Tulsa, OK-based Williams Energy Partners LP (WEP), a partnership that transports and stores refined products and ammonia, sought to distance itself from troubled Williams Cos. Inc. last week by making changes to its partnership agreement to give greater control to unitholders.

The changes, which were made following the partnership’s recently announced long-term debt financing, call for the reduction in voting rights of the partnership’s class B and subordinated units — all of which are held by Williams Cos. Inc.. Williams owns 100% of the general partner, which in turn owns 2% of WEP.

The reduction in Williams’ voting rights will be accomplished by removing the voting rights of the class B units and reducing the voting rights of the subordinated units to one-half for each unit owned, according to WEP. Williams also has established WEG GP LLC as a new wholly owned subsidiary that will serve as the partnership’s general partner. The existing general partner interest and incentive distribution rights have transferred to the new general partner, it said.

“[T]hese changes are responsive to the uneasiness expressed by some in the investment community surrounding the control of publicly traded partnerships by the owners of the general partner,” said CEO Don Wellendorf.

Moreover, the partnership will begin conducting annual unitholder meetings, at which time the annual slate of board members will be approved. The 2003 meeting will be announced in the upcoming months, WEP said. Until then, the board of the previous general partner will serve as the board of WEG GP.

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