Kinder Morgan Energy Partners L P 10-K 23 Feb 10 2009 FY Annual report Financial data

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME (USD $)
Share data in Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Revenues
Natural gas sales	$3,137,200,000	$7,705,200,000	$5,834,700,000
Services	2,739,100,000	2,770,300,000	2,449,200,000
Product sales and other	1,127,100,000	1,264,800,000	933,800,000
Total Revenues	7,003,400,000	11,740,300,000	9,217,700,000
Operating Costs, Expenses and Other
Gas purchases and other costs of sales	3,068,800,000	7,716,100,000	5,809,800,000
Operations and maintenance	1,136,200,000	1,282,800,000	1,262,100,000
Depreciation, depletion and amortization	850,800,000	702,700,000	540,000,000
General and administrative	330,300,000	297,900,000	278,700,000
Taxes, other than income taxes	137,000,000	186,700,000	153,800,000
Impairment of goodwill	0	0	377,100,000
Other expense (income)	(34,800,000)	2,600,000	(11,500,000)
Total Operating Costs, Expenses and Other	5,488,300,000	10,188,800,000	8,410,000,000
Operating Income	1,515,100,000	1,551,500,000	807,700,000
Other Income (Expense)
Earnings from equity investments	189,700,000	160,800,000	69,700,000
Amortization of excess cost of equity investments	(5,800,000)	(5,700,000)	(5,800,000)
Interest, net	(409,000,000)	(388,200,000)	(391,400,000)
Other, net	49,500,000	19,200,000	14,200,000
Total Other Income (Expense)	(175,600,000)	(213,900,000)	(313,300,000)
Income from Continuing Operations Before Income Taxes	1,339,500,000	1,337,600,000	494,400,000
Income Taxes	(55,700,000)	(20,400,000)	(71,000,000)
Income from Continuing Operations	1,283,800,000	1,317,200,000	423,400,000
Discontinued Operations
Income from operations of North System	0	0	21,100,000
Gain on disposal of North System	0	1,300,000	152,800,000
Income from Discontinued Operations	0	1,300,000	173,900,000
Net Income	1,283,800,000	1,318,500,000	597,300,000
Net Income attributable to Noncontrolling Interests	(16,300,000)	(13,700,000)	(7,000,000)
Net Income attributable to Kinder Morgan Energy Partners, L.P.	1,267,500,000	1,304,800,000	590,300,000
Calculation of Limited Partners' interest in Net Income Attributable to Kinder Morgan Energy Partners, L.P.:
Income from Continuing Operations	1,267,500,000	1,303,500,000	416,400,000
Less: General Partner's interest	(935,800,000)	(805,800,000)	(609,900,000)
Limited Partners' interest	331,700,000	497,700,000	(193,500,000)
Income Loss From Discontinued Operations Net Of Tax Attributable To Noncontrolling Interest	0	1,300,000	172,200,000
Limited Partners' interest in Net Income	331,700,000	499,000,000	(21,300,000)
Limited Partners' Net Income per Unit:
Income from Continuing Operations	1.18	1.94	-0.82
Income from discontinued operations	0	0	0.73
Net Income	1.18	1.94	-0.09
Weighted Average Number of Units Used in Computation of Limited Partners' Net Income per Unit	281.5	257.2	236.9
Per unit cash distribution declared	4.2	4.02	3.48

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Statement of Income and Comprehensive Income [Abstract]
Net Income	1283.8	1318.5	597.3
Change in fair value of derivatives used for hedging purposes	-458.2	658	-984.1
Reclassification of change in fair value of derivatives to net income	100.3	670.5	437.6
Foreign currency translation adjustments	252.2	-333.2	133.7
Minimum pension liability adjustments, other postretirement benefit plan transition obligations, pension and other postretirement benefit plan actuarial gains/losses, and reclassification of pension and other postretirement benefit plan actuarial gains/losses, prior service costs/credits and transition obligations to net income, net of tax	-2.5	3.7	-3.6
Total other comprehensive income (loss)	-108.2	999	-416.4
Comprehensive Income	1175.6	2317.5	180.9
Comprehensive income attributable to noncontrolling interests	-15.2	-23.8	-2.6
Comprehensive income attributable to Kinder Morgan Energy Partners, L.P.	1160.4	2293.7	178.3

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Dec. 31, 2009	Dec. 31, 2008
Current Assets
Cash and cash equivalents	146.6	62.5
Restricted deposits	15.2	0
Accounts, notes and interest receivable, net	902.1	987.9
Inventories	71.9	44.2
Gas in underground storage	43.5	0
Fair value of derivative contracts	20.8	115.3
Other current assets	44.6	34.5
Total current assets	1244.7	1244.4
Property, Plant and Equipment, net	14153.8	13241.4
Investments	2845.2	954.3
Notes receivable	190.6	178.1
Goodwill	1149.2	1058.9
Other intangibles, net	218.7	205.8
Fair value of derivative contracts	279.8	796
Deferred charges and other assets	180.2	206.9
Total Assets	20262.2	17885.8
Current Liabilities
Current portion of debt	594.7	288.7
Cash book overdrafts	34.8	42.8
Accounts payable	614.8	855.6
Accrued interest	222.4	172.3
Accrued taxes	57.8	51.9
Deferred revenues	76	41.1
Fair value of derivative contracts	272	129.5
Accrued other current liabilities	145.1	200.2
Total current liabilities	2017.6	1782.1
Long-Term Liabilities and Deferred Credits
Long-term debt Outstanding	9997.7	8274.9
Value of interest rate swaps	332.5	951.3
Total Long-term debt	10330.2	9226.2
Deferred income taxes	216.8	178
Fair value of derivative contracts	460.1	92.2
Other long-term liabilities and deferred credits	513.4	491
Total other long term liabilities and deferred credits	11520.5	9987.4
Total Liabilities	13538.1	11769.5
Partners' Capital
Common Units	4057.9	3458.9
Class B Units	78.6	94
i-Units	2681.7	2577.1
General Partner	221.1	203.3
Accumulated other comprehensive loss	-394.8	-287.7
Total Kinder Morgan Energy Partners, L.P. Partners' Capital	6644.5	6045.6
Noncontrolling interests	79.6	70.7
Total Partners' Capital	6724.1	6116.3
Total Liabilities and Partners' Capital	20262.2	17885.8

PARENTHETICAL DATA TO THE CONSO

PARENTHETICAL DATA TO THE CONSOLIDATED BALANCE SHEETS (USD $)
	Dec. 31, 2009	Dec. 31, 2008
Partners' Capital
Common Units, issued	206,020,826	182,969,427
Common Units, outstanding	206,020,826	182,969,427
Class B Units, issued	5,313,400	5,313,400
Class B Units, outstanding	5,313,400	5,313,400
i-Units, issued	85,538,263	77,997,906
i-Units, outstanding	85,538,263	77,997,906

