Kinder Morgan Energy Partners LP (KMP) settled a lawsuit last Thursday for $25 million after a South Texas jury found that two partners in a joint venture with Kinder Morgan Tejas had lost millions of dollars in profits and investment value after Tejas Gas was sold to Kinder Morgan in February 2002 and the new owner failed to meet the terms of their agreement.

The lawsuit accused KMP of shipping volumes on Kinder Morgan Texas Pipeline instead of Kinder Morgan Tejas, in which the plaintiffs had a profit interest in certain contracts. KMP contended that the natural gas was shipped on the other pipeline at the request of a customer.

“While we don’t believe that we did anything wrong or inappropriate, we have decided that it is in the best interest of KMP and its unitholders to settle this lawsuit and put it behind us,” said KMP Chairman Richard D. Kinder. “The settlement will not impact KMP’s distribution to unitholders.”

The lawsuit was brought by Mel R. Sweatman and Paz Gas Corp. KMP is one of the largest publicly traded pipeline limited partnerships in America. It owns or operates more than 25,000 miles of pipelines and 135 terminals.

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