    adjustment attributable to property subject to depreciation
    under Section&#160;167 of the Internal Revenue Code, rather than
    cost recovery deductions under Section&#160;168, is generally
    required to be depreciated using either the straight-line method
    or the 150% declining balance method. If we elect a method other
    than the remedial method, the depreciation and amortization
    methods and useful lives associated with the Section&#160;743(b)
    adjustment, therefore, may differ from the methods and useful
    lives generally used to depreciate the inside basis in such
    properties. Under our partnership agreement, the general partner
    is authorized to take a position to preserve the uniformity of
    units even if that position is not consistent with these and any
    other Treasury Regulations. If we elect a method other than the
    remedial method with respect to a goodwill property, the common
    basis of such property is not amortizable. Please see
    &#147;&#151;&#160;Uniformity of Units.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although Vinson&#160;&#038; Elkins L.L.P. is unable to opine as
    to the validity of this approach because there is no direct or
    indirect controlling authority on this issue, we intend to
    depreciate the portion of a Section&#160;743(b) adjustment
    attributable to unrealized appreciation in the value of
    Contributed Property, to the extent of any unamortized Book-Tax
    Disparity, using a rate of depreciation or amortization derived
    from the depreciation or amortization method and useful life
    applied to the property&#146;s unamortized Book-Tax Disparity,
    or treat that portion as
    <FONT style="white-space: nowrap">non-amortizable</FONT>
    to the extent attributable to property which is not amortizable.
    This method is consistent with the methods employed by other
    publicly traded partnerships but is arguably inconsistent with
    Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6),</FONT>
    which is not expected to directly apply to a material portion of
    our assets. To the extent this Section&#160;743(b) adjustment is
    attributable to appreciation in value in excess of the
    unamortized Book-Tax Disparity, we will apply the rules
    described in the Treasury Regulations and legislative history.
    If we determine that this position cannot reasonably be taken,
    we may take a depreciation or amortization position under which
    all purchasers acquiring units in the same month would receive
    depreciation or amortization, whether attributable to common
    basis or a Section&#160;743(b) adjustment, based upon the same
    applicable rate as if they had purchased a direct interest in
    our assets. This kind of aggregate approach may result in lower
    annual depreciation or amortization deductions than would
    otherwise be allowable to some unitholders. Please see
    &#147;&#151;&#160;Uniformity of Units.&#148; A unitholder&#146;s
    tax basis for his common units is reduced by his share of our
    deductions (whether or not such deductions were claimed on an
    individual&#146;s income tax return) so that any position we
    take that understates deductions will overstate the common
    unitholder&#146;s basis in his common units, which may cause the
    unitholder to understate gain or overstate loss on any sale of
    such units. Please see &#145;&#145;&#151;&#160;Disposition of
    Common Units&#160;&#151; Recognition of Gain or Loss.&#148; The
    IRS may challenge our position with respect to depreciating or
    amortizing the Section&#160;743(b) adjustment we take to
    preserve the uniformity of the units. If such a challenge were
    sustained, the gain from the sale of units might be increased
    without the benefit of additional deductions.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A Section&#160;754 election is advantageous if the
    transferee&#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 election, the transferee would have, among other items, a
    greater amount of depreciation deductions and his share of any
    gain or loss on a sale of our assets would be less. Conversely,
    a Section&#160;754 election is disadvantageous if the
    transferee&#146;s tax basis in his units is lower than those
    units&#146; share of the aggregate tax basis of our assets
    immediately prior to the transfer. Thus, the fair market value
    of the units may be affected either favorably or unfavorably by
    the election. A basis adjustment is required regardless of
    whether a Section&#160;754 election is made in the case of a
    transfer of 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 basis reduction. Generally a
    built-in loss or a basis reduction is substantial if it exceeds
    $250,000.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The calculations involved in the Section&#160;754 election are
    complex and will be made on the basis of assumptions as to the
    value of our assets and other matters. For example, the
    allocation of the Section&#160;743(b) adjustment among our
    assets must be made in accordance with the Internal Revenue
    Code. The IRS could seek to reallocate some or all of any
    Section&#160;743(b) adjustment allocated by us to our tangible
    assets to goodwill instead. Goodwill, as an intangible asset, is
    generally nonamortizable or amortizable over a longer period of
    time or under a less accelerated method than our tangible
    assets. 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 opinion, the expense of
    compliance exceed the benefit of the election, we may seek
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    22
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    permission from the IRS to revoke our Section&#160;754 election.
    If permission is granted, a subsequent purchaser of units may be
    allocated more income than he would have been allocated had the
    election not been revoked.
</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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax
    Treatment of Operations</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Accounting Method and Taxable Year.</I>&#160;&#160;We use the
    year ending December 31 as our taxable year and the accrual
    method of accounting for federal income tax purposes. Each
    unitholder will be required to include in income his share of
    our income, gain, loss and deduction for our taxable year ending
    within or with his taxable year. In addition, 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 our income, gain, loss and deduction in
    income for his taxable year, with the result that he will be
    required to include in income for his taxable year his share of
    more than one year of our income, gain, loss and deduction.
    Please see &#147;&#151;&#160;Disposition of Common
    Units&#160;&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Initial Tax Basis, Depreciation and
    Amortization.</I>&#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 federal income tax burden associated with the
    difference between the fair market value of our assets and their
    tax basis immediately prior to an offering will be borne by our
    unitholders holding interests in us prior to any such offering.
    Please see &#147;&#151;&#160;Tax Consequences of Unit
    Ownership&#160;&#151; Allocation of Income, Gain, Loss and
    Deduction.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 subject
    to these allowances are placed in service. Because our general
    partner may determine not to adopt the remedial method of
    allocation with respect to any difference between the tax basis
    and the fair market value of goodwill immediately prior to any
