Related Party Transactions

3 Months Ended

Mar. 31, 2012

Related Party Transactions [Abstract]

Related Party Transactions

12. Related Party Transactions

     We own a 50% interest in Osage Pipe Line Company, LLC and receive a management fee for the operation of its crude oil pipeline. We received operating fees from this company of $0.2 million for each of the three months ended March 31, 2011 and 2012. We reported these fees as affiliate management fee revenue on our consolidated statements of income.

     We own a 50% interest in Texas Frontera, LLC ("Texas Frontera"), which is in the process of constructing 0.8 million barrels of refined products storage at our Galena Park, Texas terminal. Upon completion, these tanks will be leased to an affiliate of Texas Frontera under a long-term lease agreement. Additionally, we have agreed to construct certain infrastructure assets at our Galena Park terminal which will allow for the operation of the tanks under construction by Texas Frontera. During first quarter 2012, the construction funding requests sent to us from Texas Frontera were $2.5 million, of which we paid $1.5 million in cash and $1.0 million was applied against our capital spending for the infrastructure assets under construction.

     We own a 50% interest in Double Eagle Pipeline LLC ("Double Eagle"), which is in the process of constructing a 140-mile pipeline that will connect to an existing pipeline segment owned by an affiliate of Double Eagle. Once completed, Double Eagle will transport condensate from the Eagle Ford shale formation to our terminal in Corpus Christi, Texas. During first quarter 2012, we paid construction funding requests to Double Eagle of $2.0 million.

     Barry R. Pearl is an independent member of our general partner's board of directors and is also a director of Targa Resources Partners, L.P. ("Targa"). In the normal course of business, we purchase petroleum products from subsidiaries of Targa. For the three months ended March 31, 2011 and 2012, we made purchases of petroleum products from subsidiaries of Targa of $0.3 million and $12.2 million, respectively. These purchases were made on the same terms as comparable third-party transactions.

     In January 2011, our former chief executive officer, Don R. Wellendorf, retired. In conjunction with Mr. Wellendorf's retirement, our general partner's board of directors engaged Mr. Wellendorf as a consultant to us for a period of twelve months beginning in February 2011 for consideration of $0.3 million and an agreement that certain of his previously-awarded phantom unit awards that would otherwise have been forfeited would not be forfeited.