Subsequent Events

9 Months Ended

Sep. 30, 2011


14.	Subsequent Events

Recognizable events

No recognizable events occurred during the period.

Non-recognizable events

Quarterly distribution. In October 2011, our general partner's board of directors declared a quarterly distribution of $0.80 per unit to be paid on November 14, 2011 to unitholders of record at the close of business on November 1, 2011. The total cash distributions to be paid are $90.2 million (see Note 12—Distributions for details).

New revolving credit facility. In October 2011, we terminated our existing revolving credit facility that would have matured in September 2012 and entered into a new revolving credit facility. The new facility has total borrowing capacity of $800 million and matures in October 2016. Borrowings under the new facility are unsecured and bear interest at LIBOR plus a spread ranging from 0.875% to 1.75% based on our credit ratings. Additionally, a commitment fee is assessed on undrawn amounts at a rate between 0.125% and 0.30%, depending on our credit ratings.

Potential sale of our ammonia pipeline system. Because management has determined that the ammonia pipeline is not strategic to our long-range plans and because virtually all of the significant maintenance work required for the ammonia pipeline has now been completed, management determined that the timing was appropriate to explore a sale of this asset. We have engaged an investment advisor to determine strategic alternatives for this asset. Based on initial non-binding indications of interest, we believe the sale of this asset is likely within the next year and have classified the ammonia pipeline system as an asset held for sale beginning in October 2011. The major classes of assets and liabilities for the ammonia segment included only property, plant and equipment, net of accumulated depreciation, which was $34.5 million at September 30, 2011. See Note 5—Segment Disclosures for financial information of the ammonia pipeline system.

MF Global Holdings Ltd. bankruptcy. On October 31, 2011, MF Global Holdings Ltd., the parent of MF Global Inc. ("MF Global"), filed for bankruptcy protection under Chapter 11 of the U.S. bankruptcy laws, and a trustee was appointed to oversee the liquidation of MF Global under the Securities Investor Protection Act. MF Global served as our sole clearing agent for NYMEX futures contracts.

The Chicago Mercantile Exchange ("CME") requires us to maintain adequate margin against our NYMEX positions, which our clearing agent is required to hold on our behalf in a segregated account. On October 31, 2011, MF Global disclosed to the CME that it had a "significant shortfall" in its segregated customer accounts. Effective November 3, 2011, our existing trading positions at MF Global were transferred to a new clearing agent. All of our NYMEX activity is now being conducted with our new clearing agent.

As of November 2011, the date of transfer of our account, MF Global owed us $29.4 million. On November 4, 2011, $14.1 million of this was transferred to our new clearing agent account. At this point, it is unclear when or how much of the remaining $15.3 million will be returned to us. 3,