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	12 Months Ended Dec. 31, 2009	12 Months Ended Dec. 31, 2008	12 Months Ended Dec. 31, 2007
Cash Flows From Operating Activities
Net Income	1283.8	1318.5	597.3
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, depletion and amortization	850.8	702.7	547
Amortization of excess cost of equity investments	5.8	5.7	5.8
Impairment of goodwill	0	0	377.1
Income from the allowance for equity funds used during construction	-22.7	-10.6	0
Income from the sale or casualty of property, plant and equipment and other net assets	-34.8	-11.7	-164.3
Earnings from equity investments	-189.7	-160.8	-71.5
Distributions from equity investments	234.5	158.4	104.1
Proceeds from termination of interest rate swap agreements	144.4	194.3	15
Changes in components of working capital:
Accounts receivable	54.5	105.4	92.6
Other current assets	-75.9	-9.1	3.9
Inventories	(20)	-7.3	-6.9
Accounts payable	-184.6	-100.6	-79.7
Accrued interest	50.2	41.1	47.3
Accrued liabilities	-24.1	57.4	-9.5
Accrued taxes	5.3	-22.3	40.7
Rate reparations, refunds and other litigation reserve adjustments	2.5	-13.7	140
Other, net	37.1	-11.5	102.9
Net Cash Provided by Operating Activities	2117.1	2235.9	1741.8
Cash Flows From Investing Activities
Acquisitions of assets and equity investments	-328.9	-40.2	-164.2
Repayments for Trans Mountain Pipeline	0	23.4	-549.1
Repayments (Loans) from customers	109.6	-109.6	0
Payments To Acquire Property Plant And Equipment	-1323.8	(2,533)	-1691.6
Sale or casualty of property, plant and equipment, and other net assets net of removal costs	47.4	47.8	310.6
Net proceeds from (Investments in) margin deposits	-18.5	71	-70.2
Contributions to investments	-2051.8	-366.7	-276.1
Distributions from equity investments in excess of cumulative earnings	112	89.1	0
Other	0	-7.2	12.1
Net Cash Used in Investing Activities	(3,454)	-2825.4	-2428.5
Cash Flows From Financing Activities
Issuance of debt	6891.9	9028.6	7686.1
Payment of debt	-4857.1	(7,525)	-6409.3
Repayments from related party	3.7	1.8	4.4
Debt issue costs	-13.7	-12.7	-13.8
Increase (Decrease) in cash book overdrafts	(8)	23.8	-27.2
Proceeds from issuance of common units	1155.6	560.9	342.9
Proceeds from issuance of i units	0	0	297.9
Contributions from noncontrolling interests	15.4	9.3	8.9
Distributions to partners and noncontrolling interests:
Payments Of Distributions To Affiliates	-809.2	-684.5	-552.6
Class B units	-22.3	-20.7	(18)
General Partner	-918.4	-764.7	-567.7
Payments Of Dividends Minority Interest	(22)	-18.8	(16)
Other, net	-0.9	3.3	0.1
Net Cash Provided by Financing Activities	1,415	601.3	735.7
Effect Of Exchange Rate On Cash And Cash Equivalents	6	-8.2	3.2
Increase in Cash and Cash Equivalents	84.1	3.6	52.2
Cash and Cash Equivalents, beginning of period	62.5
Cash and Cash Equivalents, end of period	146.6	62.5
Noncash Investing and Financing Activities
Assets acquired by the assumption or incurrence of liabilities	7.7	4.8	19.7
Related party assets acquired by the issuance of units	0	116	0
Assets acquired by the issuance of units	5	0	15
Related party asset settlements with KMI	0	0	276.2
Related party liability settlements with KMI	0	0	556.6
Supplemental Disclosures of Cash Flow Information
Cash paid during the period for interest (net of capitalized interest)	400.3	373.3	336
Cash paid during the period for income taxes	3.4	35.7	6.2

CONSOLIDATED STATEMENTS OF PART

CONSOLIDATED STATEMENTS OF PARTNERS' CAPITAL (USD $)
In Millions, except Share data	Capital Units [Member]	Capital Unit Class B [Member]	I Units [Member]	General Partner [Member]	Accumulated Other Comprehensive Income [Member]	Noncontrolling Interest [Member]	Total
Beginning Balance (in shares) at Dec. 31, 2006	162,816,303	5,313,400	62,301,676
Beginning Balance at Dec. 31, 2006	3414.9	126.1	2154.2	119.2	-866.1	60.2
Net income (loss)	-20.4	-0.6	-0.3	611.6		7	597.3
Units issued as consideration pursuant to common unit compensation plan for non-employee directors (in shares)	7,280
Units issued as consideration in the acquisition of assets	15.4
Units issued as consideration in the acquisition of assets (in shares)	266,813
Units issued for cash	342.5		297.6
Units issued for cash (in shares)	7,130,000		5,700,000
Adjustments to capital resulting from related party acquisitions	-166.8	(6)	-57.4	-2.2		-2.4
Contributions						9.6
Distributions	-552.6	(18)	0	-567.7		(16)
Distributions (in shares)			4,430,806
Change in fair value of derivatives used for hedging purposes					-974.2		-984.1
Reclassification of change in fair value of derivatives to net income					433.2		437.6
Foreign currency translation adjustments					132.5	1.2	133.7
Pension and other postretirement benefit liability changes					-3.5		-3.6
Adj. to initially reflect funded status – pension and other postretirement benefit accounting changes					1.5
Other Adjustments	15.4	0.5	6.7	0.2		0.2
Ending Balance at Dec. 31, 2007	3048.4	102	2400.8	161.1	-1276.6	54.2
Ending Balance (in shares) at Dec. 31, 2007	170,220,396	5,313,400	72,432,482
Net income (loss)	343.4	10.4	145.2	805.8		13.7	1318.5
Units issued as consideration pursuant to common unit compensation plan for non-employee directors (in shares)	4,338
Units issued as consideration in the acquisition of assets	116.3
Units issued as consideration in the acquisition of assets (in shares)	2,014,693
Units issued for cash	560.3		0
Units issued for cash (in shares)	10,730,000		0
Adjustments to capital resulting from related party acquisitions	69.1	2.1	28.6	1		2.2
Contributions						9.2
Distributions	-684.5	-20.7	0	-764.7		-18.8
Distributions (in shares)			5,565,424
Change in fair value of derivatives used for hedging purposes					651.4		658
Reclassification of change in fair value of derivatives to net income					663.7		670.5
Foreign currency translation adjustments					-329.8	-3.4	-333.2
Pension and other postretirement benefit liability changes					3.6		3.7
Adj. to initially reflect funded status – pension and other postretirement benefit accounting changes					0
Other Adjustments	5.9	0.2	2.5	0.1		0.1
Ending Balance at Dec. 31, 2008	3458.9	94	2577.1	203.3	-287.7	70.7	6116.3
Ending Balance (in shares) at Dec. 31, 2008	182,969,427	5,313,400	77,997,906
Net income (loss)	229	6.3	96.4	935.8		16.3	1283.8
Units issued as consideration pursuant to common unit compensation plan for non-employee directors (in shares)	3,200
Units issued as consideration in the acquisition of assets	5.2
Units issued as consideration in the acquisition of assets (in shares)	105,752
Units issued for cash	1154.8		0
Units issued for cash (in shares)	22,942,447		0
Adjustments to capital resulting from related party acquisitions	15.5	0.5	6.6	0.3		0.3
Contributions						15.4
Distributions	-809.2	-22.3	0	-918.4		(22)
Distributions (in shares)			7,540,357
Change in fair value of derivatives used for hedging purposes					-453.6		-458.2
Reclassification of change in fair value of derivatives to net income					99.3		100.3
Foreign currency translation adjustments					249.7	2.5	252.2
Pension and other postretirement benefit liability changes					-2.5		-2.5
Adj. to initially reflect funded status – pension and other postretirement benefit accounting changes					0
Other Adjustments	3.7	0.1	1.6	0.1		0
Ending Balance at Dec. 31, 2009	4057.9	78.6	2681.7	221.1	-394.8	79.6	6724.1
Ending Balance (in shares) at Dec. 31, 2009	206,020,826	5,313,400	85,538,263

1. General

1. General
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
General	1.General Organization Kinder Morgan Energy Partners, L.P. is a Delaware limited partnership formed in August 1992.Unless the context requires otherwise, references to we, us, our, KMP, or the Partnership are intended to mean Kinder Morgan Energy Partners, L.P. and its consolidated subsidiaries.We own and manage a diversified portfolio of energy transportation and storage assets and presently conduct our business through five reportable business segments. These segments and the activities performed to provide services to our customers and create value for our unitholders are as follows: Products Pipelines - transporting, storing and processing refined petroleum products; Natural Gas Pipelines - transporting, storing, buying, selling, gathering, treating and processing natural gas; CO2 transporting oil, producing, transporting and selling carbon dioxide, commonly called CO2, for use in, and selling crude oil, natural gas and natural gas liquids produced from, enhanced oil recovery operations; Terminals - transloading, storing and delivering a wide variety of bulk, petroleum, petrochemical and other liquid products at terminal facilities located across the United States and portions of Canada; and Kinder Morgan Canada transporting crude oil and refined petroleum products from Edmonton, Alberta, Canada to marketing terminals and refineries in British Columbia and the state of Washington, and owning an interest in an integrated oil transportation network that connects Canadian and United States producers to refineries in the U.S. Rocky Mountain and Midwest regions. We focus on providing fee-based services to customers, generally avoiding near-term commodity price risks and taking advantage of the tax benefits of a limited partnership structure.We trade on the New York Stock Exchange under the symbol KMP, and we conduct our operations through the following five limited partnerships: (i) Kinder Morgan Operating L.P. A (ii) Kinder Morgan Operating L.P. B (iii) Kinder Morgan Operating L.P. C (iv) Kinder Morgan Operating L.P. D and (v) Kinder Morgan CO2 Company, L.P. Combined, the five limited partnerships are referred to as our operating partnerships, and we are the 98.9899% limited partner and our general partner is the 1.0101% general partner in each.Both we and our operating partnerships are governed by Amended and Restated Agreements of Limited Partnership, as amended and certain other agreements that are collectively referred to in this report as the partnership agreements. Kinder Morgan, Inc. and Kinder Morgan G.P., Inc. Kinder Morgan, Inc., referred to as KMI in this report, is owned by investors led by Richard D. Kinder, Chairman and Chief Executive Officer of Kinder Morgan G.P., Inc. (our general partner), and Kinder Morgan Management, LLC (our general partners delegate discussed following).For a period, KMI was known as Knight Inc., the surviving legal entity from its May 30, 2007 merger.On that date, KMI completed a merger whereby (i) generally each share of KMI common stock was converted into the right to receive $107.50 in cash without interest; (ii) KMI merged with a wholly-ow

