Transactions with Related Parties

6 Months Ended

Jun. 30, 2019

The transactions with related parties were as follows:



	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenues:
Sales of CO₂ to Sandhill Group, LLC ⁽¹⁾	$	—	$	690	$	—	$	1,233
Revenues from services and fees to Poseidon⁽²⁾	3,236		3,039		6,401		6,239
Revenues from product sales to ANSAC	81,784		93,938		172,463		184,734
Costs and expenses:
Amounts paid to our CEO in connection with the use of his aircraft	$	165	$	165	$	330	$	330
Charges for services from Poseidon⁽²⁾	255		250		502		499
Charges for services from ANSAC	1,279		1,256		2,336		3,034


(1)	We owned a 50% interest in Sandhill Group, LLC which was sold during the third quarter of 2018.


(2)	We own 64% interest in Poseidon

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.

Poseidon

At both June 30, 2019 and December 31, 2018 Poseidon owed us $2.4 million for services rendered.

We are the operator of Poseidon and 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 three and six months ended June 30, 2019 reflect $2.2 million and $4.5 million, respectively. Our revenues for the three and six months ended June 30, 2018 reflect $2.2 million and $4.3 million, respectively of fees we earned through the provision of services under that agreement.

ANSAC

We (through a subsidiary of our Alkali Business) are a member of the American Natural Soda Ash Corp. ("ANSAC"), an organization whose purpose is promoting and increasing the use and sale of natural soda ash and other refined or processed sodium products produced in the U.S. and consumed in specified countries outside of the U.S. Members sell products to ANSAC to satisfy ANSAC’s sales commitments to its customers. ANSAC passes its costs through to its members using a pro rata calculation based on sales. Those costs include sales and marketing, employees, office supplies, professional fees, travel, rent, and certain other costs. Those transactions do not necessarily represent arm's length transactions and may not represent all costs we would otherwise incur if we operated our Alkali Business on a stand-alone basis. We also benefit from favorable shipping rates for our direct exports when using ANSAC to arrange for ocean transport. Net Sales to ANSAC were $81.8 million and $172.5 million during the three and six months ended June 30, 2019 and were $93.9 million and $184.7 million during the three and six months ended June 30, 2018. The cost charges to us by ANSAC, included in operating costs, were $1.3 million and $2.3 million during the three and six months ended June 30, 2019 and were $1.3 million and $3.0 million during the three and six months ended June 30, 2018.

Receivables from and payables to ANSAC as of June 30, 2019 and December 31, 2018 are as follows:



	June 30,		December 31,
	2019		2018
Receivables:
ANSAC	$	58,871	$	60,594
Payables:
ANSAC	$	1,139	$	815

ANSAC is considered a variable interest entity (VIE) because we experience certain risks and rewards from our relationship with it. Because we do not exercise control over ANSAC and are not considered its primary beneficiary, we do not consolidate ANSAC.