February 26, Dear Unitholder: JANUARY 2012 TEST K LOUISIANA STREET SUITE 1000 HOUSTON, TX 77002

Transcription

1 . (NYSE:EP) JNURY 22 TEST K LOUISIN STREET SUITE HOUSTON, TX 772 February 26, 23 ear Unitholder: Enclosed is your El Paso Pipeline Partners, L.P. (EP or Partnership) tax package for 22. The information contained in this package is being provided to you because the Partnership has been notified either by your broker or the Partnership s transfer agent that you were an owner of Partnership units during the 22 tax year. ccordingly, if the information provided by your broker or the transfer agent is incorrect, the information being reported to you and the Internal Revenue Service (IRS) will be incorrect. To that end, it is important that you carefully review the information included in this package and, in particular, the Transaction Schedule (explained below) to ensure it is consistent with the information sent to you by your broker or transfer agent for 22. If you have not received a 22 brokerage statement reflecting that you owned Partnership units, please contact EP s Tax Package Support (contact information below) so that the Partnership can update its records. The information contained in this package is more voluminous than what you may be use to receiving from your traditional equity investments in corporations. This is largely attributable to the more tax-favorable structure of EP as a publicly-traded partnership (PTP) under the U.S. tax laws. s a PTP, the Partnership generally does not pay taxes like a corporation, thereby allowing for more cash to be distributed to its unitholders. Such favorable tax treatment creates some additional complexity compared with traditional investments in a corporation. For example, the Form 99 issued by corporations merely reports interest and dividends. Partnerships, however, are required to separately report many different items of income, gain, loss, deduction and credit on a Schedule K-. areful attention to the information contained herein and, if needed, the assistance of a tax advisor, should allow you to report this information on your tax return with little difficulty. lso, please note that additional guidance is provided on the EP Website, which may be accessed at and clicking K- Tax Information. Specifically, the following documents are being provided in this package:. Schedule K- and Instructions: The most important document in the Package, the Schedule K-, provides your share of the Partnership s 22 income, deductions, credits, and related items. The K- information is to be included in your tax return to be filed for the 22 tax year. ecause of certain reporting limitations on the K-, the Partnership also provides other important operating results needed in the preparation of your tax return in the dditional Information Statement described below. lso note, if applicable, that ox of the Schedule K- includes Internal Revenue ode (ode) Section 743(b) adjustments. The Partnership has made a ode Section 754 election to adjust the basis of partnership property when property is distributed or when a partnership interest is transferred (under ode Section 743(b)). T.E923a-- PSYS_NEWPGE LNKNME 2//23 FOREIGN PRTNER GENERL PRTNER TEST LL UKETS LRGE NEGTIVES 6 LINES NME RESS PLNKNME

2 2. dditional Information Statement: This Statement provides the K- box number, the code, the description, and the dollar amount for those items in box 2 marked in the Schedule K- with an asterisk and/or STMT. More specifically: ox 2 items relate to the following: State bonus depreciation adjustment 3. State Information: Since the Partnership has operations in various states, you may be required to file an income tax return with those states. The Partnership is subject to and does pay the Texas Franchise (Margin) Tax, which is treated as a state income tax for federal income tax purposes. This State Information is not a tax return document. 4. Transactions Schedule and Sales Worksheet: These two important schedules contain your history of EP units bought or sold by date and number of units, as reported to the Partnership by your broker or the Partnership s transfer agent. In addition, if you sold EP units during the 22 tax year, the Sales Worksheet is provided to calculate your gain or loss from the disposition of Partnership units. The 22 Sales Worksheet provides specific instructions to calculate your ordinary and capital gain or loss, as the case may be. In addition, if you reported ordinary income from the sale of your units, you will need to file a ode Section 75 Statement; an example is provided on the Sales Worksheet. lso included for your assistance in better understanding the tax reporting rules for taxpayers receiving K-s are: FQs and Graphic Guide. The FQs address general tax-related issues associated with you receiving a Schedule K-, rather than a Form 99. The Graphic Guide links the information reflected on the Schedule K- to the specific tax forms that may be required in the filing of your 22 federal income tax return. Finally, you should note that () your K- reflects certain nonrecourse liabilities of the Partnership being allocated to you likely resulting in an increase in your tax basis, and (2) the Partnership continues to claim bonus depreciation in 22 resulting in an increased allocation of the related depreciation deduction. ny corrections to this information or any other information reflected in this package must be submitted to the Partnership by May, 23 in any one of the following ways:. Mail to El Paso Pipeline Partners, L.P., ttention: Tax Package Support, P.O. ox 7996, allas, TX ; 2. all Tax Package Support at ; or 