2. Summary of Significant Accou

2. Summary of Significant Accounting Policies
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Summary of Significant Accounting Policies	2.Summary of Significant Accounting Policies Basis of Presentation Our accounting records are maintained in United States dollars, and all references to dollars are United States dollars, except where stated otherwise.Canadian dollars are designated as C$. Our accompanying consolidated financial statements include our accounts and those of our operating partnerships and their majority-owned and controlled subsidiaries, and all significant intercompany items have been eliminated in consolidation.Our accompanying consolidated financial statements were prepared in accordance with accounting principles generally accepted in the United States, and certain amounts from prior years have been reclassified to conform to the current presentation.Effective September 30, 2009, the Financial Accounting Standards Boards Accounting Standards Codification became the single source of generally accepted accounting principles, and in this report, we refer to the Financial Accounting Standards Board as the FASB and the FASB Accounting Standards Codification as the Codification. Additionally, our financial statements are consolidated into the consolidated financial statements of KMI; however, our financial statements reflect amounts on a historical cost basis, and, accordingly, do not reflect any purchase accounting adjustments related to KMIs May 30, 2007 going-private transaction (discussed above in Note 1).Also, except for the related party transactions described in Note 11 Related Party TransactionsAsset Acquisitions and Sales, KMI is not liable for, and its assets are not available to satisfy, the obligations of us and/or our subsidiaries and vice versa. Responsibility for payments of obligations reflected in our or KMIs financial statements is a legal determination based on the entity that incurs the liability.Furthermore, the determination of responsibility for payment among entities in our consolidated group of subsidiaries is not impacted by the consolidation of our financial statements into the consolidated financial statements of KMI. Use of Estimates Certain amounts included in or affecting our financial statements and related disclosures must be estimated, requiring us to make certain assumptions with respect to values or conditions which cannot be known with certainty at the time our financial statements are prepared.These estimates and assumptions affect the amounts we report for assets and liabilities, our revenues and expenses during the reporting period, and our disclosure of contingent assets and liabilities at the date of our financial statements.We evaluate these estimates on an ongoing basis, utilizing historical experience, consultation with experts and other methods we consider reasonable in the particular circumstances.Nevertheless, actual results may differ significantly from our estimates.Any effects on our business, financial position or results of operations resulting from revisions to these estimates are recorded in the period in which the facts that give rise to the revision become known. In addition, we believe that certain accounting policies are of more significance in our financial statement preparation p

3. Acquisitions and Divestiture

3. Acquisitions and Divestitures
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Acquisitions and Joint Ventures	3.Acquisitions and Divestitures Acquisitions from Unrelated Entities The provisions of the Codifications Topic 805, Business Combinations, are to be effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2008.Accordingly, we adopted the provisions of Topic 805 on January 1, 2009. Topic 805 requires that the acquisition method of accounting be used for all business combinations, and an acquirer be identified for each business combination. Significant provisions of Topic 805 concern principles and requirements for how an acquirer (i) recognizes and measures in its financial statements the identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree; (ii) recognizes and measures the goodwill acquired in the business combination or a gain from a bargain purchase; and (iii) determines what information to disclose to enable users of the financial statements to evaluate the nature and financial effects of the business combination.This Topic also amends the provisions related to the initial recognition and measurement, subsequent measurement and disclosure of assets and liabilities arising from contingencies in a business combination.It requires that acquired contingencies in a business combination be recognized at fair value on the acquisition date if fair value can be reasonably estimated during the allocation period.Otherwise, companies would typically account for the acquired contingencies in accordance with the provisions of the Contingencies Topic of the Codification.The adoption of Topic 805 did not have a material impact on our consolidated financial statements. During 2009, 2008 and 2007, we completed the following acquisitions from unrelated entities.For each of these acquisitions, we recorded all the acquired assets and assumed liabilities at their estimated fair market values (not the acquired entitys book values) as of the acquisition date.The results of operations from these acquisitions accounted for as business combinations are included in our consolidated financial statements from the acquisition date. Allocation of Purchase Price (in millions) Ref. Date Acquisition Purchase Price Current Assets Property Plant Equipment Deferred Charges Other Goodwill (1) 1/07 Interest in Cochin Pipeline $ 47.8 $ - $ 47.8 $ - $ - (2) 5/07 Vancouver Wharves Marine Terminal. 59.5 6.1 53.4 - - (3) 9/07 Marine Terminals, Inc. Assets. 102.1 0.2 60.8 22.5 18.6 (4) 8/08 Wilmington, North Carolina Liquids Terminal 12.7 - 5.9 - 6.8 (5) 12/08 Phoenix, Arizona Products Terminal 27.5 - 27.5 - - (6) 4/09 Megafleet Towing Co., Inc. Assets 21.7 - 7.1 4.0 10.6 (7) 10/09 Crosstex Energy, L.P. Natural Gas Treating Business 270.7 15.0 181.7 25.4 48.6 (8) 11/09 En

4. Income Taxes

4. Income Taxes
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Income Taxes	4.Income Taxes Components of the income tax provision applicable to continuing operations for federal, foreign and state taxes are as follows (in millions): Year Ended December 31, 2009 2008 2007 Taxes current expense: Federal $ 2.7 $ 24.4 $ 12.7 State 6.7 8.5 8.2 Foreign (1.0 ) (4.5 ) 31.5 Total 8.4 28.4 52.4 Taxes deferred expense: Federal 7.3 6.0 11.8 State 9.4 1.5 6.2 Foreign 30.6 (15.5 ) 0.6 Total 47.3 (8.0 ) 18.6 Total tax provision $ 55.7 $ 20.4 $ 71.0 Effective tax rate 4.2 % 1.5 % 14.4 % The difference between the statutory federal income tax rate and our effective income tax rate is summarized as follows: Year Ended December 31, 2009 2008 2007 Federal income tax rate 35.0 % 35.0 % 35.0 % Increase (decrease) as a result of: Partnership earnings not subject to tax (35.0 ) % (35.0 ) % (35.0 ) % Corporate subsidiary earnings subject to tax - % 1.6 % 2.8 % Income tax expense attributable to corporate equity earnings 0.8 % 0.6 % 2.3 % Income tax expense attributable to foreign corporate earnings 2.2 % (1.2 ) % 6.6 % State taxes 1.2 % 0.5 % 2.7 % Effective tax rate 4.2 % 1.5 % 14.4 % Our deferred tax assets and liabilities as of December 31, 2009 and 2008 result from the following (in millions): Year Ended December 31, 2009 2008 Deferred tax assets: Book accruals $ 16.6 $ 3.2 Net Operating Loss/Alternative minimum tax credits 11.4 1.4 Other 1.3 1.8 Total deferred tax assets 29.3 6.4 Deferred tax liabilities: Property, plant and equipment 239.3 161.3 Other 6.8 23.1 Total deferred tax liabilities 246.1 184.4 Net deferred tax liabilities $ 216.8 $ 178.0 We account for uncertainty in income taxes in accordance with the Income Taxes Topic of the Codification.Pursuant to these provisions, we must recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based not only on the technical merits of the tax position based on tax law, but also on the past administrative practices and precedents of the taxing authority.The tax benefits recognized in our financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. A reconciliation of our beginning and ending gross unrecognized tax benefits for each of the years ended December 31, 2009 and 2008 is as follows (in millions): Year Ended December 31, 2009 2008 Balance at beginning of period $ 14.9 $ 6.3 A

