23. REORGANIZATION

On July 20, 2009, we announced the completion of a company-wide, “best practices” review. During the period ended June 30, 2009, we commenced a restructuring of our operations as a result of this review, including a reorganization of our field operations to combine five of our original pipeline and terminal districts into three districts, as well as a restructuring of certain corporate functions and related corporate support functions. These efforts redefined the roles and responsibilities of certain positions and called for the elimination of resources devoted to such activities. Approximately 230 positions have been affected as a result of these restructuring activities.

As part of the restructuring efforts, we executed a reduction in force comprised of a Voluntary Early Retirement Plan (the “VERP”) and an involuntary plan. The terms of the VERP were agreed to by approximately 80 employees during the period ended June 30, 2009. An additional group of approximately 150 employees was impacted by the involuntary reduction in workforce under our ongoing severance plan. Affected employees receive severance benefits, post-employment benefits including extended medical and dental coverage, and other services including retirement counseling and outplacement services. Most terminations were effective as of July 20, 2009.

For the year ended December 31, 2009, we recorded reorganization expense of $32.1 million for post-employment costs related to these restructuring activities which include: (i) termination benefits pursuant to voluntary and involuntary severance plans of $16.0 million; (ii) post-retirement benefits of $6.4 million (see Note 17); and (iii) other related costs of $9.7 million.

The reorganization expenses incurred by segment, including certain allocated amounts, for the year ended December 31, 2009 were as follows (in thousands):


Pipelines & Terminals	$	28,862
Natural Gas Storage		495
Energy Services		1,207
Development & Logistics		1,493

Total reorganization expenses	$	32,057