    future offering, we may not be entitled to any amortization
    deductions with respect to any goodwill conveyed to us on
    formation or held by us at the time of any future offering.
    Please see &#147;&#151;&#160;Uniformity of Units.&#148; Property
    we subsequently acquire or construct may be depreciated using
    accelerated methods 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 see
    &#147;&#151;&#160;Tax Consequences of Unit Ownership&#160;&#151;
    Allocation of Income, Gain, Loss and Deduction&#148; and
    &#147;&#151;&#160;Disposition of Common Units&#160;&#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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The costs we incur in selling our units (called
    &#147;syndication expenses&#148;) must be capitalized and cannot
    be deducted currently, ratably or upon our termination. There
    are uncertainties regarding the classification of costs as
    organization expenses, which may be amortized by us, and as
    syndication expenses, which may not be amortized by us. 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Valuation and Tax Basis of Our Properties.</I>&#160;&#160;The
    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 or
    deductions 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>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    23
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Disposition
    of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Recognition of Gain or Loss.</I>&#160;&#160;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 for the
    units sold. A unitholder&#146;s amount realized will be measured
    by the sum of the cash or the fair market value of other
    property received by him plus 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 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Except as noted below, gain or loss recognized by a unitholder,
    other than a &#147;dealer&#148; in units, on the sale or
    exchange of a unit held for more than one year will generally be
    taxable as long term capital gain or loss. Capital gain
    recognized by an individual on the sale of units held more than
    twelve months will generally be taxed at a maximum rate of 15%
    through December&#160;31, 2010 and 20% thereafter (absent new
    legislation extending or adjusting the current rate). However, a
    portion of this gain or loss, which will likely be substantial,
    will be separately computed and taxed as ordinary income or loss
    under Section&#160;751 of the Internal Revenue Code to the
    extent attributable to assets giving rise to depreciation
    recapture or other &#147;unrealized receivables&#148; or to
    &#147;inventory items&#148; we own. The term &#147;unrealized
    receivables&#148; includes potential recapture items, including
    depreciation recapture. Ordinary income attributable to
    unrealized receivables, inventory items and depreciation
    recapture may exceed net taxable gain realized upon the sale of
    a unit and may be recognized even if there is a net taxable loss
    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 may offset capital gains and no more than
    $3,000 of ordinary income, in the case of individuals, and may
    only be used to offset capital gains in the case of corporations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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, which generally means that the tax
    basis allocated to the interest sold equals an amount that bears
    the same relation to the partner&#146;s tax basis in his entire
    interest in the partnership as the value of the interest sold
    bears to the value of the partner&#146;s entire interest in the
    partnership. 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
    Treasury Regulations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a futures or forward contract with respect to the partnership
    interest or substantially identical property.
</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    24
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Allocations Between Transferors and
    Transferees.</I>&#160;&#160;In general, our taxable income and
    losses 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, which we refer to in this
    prospectus as the &#147;Allocation Date.&#148; 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 Allocation Date in the month in which
    that gain or loss is recognized. As a result, a unitholder
    transferring units may be allocated income, gain, loss and
    deduction 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Although simplifying conventions are contemplated by the
    Internal Revenue Code and most publicly traded partnerships use
    similar simplifying conventions, the use of this method may not
    be permitted under existing Treasury Regulations. Accordingly,
    Vinson&#160;&#038; Elkins L.L.P. is unable to opine on the
    validity of this method of allocating income and deductions
    between transferor and transferee unitholders. If this method is
    not allowed under the Treasury Regulations, or only applies to
    transfers of less than all of the unitholder&#146;s interest,
    our taxable income or losses might be reallocated among the
    unitholders. We are authorized to revise our method of
    allocation between transferor and transferee unitholders, as
    well as unitholders whose interests vary during a taxable year,
    to conform to a method permitted under future Treasury
    Regulations.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder who owns units at any time during a 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 and deductions attributable to that quarter
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Notification Requirements.</I>&#160;&#160;A unitholder who
    sells any of his units is generally 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 purchaser
    of units who purchases units from another unitholder is also
    generally required to notify us in writing of that purchase
    within 30&#160;days after the purchase. Upon receiving such
    notifications, we are required to notify the IRS of that
    transaction and to furnish specified information to the
    transferor and transferee. Failure to notify us of a purchase
    may, in some cases, lead to the imposition of penalties.
    However, these reporting requirements do not apply to a sale by
    an individual who is a citizen of the United States and who
    effects the sale or exchange through a broker who will satisfy
    such requirements.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Constructive Termination.</I>&#160;&#160;We will be
    considered to have been terminated for tax purposes if there are
    sales or exchanges which, in the aggregate, constitute 50% or
    more of the total interests in our capital and profits within a
    twelve-month period. For purposes of measuring whether the 50%
    threshold is reached, multiple sales of the same interest are
    counted only once. 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 twelve months of our taxable income or
    loss being includable in his taxable income for the year of
    termination. A constructive termination occurring on a date
    other than December 31 will result in us filing two tax returns
    (and common unitholders receiving two Schedules K-1) for one
    fiscal year and the cost of the preparation of these returns
    will be borne by all common unitholders. 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, any tax legislation enacted
    before the termination.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    25
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

