Fair Value Measurements

12 Months Ended

Dec. 31, 2012

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

8.  FAIR VALUE MEASUREMENTS:

In consideration of counterparty credit risk, the Company assessed the possibility of whether each counterparty to the derivative would default by failing to make any contractually required payments as scheduled in the derivative instrument in determining the fair value. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions.

As required by FASB ASC Topic 820, Fair Value Measurements and Disclosures (“FASB ASC 820”), the Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date and establishes a three level hierarchy for measuring fair value. Fair value measurements are classified and disclosed in one of the following categories:

Level 1:       Quoted prices (unadjusted) in active markets for identical assets and liabilities that we have the ability to access at the measurement date.

Level 2:       Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, and inputs that are derived from observable market data by correlation or other means. Instruments categorized in Level 2 include non-exchange traded derivatives such as over-the-counter forwards and swaps.

Level 3:       Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.

The valuation assumptions the Company has used to measure the fair value of its commodity derivatives were observable inputs based on market data obtained from independent sources and are considered Level 2 inputs (quoted prices for similar assets, liabilities (adjusted) and market-corroborated inputs).At December 31, 2012, the Company did not have any open commodity derivative contracts.

In consideration of counterparty credit risk, the Company assessed the possibility of whether each counterparty to the derivative would default by failing to make any contractually required payments as scheduled in the derivative instrument in determining the fair value. Additionally, the Company considers that it is of substantial credit quality and has the financial resources and willingness to meet its potential repayment obligations associated with the derivative transactions. At December 31, 2012, the Company did not have any open commodity derivative contracts.

Fair Value of Long-Lived Assets

The Company recognized impairments of $92.5 million during the year ended December 31, 2012 related to the decline in fair value as defined in FASB ASC 820 as a result of forecast decreased throughput volumes on its gathering facilities in Pennsylvania due to the decline in commodity prices. These facilities are included in Property, Plant and Equipment in the Consolidated Balance Sheets and were impaired to a fair value of $82.6 million based on the income approach, estimated using Level 3 fair value inputs.

Fair Value ofFinancial Instruments

The estimated fair value of financial instruments is the amount at which the instrument could be exchanged currently between willing parties. The carrying amounts reported in the Consolidated Balance Sheets for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the immediate or short-term maturity of these financial instruments. The carrying amount of floating-rate debt approximates fair value because the interest rates are variable and reflective of market rates.We use available market data and valuation methodologies to estimate the fair value of our fixed rate debt. The inputs utilized to estimate the fair value of the Company's fixed rate debt are considered Level 2 fair value inputs. This disclosure is presented in accordance with FASB ASC Topic 825, Financial Instruments, and does not impact our financial position, results of operations or cash flows.

		December 31, 2012				December 31, 2011
		Carrying		Estimated		Carrying		Estimated
		Amount		Fair Value		Amount		Fair Value
Long-Term Debt:
5.45% Notes due 2015, issued 2008	$	100,000	$	107,801	$	100,000	$	111,475
7.31% Notes due 2016, issued 2009		62,000		72,046		62,000		74,817
4.98% Notes due 2017, issued 2010		116,000		127,109		116,000		128,570
5.92% Notes due 2018, issued 2008		200,000		230,062		200,000		231,091
7.77% Notes due 2019, issued 2009		173,000		219,045		173,000		219,552
5.50% Notes due 2020, issued 2010		207,000		234,552		207,000		229,423
4.51% Notes due 2020, issued 2010		315,000		331,329		315,000		318,925
5.60% Notes due 2022, issued 2010		87,000		98,526		87,000		94,165
4.66% Notes due 2022, issued 2010		35,000		36,361		35,000		34,631
5.85% Notes due 2025, issued 2010		90,000		102,096		90,000		99,022
4.91% Notes due 2025, issued 2010		175,000		179,677		175,000		173,835
Credit Facility		277,000		277,000		343,000		343,000
	$	1,837,000	$	2,015,604	$	1,903,000	$	2,058,506