Transactions with Related Parties

12 Months Ended

Dec. 31, 2015

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,
	2015		2014		2013
Revenues:
Sales of CO₂ to Sandhill Group, LLC ⁽¹⁾	$	3,259	$	3,060	$	3,076
Revenues from services to Poseidon Oil Pipeline Company, LLC ⁽²⁾	3,941		—		—
Revenues from services to Deepwater Gateway, LLC ⁽³⁾	56		—		—
Petroleum products sales to Davison family businesses ⁽⁴⁾	—		—		1,293
Expenses:
Amounts paid to our CEO in connection with the use of his aircraft	$	690	$	630	$	600
Charges for products purchased from Poseidon Oil Pipeline Company, LLC ⁽²⁾	464		—		—


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


(2)	We own a 64% interest in Poseidon Oil Pipeline Company, LLC.


(3)	We own a 50% interest in Deepwater Gateway, LLC.


(4)	Amounts included in discontinued operations for all periods presented.

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 under long-term, priority arrangements with industry recognized chartering companies, we believe that the terms of this arrangement are no worse than what we could have expected to obtain in an arms-length transaction.

Amounts due from Related Parties

At December 31, 2015, and 2014, Sandhill Group, LLC owed us $0.3 million, respectively, for purchases of CO₂. Also, at December 31, 2015 Poseidon Oil Pipeline Company, LLC owed us $1.9 million for services rendered.

Transactions with Unconsolidated Affiliates

Poseidon

As part of our Enterprise acquisition, we became the operator of Poseidon in the third quarter of 2015. We provide management, administrative and pipeline operator services to Poseidon under an Operation and Management Agreement . Currently, that agreement renews automatically annually unless terminated by either party (as defined in the agreement). Our revenues for the year ended December 31, 2015 reflect $3.9 million of fees we earned through the provision of services under that agreement.

Deepwater Gateway

As part of our Enterprise acquisition, we became the operator of Deepwater Gateway in the third quarter of 2015. We provide technical and administrative services to Deepwater Gateway under a Management Services Agreement. That agreement continues indefinitely until either party decides to exercise their termination rights (as defined in the agreement). Our revenues for the year ended December 31, 2015 reflect less than $0.1 million, respectively, of fees we earned through the provision of services under that agreement.

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References + Details