REVENUES	12 Months Ended
Dec. 31, 2018
REVENUES
REVENUES	NOTE 6 REVENUES On January 1, 2018, the Partnership adopted new FASB guidance on revenue from contracts with customers using the modified retrospective transition method for all contracts that were in effect on the date of adoption. The reported results for all periods in 2018 reflect the application of the new guidance, while the reported results for all periods in 2017 and 2016 were prepared under previous revenue recognition guidance which is referred to herein as "legacy U.S. GAAP". Disaggregation of Revenues For the year ended December 31, 2018, virtually all of the Partnership’s revenues were from capacity arrangements and transportation contracts with customers as discussed under Note 2 - Significant Accounting Policies. During the fourth quarter of 2018, Bison received an unsolicited offer from Tenaska regarding the termination of its contract. Also during 2018, through a Permanent Capacity Release Agreement, Tenaska assumed Anadarko’s ship-or-pay contract obligation on Bison, which was the largest contract on Bison. Bison and Tenaska mutually agreed to terms which included a non-refundable payment to Bison of $95.4 million in December 2018 in exchange for the termination of all its contract obligations with Bison. Following the amendment of its tariff to enable this transaction, another customer executed a similar agreement to terminate its contract on Bison in exchange for a non-refundable payment to Bison of approximately $2.0 million in December 2018. At the termination of the contracts, Bison was released from performing any future services with the two customers and as such, the amounts received were recorded in revenue in 2018. Accordingly, the Partnership considers the $97 million received as a result of the contract terminations as revenue from capacity and transportation contracts with customers and therefore no further disaggregation of revenue is needed (See also related discussion under Note 7 - Plant Property and Equipment). As noted under Note 2 - Significant Accounting Policies, a portion of our revenues collected may be subject to refund when a rate proceeding is ongoing or as part of a rate case settlement with customers. We use our best estimate based on the facts and circumstances of the proceeding to provide for allowances for these potential refunds in the revenue we recognized. Accordingly, as part of the 2018 GTN Settlement, we have issued the 2018 GTN Rate Refund and recognized a $10 million offset against revenue in the income statement (See also Note 4 for more information). Financial Statement Impact of Adopting Revenue from Contracts with Customers The Partnership adopted the new guidance using the modified retrospective transition method. As a practical expedient under this transition method, the Partnership is not required to analyze completed contracts at the date of adoption. The adoption of the new guidance did not have a material impact on the Partnership’s previously reported consolidated financial statements at December 31, 2017. Pro-forma Financial Statements under Legacy U.S. GAAP At December 31, 2018, had legacy U.S. GAAP been applied, there would be no change in the Partnership’s reported balance sheet and income statement line items. Contract Balances All of the Partnership’s contract balances pertain to receivable from contracts with customers amounting to $44 million at December 31, 2018 and $40 million at January 1, 2018 and are both recorded as Trade accounts receivable and reported as Accounts receivable and other in the Partnership’s Consolidated Balance Sheet (Refer to Note 21). Additionally, our accounts receivable represents the Partnership’s unconditional right to recognize revenue for services completed which includes billed and unbilled accounts. Future revenue from remaining performance obligations When the right to invoice practical expedient is applied, the guidance does not require disclosure of information related to future revenue from remaining performance obligations therefore no additional disclosure is required. Additionally, in the application of the right to invoice practical expedient, the Partnership’s revenues from regulated capacity arrangements are recognized based on rates specified in the contract. Therefore, the amount invoiced, which includes the capacity contracted and variable volume of natural gas transported, corresponds directly to the value the customer received. These revenues are recognized on a monthly basis once the Partnership’s performance obligation to provide capacity has been satisfied.

NOTE 6 REVENUES

On January 1, 2018, the Partnership adopted new FASB guidance on revenue from contracts with customers using the modified retrospective transition method for all contracts that were in effect on the date of adoption. The reported results for all periods in 2018 reflect the application of the new guidance, while the reported results for all periods in 2017 and 2016 were prepared under previous revenue recognition guidance which is referred to herein as "legacy U.S. GAAP".

Disaggregation of Revenues

For the year ended December 31, 2018, virtually all of the Partnership’s revenues were from capacity arrangements and transportation contracts with customers as discussed under Note 2 - Significant Accounting Policies.

During the fourth quarter of 2018, Bison received an unsolicited offer from Tenaska regarding the termination of its contract. Also during 2018, through a Permanent Capacity Release Agreement, Tenaska assumed Anadarko’s ship-or-pay contract obligation on Bison, which was the largest contract on Bison. Bison and Tenaska mutually agreed to terms which included a non-refundable payment to Bison of $95.4 million in December 2018 in exchange for the termination of all its contract obligations with Bison. Following the amendment of its tariff to enable this transaction, another customer executed a similar agreement to terminate its contract on Bison in exchange for a non-refundable payment to Bison of approximately $2.0 million in December 2018. At the termination of the contracts, Bison was released from performing any future services with the two customers and as such, the amounts received were recorded in revenue in 2018. Accordingly, the Partnership considers the $97 million received as a result of the contract terminations as revenue from capacity and transportation contracts with customers and therefore no further disaggregation of revenue is needed (See also related discussion under Note 7 - Plant Property and Equipment).

As noted under Note 2 - Significant Accounting Policies, a portion of our revenues collected may be subject to refund when a rate proceeding is ongoing or as part of a rate case settlement with customers. We use our best estimate based on the facts and circumstances of the proceeding to provide for allowances for these potential refunds in the revenue we recognized. Accordingly, as part of the 2018 GTN Settlement, we have issued the 2018 GTN Rate Refund and recognized a $10 million offset against revenue in the income statement (See also Note 4 for more information).

Financial Statement Impact of Adopting Revenue from Contracts with Customers

The Partnership adopted the new guidance using the modified retrospective transition method. As a practical expedient under this transition method, the Partnership is not required to analyze completed contracts at the date of adoption. The adoption of the new guidance did not have a material impact on the Partnership’s previously reported consolidated financial statements at December 31, 2017.

Pro-forma Financial Statements under Legacy U.S. GAAP

At December 31, 2018, had legacy U.S. GAAP been applied, there would be no change in the Partnership’s reported balance sheet and income statement line items.

Contract Balances

All of the Partnership’s contract balances pertain to receivable from contracts with customers amounting to $44 million at December 31, 2018 and $40 million at January 1, 2018 and are both recorded as Trade accounts receivable and reported as Accounts receivable and other in the Partnership’s Consolidated Balance Sheet (Refer to Note 21). Additionally, our accounts receivable represents the Partnership’s unconditional right to recognize revenue for services completed which includes billed and unbilled accounts.

Future revenue from remaining performance obligations

When the right to invoice practical expedient is applied, the guidance does not require disclosure of information related to future revenue from remaining performance obligations therefore no additional disclosure is required.

Additionally, in the application of the right to invoice practical expedient, the Partnership’s revenues from regulated capacity arrangements are recognized based on rates specified in the contract. Therefore, the amount invoiced, which includes the capacity contracted and variable volume of natural gas transported, corresponds directly to the value the customer received. These revenues are recognized on a monthly basis once the Partnership’s performance obligation to provide capacity has been satisfied.