    <B><FONT style="font-family: 'Times New Roman', Times">Uniformity
    of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because we cannot match transferors and transferees of units, we
    must maintain uniformity of the economic and tax characteristics
    of the units to a purchaser of these units. In the absence of
    uniformity, we may be unable to completely comply with a number
    of federal income tax requirements, both statutory and
    regulatory. A lack of uniformity can result from a literal
    application of Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6).</FONT>
    Any
    <FONT style="white-space: nowrap">non-uniformity</FONT>
    could have a negative impact on the value of the units. Please
    see &#147;&#151;&#160;Tax Consequences of Unit
    Ownership&#160;&#151; Section&#160;754 Election.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We intend to depreciate the portion of a Section&#160;743(b)
    adjustment attributable to unrealized appreciation in the value
    of Contributed Property, to the extent of any unamortized
    Book-Tax Disparity, using a rate of depreciation or amortization
    derived from the depreciation or amortization method and useful
    life applied to the property&#146;s unamortized book-tax
    disparity, or treat that portion as nonamortizable, to the
    extent attributable to property which is not amortizable,
    consistent with the regulations under Section&#160;743 of the
    Internal Revenue Code, even though that position may be
    inconsistent with Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.167(c)-1(a)(6),</FONT>
    which is not expected to directly apply to a material portion of
    our assets, and Treasury
    <FONT style="white-space: nowrap">Regulation&#160;Section&#160;1.197-2(g)(3).</FONT>
    Please see &#147;&#151;&#160;Tax Consequences of Unit
    Ownership&#160;&#151; Section&#160;754 Election.&#148; To the
    extent that the Section&#160;743(b) adjustment is attributable
    to appreciation in value in excess of the unamortized Book-Tax
    Disparity, we will apply the rules described in the Treasury
    Regulations and legislative history. If we determine that this
    position cannot reasonably be taken, we may adopt a depreciation
    and amortization position under which all purchasers acquiring
    units in the same month would receive depreciation and
    amortization deductions, whether attributable to a common basis
    or Section&#160;743(b) adjustment, based upon the same
    applicable methods and lives as if they had purchased a direct
    interest in our property. If this position is adopted, it may
    result in lower annual depreciation and amortization deductions
    than would otherwise be allowable to some unitholders and risk
    the loss of depreciation and amortization deductions not taken
    in the year that these deductions are otherwise allowable. This
    position will not be adopted if we determine that the loss of
    depreciation and amortization deductions will have a material
    adverse effect on the unitholders. If we choose not to utilize
    this aggregate method, we may use any other reasonable
    depreciation and amortization method to preserve the uniformity
    of the intrinsic tax characteristics of any units that would not
    have a material adverse effect on the unitholders. The IRS may
    challenge any method of depreciating the Section&#160;743(b)
    adjustment described in this paragraph. If this challenge were
    sustained, the uniformity of units might be affected, and the
    gain from the sale of units might be increased without the
    benefit of additional deductions. Please see
    &#147;&#151;&#160;Disposition of Common Units&#160;&#151;
    Recognition of Gain or Loss.&#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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Tax-Exempt
    Organizations and Other Investors</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Ownership of units by employee benefit plans, other tax-exempt
    organizations, non-resident aliens, foreign corporations and
    other
    <FONT style="white-space: nowrap">non-U.S.&#160;persons</FONT>
    raises issues unique to those investors and, as described below,
    may have substantially adverse tax consequences to them. If you
    are a tax-exempt entity or a
    <FONT style="white-space: nowrap">non-U.S.&#160;person,</FONT>
    you should consult your tax advisor before investing in our
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Employee benefit plans and most other organizations exempt from
    federal income tax, including individual retirement accounts and
    other retirement plans, are subject to 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 and will be taxable
    to&#160;it.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Non-resident aliens and foreign corporations, trusts or estates
    that own units will be considered to be engaged in business in
    the United States because of the ownership of units. As a
    consequence, they will be required to file federal tax returns
    to report their share of our income, gain, loss or deduction and
    pay federal income tax at regular rates on their share of our
    net income or gain. Moreover, under rules applicable to publicly
    traded partnerships, we will withhold at the highest applicable
    effective tax rate from cash distributions made quarterly to
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholders.</FONT>
    Each
    <FONT style="white-space: nowrap">non-U.S.&#160;unitholder</FONT>
    must obtain a taxpayer identification number from the IRS and
    submit that number to our transfer agent on a
    <FONT style="white-space: nowrap">Form&#160;W-8BEN</FONT>
    or applicable substitute form in order to obtain credit for
    these withholding taxes. A change in applicable law may require
    us to change these procedures.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    26
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, because a foreign corporation that owns units will
    be treated as engaged in a United States trade or business, that
    corporation may be subject to the United States branch profits
    tax at a rate of 30%, in addition to regular federal income tax,
    on its share of our income and gain, as adjusted for changes in
    the foreign corporation&#146;s &#147;U.S.&#160;net equity,&#148;
    which are effectively connected with the conduct of a United
    States trade or business. That tax may be reduced or eliminated
    by an income tax treaty between the United States and the
    country in which the foreign corporate unitholder is a
    &#147;qualified resident.&#148; In addition, this type of
    unitholder is subject to special information reporting
    requirements under Section&#160;6038C of 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A foreign unitholder who sells or otherwise disposes of a unit
    will be subject to U.S.&#160;federal income tax on gain realized
    from the sale or disposition of that unit to the extent the gain
    is effectively connected with a U.S.&#160;trade or business of
    the foreign unitholder. Under a ruling published by the IRS,
    interpreting the scope of &#147;effectively connected
    income,&#148; a foreign unitholder would be considered to be
    engaged in a trade or business in the U.S.&#160;by virtue of the
    U.S.&#160;activities of the partnership, and part or all of that
    unitholder&#146;s gain would be effectively connected with that
    unitholder&#146;s indirect U.S.&#160;trade or business.
    Moreover, under the Foreign Investment in Real Property Tax Act,
    a foreign unitholder generally will be subject to
    U.S.&#160;federal income tax upon the sale or disposition of a
    unit if (i)&#160;he owned (directly or constructively applying
    certain attribution rules) more than 5% of our common units at
    any time during the five-year period ending on the date of such
    disposition and (ii)&#160;50% or more of the fair market value
    of all of our assets consisted of U.S.&#160;real property
    interests at any time during the shorter of the period during
    which such unitholder held the common units or the
    <FONT style="white-space: nowrap">5-year</FONT>
    period ending on the date of disposition. Currently, more than
    50% of our assets consist of U.S.&#160;real property interests
    and we do not expect that to change in the foreseeable future.
    Therefore, foreign unitholders may be subject to federal income
    tax on gain from the sale or disposition of their 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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">Administrative
    Matters</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Information Returns and Audit Procedures.</I>&#160;&#160;We
    intend to furnish to each unitholder, within 90&#160;days after
    the close of each calendar year, specific tax information,
    including a
    <FONT style="white-space: nowrap">Schedule&#160;K-1,</FONT>
    which describes his share of our income, gain, loss and
    deduction 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 each unitholder&#146;s
    share of income, gain, loss and deduction. We cannot assure you
    that those positions will in all cases yield a result that
    conforms to the requirements of the Internal Revenue Code,
    Treasury Regulations or administrative interpretations of the
    IRS. Neither we nor Vinson&#160;&#038; Elkins L.L.P. can assure
    prospective unitholders that the IRS will not successfully
    contend in court 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The IRS may audit our federal income tax information returns.
    Adjustments resulting from an IRS audit may require each
    unitholder to adjust a prior year&#146;s tax liability, and
    possibly 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.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Partnerships generally are treated as separate entities for
    purposes of federal tax audits, judicial review of
    administrative adjustments by the IRS and tax settlement
    proceedings. The tax treatment of partnership items of income,
    gain, loss and deduction are 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. Our partnership agreement names our general partner 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The Tax Matters Partner will make some 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 in our returns.
    The Tax Matters Partner may bind a unitholder with less than a
    1% profits interest in us to a settlement with the IRS 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 Matters Partner fails to seek
    judicial review, judicial review may be sought by any unitholder
    having at least a 1% interest in
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    27
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A unitholder must file a statement with the IRS identifying the
    treatment of any item on his federal income tax return that is
    not consistent with the treatment of the item on our return.
    Intentional or negligent disregard of this consistency
    requirement may subject a unitholder to substantial penalties.
    Nominee Reporting. Persons who hold an interest in us as a
    nominee for another person are required to furnish to us:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the name, address and taxpayer identification number of the
    beneficial owner and the nominee;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    whether the beneficial owner is:
</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="6%"></TD>
    <TD width="2%"></TD>
    <TD width="92%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a person that is not a United States person;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a foreign government, an international organization or any
    wholly owned agency or instrumentality of either of the
    foregoing;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    a tax-exempt entity;
</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="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount and description of units held, acquired or
    transferred for the beneficial owner;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    specific information including the dates of acquisitions and
    transfers, means of acquisitions and transfers, and acquisition
    cost for purchases, as well as the amount of net proceeds from
    sales.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Brokers and financial institutions are required to furnish
    additional information, including whether they are United States
    persons and specific information on units they acquire, hold or
    transfer for their own account. A penalty of $50 per failure, up
    to a maximum of $100,000 per calendar year, is imposed by the
    Internal Revenue Code for failure to report that information to
    us. The nominee is required to supply the beneficial owner of
    the units with the information furnished to us.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Accuracy-Related Penalties.</I>&#160;&#160;An additional tax
    equal to 20% of the amount of any portion of an underpayment of
    tax that is attributable to one or more specified causes,
    including negligence or disregard of rules or regulations,
    substantial understatements of income tax and substantial
    valuation misstatements, 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    For individuals, 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 ($10,000 for most
    corporations). 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>