3. Submit corrections online through the Partnership s website at t this site, click K- Tax Information, which takes you to the Partnership s Tax Reporting Package logon screen. There you will be able to view your 22 tax schedules, request changes to incorrect information, print your tax package, transfer K- information to IRS forms, and print blank IRS forms. lso, please note that for the first time unitholders may elect to receive their K- Information exclusively through the Partnership s website by clicking the link named "Go Paperless" located on the registered user s home page. Failure to submit corrections by May st may require you to include in your federal income tax return Treasury Form "Notice of Inconsistent Treatment or dministrative djustment". Thank you for your investment in EP. El Paso Pipeline Partners, L.P. While EP invests hundreds of millions of dollars each year to grow the company and operate our assets safely, we have always taken pride in being prudent with how we spend your money. To that point, we will not print and mail hard copies of our annual report. Instead, we will publish hairman and EO Richard. Kinder s unitholder letter on our web site at oth the letter and EP s Form -K will be available online by early March. We hope that the resulting cost savings, along with the benefit of reducing our impact on the environment, outweighs any inconvenience. Please direct any inquiries to Investor Relations at (8) or (73) T.E923a--2

3 Schedule K- (Form 65) 22 Internal Revenue Service For calendar year 22, or tax year beginning, 22 ending, 2 Partner s Share of Income, eductions, redits, etc. See back of form and separate instructions. Information bout the Partnership Partnership s employer identification number Partnership s name, address, city, state, and ZIP code EL PSO PIPELINE PRTNERS LP LOUISIN ST HOUSTON, TX 772 II Final K- mended K- 652 OM No Partner s Share of urrent Year Income, eductions, redits, and Other Items Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a 6b Ordinary dividends Qualified dividends redits 6 Foreign transactions IRS enter where partnership filed return OGEN X heck if this is a publicly traded partnership (PTP) 7 Royalties 8 Net short-term capital gain (loss) E F G I Information bout the Partner Partner s identifying number Partner s name, address, city, state, and ZIP code JNURY 22 TEST K LOUISIN STREET SUITE HOUSTON, TX 772 X General partner or LL member-manager Limited partner or other LL member H omestic partner Foreign partner X 9a Net long-term capital gain (loss) 9b ollectibles (28%) gain (loss) 9c Unrecaptured section 25 gain Net section 23 gain (loss) Other income (loss) 32 7 lternative minimum tax (MT) items 8 Tax-exempt income and nondeductible expenses 72-2 I I2 J What type of entity is this partner? (see instructions) Individual If this partner is a retirement plan (IR/SEP/Keogh/etc.), check here (see instructions) Partner s share of profit, loss, and capital (see instructions): eginning Ending..454 Profit % % Loss. %.454 % apital % % Section 79 deduction 3 Other deductions 9 istributions 2 Other information 2,4 5 K L Partner s share of liabilities at year end: Nonrecourse $ Qualified nonrecourse financing. $ Recourse $ Partner s capital account analysis: eginning capital account... $ apital contributed during the year $ urrent year increase (decrease). $ Withdrawals & distributions.. $ ( 2,4 ) Ending capital account.... $ X Tax basis GP Section 74(b) book Other (explain) 8,736 34, ,27 N 4 Self-employment earnings (loss) V Y* *See attached statement for additional information. For IRS Use Only,2-526 STMT M id the partner contribute property with a built-in gain or loss? X Yes No If Yes, attach statement (see instructions) For Paperwork Reduction ct Notice, see Instructions for Form 65. IRS.gov/form65 at. No. 394R Schedule K- (Form 65) 22

4 Schedule K- (Form 65) 22 Page 2 This list identifies the codes used on Schedule K- for all partners and provides summarized reporting information for partners who file Form 4. For detailed reporting and filing information, see the separate Partner s Instructions for Schedule K- and the instructions for your income tax return.. Ordinary business income (loss). etermine whether the income (loss) is ode Report on passive or nonpassive and enter on your return as follows. J Work opportunity credit Report on K isabled access credit Passive loss See the Partner s Instructions L Empowerment zone and Passive income Schedule E, line 28, column (g) renewal community Nonpassive loss Schedule E, line 28, column (h) employment credit Nonpassive income Schedule E, line 28, column (j) M redit for increasing research See the Partner s Instructions 2. Net rental real estate income (loss) See the Partner s Instructions activities 3. Other net rental income (loss) N redit for employer social Net income Schedule E, line 28, column (g) security and Medicare taxes Net loss See the Partner s Instructions O ackup withholding 4. Guaranteed payments Schedule E, line 28, column (j) 5. Interest income Form 4, line 8a 6a. Ordinary dividends Form 4, line 9a 6b. Qualified dividends Form 4, line 9b 7. Royalties Schedule E, line 4 8. Net short-term capital gain (loss) Schedule, line 5 9a. Net long-term capital gain (loss) Schedule, line 2 9b. ollectibles (28%) gain (loss) 28% Rate Gain Worksheet, line 4 (Schedule instructions) 9c. Unrecaptured section 25 gain See the Partner s Instructions. Net section 23 gain (loss) See the Partner s Instructions. Other income (loss) ode Other portfolio income (loss) See the Partner s Instructions Involuntary conversions See the Partner s Instructions Sec. 256 contracts & straddles Form 678, line Mining exploration costs recapture See Pub. 535 E ancellation of debt Form 4, line 2 or Form 982 F Other income (loss) See the Partner s Instructions 2. Section 79 deduction See the Partner s Instructions 3. Other deductions ash contributions (5%) ash contributions (3%) Noncash contributions (5%) Noncash contributions (3%) E apital gain property to a 5% organization (3%) F apital gain property (2%) See the Partner s Instructions G ontributions (%) H Investment interest expense Form 4952, line I eductions royalty income Schedule E, line 9 J Section 59(e)(2) expenditures See the Partner s Instructions K eductions portfolio (2% floor) Schedule, line 23 L eductions portfolio (other) Schedule, line 28 M mounts paid for medical insurance Schedule, line or Form 4, line 29 N Educational assistance benefits See the Partner s Instructions O ependent care benefits Form 244, line 2 P Preproductive period expenses See the Partner s Instructions Q ommercial revitalization deduction See Form 8582 instructions from rental real estate activities R Pensions and IRs See the Partner s Instructions S Reforestation expense deduction See the Partner s Instructions T omestic production activities See Form 893 instructions information U Qualified production activities income Form 893, line 7b V Employer s Form W-2 wages Form 893, line 7 W Other deductions See the Partner s Instructions 4. Self-employment earnings (loss) Note. If you have a section 79 deduction or any partner-level deductions, see the Partner s Instructions before completing Schedule SE. Net earnings (loss) from Schedule SE, Section or self-employment Gross farming or fishing income See the Partner s Instructions Gross non-farm income See the Partner s Instructions 5. redits Low-income housing credit (section 42(j)(5)) from pre-28 buildings Low-income housing credit (other) from pre-28 buildings Low-income housing credit (section 42(j)(5)) from post-27 buildings See the Partner s Instructions Low-income housing credit (other) from post-27 buildings E Qualified rehabilitation expenditures (rental real estate) F Other rental real estate credits G Other rental credits H Undistributed capital gains credit Form 4, line 7; check box a I lcohol and cellulosic biofuel fuels See the Partner's Instructions credit P Other credits 6. Foreign transactions Name of country or U.S. possession Gross income from all sources Form 6, Gross income sourced at partner level Foreign gross income sourced at partnership level Passive category E General category Form 6, F Other eductions allocated and apportioned at partner level G Interest expense Form 6, H Other Form 6, eductions allocated and apportioned at partnership level to foreign source income I Passive category J General category Form 6, K Other Other information L Total foreign taxes paid Form 6, I M Total foreign taxes accrued Form 6, I N Reduction in taxes available for credit Form 6, line 2 O Foreign trading gross receipts Form 8873 P Extraterritorial income exclusion Form 8873 Q Other foreign transactions See the Partner s Instructions 7. lternative minimum tax (MT) items Post-986 depreciation adjustment djusted gain or loss See the Partner s epletion (other than oil & gas) Instructions and Oil, gas, & geothermal gross income the Instructions for E Oil, gas, & geothermal deductions Form 625 F Other MT items 8. Tax-exempt income and nondeductible expenses Tax-exempt interest income Form 4, line 8b Other tax-exempt income See the Partner s Instructions Nondeductible expenses See the Partner s Instructions 9. istributions ash and marketable securities istribution subject to section 737 See the Partner s Instructions Other property 2. Other information Investment income Form 4952, line 4a Investment expenses Form 4952, line 5 Fuel tax credit information Form 436 Qualified rehabilitation expenditures See the Partner s Instructions (other than rental real estate) E asis of energy property See the Partner s Instructions F Recapture of low-income housing Form 86, line 8 credit (section 42(j)(5)) G Recapture of low-income housing Form 86, line 8 credit (other) H Recapture of investment credit See Form 4255 I Recapture of other credits See the Partner s Instructions J Look-back interest completed See Form 8697 long-term contracts K Look-back interest income forecast See Form 8866 method L ispositions of property with section 79 deductions M Recapture of section 79 deduction N Interest expense for corporate partners O Section 453(l)(3) information P Section 453(c) information Q Section 26(b) information See the Partner s R Interest allocable to production Instructions expenditures S F nonqualified withdrawals T epletion information oil and gas U mortization of reforestation costs V Unrelated business taxable income W Precontribution gain (loss) X Section 8(i) information Y Other information

5 22 SHEULE K- ITIONL INFORMTION STTEMENT PRTNER NME: JNURY 22 TEST K PRTNER OUNT NUMER: MN PRTNER FEERL I/ENTITY: / Individual USTOIN FEERL I: PRTNERSHIP FEERL I: K- OES ESRIPTION MOUNT/SOURE 2Y Federal onus epreciation djustment for ox 2Y2 Gross Receipts 333 5,692 For tax year 22, the Partnership has elected to take bonus depreciation for qualifying assets placed into service for federal income tax purposes. However there are certain states (non-conforming states) that do not allow the federal bonus depreciation adjustment. If you reside in one of the non-conforming states, when preparing your resident state income tax return you must adjust the amount reported on ox of your Schedule K- by the bonus depreciation adjustment provided in the Schedule K- Supplemental Information ox 2. See the FQs for a listing of the non-conforming states. T.E923a--5

