Transactions with Related Parties

12 Months Ended

Dec. 31, 2012

Related Party Transactions [Abstract]

Transactions with Related Parties

13. Transactions with Related Parties

Sales, purchases and other transactions with affiliated companies, in the opinion of management, are conducted under terms no more or less favorable than then-existing market conditions. The transactions with related parties were as follows:

	Year Ended December 31,
	2012		2011		2010 (1)
Revenues:
Petroleum products sales to an affiliate of the Quintana Group (2)	$	21,143	$	20,888	$	3,740
Sales of CO2 to Sandhill Group, LLC (3)	2,905		2,481		2,706
Petroleum products sales to Davison family businesses (2)	1,344		1,207		1,081
Pipeline transportation and supply and logistics services provided to Denbury	—		—		3,059
Expenses:
Marine operating fuel and expenses provided by an affiliate of the Quintana Group (2)	6,260		3,568		2,443
Amounts paid to our CEO in connection with the use of his aircraft	600		316		—
Operations, general and administrative services provided by our general partner (4)	—		—		47,035
Supply and logistics products and services provided by Denbury	—		—		373

(1) Affiliates of Denbury Resources, Inc. sold its interests in our general partner in February 2010. Transactions with Denbury are included in the table as a related party through that date.

(2) The Quintana Group, a private equity fund based in Houston, Texas owned 12% of our Class A common units and 74% of our Class B common units until October 5, 2012 when the Quintana Group monetized all of its remaining investment in us. Substantially in connection with that transaction, certain members of the Davison family, collectively, increased their investment in us to 17.2% of our Class A common units and 76.9% of our Class B common units. At December 31, 2012, certain members of the Davison family, collectively, owned 17% of our Class A common units and 76.9% of our Class B common units. Solely for financial statement purposes, we will continue to treat the Davison family and their affiliates as related parties.

(3) We own a 50% interest in Sandhill Group, LLC.

(4) Our general partner became a wholly-owned subsidiary in December 2010.

Our CEO, Mr. Sims owns an aircraft, which is used by us for business purposes in the course of operations. We pay Mr. Sims a fixed monthly fee and reimburse the aircraft management company for costs related to our usage of the aircraft, including fuel and the actual out-of-pocket costs. Based on current market rates for chartering of private aircraft, we believe that the terms of this arrangement are no worse than what we could have obtained in an arms-length transaction.

In July 2010, we acquired from TD Marine its 51% interest in DG Marine. TD Marine is owned by members of the Davison family.

Amounts due to and from Related Parties

At December 31, 2012, and 2011 Sandhill owed us $0.3 million and $0.2 million, respectively, for purchases of CO₂. At December 31, 2011, an affiliate of the Quintana Group owed us $1.9 million. We owed the affiliate $0.1 millionDecember 31, 2011.

Financing

We guarantee 50% of Sandhill’s outstanding credit facility loan. At December 31, 2012 and 2011, the total amount of Sandhill’s obligation to the bank was $1.2 million and $1.7 million, respectively; therefore, our guarantee was for $0.6 million and $0.9 million for the respective periods.

As discussed in Note 11, our general partner made capital contributions in order to maintain its capital account totaling $2.5 million in 2010. In 2010, we recorded a capital contribution from our general partner of $76.9 million related to compensation recognized for our executive management team (see Note 15).