5. Property, Plant and Equipmen

5. Property, Plant and Equipment
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Property, Plant and Equipment	5.Property, Plant and Equipment Classes and Depreciation As of December 31, 2009 and 2008, our property, plant and equipment consisted of the following (in millions): Year Ended December 31, 2009 2008 Natural gas, liquids, crude oil and carbon dioxide pipelines $ 6,883.3 $ 5,752.4 Natural gas, liquids, carbon dioxide, and terminals station equipment. 8,131.9 6,991.1 Natural gas, liquids (including linefill), and transmix processing 220.3 210.3 Other 1,113.0 964.1 Accumulated depreciation and depletion (3,365.6 ) (2,554.0 ) 12,982.9 11,363.9 Land and land right-of-way 596.6 549.0 Construction work in process 574.3 1,328.5 Property, Plant and Equipment, net $ 14,153.8 $ 13,241.4 Depreciation and depletion expense charged against property, plant and equipment consisted of $829.6 million in 2009, $684.2 million in 2008 and $529.3 million in 2007. Asset Retirement Obligations As of December 31, 2009 and December 31, 2008, we have recognized asset retirement obligations in the aggregate amount of $100.9 million and $76.5 million, respectively.The majority of our asset retirement obligations are associated with our CO2 business segment, where we are required to plug and abandon oil and gas wells that have been removed from service and to remove our surface wellhead equipment and compressors.We have included $2.5 million of our total asset retirement obligations as of both December 31, 2009 and December 31, 2008 within Accrued other current liabilities in our accompanying consolidated balance sheets.The remaining amounts are included within Other long-term liabilities and deferred credits at each reporting date. A reconciliation of the beginning and ending aggregate carrying amount of our asset retirement obligations for each of the years ended December 31, 2009 and 2008 is as follows (in millions): Year Ended December 31, 2009 2008 Balance at beginning of period $ 76.5 $ 52.2 Liabilities incurred/revised 26.0 26.2 Liabilities settled (6.2 ) (5.4 ) Accretion expense 4.6 3.5 Balance at end of period $ 100.9 $ 76.5 We have various other obligations throughout our businesses to remove facilities and equipment on rights-of- way and other leased facilities.We currently cannot reasonably estimate the fair value of these obligations because the associated assets have indeterminate lives.These assets include pipelines, certain processing plants and distribution facilities, and certain bulk and liquids terminal facilities.An asset retirement obligation, if any, will be recognized once sufficient information is available to reasonably estimate the fair value of the obligation.

6. Investments

6. Investments
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Investments	6.Investments We reported a combined $2,845.2 million as Investments in our accompanying consolidated balance sheet as of December 31, 2009.As of December 31, 2008, our investments totaled $954.3 million.As of both dates, our investment amounts included bond investments totaling $13.2 million.These bond investments consisted of certain tax exempt, fixed-income development revenue bonds acquired in the fourth quarter of 2008.Because we have both the ability and the intent to hold these debt securities to maturity, we account for these investments at historical cost.Our bond investments are further discussed in Note 8 DebtSubsidiary DebtGulf Opportunity Zone Bonds. Our total equity investments consisted of the following (in millions): Year Ended December 31, 2009 2008 Rockies Express Pipeline LLC $ 1,693.4 $ 501.1 Midcontinent Express Pipeline LLC 662.3 - Plantation Pipe Line Company 197.3 196.6 Red Cedar Gathering Company 145.8 138.9 Express pipeline system 68.0 64.9 Endeavor Gathering LLC 36.2 - Cortez Pipeline Company 11.2 13.6 All others 17.8 26.0 Total equity investments $ 2,832.0 $ 941.1 The increase in the carrying amount of our equity investments since December 31, 2008 was primarily driven by equity capital contributions of $2,051.8 million in 2009, paid primarily to Rockies Express Pipeline LLC, Midcontinent Express Pipeline LLC, and Fayetteville Pipeline LLC to partially fund their respective Rockies Express, Midcontinent Express, and Fayetteville Express Pipeline construction and/or pre-construction costs, and the repayment of senior notes by Rockies Express in August 2009.For information pertaining to guarantees or indemnifications we have made with respect to our equity investees, see Note 12 Commitments and Contingent LiabilitiesContingent Debt. As shown in the table above, our significant equity investments as of December 31, 2009 consisted of the following: Rockies Express Pipeline LLCwe operate and own a 50% ownership interest in Rockies Express Pipeline LLC, the surviving legal entity from its December 30, 2009 merger with its parent entity, West2East Pipeline LLC.Rockies Express Pipeline LLC is the sole owner of the Rockies Express natural gas pipeline system, which began full operations on November 12, 2009 following the completion of its final pipeline segment, Rockies Express-East.The remaining ownership interests in Rockies Express Pipeline LLC are owned by Sempra Energy and ConocoPhillips. Effective December 1, 2009, our ownership interest in West2East Pipeline LLC was reduced to 50% (from 51%), ConocoPhillips interest was increased to 25% (from 24%), and minimum voting requirements for most matters was increased to 75% (from 51%) of the member interests.We received $31.9 million for the 1% reduction in our ownership interest and we included this amount within Sale or casualty of property, plant and equipment, investments and other net assets, net of removal costs on our accompanying consolidated statement of cash flows for the year ended December 31

7. Goodwill and Other Intangibl

7. Goodwill and Other Intangibles
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Goodwill and Other Intangibles	7.Goodwill and Other Intangibles Goodwill and Excess Investment Cost We record the excess of the cost of an acquisition price over the fair value of acquired net assets as an asset on our balance sheet.This amount is referred to and reported separately as Goodwill in our accompanying consolidated balance sheets.Goodwill is not subject to amortization but must be tested for impairment at least annually.This test requires us to assign goodwill to an appropriate reporting unit and to determine if the implied fair value of the reporting units goodwill is less than its carrying amount. We evaluate goodwill for impairment on May 31 of each year.For this purpose, we have six reporting units as follows: (i) Products Pipelines (excluding associated terminals); (ii) Products Pipelines Terminals (evaluated separately from Products Pipelines for goodwill purposes); (iii) Natural Gas Pipelines; (iv) CO2; (v) Terminals; and (vi) Kinder Morgan Canada. There were no impairment charges resulting from our May 31, 2009 impairment testing, and no event indicating an impairment has occurred subsequent to that date.The fair value of each reporting unit was determined from the present value of the expected future cash flows from the applicable reporting unit (inclusive of a terminal value calculated using market multiples between six and ten times cash flows) discounted at a rate of 9.0%.The value of each reporting unit was determined on a stand-alone basis from the perspective of a market participant and represented the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. Changes in the gross amounts of our goodwill and accumulated impairment losses for each of the two years ended December 31, 2009 and 2008 are summarized as follows (in millions): Products Pipelines Natural Gas Pipelines CO2 Terminals Kinder Morgan Canada Total Balance as of December 31, 2007 Goodwill. $ 263.2 $ 288.4 $ 46.1 $ 229.1 $ 628.1 $ 1,454.9 Accumulated impairment losses. - - - - (377.1 ) (377.1 ) 263.2 288.4 46.1 229.1 251.0 1,077.8 Acquisitions and purchase price adjs. - - - 28.5 - 28.5 Disposals. - - - - - - Impairments - - - - - - Currency translation adjustments - - - - (47.4 ) (47.4 ) Balance as of December 31, 2008 Goodwill. 263.2 288.4 46.1 257.6 580.7 1,436.0 Accumulated impairment losses. - - - - (377.1 ) (377.1 ) 263.2 288.4 46.1 257.6 203.6 1,058.9 Acquisitions and purchase price adjs. - 48.6 - 9.3 - 57.9 Disposals. - - - - - - Impairments - - - - - - Currency translation adjustments - - - - 32.4 32.4