6 PRTNER NME: JNURY 22 TEST K PRTNER OUNT NUMER: MN PRTNER FEERL I/ENTITY: USTOIN FEERL I: PRTNERSHIP FEERL I: / Individual TRNSTIONS SHEULE NOTE: THIS TRNSTIONS SHEULE IS NOT PROOF OF OWNERSHIP NOR SHOUL IT E ONSTRUE S PROOF OF OWNERSHIP IN EL PSO PIPELINE PRTNERS, L.P. TRNSTION ESRIPTION TE ROKER OR ERTIFITE NUMER UNITS UY //22 ROKER-MN,. EN OF YER UNITS,. T.E923a--7

7 22 STTE INFORMTION PRTNER NME: JNURY 22 TEST K PRTNER OUNT NUMER: MN PRTNER FEERL I/ENTITY: / Individual USTOIN FEERL I: PRTNERSHIP FEERL I: State Information State L O FL G KS L MS MT OK S TN UT WY () NET ORINRY INOME OR LOSS (-) (2) PORTFOLIO IVIEN INOME (3) PORTFOLIO INTEREST INOME (4) INVESTMENT INTEREST EXPENSE (5) FOREIGN TXES RUE (6) GROSS REEIPTS , (7) STTE INOME TX T.E923a--6

8 SHEULE E (Form 4) Internal Revenue Service (99) Supplemental Income and Loss (From rental real estate, royalties, partnerships, S corporations, estates, trusts, REMIs, etc.) ttach to Form 4, 4NR, or Form 4. Information about Schedule E and its separate instructions is at OM No ttachment Sequence No. 3 Name(s) shown on return Your social security number Income or Loss From Rental Real Estate and Royalties Note. If you are in the business of renting personal property, use Schedule or -EZ (see instructions). If you are an individual, report farm rental income or loss from Form 4835 on page 2, line 4. id you make any payments in 22 that would require you to file Form(s) 99? (see instructions) Yes No If Yes, did you or will you file required Forms 99? Yes No a Physical address of each property (street, city, state, ZIP code) b Type of Property (from list below) 2 For each rental real estate property listed above, report the number of fair rental and personal use days. heck the QJV box only if you meet the requirements to file as a qualified joint venture. See instructions. Fair Rental ays Personal Use ays QJV Type of Property: Single Family Residence 2 Multi-Family Residence 3 Vacation/Short-Term Rental 4 ommercial 5 Land 6 Royalties 7 Self-Rental 8 Other (describe) Income: Properties: 3 Rents received Royalties received Expenses: 5 dvertising uto and travel (see instructions) leaning and maintenance ommissions Insurance Legal and other professional fees Management fees Mortgage interest paid to banks, etc. (see instructions) 2 3 Other interest Repairs Supplies Taxes Utilities epreciation expense or depletion Other (list) 9 2 Total expenses. dd lines 5 through Subtract line 2 from line 3 (rents) and/or 4 (royalties). If result is a (loss), see instructions to find out if you must file Form eductible rental real estate loss after limitation, if any, on Form 8582 (see instructions) ( ) ( ) ( ) 23a Total of all amounts reported on line 3 for all rental properties a b Total of all amounts reported on line 4 for all royalty properties b c Total of all amounts reported on line 2 for all properties c d Total of all amounts reported on line 8 for all properties d e Total of all amounts reported on line 2 for all properties e 24 Income. dd positive amounts shown on line 2. o not include any losses Losses. dd royalty losses from line 2 and rental real estate losses from line 22. Enter total losses here 25 ( ) 26 Total rental real estate and royalty income or (loss). ombine lines 24 and 25. Enter the result here. If Parts II, III, IV, and line 4 on page 2 do not apply to you, also enter this amount on Form 4, line 7, or Form 4NR, line 8. Otherwise, include this amount in the total on line 4 on page For Paperwork Reduction ct Notice, see your tax return instructions. at. No. 344L Schedule E (Form 4) 22 Form 625 Internal Revenue Service (99) lternative Minimum Tax Individuals Information about Form 625 and its separate instructions is at ttach to Form 4 or Form 4NR. OM No ttachment Sequence No. 32 Name(s) shown on Form 4 or Form 4NR Your social security number lternative Minimum Taxable Income (See instructions for how to complete each line.) If filing Schedule (Form 4), enter the amount from Form 4, line 4, and go to line 2. Otherwise, enter the amount from Form 4, line 38, and go to line 7. (If less than zero, enter as a negative amount.) 2 Medical and dental. Enter the smaller of Schedule (Form 4), line 4, or 2.5% (.25) of Form 4, line 38. If zero or less, enter Taxes from Schedule (Form 4), line Enter the home mortgage interest adjustment, if any, from line 6 of the worksheet in the instructions for this line 4 5 Miscellaneous deductions from Schedule (Form 4), line Skip this line. It is reserved for future use Tax refund from Form 4, line or line ( ) 8 Investment interest expense (difference between regular tax and MT) epletion (difference between regular tax and MT) Net operating loss deduction from Form 4, line 2. Enter as a positive amount lternative tax net operating loss deduction ( ) 2 Interest from specified private activity bonds exempt from the regular tax Qualified small business stock (7% of gain excluded under section 22) Exercise of incentive stock options (excess of MT income over regular tax income) Estates and trusts (amount from Schedule K- (Form 4), box 2, code ) Electing large partnerships (amount from Schedule K- (Form 65-), box 6) isposition of property (difference between MT and regular tax gain or loss) epreciation on assets placed in service after 986 (difference between regular tax and MT) Passive activities (difference between MT and regular tax income or loss) Loss limitations (difference between MT and regular tax income or loss) irculation costs (difference between regular tax and MT) Long-term contracts (difference between MT and regular tax