FORM 10-Q

For the quarterly period ended

March 31, 2005

Commission File No. 1-6407

____________________________

SOUTHERN UNION COMPANY

(Exact name of registrant as specified in its charter)

Delaware	75-0571592
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)
One PEI Center, Second Floor	18711
Wilkes-Barre, Pennsylvania	(Zip Code)
(Address of principal executive offices)

Registrant's telephone number, including area code: (570) 820-2400

Securities Registered Pursuant to Section 12(b) of the Act:

XIV. Commitments and Contingencies

Environmental.

Mercury Release - The Company has completed an investigation of a recent incident involving the release of mercury stored in a NEGC facility in Pawtucket, Rhode Island. On October 19, 2004, New England Gas Company discovered that a NEGC facility had been broken into and that mercury had been spilled both inside a building and in the immediate vicinity. Mercury had also been removed from the Pawtucket facility and a quantity had been spilled in a parking lot in the neighborhood. Mercury from the parking lot spill was apparently tracked into some nearby apartment units, as well as some other buildings. Spill cleanup has been completed at the NEGC property and nearby apartment units. Investigation of some other neighborhood properties has been undertaken, with cleanup necessitated in a few instances. State and federal authorities are also investigating the incident and have arrested the alleged vandals of the Pawtucket facility. In addition, they are conducting inquiries regarding NEGC's compliance with relevant environmental requirements, including hazardous waste management provisions, spill and release notification procedures, and hazard communication requirements. NEGC has received a subpoena requesting documents relating to this matter. The Company believes the outcome of this matter will not have a material adverse effect on its financial position, results of operations or cash flows.