Fair Value

6 Months Ended

Jun. 30, 2011

Fair Value

Fair Value

13. Fair Value

Fair Value of Financial Instruments

We used the following methods and assumptions in estimating our fair value disclosure for financial instruments:

• Cash and cash equivalents and restricted cash. The carrying amounts reported on our consolidated balance sheets approximate fair value due to the short-term maturity or variable rates of these instruments.

• Energy commodity derivatives deposits. This asset represents short-term deposits we paid associated with our energy commodity derivatives contracts. The carrying amount reported on our consolidated balance sheets approximates fair value as the deposits paid change daily in relation to the associated contracts.

• Long-term receivables. Fair value was determined by estimating the present value of future cash flows using a risk-free rate of interest.

• Energy commodity derivatives contracts. These include NYMEX and butane price swap purchase agreements related to petroleum products. These contracts are carried at fair value on our consolidated balance sheets and are valued based on quoted prices in active markets. See Note 9 - Derivative Financial Instruments for further disclosures regarding these contracts.

• Debt. The fair value of our publicly traded notes, excluding the value of interest rate swaps qualifying as fair value hedges, was based on the prices of those notes at December 31, 2010 and June 30, 2011. The carrying amount of borrowings under our revolving credit facility approximates fair value due to the variable rates of that instrument.

• Interest rate swaps. Fair value was determined based on an assumed exchange, at the end of each period, in an orderly transaction with market participants using market observable interest rate swap curves (see Note 9 – Derivative Financial Instruments). The exchange value was calculated using present value techniques on estimated future cash flows based on forward interest rate curves.

The following table reflects the carrying amounts and fair values of our financial instruments as of December 31, 2010 and June 30, 2011 (in thousands):

Assets (Liabilities)	December 31, 2010						June 30, 2011
	Carrying Amount			Fair Value			Carrying Amount			Fair Value
Cash and cash equivalents	$	7,483		$	7,483		$	12,992		$	12,992
Restricted cash	$	14,379		$	14,379		$	—		$	—
Energy commodity derivatives deposits	$	22,302		$	22,302		$	43,505		$	43,505
Long-term receivables	$	1,167		$	1,161		$	1,710		$	1,705
Energy commodity derivatives contracts (current)	$	(11,790	)	$	(11,790	)	$	(8,180	)	$	(8,180	)
Energy commodity derivatives contracts (noncurrent)	$	(4,920	)	$	(4,920	)	$	(10,962	)	$	(10,962	)
Debt	$	(1,906,148	)	$	(2,048,895	)	$	(2,042,246	)	$	(2,247,520	)
Interest rate swaps (current)	$	—		$	—		$	2,678		$	2,678
Interest rate swaps (noncurrent)	$	—		$	—		$	1,849		$	1,849

Fair Value Measurements

The following tables summarize the recurring fair value measurements of our NYMEX commodity contracts and interest rate swaps as of December 31, 2010 and June 30, 2011, based on the three levels established by ASC 820-10-50; Fair Value Measurements and Disclosures—Overall—Disclosure (in thousands):

Assets (Liabilities)				Fair Value Measurements as of December 31, 2010 using:
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Energy commodity derivatives contracts (current)	$	(11,790	)	$	(11,790	)	$	—	$	—
Energy commodity derivatives contracts (noncurrent)	$	(4,920	)	$	(4,920	)	$	—	$	—

Assets (Liabilities)				Fair Value Measurements as of June 30, 2011 using:
	Total			Quoted Prices in Active Markets for Identical Assets (Level 1)			Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Energy commodity derivatives contracts (current)	$	(8,180	)	$	(8,180	)	$	—	$	—
Energy commodity derivatives contracts (noncurrent)	$	(10,962	)	$	(10,962	)	$	—	$	—
Interest rate swaps (current)	$	2,678		$	—		$	2,678	$	—
Interest rate swaps (noncurrent)	$	1,849		$	—		$	1,849	$	—