income) Mining costs (difference between regular tax and MT) Research and experimental costs (difference between regular tax and MT) Income from certain installment sales before January, ( ) 26 Intangible drilling costs preference Other adjustments, including income-based related adjustments lternative minimum taxable income. ombine lines through 27. (If married filing separately, see instructions.) I lternative Minimum Tax (MT) 29 Exemption. See instructions Subtract line 29 from line 28. If more than zero, go to line 3. If zero or less, enter -- here and on lines 3, 33, and 35, and go to line If you are filing Form 2555 or 2555-EZ, see instructions for the amount to enter. If you reported capital gain distributions directly on Form 4, line 3; you reported qualified dividends on Form 4, line 9b; or you had a gain on both lines 5 and 6 of Schedule (Form 4) (as refigured for the MT, if necessary), complete II on the back and enter the amount from line 54 here ll others: If line 3 is $75, or less ($87,5 or less if married filing separately), multiply line 3 by 26% (.26). Otherwise, multiply line 3 by 28% (.28) and subtract $3,5 ($,75 if married filing separately) from the result. 32 lternative minimum tax foreign tax credit (see instructions) Tentative minimum tax. Subtract line 32 from line Tax from Form 4, line 44 (minus any tax from Form 4972 and any foreign tax credit from Form 4, line 47). If you used Schedule J to figure your tax, the amount from line 44 of Form 4 must be refigured without using Schedule J (see instructions) MT. Subtract line 34 from line 33. If zero or less, enter --. Enter here and on Form 4, line For Paperwork Reduction ct Notice, see your tax return instructions. at. No. 36G Form 625 (22) SHEULE (Form 4 or 4) Internal Revenue Service (99) Interest and Ordinary ividends ttach to Form 4 or 4. Information about Schedule (Form 4 or 4) and its instructions is at OM No ttachment Sequence No. 8 Name(s) shown on return Your social security number Interest (See instructions on back and the instructions for Form 4, or Form 4, line 8a.) Note. If you received a Form 99-INT, Form 99-OI, or substitute statement from a brokerage firm, list the firm s name as the payer and enter the total interest shown on that form. List name of payer. If any interest is from a seller-financed mortgage and the buyer used the property as a personal residence, see instructions on back and list this interest first. lso, show that buyer s social security number and address mount 2 dd the amounts on line Excludable interest on series EE and I U.S. savings bonds issued after 989. ttach Form Subtract line 3 from line 2. Enter the result here and on Form 4, or Form 4, line 8a Note. If line 4 is over $,5, you must complete II. mount I Ordinary ividends (See instructions on back and the instructions for Form 4, or Form 4, line 9a.) Note. If you received a Form 99-IV or substitute statement from a brokerage firm, list the firm s name as the payer and enter the ordinary dividends shown on that form. 5 List name of payer 5 6 dd the amounts on line 5. Enter the total here and on Form 4, or Form 4, line 9a Note. If line 6 is over $,5, you must complete II. II Foreign ccounts and Trusts (See instructions on back.) You must complete this part if you (a) had over $,5 of taxable interest or ordinary dividends; (b) had a foreign account; or (c) received a distribution from, or were a grantor of, or a transferor to, a foreign trust. Yes No 7a t any time during 22, did you have a financial interest in or signature authority over a financial account (such as a bank account, securities account, or brokerage account) located in a foreign country? See instructions b If Yes, are you required to file Form T F to report that financial interest or signature authority? See Form T F and its instructions for filing requirements and exceptions to those requirements If you are required to file Form T F 9-22., enter the name of the foreign country where the financial account is located 8 uring 22, did you receive a distribution from, or were you the grantor of, or transferor to, a foreign trust? If Yes, you may have to file Form 352. See instructions on back For Paperwork Reduction ct Notice, see your tax return instructions. at. No. 746N Schedule (Form 4 or 4) 22 Form 4797 Internal Revenue Service Sales of usiness Property (lso Involuntary onversions and Recapture mounts Under Sections 79 and 28F(b)(2)) ttach to your tax return. Information about Form 4797 and its separate instructions is at OM No ttachment Sequence No. 27 Name(s) shown on return Identifying number Enter the gross proceeds from sales or exchanges reported to you for 22 on Form(s) 99- or 99-S (or substitute statement) that you are including on line 2,, or 2 (see instructions) Sales or Exchanges of Property Used in a Trade or usiness and Involuntary onversions From Other Than asualty or Theft Most Property Held More Than Year (see instructions) 2 (a) escription of property (b) ate acquired (mo., day, yr.) (c) ate sold (mo., day, yr.) (d) Gross sales price (e) epreciation allowed or allowable since acquisition (f) ost or other basis, plus improvements and expense of sale (g) Gain or (loss) Subtract (f) from the sum of (d) and (e) 3 Gain, if any, from Form 4684, line Section 23 gain from installment sales from Form 6252, line 26 or Section 23 gain or (loss) from like-kind exchanges from Form Gain, if any, from line 32, from other than casualty or theft ombine lines 2 through 6. Enter the gain or (loss) here and on the appropriate line as follows: Partnerships (except electing large partnerships) and S corporations. Report the gain or (loss) following the instructions for Form 65, Schedule K, line, or Form 2S, Schedule K, line 9. Skip lines 8, 9,, and 2 below. Individuals, partners, S corporation shareholders, and all others. If line 7 is zero or a loss, enter the amount from line 7 on line below and skip lines 8 and 9. If line 7 is a gain and you did not have any prior year section 23 losses, or they were recaptured in an earlier year, enter the gain from line 7 as a long-term capital gain on the Schedule filed with your return and skip lines 8, 9,, and 2 below. 