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for which there is, or was, &#147;substantial
    authority;&#148;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    as to which there is a reasonable basis and the pertinent facts
    of that position are disclosed on the return.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    If any item of income, gain, loss or deduction included in the
    distributive shares of unitholders might result in that kind of
    an &#147;understatement&#148; of income for which no
    &#147;substantial authority&#148; exists, we must disclose the
    pertinent facts on our return. In addition, we 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 this penalty. More stringent rules apply
    to &#147;tax shelters,&#148; which we do not believe includes us
    or any of our investments, plans or arrangements.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    A substantial valuation misstatement exists if the value of any
    property, or the adjusted basis of any property, claimed on a
    tax return is 150% or more of the amount determined to be the
    correct amount of the valuation or adjusted basis. No penalty is
    imposed unless the portion of the underpayment attributable to a
    substantial valuation misstatement exceeds $5,000 ($10,000 for
    most corporations). If the valuation claimed on
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    28
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<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: #FFFFFF">
    a return is 200% or more than the correct valuation, the penalty
    imposed increases to 40%. We do not anticipate making any
    valuation misstatements.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <I>Reportable Transactions.</I>&#160;&#160;If we were to engage
    in a &#147;reportable transaction,&#148; we (and possibly you
    and others) would be required to make a detailed disclosure of
    the transaction to the IRS. A transaction may be a reportable
    transaction based upon any of several factors, including the
    fact that it is a type of tax avoidance transaction publicly
    identified by the IRS as a &#147;listed transaction&#148; or
    that it produces certain kinds of losses for partnerships,
    individuals, S&#160;corporations, and trusts in excess of
    $2&#160;million in any single year, or $4&#160;million in any
    combination of 6 successive tax years. Our participation in a
    reportable transaction could increase the likelihood that our
    federal income tax information return (and possibly your tax
    return) would be audited by the IRS. Please see
    &#147;&#151;&#160;Information Returns and Audit Procedures.&#148;
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Moreover, if we were to participate in a reportable transaction
    with a significant purpose to avoid or evade tax, or in any
    listed transaction, you may be subject to the following
    provisions of the American Jobs Creation Act of 2004:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    accuracy-related penalties with a broader scope, significantly
    narrower exceptions, and potentially greater amounts than
    described above at &#147;&#151;&#160;Accuracy-Related
    Penalties;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    for those persons otherwise entitled to deduct interest on
    federal tax deficiencies, nondeductibility of interest on any
    resulting tax liability;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the case of a listed transaction, an extended statute of
    limitations.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We do not expect to engage in any &#147;reportable
    transactions.&#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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">State,
    Local, Foreign and Other 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition to federal income taxes, you may be subject to other
    taxes, such as state, local and foreign income taxes,
    unincorporated business taxes, and estate, inheritance or
    intangible taxes that may be imposed by the various
    jurisdictions in which we do business or own property or in
    which you are a resident. Although an analysis of those various
    taxes is not presented here, each prospective unitholder should
    consider their potential impact on his investment in us. We
    currently own property and do business in Canada and most states
    of the United States. A unitholder may be required to file
    Canadian federal income tax returns and pay Canadian federal and
    provincial income taxes and to file state income tax returns and
    to pay taxes in various states and may be subject to penalties
    for failure to comply with those requirements. In some
    jurisdictions, tax losses may not produce a tax benefit in the
    year incurred and may not be available to offset income in
    subsequent taxable years. Some jurisdictions may require us, or
    we may elect, to withhold a percentage of income from amounts to
    be distributed to a unitholder who is not a resident of the
    jurisdiction. Withholding, the amount of which may be greater or
    less than a particular unitholder&#146;s income tax liability to
    the jurisdiction, generally does not relieve a nonresident
    unitholder from the obligation to file an income tax return.
    Amounts withheld will be treated as if distributed to
    unitholders for purposes of determining the amounts distributed
    by us. Please see &#145;&#145;&#151;&#160;Tax Consequences of
    Unit Ownership&#160;&#151; Entity-Level&#160;Collections.&#148;
    Based on current law and our estimate of our future operations,
    the general partner anticipates that any amounts required to be
    withheld will not be material.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <B>It is the responsibility of each unitholder to investigate
    the legal and tax consequences, under the laws of pertinent
    jurisdictions, of his investment in us. Accordingly, each
    prospective unitholder is urged to consult, and depend upon, his
    tax counsel or other advisor with regard to those matters.
    Further, it is the responsibility of each unitholder to file all
    state, local and foreign, as well as United States federal tax
    returns, that may be required of him. Vinson&#160;&#038; Elkins
    L.L.P. has not rendered an opinion on the state, local or
    foreign tax consequences of an investment in us.</B>
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    29
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049111'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">SELLING
    UNITHOLDERS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    This prospectus covers the offering for resale of up to
    17,646,478 common units by selling unitholders identified below.
    No offer or sale may occur unless the registration statement
    that includes this prospectus has been declared effective by the
    SEC, and remains effective at the time such selling unitholder
    offers or sells such common units. We are required (under
    certain circumstances) to update this prospectus to reflect
    material developments in our business, financial position and
    results of operations. The following table sets forth
    information relating to the selling unitholders&#146; beneficial
    ownership of our common units as of November&#160;3, 2008 and is
    based on information provided by the selling unitholders:
</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: #FFFFFF">
<!-- Table Width Row BEGIN -->
<TR style="font-size: 1pt" valign="bottom">
    <TD width="50%">&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="10%" 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="10%" 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="7%" align="right">&nbsp;</TD>	<!-- colindex=04 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=04 type=hang1 -->
    <TD width="3%">&nbsp;</TD>	<!-- colindex=05 type=gutter -->
    <TD width="1%" align="right">&nbsp;</TD>	<!-- colindex=05 type=lead -->
    <TD width="4%" align="right">&nbsp;</TD>	<!-- colindex=05 type=body -->
    <TD width="1%" align="left">&nbsp;</TD>	<!-- colindex=05 type=hang1 -->
</TR>
<!-- Table Width Row END -->
<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="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="6" align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Common Units Owned After Offering</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<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="center" valign="bottom">
    <B>Owned Prior<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Common Units<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
    <B>Number of<BR>
    </B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom">
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom" align="center">
<TD nowrap align="left" valign="bottom">
<DIV style="border-bottom: 1px solid #000000; width: 1%; padding-bottom: 1px">
    <B>Selling Unitholders</B>
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>to Offering</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Being Offered</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Units</B>
</TD>
<TD>
&nbsp;
</TD>
<TD>
&nbsp;
</TD>
<TD colspan="2" nowrap align="center" valign="bottom" style="border-bottom: 1px solid #000000">
    <B>Percent</B>
</TD>
<TD>
&nbsp;
</TD>
</TR>
<TR style="line-height: 3pt; font-size: 1pt">
<TD>&nbsp;
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Vulcan Energy Corporation(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    12,390,120
</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">
    12,390,120
</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">
    0
</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">
    &#151;
</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">
    Vulcan Capital Private Equity I LLC(1)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    1,995,954
</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">
    1,298,280
</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">
    697,674
</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">
    *
</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">
    KAFU Holdings, L.P.(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,739,470
</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">
    1,540,349
</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">
    5,738,556
</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">
    4.7
</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">
    Kayne Anderson MLP Fund&#160;LLP(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,739,470
</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">
    421,941
</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">
    5,738,556
</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">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Kayne Anderson Energy Fund&#160;II, L.P.(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,739,470
</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">
    973,710
</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">
    5,738,556
</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">
    4.7
</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">
    Kayne Anderson Capital Income Partners QP, L.P.(2)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    8,739,470
</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">
    64,914
</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">
    5,738,556
</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">
    4.7
</TD>
<TD nowrap align="left" valign="bottom">
    %
</TD>
</TR>
<TR valign="bottom" style="background: #CCEEFF">
<TD align="left" valign="bottom">
<DIV style="text-indent: -10pt; margin-left: 10pt">
    Wachovia Investors, Inc.&#160;
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    262,934
</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">
    262,934
</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">
    0
</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">
    &#151;
</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">
    Flores Family Limited Partnership(3)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    458,956
</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">
    458,956
</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">
    0
</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">
    &#151;
</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">
    John T. Raymond(4)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    433,617
</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">
    97,171
</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">
    336,446
</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">
    *
</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">
    Plains AAP, L.P.(5)
</DIV>
</TD>
<TD>
&nbsp;
</TD>
<TD nowrap align="left" valign="bottom">
&nbsp;
</TD>
<TD nowrap align="right" valign="bottom">
    138,103
</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">
    138,103
</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">
    0
</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">
    &#151;
</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: #FFFFFF">

