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                                 UNITED STATES

                      SECURITIES AND EXCHANGE COMMISSION

                            WASHINGTON, D.C.  20549

                                 SCHEDULE 13D

                   UNDER THE SECURITIES EXCHANGE ACT OF 1934

                      Plains All American Pipeline, L.P.
- --------------------------------------------------------------------------------
                               (Name of Issuer)

                                 Common Units
- --------------------------------------------------------------------------------
                        (Title of Class of Securities)

                                  726503 10 5
                ----------------------------------------------
                                (CUSIP Number)

                             Michael R. Patterson
                             Senior Vice President
                           Plains All American Inc.
                             500 Dallas, Suite 700
                             Houston, Texas 77002
                                (713) 654-1414
- --------------------------------------------------------------------------------
      (Name, Address and Telephone Number of Person Authorized to Receive
                          Notices and Communications)

                               November 23, 1998
                ----------------------------------------------
                 (Date of Event which Requires Filing of this
                                  Statement)

If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rule 13d-1(b)(3) or (4), check the following box [ ].

NOTE: Schedules filed in paper format shall include a signed original and five
copies of the schedule, including all exhibits.  See Rule 13d-1(a) for other
parties to whom copies are to be sent.

*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter
disclosures provided in a prior cover page.

The information required on the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).

                                      -1-

                                 SCHEDULE 13D

- -------------------------                                ---------------------
  CUSIP NO. 726503 10 5                                    Page 2 of 9 Pages
- -------------------------                                ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
                          
       Plains Resources Inc.                         13-2898764
- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [X]
                                                                (b) [_]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 
- ------------------------------------------------------------------------------
      SOURCE OF FUNDS*
 4

       OO; see Item 3
- ------------------------------------------------------------------------------
      CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 
      ITEMS 2(d) OR 2(e)
 5                                                                   [_]

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 6    

       U.S.A.
- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     7     
     NUMBER OF            
                           -0-
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      8    
                           6,974,239 Common Units of Plains All American
     OWNED BY               Pipeline, L.P.**
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     9     
    REPORTING             
                           -0-
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH         10    
                           6,974,239 Common Units of Plains All American
                            Pipeline, L.P.**
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11    
      
       6,974,239 Common Units of Plains All American Pipeline, L.P.**
- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12                                                                    [_]
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13    
      
       34.8%
- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
14
      
       HC
- ------------------------------------------------------------------------------

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!

**Includes 6,974,239 Common Units held by PAAI LLC, an indirect, wholly-owned
  subsidiary of Plains Resources Inc. PAAI LLC also holds 10,029,619
  subordinated limited partner interests in the Partnership, which may be
  converted into an equal number of Common Units upon satisfaction of the
  conditions described in the Registration Statement on Form S-1 (333-64107),
  incorporated herein by reference.

 
SCHEDULE 13D

- -------------------------                                ---------------------
  CUSIP NO. 726503 10 5                                    Page 3 of 9 Pages
- -------------------------                                ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
                          
       Plains All American Inc.                      76-0562201
- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [X]
                                                                (b) [_]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 
- ------------------------------------------------------------------------------
      SOURCE OF FUNDS*
 4

       OO; see Item 3
- ------------------------------------------------------------------------------
      CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 
      ITEMS 2(d) OR 2(e)
 5                                                                   [_]

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 6    

       U.S.A.
- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     7     
     NUMBER OF            
                           -0-
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      8    
                           6,974,239 Common Units of Plains All American
     OWNED BY               Pipeline, L.P.**
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     9     
    REPORTING             
                           -0-
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH         10    
                           6,974,239 Common Units of Plains All American
                            Pipeline, L.P.**
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11    
      
       6,974,239 Common Units of Plains All American Pipeline, L.P.**
- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12                                                                    [_]
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13    
      
       34.8%
- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
14
      
       HC
- ------------------------------------------------------------------------------

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!

**Includes 6,974,239 Common Units held by PAAI LLC, wholly-owned subsidiary of
  Plains All American Inc. PAAI LLC also holds 10,029,619 subordinated limited
  partner interests in the Partnership, which may be converted into an equal
  number of Common Units upon satisfaction of the conditions described in the
  Registration Statement on Form S-1 (333-64107), incorporated herein by
  reference.