8. Debt

8. Debt
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Debt	8.Debt We classify our debt based on the contractual maturity dates of the underlying debt instruments or as of the earliest put date available to the holders of the applicable debt.We defer costs associated with debt issuance over the applicable term or to the first put date, in the case of debt with a put feature. These costs are amortized as interest expense in our consolidated statements of income. The weighted average interest rate on all of our borrowings was approximately4.57% during 2009 and 5.44% during 2008. Short-Term Debt Our outstanding short-term debt as of December 31, 2009 was $594.7 million.The balance consisted of(i) $300 million in outstanding borrowings under our bank credit facility (discussed following); (ii) $250 million in principal amount of 7.50% senior notes due November 1, 2010; (iii) $23.7 million in principal amount of tax-exempt bonds that mature on April 1, 2024, but are due on demand pursuant to certain standby purchase agreement provisions contained in the bond indenture (our subsidiary Kinder Morgan Operating L.P. B is the obligor on the bonds); (iv) an $8.9 million portion of a 5.40% long-term note payable (our subsidiaries Kinder Morgan Operating L.P. A and Kinder Morgan Canada Company are the obligors on the note); (v) a $6.8 million portion of 5.23% senior notes (our subsidiary Kinder Morgan Texas Pipeline, L.P. is the obligor on the notes); and (vi) $5.3 million in principal amount of adjustable rate industrial development revenue bonds that matured on January 1, 2010 (the bonds were issued by the Illinois Development Finance Authority and our subsidiary Arrow Terminals L.P. is the obligor on the bonds). Our outstanding short-term debt as of December 31, 2008 was $288.7 million, consisting of (i) $250 million in principal amount of 6.30% senior notes due February 1, 2009; (ii) the $23.7 million in principal amount of tax-exempt bonds due from our subsidiary Kinder Morgan Operating L.P. B (iii) an $8.5 million portion of the 5.40% long-term note payable due from our subsidiaries Kinder Morgan Operating L.P. A and Kinder Morgan Canada Company; and (iv) a $6.5 million portion of the 5.23% senior notes due from our subsidiary Kinder Morgan Texas Pipeline, L.P. Credit Facility Our $1.85 billion unsecured revolving bank credit facility is with a syndicate of financial institutions, and Wachovia Bank, National Association is the administrative agent.The credit facility permits us to obtain bids for fixed rate loans from members of the lending syndicate, and the facility can be amended to allow for borrowings of up to $2.0 billion.Interest on our credit facility accrues at our option at a floating rate equal to either (i) the administrative agents base rate (but not less than the Federal Funds Rate, plus 0.5%); or (ii) LIBOR, plus a margin, which varies depending upon the credit rating of our long-term senior unsecured debt.Borrowings under our credit facility can be used for general partnership purposes and as a backup for our commercial paper program. The outstanding balance under our credit facility was $300 million as of December 31, 2009, and the average interest rate on these borrow

9. Employee Benefits

9. Employee Benefits
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Employee Benefits	9.Employee Benefits Pension and Postretirement Benefit Plans In connection with our acquisition of the Trans Mountain pipeline system in 2007 (see Note 3), we acquired certain liabilities for pension and postretirement benefits.Two of our subsidiaries, Kinder Morgan Canada Inc. and Trans Mountain Pipeline Inc. (as general partner of Trans Mountain Pipeline L.P.) are sponsors of pension plans for eligible Trans Mountain employees.The plans include registered defined benefit pension plans, supplemental unfunded arrangements, which provide pension benefits in excess of statutory limits, and defined contributory plans.We also provide postretirement benefits other than pensions for retired employees.Our combined net periodic benefit costs for these Trans Mountain pension and postretirement benefit plans for 2009, 2008 and 2007 were approximately $2.9 million, $3.5 million and $3.2 million, respectively, recognized ratably over each year. As of December 31, 2009, we estimate our overall net periodic pension and postretirement benefit costs for these plans for the year 2010 will be approximately $3.6 million, although this estimate could change if there is a significant event, such as a plan amendment or a plan curtailment, which would require a remeasurement of liabilities.We expect to contribute approximately $4.8 million to these benefit plans in 2010. Additionally, in connection with our acquisition of SFPP, L.P. and Kinder Morgan Bulk Terminals, Inc. in 1998, we acquired certain liabilities for pension and postretirement benefits.We provide medical and life insurance benefits to current employees, their covered dependents and beneficiaries of SFPP and Kinder Morgan Bulk Terminals.We also provide the same benefits to former salaried employees of SFPP.Additionally, we will continue to fund these costs for those employees currently in the plan during their retirement years.SFPPs postretirement benefit plan is frozen and no additional participants may join the plan.The noncontributory defined benefit pension plan covering the former employees of Kinder Morgan Bulk Terminals is the Kinder Morgan, Inc. Retirement Plan.The benefits under this plan are based primarily upon years of service and final average pensionable earnings; however, benefit accruals were frozen as of December 31, 1998. Our net periodic benefit cost for the SFPP postretirement benefit plan was acredit ofless than$0.1 million in 2009, acredit ofless than$0.1 million in 2008, and a credit of $0.2 million in 2007.The credits in all three years resulted in increases to income, largely due to amortizations of an actuarial gain and a negative prior service cost.As of December 31, 2009, we estimate our overall net periodic postretirement benefit cost for the SFPP postretirement benefit plan for the year 2010 will be a credit of less than $0.1 million; however, this estimate could change if a future significant event would require a remeasurement of liabilities.In addition, we expect to contribute approximately $0.3 million to this postretirement benefit plan in 2010. As of December 31, 2009 and 2008, the recorded value of our pension and postretirement benefit obligat

10. Partners' Capital

10. Partners' Capital
	1/1/2009 - 12/31/2009
Notes to Financial Statements [Abstract]
Partners' Capital	10.Partners Capital Limited Partner Units As of December 31, 2009 and 2008, our partners capital included the following limited partner units: December 31, 2009 2008 Common units 206,020,826 182,969,427 Class B units 5,313,400 5,313,400 i-units 85,538,263 77,997,906 Total limited partner units 296,872,489 266,280,733 The total limited partner units represent our limited partners interest and an effective 98% interest in us, exclusive of our general partners incentive distribution rights.Our general partner has an effective 2% ownership interest in us, excluding its incentive distribution rights. As of December 31, 2009, our total common units consisted of 189,650,398 units held by third parties, 14,646,428 units held by KMI and its consolidated affiliates (excluding our general partner), and 1,724,000 units held by our general partner.As of December 31, 2008, our common unit total consisted of 166,598,999 units held by third parties, 14,646,428 units held by KMI and its consolidated affiliates (excluding our general partner) and 1,724,000 units held by our general partner. The Class B units are similar to our common units except that they are not eligible for trading on the New York Stock Exchange.All of our Class B units were issued to a wholly-owned subsidiary of KMI in December 2000. On both December 31, 2009 and December 31, 2008, all of our i-units were held by KMR.Our i-units are a separate class of limited partner interests in us and are not publicly traded.In accordance with its limited liability company agreement, KMRs activities are restricted to being a limited partner in us, and to controlling and managing our business and affairs and the business and affairs of our operating limited partnerships and their subsidiaries.Through the combined effect of the provisions in our partnership agreement and the provisions of KMRs limited liability company agreement, the number of outstanding KMR shares and the number of our i-units will at all times be equal. Under the terms of our partnership agreement, we agreed that we will not, except in liquidation, make a distribution on an i-unit other than in additional i-units or a security that has in all material respects the same rights and privileges as our i-units.The number of i-units we distribute to KMR is based upon the amount of cash we distribute to the owners of our common units.When cash is paid to the holders of our common units, we will issue additional i-units to KMR.The fraction of an i-unit paid per i-unit owned by KMR will have a value based on the cash payment on the common unit.If additional units are distributed to the holders of our common units, we will issue an equivalent amount of i-units to KMR based on the number of i-units it owns. Based on the preceding, KMR received a distribution of 1,783,310 i-units on November 13, 2009.These additional i-units distributed were based on the $1.05 per unit distributed to our common unitholders on that date.During the year ended December 31, 2009, KMR received distributions of 7,540,357 i-units.These additional i-units distribute