</DIV>

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

<DIV style="font-size: 1pt; margin-left: 0%; width: 13%;  align: left; border-bottom: 1pt solid #000000"></DIV><!-- callerid=999 iwidth=455 length=60 -->

<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: #FFFFFF">

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

<TR>
    <TD align="right" valign="top">
    *&#160;</TD>
    <TD></TD>
    <TD valign="bottom">
    Less than 1%.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (1) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Paul Allen controls Vulcan Capital Private Equity I
    LLC, which is the record holder of 1,995,954 common units. In
    addition, Mr.&#160;Allen owns approximately 80% of the
    outstanding shares of common stock of Vulcan Energy Corporation.
    Vulcan Energy Corporation is the sole stockholder of Vulcan
    Energy GP Holdings Inc., which owns approximately 50% of the
    equity of our general partner. Mr.&#160;Allen disclaims any
    deemed beneficial ownership, beyond his pecuniary interest, in
    any of our partner interests held by Vulcan Capital Private
    Equity I LLC, Vulcan Energy Corporation or Vulcan Energy GP
    Holdings Inc.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (2) </TD>
    <TD></TD>
    <TD valign="bottom">
    Various accounts (including those of the selling unitholders)
    under the management and control of Kayne Anderson Capital
    Advisors, L.P., the general partner of which is Kayne Anderson
    Investment Management, Inc., own 8,739,470 common units.
    Mr.&#160;Sinnott, the President of Kayne Anderson Investment
    Management, Inc., has been designated as one of our directors by
    KAFU Holdings, L.P., which owns a portion of our general
    partner. Mr.&#160;Sinnott disclaims any deemed beneficial
    ownership of any units held by Kayne Anderson Investment
    Management, Inc. or its affiliates, beyond his pecuniary
    interest in such units. KA&#160;Associates, Inc., an affiliate
    of the selling unitholders, is a broker-dealer registered
    pursuant to Section&#160;15(b) of the Exchange Act and is a
    member of the NASD. Each selling unitholder (i)&#160;purchased
    the securities for the selling unitholder&#146;s own account,
    not as a nominee or agent, in the ordinary course of business
    and with no intention of selling or otherwise distributing
    securities in any transaction in violation of securities laws
    and (ii)&#160;at the time of purchase, did not have any
    agreement or understanding, direct or indirect, with any other
    person to sell or otherwise distribute the purchased securities.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (3) </TD>
    <TD></TD>
    <TD valign="bottom">
    James C. Flores, a general partner of the Flores Family Limited
    Partnership, is a director of Vulcan Energy Corporation.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (4) </TD>
    <TD></TD>
    <TD valign="bottom">
    Mr.&#160;Raymond is a director of Vulcan Energy Corporation.</TD>
</TR>