 
SCHEDULE 13D

- -------------------------                                ---------------------
  CUSIP NO. 726503 10 5                                    Page 4 of 9 Pages
- -------------------------                                ---------------------
 
- ------------------------------------------------------------------------------
      NAME OF REPORTING PERSON
 1    S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
                          
       PAAI LLC                                      76-1587114
- ------------------------------------------------------------------------------
      CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
 2                                                              (a) [X]
                                                                (b) [_]
                                                 
- ------------------------------------------------------------------------------
      SEC USE ONLY
 3
 
- ------------------------------------------------------------------------------
      SOURCE OF FUNDS*
 4

       OO; see Item 3
- ------------------------------------------------------------------------------
      CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT TO 
      ITEMS 2(d) OR 2(e)
 5                                                                   [_]

- ------------------------------------------------------------------------------
      CITIZENSHIP OR PLACE OF ORGANIZATION
 6    

       U.S.A.
- ------------------------------------------------------------------------------
                          SOLE VOTING POWER
                     7     
     NUMBER OF            
                           -0-
      SHARES       -----------------------------------------------------------
                          SHARED VOTING POWER
   BENEFICIALLY      8    
                           6,974,239 Common Units of Plains All American
     OWNED BY               Pipeline, L.P.**
                   -----------------------------------------------------------
       EACH               SOLE DISPOSITIVE POWER
                     9     
    REPORTING             
                           -0-
      PERSON       -----------------------------------------------------------
                          SHARED DISPOSITIVE POWER
       WITH         10    
                           6,974,239 Common Units of Plains All American
                            Pipeline, L.P.**
- ------------------------------------------------------------------------------
      AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
11    
      
       6,974,239 Common Units of Plains All American Pipeline, L.P.**
- ------------------------------------------------------------------------------
      CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES*
12                                                                    [_]
 
- ------------------------------------------------------------------------------
      PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
13    
      
       34.8%
- ------------------------------------------------------------------------------
      TYPE OF REPORTING PERSON*
14
      
       OO; Limited Liability Company
- ------------------------------------------------------------------------------

                     *SEE INSTRUCTIONS BEFORE FILLING OUT!

**PAAI LLC also holds 10,029,619 subordinated limited partner interests in the
  Partnership, which may be converted into an equal number of Common Units upon 
  satisfaction of the conditions described in the Registration Statement on
  Form S-1 (333-64107), incorporated herein by reference.

 
                                                               Page 5 of 9 Pages

                        ORIGINAL REPORT ON SCHEDULE 13D

Item 1.   Security and Issuer
          -------------------

     This statement on Schedule 13D is being filed by Plains Resources Inc.,
Plains All American Inc. and PAAI LLC (collectively, the "Reporting Persons"),
who may be deemed to comprise a group under Rule 13d-5(b) of the Securities
Exchange Act of 1934, as amended, (the "Exchange Act").  This statement relates
to the common limited partner interests (the "Common Units"), of Plains All
American, L.P., a Delaware limited partnership (the "Partnership"), which has
its principal executive offices at 500 Dallas, Suite 700, Houston, Texas 77002.

Item 2.   Identity and Background
          -----------------------

     (a) - (c) The information required to be filed in response to paragraphs
(a), (b) and (c) of Item 2 with respect to the Reporting Persons is set forth on
Schedule I.

     (d) During the last five years, none of the Reporting Persons have been
convicted in a criminal proceeding (excluding traffic violations or similar
misdemeanors).

     (e) During the last five years, none of the Reporting Persons have been a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction as a result of which any of such person was or is subject to a
judgment, decree or final order enjoining future violations of, or prohibiting
or mandating activities subject to, federal or state securities laws or finding
any violation with respect to such laws.

     (f) Plains Resources Inc. and Plains All American Inc. are Delaware
corporations and PAAI LLC is a Delaware limited liability company.

Item 3.   Source and Amount of Funds or Other Consideration
          -------------------------------------------------

     The Reporting Persons acquired beneficial ownership of 6,974,239 Common
Units on November 23, 1998 in exchange for the contribution of certain assets to
the Partnership in connection with the Partnership's initial public offering.

