On our EAST TEXAS SYSTEM, we have increased customer access to preferred natural gas markets. In the first quarter of 2008, we will complete pipeline construction on an expansion and extension of the system to handle the strong growth occurring in East Texas natural gas production, particularly from the Deep Bossier Sands and nearby production regions. Our East Texas expansion project, otherwise known as Clarity, connects our East Texas System to multiple downstream pipelines, allowing us to move significant quantities of natural gas from all three of our major systems to key market hubs in Texas. From these hubs, natural gas can be transported to consumers in the Midwest and Northeast United States.

	Crews work to install a section of 36-inch pipe on the expansion of the East Texas System, also known as the Clarity project.

In addition to expanding our transportation capacity to meet the needs of our customers, we have also expanded our treating capacity on the East Texas System. In conjunction with the East Texas expansion project, we constructed and placed in service a 200 MMcf/d treating plant in Marquez, Texas, which will allow us to transport pipeline quality gas on Clarity. We also added three hydrocarbon dewpoint control facilities with total capacity of 550 MMcf/d at Carthage, Grapeland and Henderson, Texas, to meet the increasingly stringent natural gas quality specifications of the various interconnected intrastate and interstate pipelines. Lastly, we enhanced the operation of our existing Aker treating facility and additional expansions are under way at this facility in 2008.

The Weatherford processing facility, which was completed and expanded in 2007, added 75 million cubic feet per day of processing capacity to our North Texas System.

Our ANADARKO SYSTEM is located within the Anadarko Basin in the Texas Panhandle and western Oklahoma and continues to experience growth as a result of the rapid development of the Granite Wash formation. In 2007, we completed construction of the Hidetown cryogenic processing plant, adding 120 MMcf/d of processing capacity to the system. We also increased field compression, increasing our system capacity, which allows us to transport additional volumes of natural gas to and from this plant.

Construction of the Weatherford processing facility within our NORTH TEXAS SYSTEM was completed in September 2007 with a capacity of approximately 35 MMcf/d. At the end of 2007 additional processing capacity was added to the Weatherford facility to increase its capacity to 75 MMcf/d. The production area surrounding our North Texas System is one of the most active natural gas regions in North America and the largest in Texas.

We continue to evaluate other projects that could further integrate our major Texas-centered natural gas pipeline systems.