Star Gas Partners, L.P. (Star Gas Partners) is a home heating oil distributor and services provider. The Company is a master limited partnership. The general partner of the Company is Kestrel Heat, LLC (Kestrel Heat). Star Gas Partners’ heating oil operations are conducted through Petro Holdings, Inc. (Petro) and its subsidiaries. Petro is a wholly owned subsidiary of Star/Petro, Inc. (Star/Petro), which is a wholly owned subsidiary of Star Gas Partners. As of September 30, 2008, the Company sold product to approximately 402,000 residential and commercial home heating oil customers and 7,000 propane customers. It also sells home heating oil, gasoline and diesel fuel to approximately 28,000 customers on a delivery only basis. The Company installs, maintains and repairs heating and air conditioning equipment for its customers, and provides ancillary home services, including home security and plumbing, to approximately 11,000 customers.