Item 4.   Purpose of Transaction
          ----------------------

     The Reporting Persons acquired the Common Units reported herein solely for
the purpose of investment. The Reporting Persons may make additional purchases
of Common Units either in the open market or in private transactions depending
on the Partnership's business, prospects and financial condition, the market for
the Common Units, general economic conditions, money and stock market conditions
and other future developments.

Item 5.   Interest in Securities of the Company
          -------------------------------------

     (a) There were 20,059,239 Common Units outstanding as of November 23, 1998,
the date of the initial public offering.  The Reporting Persons are deemed to be
the beneficial owners of 6,974,239 Common Units, which constitute approximately
34.8% of the total issued and outstanding Common Units as of November 23, 1998.

                                                               Page 6 of 9 Pages

     (b) The number of Common Units as to which there is sole power to vote or
to direct the vote, sole power to dispose or to direct the disposition, or
shared power to dispose or direct the disposition for the Reporting Persons is
set forth on the cover pages of this Statement on Schedule 13D, and such
information is incorporated herein by reference.

     (c) There have been no reportable transactions with respect to the Common
Units within the last 60 days by the Reporting Persons except for the
acquisition of beneficial ownership of units being reported on this Schedule
13D.

     (d) The Reporting Persons have the right to receive distributions from, and
the proceeds from the sale of, the respective Common Units reported by such
persons on the cover pages of this Statement on Schedule 13D.

     (e)  Not applicable.

Item 6.   Contracts, Arrangements, Understandings or Relationships with respect
          ---------------------------------------------------------------------
          to Securities of the Company
          ----------------------------

     The 6,974,239 Common Units acquired by the Reporting Persons were acquired
in a private placement and are restricted securities.  Certain transfer
restrictions, voting rights of the Reporting Persons and registration rights
granted by the Partnership and to which the Partnership is entitled are set
forth in the Second Amended and Restated Agreement of Limited Partnership of
the Partnership, a copy of the form of which is included as Appendix A of the
Prospectus constituting part of the Registration Statement on Form S-1 which
has been incorporated by reference to this Schedule 13D.

Item 7.   Material to be filed as Exhibits
          --------------------------------

     Exhibit A:  Registration Statement on Form S-1 for Plains All American
Pipeline, L.P. (333-64107) incorporated herein by reference.

     Exhibit B: Joint Filing Agreement, dated December 3, 1998.

 
                                                               Page 7 of 9 Pages

                                   SIGNATURE
                                   ---------

     After reasonable inquiry and to the best of our knowledge and belief, the
undersigned certify that the information set forth in this statement is true,
complete and correct.

Date: December 3, 1998             Plains Resources Inc.

                                   /s/ Michael R. Patterson
                                   ----------------------------
                                       Michael R. Patterson
                                          Vice President

                                   Plains All American Inc.

                                   /s/ Michael R. Patterson
                                   ----------------------------
                                       Michael R. Patterson
                                       Senior Vice President

 

                                   PAAI LLC

                                   By: Plains All American Inc., its sole member

                                   /s/ Michael R. Patterson
                                   ----------------------------
                                       Michael R. Patterson
                                       Senior Vice President

 
                                                               Page 9 of 9 Pages

                                   Exhibit B

     Each of the undersigned hereby agrees that the Schedule 13D dated December
3, 1998, to which this Agreement is attached as Exhibit B, and any amendments
thereto, may be filed on behalf of such person.

     This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and
the same instrument.

Date: December 3, 1998             Plains Resources Inc.

                                   /s/ Michael R. Patterson
                                   ----------------------------
                                       Michael R. Patterson
                                          Vice President

                                   Plains All American Inc.

                                   /s/ Michael R. Patterson
                                   ----------------------------
                                       Michael R. Patterson
                                       Senior Vice President

                                   PAAI LLC

                                   By: Plains All American Inc., its sole member

                                   /s/ Michael R. Patterson
                                   ----------------------------
                                       Michael R. Patterson
                                       Senior Vice President

 
                                                               Page 8 of 9 Pages

                                   SCHEDULE I
                                   ----------

NAME                               BUSINESS ADDRESS
- ----                               ----------------
Plains Resources Inc.              500 Dallas, Suite 700
                                   Houston, Texas 77002

Plains All American Inc.           500 Dallas, Suite 700
                                   Houston, Texas 77002

PAAI LLC                           500 Dallas, Suite 700
                                   Houston, Texas 77002