8 Nonrecaptured net section 23 losses from prior years (see instructions) Subtract line 8 from line 7. If zero or less, enter --. If line 9 is zero, enter the gain from line 7 on line 2 below. If line Form 4952 Internal Revenue Service (99) Investment Interest Expense eduction Information about Form 4952 and its instructions is at ttach to your tax return. OM No ttachment Sequence No. 5 Name(s) shown on return Identifying number Total Investment Interest Expense Investment interest expense paid or accrued in 22 (see instructions) isallowed investment interest expense from 2 Form 4952, line Total investment interest expense. dd lines and I Net Investment Income 4 a Gross income from property held for investment (excluding any net gain from the disposition of property held for investment)... 4a b Qualified dividends included on line 4a b c Subtract line 4b from line 4a c d Net gain from the disposition of property held for investment.. 4d e Enter the smaller of line 4d or your net capital gain from the disposition of property held for investment (see instructions). 4e f Subtract line 4e from line 4d f g Enter the amount from lines 4b and 4e that you elect to include in investment income (see instructions) g h Investment income. dd lines 4c, 4f, and 4g h 5 Investment expenses (see instructions) Net investment income. Subtract line 5 from line 4h. If zero or less, enter II Investment Interest Expense eduction 7 isallowed investment interest expense to be carried forward to 23. Subtract line 6 from line 3. If zero or less, enter Investment interest expense deduction. Enter the smaller of line 3 or 6. See instructions.. 8 For Paperwork Reduction ct Notice, see page 4. at. No. 377Y Form 4952 (22) OM No Schedule K- (Form 65) 22 Internal Revenue Service For calendar year 22, or tax year beginning, 22 ending, 2 Partner s Share of Income, eductions, redits, etc. See back of form and separate instructions. 652 Final K- mended K- Information bout the Partnership Partnership s employer identification number Partnership s name, address, city, state, and ZIP code IRS enter where partnership filed return heck if this is a publicly traded partnership (PTP) Information bout the Partner I E Partner s identifying number F Partner s name, address, city, state, and ZIP code G General partner or LL member-manager Limited partner or other LL member H omestic partner Foreign partner I What type of entity is this partner? (see instructions) J Partner s share of profit, loss, and capital (see instructions): eginning Ending Profit % % Loss % % apital % % K Partner s share of liabilities at year end: Nonrecourse $ Qualified nonrecourse financing. $ Recourse $ L Partner s capital account analysis: eginning capital account... $ apital contributed during the year $ urrent year increase (decrease). $ Withdrawals & distributions.. $ ( ) Ending capital account.... $ Tax basis GP Section 74(b) book Other (explain) M id the partner contribute property with a built-in gain or loss? Yes No If Yes, attach statement (see instructions) Partner s Share of urrent Year Income, eductions, redits, and Other Items II Ordinary business income (loss) 2 Net rental real estate income (loss) 3 Other net rental income (loss) 4 Guaranteed payments 5 Interest income 6a Ordinary dividends 6b Qualified dividends 7 Royalties 8 Net short-term capital gain (loss) 9a Net long-term capital gain (loss) 9b ollectibles (28%) gain (loss) 9c Unrecaptured section 25 gain Net section 23 gain (loss) Other income (loss) 2 Section 79 deduction 3 Other deductions 4 Self-employment earnings (loss) 5 redits 6 Foreign transactions 7 lternative minimum tax (MT) items 8 Tax-exempt income and nondeductible expenses 9 istributions 2 Other information *See attached statement for additional information. For IRS Use Only For Paperwork Reduction ct Notice, see Instructions for Form 65. at. No. 394R Schedule K- (Form 65) 22 I2 If this partner is a retirement plan (IR/SEP/Keogh/etc.), check here (see instructions) IRS.gov/form65 Form 4 Internal Revenue Service OM No (99) IRS Use Only o not write or staple in this space. U.S. Individual Income Tax Return 22 For the year Jan. ec. 3, 22, or other tax year beginning, 22, ending, 2 See separate instructions. Your first name and initial Last name Your social security number If a joint return, spouse s first name and initial Last name Spouse s social security number Make sure the SSN(s) above and on line 6c are correct. Home address (number and street). If you have a P.O. box, see instructions. pt. no. ity, town or post office, state, and ZIP code. If you have a foreign address, also complete spaces below (see instructions). Foreign country name Foreign province/state/county Foreign postal code Presidential Election ampaign heck here if you, or your spouse if filing jointly, want $3 to go to this fund. hecking a box below will not change your tax or refund. You Spouse Filing Status heck only one box. Single 2 Married filing jointly (even if only one had income) 3 Married filing separately. Enter spouse s SSN above and full name here. 4 Head of household (with qualifying person). (See instructions.) If the