11. Related Party Transactions

11. Related Party Transactions
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Related Party Transactions	11.Related Party Transactions General and Administrative Expenses KMGP Services Company, Inc., a subsidiary of our general partner, provides employees and Kinder Morgan Services LLC, a wholly owned subsidiary of KMR, provides centralized payroll and employee benefits services to (i) us; (ii) our operating partnerships and subsidiaries; (iii) our general partner; and (iv) KMR (collectively referred to in this note as the Group).Employees of KMGP Services Company, Inc. are assigned to work for one or more members of the Group.The direct costs of all compensation, benefits expenses, employer taxes and other employer expenses for these employees are allocated and charged by Kinder Morgan Services LLC to the appropriate members of the Group, and the members of the Group reimburse Kinder Morgan Services LLC for their allocated shares of these direct costs.There is no profit or margin charged by Kinder Morgan Services LLC to the members of the Group.The administrative support necessary to implement these payroll and benefits services is provided by the human resource department of KMI, and the related administrative costs are allocated to members of the Group in accordance with existing expense allocation procedures.The effect of these arrangements is that each member of the Group bears the direct compensation and employee benefits costs of its assigned or partially assigned employees, as the case may be, while also bearing its allocable share of administrative costs.Pursuant to our limited partnership agreement, we provide reimbursement for our share of these administrative costs and such reimbursements will be accounted for as described above.Additionally, we reimburse KMR with respect to costs incurred or allocated to KMR in accordance with our limited partnership agreement, the delegation of control agreement among our general partner, KMR, us and others, and KMRs limited liability company agreement. The named executive officers of our general partner and KMR and other employees that provide management or services to both KMI and the Group are employed by KMI.Additionally, other KMI employees assist in the operation of certain of our assets (discussed below in Operations).These employees expenses are allocated without a profit component between KMI on the one hand, and the appropriate members of the Group, on the other hand. Additionally, for accounting purposes, KMI was required to allocate to us a portion of its 2007 going-private transaction-related amounts, and Kinder Morgan Holdco LLC (KMIs parent) is required to recognize compensation expense in connection with their Class A-1 and Class B units over the expected life of such units and allocate to us a portion of these going-private transaction-related amounts.As a subsidiary of KMI and Kinder Morgan Holdco LLC, we are required to recognize the allocated amounts as expense on our income statements; however, we have no obligation and we do not expect to pay any amounts related to these going-private transaction-related expenses.Accordingly, we recognize the unpaid amounts as contributions to Total Partners Capital on our balance sheet.For each of the years 2009, 2008 and 2007,

12. Commitments and Contingent

12. Commitments and Contingent Liabilities
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Commitments and Contingent Liabilities	12.Commitments and Contingent Liabilities Leases The amount of capital leases included within Property, Plant and Equipment, net in our accompanying consolidated balance sheets as of December 31, 2009 and December 31, 2008 are not material to our consolidated balance sheets.Including probable elections to exercise renewal options, the remaining terms on our operating leases range from one to 59 years.Future commitments related to these leases as of December 31, 2009 are as follows (in millions): Year Commitment 2010 $ 37.7 2011 32.2 2012 23.5 2013 16.8 2014 13.6 Thereafter 38.7 Total minimum payments $ 162.5 We have not reduced our total minimum payments for future minimum sublease rentals aggregating approximately $0.4 million.Total lease and rental expenses were $55.6 million for 2009, $61.7 million for 2008 and $49.2 million for 2007. Directors Unit Appreciation Rights Plan On April 1, 2003, KMRs compensation committee established our Directors Unit Appreciation Rights Plan.Pursuant to this plan, and on this date of adoption, each of KMRs then three non-employee directors was granted 7,500 common unit appreciation rights.In addition, 10,000 common unit appreciation rights were granted to each of KMRs then three non-employee directors on January 21, 2004, at the first meeting of the board in 2004.During the first board meeting of 2005, the plan was terminated and replaced by the Kinder Morgan Energy Partners, L.P. Common Unit Compensation Plan for Non-Employee Directors (discussed following); however, all unexercised awards made under the plan remain outstanding. Upon the exercise of unit appreciation rights, we will pay, within thirty days of the exercise date, the participant an amount of cash equal to the excess, if any, of the aggregate fair market value of the unit appreciation rights exercised as of the exercise date over the aggregate award price of the rights exercised.The fair market value of one unit appreciation right as of the exercise date will be equal to the closing price of one common unit on the New York Stock Exchange on that date.The award price of one unit appreciation right will be equal to the closing price of one common unit on the New York Stock Exchange on the date of grant.Proceeds, if any, from the exercise of a unit appreciation right granted under the plan will be payable only in cash (that is, no exercise will result in the issuance of additional common units) and will be evidenced by a unit appreciation rights agreement.All unit appreciation rights granted vest on the six-month anniversary of the date of grant.If a unit appreciation right is not exercised in the ten year period following the date of grant, the unit appreciation right will expire and not be exercisable after the end of such period.In addition, if a participant ceases to serve on the board for any reason prior to the vesting date of a unit appreciation right, such unit appreciation right will immediately expire on the date of cessation of service and may not be exercised. In 2007, Mr. Hultquist exercised 7,500 unit appreciation rights at an aggregate f

13. Risk Management

13. Risk Management
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Risk Management	13.Risk Management Certain of our business activities expose us to risks associated with unfavorable changes in the market price of natural gas, natural gas liquids and crude oil.We also have exposure to interest rate risk as a result of the issuance of our debt obligations.Pursuant to our managements approved risk management policy, we use derivative contracts to hedge or reduce our exposure to certain of these risks. Energy Commodity Price Risk Management We are exposed to risks associated with changes in the market price of natural gas, natural gas liquids and crude oil as a result of the forecasted purchase or sale of these products.Specifically, these risks are primarily associated with unfavorable price volatility related to (i) pre-existing or anticipated physical natural gas, natural gas liquids and crude oil sales; (ii) natural gas purchases; and (iii) natural gas system use and storage.The unfavorable price changes are often caused by shifts in the supply and demand for these commodities, as well as their locations. Our principal use of energy commodity derivative contracts is to mitigate the risk associated with unfavorable market movements in the price of energy commodities.Our energy commodity derivative contracts act as a hedging (offset) mechanism against the volatility of energy commodity prices by allowing us to transfer this price risk to counterparties who are able and willing to bear it. For derivative contracts that are designated and qualify as cash flow hedges pursuant to generally accepted accounting principles, the portion of the gain or loss on the derivative contract that is effective in offsetting the variable cash flows associated with the hedged forecasted transaction is reported as a component of other comprehensive income and reclassified into earnings in the same line item associated with the forecasted transaction and in the same period or periods during which the hedged transaction affects earnings (e.g., in revenues when the hedged transactions are commodity sales).The remaining gain or loss on the derivative contract in excess of the cumulative change in the present value of future cash flows of the hedged item, if any (i.e., the ineffective portion), is recognized in earnings during the current period.The effectiveness of hedges using an option contract may be assessed based on changes in the options intrinsic value with the change in the time value of the contract being excluded from the assessment of hedge effectiveness.Changes in the excluded component of the change in an options time value are included currently in earnings.During 2009, we recognized a net loss of $13.5 million related to crude oil hedges, which resulted from hedge ineffectiveness and amounts excluded from effectiveness testing.Reflecting the portion of changes in the value of derivative contracts that were not effective in offsetting underlying changes in expected cash flows (the ineffective portion of hedges), we recognized losses of $2.4 million and $0.1 million during 2008 and 2007, respectively. Furthermore, during the years 2009, 2008 and 2007, we reclassified losses of $99.3 million, $663.7 million and $433.

14. Fair Value Measurements

14. Fair Value Measurements
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Fair Value Measurements	14.Fair Value Measurements Our fair value measurements and disclosures are made in accordance with the Fair Value Measurements and Disclosures Topic of the Codification.This Topic establishes a single definition of fair value in generally accepted accounting principles and prescribes disclosures about fair value measurements. We adopted the provisions of this Topic for our financial assets and financial liabilities effective January 1, 2008, and the adoption did not have a material impact on our balance sheet, statement of income, or statement of cash flows since we already applied its basic concepts in measuring fair values.With regard to our non-financial assets and non-financial liabilities, we adopted the provisions of this Topic effective January 1, 2009.This includes applying the provisions to (i) nonfinancial assets and liabilities initially measured at fair value in business combinations; (ii) reporting units or nonfinancial assets and liabilities measured at fair value in conjunction with goodwill impairment testing; (iii) other nonfinancial assets measured at fair value in conjunction with impairment assessments; and (iv) asset retirement obligations initially measured at fair value.The adoption for non-financial assets and liabilities did not have a material impact on our balance sheet, statement of income, or statement of cash flows since we already applied its basic concepts in measuring fair values. The Codification emphasizes that fair value is a market-based measurement that should be determined based on assumptions (inputs) that market participants would use in pricing an asset or liability.Inputs may be observable or unobservable, and valuation techniques used to measure fair value should maximize the use of relevant observable inputs and minimize the use of unobservable inputs.Accordingly, the Codification establishes a hierarchal disclosure framework that ranks the quality and reliability of information used to determine fair values.The hierarchy is associated with the level of pricing observability utilized in measuring fair value and defines three levels of inputs to the fair value measurement processquoted prices are the most reliable valuation inputs, whereas model values that include inputs based on unobservable data are the least reliable.Each fair value measurement must be assigned to a level corresponding to the lowest level input that is significant to the fair value measurement in its entirety. The three broad levels of inputs defined by the fair value hierarchy are as follows: Level 1 Inputsquoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date; Level 2 Inputsinputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.If the asset or liability has a specified (contractual) term, a Level 2 input must be observable for substantially the full term of the asset or liability; and Level 3 Inputsunobservable inputs for the asset or liability.These unobservable inputs reflect the entitys own assumptions about the a