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

<TR>
    <TD align="right" valign="top">
    (5) </TD>
    <TD></TD>
    <TD valign="bottom">
    Plains AAP, L.P. is the sole member of our general partner and
    maintains a Performance Option Plan funded by common units owned
    by Plains AAP, L.P. To the extent any options on these units are
    exercised </TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    30
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

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

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

<TR>
    <TD valign="top">
</TD>
    <TD></TD>
    <TD valign="bottom">
    on a cashless basis by their holders, our general partner may
    sell any units it retains after such exercise pursuant to this
    prospectus.</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Any prospectus supplement reflecting a sale of common units
    hereunder will set forth, with respect to the selling
    unitholders:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the name of the selling unitholders;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the nature of the position, office or other material
    relationship which the selling unitholders will have had within
    the prior three years with us or any of our affiliates;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the number of common units owned by the selling unitholders
    prior to the 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount of common units to be offered for the selling
    unitholders&#146; account;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    the amount and (if one percent or more) the percentage of common
    units to be owned by the selling unitholders after the
    completion of the 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    All expenses incurred with the registration of the common units
    owned by the selling unitholders will be borne by us.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    31
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049112'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">PLAN OF
    DISTRIBUTION</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We are registering the common units on behalf of the selling
    unitholders. As used in this prospectus, &#147;selling
    unitholders&#148; includes donees and pledgees selling common
    units received from a named selling unitholder after the date of
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Under this prospectus, the selling unitholders intend to offer
    our securities to the public:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through one or more broker-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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    through underwriters;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    directly to investors.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The selling unitholders may price the common units offered from
    time to time:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    at market prices prevailing at the time of any sale under this
    registration statement;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    prices related to 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    We will pay the costs and expenses of the registration and
    offering of the common units offered hereby. We will not pay any
    underwriting fees, discounts and selling commissions allocable
    to each selling unitholder&#146;s sale of its respective common
    units, which will be paid by the selling unitholders.
    Broker-dealers may act as agent or may purchase securities as
    principal and thereafter resell the securities from time to time:
</DIV>

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

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

<TR>
    <TD width="4%"></TD>
    <TD width="2%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in or through one or more transactions (which may involve
    crosses and block transactions) or 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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    on the New York Stock Exchange;
</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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in the
    <FONT style="white-space: nowrap">over-the-counter</FONT>
    market;&#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: #FFFFFF">
    <TD>&nbsp;</TD>
    <TD>    &#149;&#160;
</TD>
    <TD align="left">
    in private transactions.
</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Broker-dealers or underwriters may receive compensation in the
    form of underwriting discounts or commissions and may receive
    commissions from purchasers of the securities for whom they may
    act as agents. If any broker-dealer purchases the securities as
    principal, it may effect resales of the securities from time to
    time to or through other broker-dealers, and other
    broker-dealers may receive compensation in the form of
    concessions or commissions from the purchasers of securities for
    whom they may act as agents.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent required, the names of the specific managing
    underwriter or underwriters, if any, as well as other important
    information, will be set forth in prospectus supplements. In
    that event, the discounts and commissions we and the selling
    unitholders will allow or pay to the underwriters, if any, and
    the discounts and commissions the underwriters may allow or pay
    to dealers or agents, if any, will be set forth in, or may be
    calculated from, the prospectus supplements. Any underwriters,
    brokers, dealers and agents who participate in any sale of the
    securities may also engage in transactions with, or perform
    services for, us or our affiliates in the ordinary course of
    their businesses. We may indemnify underwriters, brokers,
    dealers and agents against specific liabilities, including
    liabilities under the Securities Act.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In addition, the selling unitholders have advised us that they
    may sell common units in compliance with Rule&#160;144, if
    available, or pursuant to other available exemptions from the
    registration requirements under the Securities Act, rather than
    pursuant to 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    Because FINRA 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;2810 of the NASD
    Conduct Rules.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    32
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    To the extent required, this prospectus may be amended or
    supplemented from time to time to describe a specific plan of
    distribution. The place and time of delivery for the securities
    in respect of which this prospectus is delivered will be set
    forth in the accompanying 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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    In connection with offerings under this shelf registration and
    in compliance with applicable law, underwriters, brokers or
    dealers may engage in transactions which stabilize or maintain
    the market price of the securities at levels above those which
    might otherwise prevail in the open market. Specifically,
    underwriters, brokers or dealers may over-allot in connection
    with offerings, creating a short position in the securities for
    their own accounts. For the purpose of covering a syndicate
    short position or stabilizing the price of the securities, the
    underwriters, brokers or dealers may place bids for the
    securities or effect purchases of the securities in the open
    market. Finally, the underwriters may impose a penalty whereby
    selling concessions allowed to syndicate members or other
    brokers or dealers for distribution the securities in offerings
    may be reclaimed by the syndicate if the syndicate repurchases
    previously distributed securities in transactions to cover short
    positions, in stabilization transactions or otherwise. 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.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    33
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#X84049tocpage">Table of Contents</A></H5><P>

<DIV style="width: 87%; margin-left: 6%"><!-- BEGIN PAGE WIDTH -->
<A name='X84049113'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">LEGAL
    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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The validity of the common units will be passed upon for Plains
    All American Pipeline by Vinson&#160;&#038; Elkins L.L.P.,
    Houston, Texas, offered in this registration statement. The
    selling unitholders&#146; counsel and the underwriters&#146; own
    legal counsel will advise them about other issues relating to
    any offering in which they participate.
</DIV>
<A name='X84049114'>
<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: #FFFFFF">

    <B><FONT style="font-family: 'Times New Roman', Times">EXPERTS</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: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The financial statements of Plains All American Pipeline, L.P.
    and management&#146;s assessment of the effectiveness of
    internal control over financial reporting (which is included in
    Management&#146;s Report on Internal Control over Financial
    Reporting) incorporated in this prospectus by reference to the
    Annual Report on
    <FONT style="white-space: nowrap">Form&#160;10-K</FONT>
    of Plains All American Pipeline, L.P. for the year ended
    December&#160;31, 2007, have been so incorporated in reliance on
    the report of PricewaterhouseCoopers LLP, an independent
    registered public accounting firm, given on the authority of
    said firm as experts in auditing and accounting.
</DIV>

