TRANSACTIONS WITH RELATED PARTIES

6 Months Ended

Jun. 30, 2011

TRANSACTIONS WITH RELATED PARTIES

NOTE 13. TRANSACTIONS WITH RELATED PARTIES

Employee Loans and Advances

From time to time, we have made certain retention loans and relocation loans to employees other than executive officers. The retention loans are forgiven over various time periods, so long as the employees continue their employment with us. The relocation loans are repaid upon the employees selling their prior residence. As of June 30, 2011 and December 31, 2010, these loans, in the aggregate, totaled less than $0.1 million, respectively.

Transactions with Affiliates

In October 2010, we acquired certain subsidiaries, together with associated assets, from OFS, an oilfield services company owned by ArcLight Capital Partners, LLC. At the time of the acquisition, OFS conducted business with companies owned by a former owner and employee of an OFS subsidiary that we purchased. Subsequent to the acquisition, we continued to provide services to these companies. The prices charged to these companies for our services are at rates that are equivalent to the prices charged to our other customers in the U.S. market. As of June 30, 2011 and December 31, 2010, our receivables from these related parties totaled $0.6 million and $1.0 million, respectively. Revenues from these customers for the three-month periods ended June 30, 2011 and 2010 totaled $0.7 million and $0.5 million, respectively, and $2.1 million and $0.7 million for the six-month periods ended June 30, 2011 and 2010, respectively.

We provide services to an exploration and production company owned by one of our employees who had been the owner of the business we acquired. The prices charged to this company for these services are at rates that are an average of the prices charged to our other customers in the California market where the services are provided. As of June 30, 2011 and December 31, 2010, our receivables from this company totaled $0.5 million and $0.2 million, respectively. Revenues from this company totaled $1.0 million and $1.7 million for the three-month periods ended June 30, 2011 and 2010, respectively, and $1.6 million and $2.3 million for the six-month periods ended June 30, 2011 and 2010, respectively.

Board of Director Relationships with Customers

A member of our board of directors is the Senior Vice President, General Counsel and Chief Administrative Officer of Anadarko Petroleum Corporation (“Anadarko”), which is one of our customers. Sales to Anadarko were approximately 2% of our total revenues for each of the three- and six-month periods ended June 30, 2011 and 2010. Receivables outstanding from Anadarko were approximately 2% of our total accounts receivable as of June 30, 2011 and December 31, 2010, respectively. Transactions with Anadarko for our services are made on terms consistent with other customers.

A former member of our board of directors who resigned in May 2011 is a member and managing director of the general partner of the indirect, majority owner of Element Petroleum, LP (“Element”), which is one of our customers. Sales to Element were less than 1% of our total revenues for the three and six months ended June 30, 2011 and 2010. Receivables outstanding from Element were less than 1% of our total accounts receivable as of June 30, 2011 and December 31, 2010. Transactions with Element for our services are made on terms consistent with other customers.