15. Reportable Segments

15. Reportable Segments
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Reportable Segments	15.Reportable Segments We divide our operations into five reportable business segments.These segments and their principal source of revenues are as follows: Products Pipelines the transportation and terminaling of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids; Natural Gas Pipelinesthe sale, transport, processing, treating, storage and gathering of natural gas; CO2the production and sale of crude oil from fields in the Permian Basin of West Texas and the transportation and marketing of carbon dioxide used as a flooding medium for recovering crude oil from mature oil fields; Terminalsthe transloading and storing of refined petroleum products and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals; and Kinder Morgan Canadathe transportation of crude oil and refined products. We evaluate performance principally based on each segments earnings before depreciation, depletion and amortization, which excludes general and administrative expenses, third-party debt costs and interest expense, unallocable interest income and income tax expense, and net income attributable to noncontrolling interests.Our reportable segments are strategic business units that offer different products and services.Each segment is managed separately because each segment involves different products and marketing strategies.We identified our Trans Mountain pipeline system as a separate reportable business segment prior to the third quarter of 2008.Following the acquisition of our interests in the Express and Jet Fuel pipeline systems on August 28, 2008, discussed in Note 3, we combined the operations of our Trans Mountain, Express and Jet Fuel pipeline systems to represent the Kinder Morgan Canada segment. Our Products Pipelines segment derives its revenues primarily from the transportation and terminaling of refined petroleum products, including gasoline, diesel fuel, jet fuel and natural gas liquids.Our Natural Gas Pipelines segment derives its revenues primarily from the sale, transport, processing, treating, storage and gathering of natural gas.Our CO2 segment derives its revenues primarily from the production and sale of crude oil from fields in the Permian Basin of West Texas and from the transportation and marketing of carbon dioxide used as a flooding medium for recovering crude oil from mature oil fields.Our Terminals segment derives its revenues primarily from the transloading and storing of refined petroleum products and dry and liquid bulk products, including coal, petroleum coke, cement, alumina, salt and other bulk chemicals.Our Kinder Morgan Canada business segment derives its revenues primarily from the transportation of crude oil and refined products. As discussed in Note 3, due to the October 2007 sale of our North System, an approximately 1,600-mile interstate common carrier pipeline system whose operating results were included as part of our Products Pipelines business segment, we accounted for the North System business as a discontinued operation.Consistent with the management approach of identifying and

16. Litigation, Environmental a

16. Litigation, Environmental and Other Contingencies
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Litigation, Environmental and Other Contingencies	16.Litigation, Environmental and Other Contingencies Below is a brief description of our ongoing material legal proceedings, including any material developments that occurred in such proceedings during 2009.This note also contains a description of any material legal proceeding initiated during 2009 in which we are involved. In this note, we refer to our subsidiary SFPP, L.P. as SFPP; our subsidiary Calnev Pipe Line LLC as Calnev; Chevron Products Company as Chevron; Navajo Refining Company, L.P. as Navajo; ARCO Products Company as ARCO; BP West Coast Products, LLC as BP; Texaco Refining and Marketing Inc. as Texaco; Western Refining Company, L.P. as Western Refining; ExxonMobil Oil Corporation as ExxonMobil; Tosco Corporation as Tosco; Ultramar Diamond Shamrock Corporation/Ultramar Inc. as Ultramar; Valero Energy Corporation as Valero; Valero Marketing and Supply Company as Valero Marketing; America West Airlines, Inc., Continental Airlines, Inc., Northwest Airlines, Inc., Southwest Airlines Co. and US Airways, Inc., collectively, as the Airlines; our subsidiary Kinder Morgan CO2 Company, L.P. (the successor to Shell CO2 Company, Ltd.) as Kinder Morgan CO2; the United States Court of Appeals for the District of Columbia Circuit as the D.C. Circuit; the Federal Energy Regulatory Commission as the FERC; the California Public Utilities Commission as the CPUC; the United States Department of the Interior, Minerals Management Service as the MMS; the Union Pacific Railroad Company (the successor to Southern Pacific Transportation Company) as UPRR; the United States Department of Transportation Pipeline and Hazardous Materials Safety Administration as the PHMSA; the North Carolina Department of Environment and Natural Resources as the NCDENR; the Florida Department of Environmental Protection as the Florida DEP; our subsidiary Kinder Morgan Bulk Terminals, Inc. as KMBT; Rockies Express Pipeline LLC as Rockies Express; and Plantation Pipe Line Company as Plantation. OR dockets designate complaint proceedings, and IS dockets designate protest proceedings. Federal Energy Regulatory Commission Proceedings FERC Docket Nos. OR92-8, et al (West and East Line Rates)Complainants: Chevron, Navajo, ARCO, BP, Western Refining, ExxonMobil, Tosco, and TexacoDefendant: SFPPStatus:Appeals pending at the D.C. Circuit; FERC Docket No. OR92-8-025 (Watson Drain-Dry Charge)Complainants:BP; ExxonMobil; Chevron; ConocoPhillips; and UltramarDefendant: SFPPStatus:Appeal denied by the D.C. Circuit; FERC Docket Nos. OR96-2, et al (All SFPP Rates)Complainants: All Shippers except ChevronDefendant: SFPPStatus:Compliance filings pending with FERC; FERC Docket No. OR02-4 (All SFPP Rates)Complainant: ChevronDefendant: SFPP; Status:Appeal of complaint dismissal pending at the D.C. Circuit; FERC Docket Nos. OR03-5, OR04-3, OR05-4 OR05-5 (West, East, North, and Oregon Line Rates)Complainants: BP, ExxonMobil, ConocoPhillips, the AirlinesDefendant: SFPPStatus:Exceptions to initial decision pending at FERC; FERC Docket Nos. OR07-1 OR07-2 (North and West Line Rates)Complainant: TesoroDefendant: SFPPStatus:Held in abeyance; FERC Do

17. Regulatory Matters

17. Regulatory Matters
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Regulatory Matters	17.Regulatory Matters The tariffs we charge for transportation on our interstate common carrier pipelines are subject to rate regulation by the FERC, under the Interstate Commerce Act.The Interstate Commerce Act requires, among other things, that interstate petroleum products pipeline rates be just and reasonable and nondiscriminatory.Pursuant to FERC Order No. 561, effective January 1, 1995, interstate petroleum products pipelines are able to change their rates within prescribed ceiling levels that are tied to an inflation index.FERC Order No. 561-A, affirming and clarifying Order No. 561, expanded the circumstances under which interstate petroleum products pipelines may employ cost-of-service ratemaking in lieu of the indexing methodology, effective January 1, 1995.For each of the years ended December 31, 2009, 2008 and 2007, the application of the indexing methodology did not significantly affect tariff rates on our interstate petroleum products pipelines. Below is a brief description of our ongoing regulatory matters, including any material developments that occurred during 2009.This note also contains a description of any material regulatory matters initiated during 2009 in which we are involved. Natural Gas Pipeline Expansion Filings Rockies Express Pipeline-East Project OnNovember 12, 2009, we completed and placed into service the remainder of the Rockies Express-East natural gas pipeline segment, consisting of approximately 195-miles of 42-inch diameter pipe extending to a terminus near the town of Clarington in Monroe County, Ohio.Rockies Express-East is the third and final phase of the Rockies Express Pipeline.On June 29, 2009, we commenced interim transportation service for up to 1.6 billion cubic feet per day of natural gas on the first 444 miles of the Rockies Express-East pipeline segment, which extends from Audrain County, Missouri to the Lebanon Hub in Warren County, Ohio. Now fully operational, the 1,679-mile Rockies Express Pipeline has the capacity to transport up to 1.8 billion cubic feet of natural gas per day and can make deliveries to pipeline interconnects owned by Northern Natural Gas Company, NGPL, ANR, Panhandle Eastern Pipeline Company, our subsidiary Kinder Morgan Interstate Gas Transmission LLC (referred to as KMIGT and discussed further below), Missouri Gas Pipeline, Midwestern Gas Transmission, Trunkline, Columbia Gas, Dominion Transmission, Tennessee Gas, Texas Eastern, and Texas Gas Transmission.It also connects with the following local distribution companies: Ameren, Vectren, and Dominion East Ohio. We own 50% of Rockies Express Pipeline LLC, the sole owner of the Rockies Express Pipeline, and virtually all of the pipeline systems natural gas transportation capacity has been contracted under long-term firm commitments from creditworthy shippers.Market conditions for consumables, labor and construction equipment, along with certain provisions in the final regulatory orders resulted in increased costs and impacted certain projected completion dates for the Rockies Express Pipeline, and including expansions, our current estimate of total Rockies Express Pipeline project construction cost