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

<DIV align="left" style="margin-left: 0%; margin-right: 0%; text-indent: 4%; font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    The balance sheet as of December&#160;31, 2007 of PAA GP LLC
    incorporated in this prospectus by reference to the Current
    Report on
    <FONT style="white-space: nowrap">Form&#160;8-K</FONT>
    of Plains All American Pipeline, L.P. filed March&#160;10, 2008
    has been so incorporated in reliance on the report of
    PricewaterhouseCoopers LLP, an independent registered public
    accounting firm, given on the authority of said firm as experts
    in auditing and accounting.
</DIV>

<P align="center" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: #FFFFFF">
    <BR>
    34
</DIV><!-- END PAGE WIDTH -->
<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#H84049tocpage">Table of Contents</A></H5><P>

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

<DIV style="font-size: 0pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 2pt solid #000000"></DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="margin-top: 3pt; 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: 14pt">7,500,000 Common
    Units</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; 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">
    <IMG src="h84049b5h8404901.gif" alt="(PLAINS LOGO)"><B><FONT style="font-size: 14pt">
    </FONT></B>
</DIV>

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

<CENTER><DIV style="font-size: 1pt; width: 25%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<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: 12pt">PROSPECTUS SUPPLEMENT</FONT></B>
</DIV>

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

<CENTER><DIV style="font-size: 1pt; width: 25%; border-bottom: 1pt solid #000000"></DIV></CENTER>

<DIV style="margin-top: 3pt; 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">
    <I>Joint Book-Running Managers</I>
</DIV>

<DIV style="margin-top: 3pt; 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">Citigroup</FONT></B>
</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">Barclays Capital</FONT></B>
</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">BofA Merrill Lynch</FONT></B>
</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">J.P.&#160;Morgan</FONT></B>
</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">UBS Investment Bank</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; 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">
    <I>Senior Co-Manager</I>
</DIV>

<DIV style="margin-top: 3pt; 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: 14pt">Raymond James</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; 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">
    <I>Junior Co-Managers</I>
</DIV>

<DIV style="margin-top: 3pt; 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: 14pt">RBC Capital Markets</FONT></B>
</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: 14pt">Sanders Morris Harris</FONT></B>
</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: 14pt">Tudor, Pickering,
    Holt&#160;&#038; Co.</FONT></B>
</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: 14pt">BMO Capital Markets</FONT></B>
</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: 14pt">Janney Montgomery
    Scott</FONT></B>
</DIV>

<DIV style="margin-top: 3pt; 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">
    August&#160;12, 2011
</DIV>

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

<DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 1pt solid #000000"></DIV>

<DIV style="font-size: 2pt; margin-left: 0%; width: 100%;  align: left; border-bottom: 2pt solid #000000"></DIV>
<!-- XBRL Pagebreak Begin -->

<P align="left" style="font-size: 10pt; font-family: 'Times New Roman', Times; color: #000000; background: transparent">