qualifying person is a child but not your dependent, enter this child s name here. 5 Qualifying widow(er) with dependent child Exemptions 6a Yourself. If someone can claim you as a dependent, do not check box 6a..... b Spouse c ependents: () First name Last name (2) ependent s social security number (3) ependent s relationship to you (4) if child under age 7 qualifying for child tax credit (see instructions) If more than four dependents, see instructions and check here d Total number of exemptions claimed oxes checked on 6a and 6b No. of children on 6c who: lived with you did not live with you due to divorce or separation (see instructions) ependents on 6c not entered above dd numbers on lines above Income ttach Form(s) W-2 here. lso attach Forms W-2G and 99-R if tax was withheld. If you did not get a W-2, see instructions. Enclose, but do not attach, any payment. lso, please use Form 4-V. 7 Wages, salaries, tips, etc. ttach Form(s) W a Taxable interest. ttach Schedule if required a b Tax-exempt interest. o not include on line 8a... 8b 9a Ordinary dividends. ttach Schedule if required a b Qualified dividends b Taxable refunds, credits, or offsets of state and local income taxes limony received usiness income or (loss). ttach Schedule or -EZ apital gain or (loss). ttach Schedule if required. If not required, check here 3 4 Other gains or (losses). ttach Form a IR distributions. 5a b Taxable amount... 5b 6a Pensions and annuities 6a b Taxable amount... 6b 7 Rental real estate, royalties, partnerships, S corporations, trusts, etc. ttach Schedule E 7 8 Farm income or (loss). ttach Schedule F Unemployment compensation a Social security benefits 2a b Taxable amount... 2b 2 Other income. List type and amount 2 22 ombine the amounts in the far right column for lines 7 through 2. This is your total income 22 djusted Gross Income 23 Reserved ertain business expenses of reservists, performing artists, and fee-basis government officials. ttach Form 26 or 26-EZ Health savings account deduction. ttach Form Moving expenses. ttach Form eductible part of self-employment tax. ttach Schedule SE Self-employed SEP, SIMPLE, and qualified plans Self-employed health insurance deduction Penalty on early withdrawal of savings a limony paid b Recipient s SSN 3a 32 IR deduction Student loan interest deduction Reserved omestic production activities deduction. ttach Form Schedule E (Form 4) 22 ttachment Sequence No. 3 Page 2 Name(s) shown on return. o not enter name and social security number if shown on other side. Your social security number aution. The IRS compares amounts reported on your tax return with amounts shown on Schedule(s) K-. I Income or Loss From Partnerships and S orporations Note. If you report a loss from an at-risk activity for which any amount is not at risk, you must check the box in column (e) on line 28 and attach Form 698. See instructions. 27 re you reporting any loss not allowed in a prior year due to the at-risk or basis limitations, a prior year unallowed loss from a passive activity (if that loss was not reported on Form 8582), or unreimbursed partnership expenses? If you answered Yes, see instructions before completing this section. Yes No 28 (a) Name (b) Enter P for partnership; S for S corporation (c) heck if foreign partnership (d) Employer identification number (e) heck if any amount is not at risk Passive Income and Loss Nonpassive Income and Loss (f) Passive loss allowed (attach Form 8582 if required) (g) Passive income from Schedule K (h) Nonpassive loss from Schedule K (i) Section 79 expense deduction from Form 4562 (j) Nonpassive income from Schedule K 29a Totals b Totals 3 dd columns (g) and (j) of line 29a dd columns (f), (h), and (i) of line 29b ( ) 32 Total partnership and S corporation income or (loss). ombine lines 3 and 3. Enter the result here and include in the total on line 4 below II Income or Loss From Estates and Trusts 33 (a) Name (b) Employer identification number Passive Income and Loss Nonpassive Income and Loss (c) Passive deduction or loss allowed (attach Form 8582 if required) (d) Passive income from Schedule K (e) eduction or loss from Schedule K (f) Other income from Schedule K 34a Totals b Totals 35 dd columns (d) and (f) of line 34a dd columns (c) and (e) of line 34b ( ) 37 Total estate and trust income or (loss). ombine lines 35 and 36. Enter the result here and include in the total on line 4 below V Income or Loss From Real Estate Mortgage Investment onduits (REMIs) Residual Holder 38 (a) Name (b) Employer identification number (c) Excess inclusion from Schedules Q, line 2c (see instructions) (d) Taxable income (net loss) from Schedules Q, line b (e) Income from Schedules Q, line 3b 39 ombine columns (d) and (e) only. Enter the result here and include in the total on line 4 below 39 Part V Summary 4 Net farm rental income or (loss) from Form lso, complete line 42 below Total income or (loss). ombine lines 26, 32, 37, 39, and 4. Enter the result here and on Form 4, line 7, or Form 4NR, line Reconciliation of farming and fishing income. Enter your gross farming and fishing income reported on Form 4835, line 7; Schedule K- (Form 65), box 4, code ; Schedule K- (Form 2S), box 7, code U; and Schedule K- (Form 4), box 4, code F (see instructions) Reconciliation for real estate professionals. If you were a real estate professional (see instructions), enter the net income or (loss) you reported anywhere on Form 4 or Form 4NR from all rental real estate activities in which you materially participated under the passive activity loss rules.. 