18. Recent Accounting Pronounce

18. Recent Accounting Pronouncements
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Recent Accounting Pronouncements	18.Recent Accounting Pronouncements SECs Final Rule on Oil and Gas Disclosure Requirements On December 31, 2008, the Securities and Exchange Commission, referred to in this report as the SEC, issued Release No. 33-8995, Modernization of Oil and Gas Reporting Requirements (Final Rule), which revises the disclosures required by oil and gas companies.The SEC disclosure requirements for oil and gas companies have been updated to include expanded disclosure for oil and gas activities, and certain definitions have also been changed that will impact the determination of oil and gas reserve quantities.The provisions of this final rule are effective for registration statements filed on or after January 1, 2010, and for annual reports for fiscal years ending on or after December 31, 2009.We have fully adopted the provisions required pursuant to the SECs final rule; however,we are not able to disclosethe impact of these new SEC guidelines due to the impracticability of the effort that would be required to prepare reserve reports under both the old and new rules.For further disclosures on our oil and gas producing activities, see Note 20. Accounting Standards Updates In August 2009, the FASB issued Accounting Standards Update No. 2009-05, Measuring Liabilities at Fair Value.This Accounting Standards Update, or ASU, amends the Fair Value Measurements and Disclosures Topic of the Codification to provide further guidance on how to measure the fair value of a liability.ASU No. 2009-05 is effective for the first reporting period beginning after issuance (September 30, 2009 for us), and the adoption of this ASU did not have a material impact on our consolidated financial statements. In December 2009, the FASB issued Accounting Standards Update No. 2009-16, Accounting for Transfers of Financial Assets and Accounting Standards Update No. 2009-17, Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities.ASU No. 2009-16 amended the Codifications Transfers and Servicing Topic to include the provisions included within the FASBs previous Statement of Financial Accounting Standards (SFAS) No. 166, Accounting for Transfers of Financial Assetsan amendment of FASB Statement No. 140, issued June 12, 2009.ASU No. 2009-17 amended the Codifications Consolidations Topic to include the provisions included within the FASBs previous SFAS No. 167, Amendments to FASB Interpretation No. 46(R), also issued June 12, 2009.These two Updates change the way entities must account for securitizations and special-purpose entities.ASU No. 2009-16 requires more information about transfers of financial assets, including securitization transactions, and where companies have continuing exposure to the risks related to transferred financial assets.ASU No. 2009-17 changes how a company determines when an entity that is insufficiently capitalized or is not controlled through voting (or similar rights) should be consolidated.For us, both Updates were effective January 1, 2010; however, the adoption of these Updates did not have any impact on our consolidated financial statements. In January 2010, the FASB issued Accounting Standards Update No. 20

19. Quarterly Financial Data

19. Quarterly Financial Data (Unaudited)
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Quarterly Financial Data (Unaudited)	19.Quarterly Financial Data (Unaudited) Operating Revenues Operating Income Income from Continuing Operations Income from Discontinued Operations Net Income (In millions) 2009 First Quarter $ 1,786.5 $ 340.0 $ 266.8 $ - $ 266.8 Second Quarter 1,645.3 372.0 328.6 - 328.6 Third Quarter 1,660.7 406.7 363.7 - 363.7 Fourth Quarter 1,910.9 396.4 324.7 - 324.7 2008 First Quarter $ 2,720.3 $ 419.4 $ 350.2 $ 0.5 $ 350.7 Second Quarter 3,495.7 406.2 365.5 0.8 366.3 Third Quarter 3,232.8 407.9 332.9 - 332.9 Fourth Quarter 2,291.5 318.0 268.6 - 268.6 Limited Partners Interest in: Income from Continuing Operations Income from Discontinued Operations Net Income Limited Partners income per unit: 2009 First Quarter 0.15 - 0.15 Second Quarter 0.33 - 0.33 Third Quarter 0.43 - 0.43 Fourth Quarter 0.26 - 0.26 2008 First Quarter 0.63 - 0.63 Second Quarter 0.64 0.01 0.65 Third Quarter 0.48 - 0.48 Fourth Quarter 0.19 - 0.19

20. Supplemental Information on

20. Supplemental Information on Oil and Gas Producing Activities (Unaudited)
	12 Months Ended Dec. 31, 2009
Notes to Financial Statements [Abstract]
Supplemental Information on Oil and Gas Producing Activities (Unaudited)	20.Supplemental Information on Oil and Gas Producing Activities (Unaudited) The following table sets forth productive wells, service wells and drilling wells in the oil and gas fields in which we own interests as of December 31, 2009.The oil and gas producing fields in which we own interests are located in the Permian Basin area of West Texas.When used with respect to acres or wells, gross refers to the total acres or wells in which we have a working interest, and net refers to gross acres or wells multiplied, in each case, by the percentage working interest owned by us: Productive Wells (a) Service Wells (b) Drilling Wells (c) Gross Net Gross Net Gross Net Crude Oil 2,290 1,423 983 759 4 4 Natural Gas 5 2 31 15 - - Total Wells 2,295 1,425 1,014 774 4 4 __________ (a) Includes active wells and wells temporarily shut-in.As of December 31, 2009, we did not operate any productive wells with multiple completions. (b) Consists of injection, water supply, disposal wells and service wells temporarily shut-in.A disposal well is used for disposal of salt water into an underground formation; a service well is a well drilled in a known oil field in order to inject liquids that enhance recovery or dispose of salt water. (c) Consists of development wells in the process of being drilled as of December 31, 2009.A development well is a well drilled in an already discovered oil field. The following table reflects our net productive and dry wells that were completed in each of the three years ended December 31, 2009, 2008 and 2007: Year Ended December 31, 2009 2008 2007 Productive Development 42 47 31 Exploratory - - - Dry Development - - - Exploratory - - - Total Wells 42 47 31 __________ Note: The above table includes wells that were completed during each year regardless of the year in which drilling was initiated, and does not include any wells where drilling operations were not completed as of the end of the applicable year.Development wells include wells drilled in the proved area of an oil or gas resevoir. The following table reflects the developed and undeveloped oil and gas acreage that we held as of December 31, 2009: Gross Net Developed Acres 72,435 67,748 Undeveloped Acres 9,715 9,056 Total 82,150 76,804 Operating Statistics Operating statistics from our oil and gas producing activities for each of the years 2009, 2008 and 2007 are shown in the following table: Results of Operations for Oil and Gas Producing Activities Unit Prices and Costs Year Ended December 31, 2009 2008 2007 Consolidated Companies(a) Production costs per barrel of oil equivalent(b)(c)(d) $ 11.44 $ 15.70 $ 12.84 Crude oil production (MBbl/d) 37.4 36.2

Document Information

Document Information
	12 Months Ended Dec. 31, 2009
Document Information [Text Block]
Document Type	10-K
Document Period End Date	2009-12-31
Amendment Flag	false

Entity Information

Entity Information (USD $)
	12 Months Ended Dec. 31, 2009	Jan. 31, 2010	Jun. 30, 2009
Entity [Text Block]
Entity Registrant Name	Kinder Morgan Energy Partners L P
Entity Central Index Key	0000888228
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$9,217,003,530
Entity Common Stock, Shares Outstanding		207,310,563