</DIV><!-- END PAGE WIDTH -->
</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>GRAPHIC
<SEQUENCE>2
<FILENAME>h84049b5h8404901.gif
<DESCRIPTION>GRAPHIC
<TEXT>
begin 644 h84049b5h8404901.gif
M1TE&.#EAR@!``-4R`$!`0,G)R7]_?S\_/V!@8.#@X*"@H/#P\#`P,!`0$-#0
MT'!P<&9F9LC(R+^_O["PL"`@(%!04)"0D(R,C+*RL@\/#Q\?'U]?7^_O[\_/
MSR\O+QL;&Q(2$I*2DN3DY*^OKV]O;]_?WX^/CY:6EC,S,TQ,3$]/3V1D9)^?
MGT9&1H6%A6EI:5E9620D)("`@,#`P````/_______P``````````````````
M`````````````````````````````````"'Y!`$``#(`+`````#*`$````;_
MP)=P2"P:C\BD<IDLR)Y0!?.E@#Z9!ZMV:R7`G%SHLMK<2HU5<00"`Q!>3ZD,
M1J_;[_B\?L_O[UU;`'YU"`M.?G!ABC)L$HMS?`"0>1"!>9(R!Q%M+@8+"6TO
M"8!T`Z:GJ*FJJZRMKJ^I%C"`82]VF%`&H'2T,BYVO8]A"G01PD^_=8E:R<"U
M,,M/@@96!UZ\D#':V]S=WM_@X>+CW0*SBK9UN%%V"\C.QV$+=5G"S=!<OVQU
M"6!:MM$,P'"WY1HI&.02*ES(,(:Y8/]N<;E&!\X]B/&@[(-!S9Z=:%!^/;AC
M;`M`*VS\50-UL*'+EPT?HI.X18(=`K[@9;1"K`Y._X_*\L&0(>BC27Q/"L"H
M%.972Y@),8B`JE#F,W5<TM%)D+,.QHSWN`*M*%1&SSI,K9R\`D,L%Z5/J8HS
MYT#N.*M9:4:TTQ7;3BL([CP8BY394!GS=+)=EDZEEE'9[(:C*WGRN:MTUHFY
MT_?R7QE**0XD#/+=DP.[MJI<*R,=@GI;#,"A4QD<Y=K>\![%NKM.YZ_')$!0
MBI9TV2<"[91<O'GK@M)0:.,N!Z/N=&ZZ]V;FDIP.@M^?GR#`&;A.&D7WH/\"
M?(=QX0-X$BPX'QUA91"#\%R0FUVMWBYV4'-1>$H-EIA?Z!FUQ7K-$;)9-)M0
MTM$3TDF&7WYV[$=5?PVVL?\%:@Z"]YD$8FD%PW>+I'<<%*+!X$AKA<&XQVL4
MVH?;!Q54,)5#U<6`P04P:)!!91RRQ1N`WM4SX&<1_"1#:E^DJ*!A6A0`90)9
ML/;$@7G06"%N&)@`PP#FC"E`C@+@5J2,=$#@PILN++`/9"$I%@]\@STAVH1"
M!;7@85;<`P-.6K[S1V37Q?"!+'8,$,)T:YJ8``"45NI"GH':>8Q`5G0'PW)]
MDO4G%QM55&A2!$#)#WPV)OJC+!JD>5VD_TGI%9.@LDI/@GY2V9MWIW8:H1TC
MM7J=`P(,`,,%LD+JV:^:\8K@G1QI410=F/[9:Z9A7%M,C&$4P&4RB6Y39AV)
MTGK_Y"-+#N.80`\4(9J3VHKJZQ;$M1>/`KN06RZ/=J3[K'8>'M,N%P.WF(=;
M]8)K6E-X0'>5O^6>^V5MZFYGL*96#)P`GU"49Z]AV]:IR`&E%N9"6F$$1K'`
M`<\ZL'_KVCJM%L0$,Q)LF=9!4,/J`<J=ON\XIH47+\L<L[/`L5DP84W;E"T!
MH/)D!\L]CVSR(MXN\\N+87A1[+\`HRMSTR9&"_&M+<>8`-A;E$I?G24_K,A9
M*B^U"!NLDFVQL43.W*':H0HN0['+C&0TBW;`3;?6=BM"D==T.+X93A<[N[2:
MACM->,-?B6+O`BB&4:QWA0<M#(AYMS5W)@CT@RC,9C-M_X80-A$RQ.)#S%N$
M`:(1`<$;0EA1P!""%=][XT*0(807NRN2.^6@?,Q38'EF'K@>U@6.D;=Y?(5A
M>WID77X?DNC1M`R!>9V`%&P,3_I2RVAO5P:,YJ&A]^'U[____U.`"_Q1`'\\
M8`&46D"V9E<;!_!A`)Q;'P`G2,$*?L9^<LG``"J0!PV`(((6#*$(1R@,#%+%
M@7N`(,8Z1\(6NM!_)H0*"O6@0OYIH0,MR*$.=\C#'OKPAT`,HA"'2,0B$K$#
M,=P0'BKP*!!JP0,!B*(4ITC%*EKQBEC,HA:WR,4N<M$#24R(Q32$`3RHT`&R
M2&,37[*F%[KQC24$W$N4%;,/X/_!`MKX6_=<TD;0+!!.;UI&`0`Y0'9IP0"`
MA,(!`/D"0@*R`(ATY'D(F8@#2"`";GB!XR!Y2#A-\DW)20@L.-BH#79P`/FC
M@P98,:2[L%`&J?K'-5[@CP.XY@4\V\)(HJ&`W,$@#=VAY0L"@X`A_((*N7O#
M`T#QDV%6Q`G+1(`3"A`8+=A$)0JX!I:N0(#YT&$"X`RG.,,YOG+Z807C3.<$
M4L!"$/V1#@A[FB(V0:_6E(<6$=@%%`2Q#@(,)AVT2$8:BF(D`@J-$2YB1GE*
MYX+9R-$;YHPH]\C1QN14+1GQ_-QIML*S1H("10@@J#0*5H7CR2B@HA(I&TJ'
M')IAK:'_Y?E)0R%!1(G:U`X;&"('6(B`??`,HUO0F/3*PZ=&7J,`!Q0I40K&
M,H#JJ2WU(&A/-$J`\M"GH5:B@X`<ZH"N>O6K7KVI6$4`UK(Z`$A-*T`$D@,W
MH&I!J"TC#DL;62S@*4"I@D"``39!,P"X('8$\`=!<]>T`Q23#O2:J58$Z%"Q
M.O:QG5,@B%CFUH[)TPPXB9`_&LFJ"'P'KTMQ`5^;XX(#S`,`L"%H,IIF`$>P
M89O(2$3NY./0A$`VHGNT3>>8<HU)PC.HEST:'(KULT;*($+N`"TFFHJ-SNX3
MGL6J)V"<D+L)S?0)PW(H!;;+W>YR][;F5(%WQTL!%ACN`1"H_Q1BZ=:I@ZQC
M'2BK%"C28MSD5$&Y+27*26L$*(*R2C,&F&9Z*274Z\*.+'1@@((7S.`%@[><
M)6BPA!E``L-%X#RO9>\^!R-48K27;GDR+GS$@M]<2,*I".WO;^<!VTPD``X+
MF)!F8\L34#ATPA)^\/@BC.,%5_@KU+1"=0UU&NA!`A/#9)DTH4"<GQQ0/#\I
M\>$FM5]8TD$!]_VM80>5E&JBS`K%HL4"'+=+2#3@S&A.,YIUC*$1J/G-#3C!
MS!!(J2K0.8&5RC.E#*#G2A&$SWLV2Y\K)0/9W#7/@!ZT)_2<"0+L6<\=X7-Z
M$2#:1%<AT7BF%#.J0(>:LGD0.17B3O\E",=2FYJF0_PTJ'7ZRE.[^H6=3K6J
M^Q#J(([ZU;AV-1W@_.99]\'-O$:SG#&"0R,:^]C(3K:RAXC$AW;#UWS([3?Z
M`T4O6OO:V,ZVMK<(1F<SA([HPD`JZS`D/4*EC[E.=P7#2`X@U4$#>32C-E#`
MP7JWDHVM5K>^8>AM_LC;=O^@,P%<X.@8MT;@@`!>`D7K5XLX&@`+B%,"0>,"
M2D6@D+E`N"\J-:&]KM47F/0KP2EE.68\_#GHJ#@`+HY``DR(W?B^0PU7&#J_
MI,,=*.Y*(I(QF&0L0Q?U45O.#]0+XXY4:!4'BL0LBXF>E`3F+D$!'DQPMKQX
MQC<Y][F1)*'_]0,XX>7!K;(O'A#3*_1"I`7(`LCZM/2@U^<P4'=)63%0]=W0
M(ATG1I#6NP((K4?\K6'/.B[+$P%;GAV>FFA[SQ1_Y#B@CH%DJYC@\"[QM69)
M[X@=N3\-%=*!P96T(8&#-;SS@,.WH7WQV/LBVE1Y"=0C[I''=\TGCWF'Z;S0
M@/!ZC=:1=K$;6)NFUQ,<>F\K7F8T#'00@/*7S_SF.__YT(^^]*???&7-_OIT
M"QH^=._RW5L!`'`0?,^"#YHL@+\U!EX\%"3@CD&"73-TA;;\;V8D[!M*^XD8
M)%(TIH!-."'GF]<IGJ%4_0<#65`'"W1[^@<(19$(GZ<,4Q"!$CB!/Q-H-(WT
M2&I!2+B72('B2'!20![X)AL()[Y`@F"V<R%("Q+P5XZ3@O_G`HYP@1\(!:6W
/=OMV@SAX#&272R$4!``[
`
end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