43 Schedule E (Form 4) EL PSO PIPELINE PRTNERS, L.P. Louisiana St Houston, TX 772 El Paso Pipeline Partners, L.P. El Paso Pipeline Partners, L.P. ( ) H G I E 22 GRPHI GUIE The amounts reported on your 22 Federal Schedule K- are represented by letters. Follow the arrows for each letter to locate the line on the appropriate federal form in which to report your federal amounts. *If the sum of boxes, 2, 3, 4, 8, 9a,,, 2, and 3J on your Schedule K- result in a negative number (a passive activity loss) do not report any of the amounts from boxes, 2, 3, 4, 8, 9a, 9b, 9c,,, 2, 3J, 5, and 7 on your 22 federal tax return unless you sold all of your partnership units prior to January, 23. If the sum of boxes, 2, 3, 4, 8, 9a,,, 2, and 3J on your Schedule K- result in a positive number, or if you sold units in the current year, see page 4 of the enclosed partner s instructions for Schedule K- for instructions regarding Publicly Traded Partnerships. You may also want to consult your Tax dvisor. I G H E

9 TX-4898 FREQUENTLY SKE QUESTIONS Q: re the cash distributions I received from the Partnership taxable? : In general, cash distributions received from the Partnership are not taxable. You are required to report in your tax return only those items of income, gain, loss, deduction or tax credit as reflected on your Schedule K-. Q: Why is the amount of cash I received different than my allocable share of Partnership income, gain, loss, deduction or credit? : The Partnership distributes available cash determined by the Partnership agreement. The calculation of cash available for distribution differs from the calculation of taxable income to be reported to the partners. For example, depreciation is an expense that reduces taxable income reported to the partners but does not reduce cash available for distribution. Q: If I sell my Partnership units, how is my tax basis determined for computing gain or loss? : Your tax basis is the original amount paid for the Partnership units, adjusted as follows: Increased by the cumulative amounts of income and gain reported to you on Schedule K-; Reduced by the cumulative amounts of loss, deduction and credit reported to you on Schedule K-; Increased by the non recourse debt allocated to you on the Schedule K-; Reduced, but not below zero, by the cumulative amounts of cash distributions received from the Partnership. Q: oes the Schedule K- show my tax basis in Partnership units? : No. However, the Schedule K- ox L Partner s apital ccount nalysis, may provide an approximation of your ending tax basis for all units owned at ecember 3. The amount reflected in the Ending apital ccount includes your original cost of units, as reported to the Partnership by your broker, and other adjustments affecting tax basis. However, brokers do not always report original cost to the Partnership, or the original cost reported may be incorrect. When brokers do not report original cost to the Partnership, the low closing price for the month in which you purchased units is assumed to be the cost. This assumption, or incorrect reporting by the broker, can cause this year end amount to be different than your actual tax basis at ecember 3. The current year increase(decrease) amount for ox L is computed as follows: sum of boxes, 2, 3, 4, 5, 6a, 7, 8, 9,,, 2, and 8. Q: If I sell my Partnership units at a gain, why is part of the gain treated as ordinary income rather than capital gain? : sale of Partnership units is treated as if there was a sale of the partner s allocable share of each of the Partnership s assets. Gain on the sale of assets from which depreciation deduction has been taken is treated as ordinary income rather than capital gain. The ordinary income on sale of units represents the depreciation deduction previously allocated to you. Q: If my Schedule K- reports a passive activity loss from Partnership operations, does this mean the Partnership was not profitable? : No. The net income of the Partnership for 22 before certain items was $68 million and $589 million, including certain items. ny operating loss reported to partners for tax purposes is due principally to tax depreciation expense in excess of GP depreciation expense. Q: What additional forms may be required for filing of my tax return? : Form 4 US Individual Income Tax Return Form 4 Schedule - Interest and Ordinary ividends Form 4 Schedule E - Supplemental Income and Loss Form 4797 Sales of usiness Property Form 4952 Investment Interest Expense eduction Form 625 lternative Minimum Tax Individuals Form 882 Notice of Inconsistent Treatment or dministrative djustment Request Q: What is a nonrecourse liability and how does it affect my tax basis in the Partnership? : partnership liability is treated as a nonrecourse liability to the extent that no partner or related person bears the economic risk of loss for such liability. partner s tax basis in the partnership includes its share of the partnership s nonrecourse liabilities. Q: What is bonus depreciation? : Favorable federal tax legislation passed in 2 allows the Partnership to accelerate depreciation for certain qualifying property placed in service prior to January, 22 resulting in larger tax deductions for the 22 tax year. Such benefit, however, has not been adopted by all states; accordingly, this tax package may include information for both conforming and non-conforming states. Q: Which states are non-conforming? : The following states are non-conforming: rizona, rkansas, alifornia, istrict of olumbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kentucky, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, New Hampshire, New Jersey, New York, North arolina, Ohio, Oregon, Pennsylvania, Rhode Island, South arolina, Tennessee, Texas, Vermont, Virginia, Wisconsin.