Transactions with Related Parties

3 Months Ended

Mar. 31, 2020

The transactions with related parties were as follows:



	Three Months Ended March 31,
	2020		2019
Revenues:
Revenues from services and fees to Poseidon⁽¹⁾	$	3,147	$	3,165
Revenues from product sales to ANSAC	73,079		90,679
Costs and expenses:
Amounts paid to our CEO in connection with the use of his aircraft	$	165	$	165
Charges for services from Poseidon⁽¹⁾	254		247
Charges for services from ANSAC	832		1,057


(1)	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 March 31, 2020 and December 31, 2019 Poseidon owed us $1.7 million and $2.4 million, respectively, 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 months ended March 31, 2020 and March 31, 2019 reflect $2.3 million and $2.2 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.

ANSAC is considered a variable interest entity (VIE) because we experience certain risks and rewards from our relationship with it. As we do not exercise control over ANSAC and are not considered its primary beneficiary, we do not consolidate ANSAC. The ANSAC membership agreement provides that in the event an ANSAC member exits or the ANSAC cooperative is dissolved, the exiting members are obligated for their respective portion of the residual net assets or deficit of the cooperative. As of March 31, 2020, such amount is not estimable.

Net Sales to ANSAC were $73.1 million during the three months ended March 31, 2020 and were $90.7 million during the three months ended March 31, 2019. The costs charged to us by ANSAC, included in operating costs, were $0.8 million during the three months ended March 31, 2020 and were $1.1 million during the three months ended March 31, 2019.

Receivables from and payables to ANSAC as of March 31, 2020 and December 31, 2019 are as follows:



	March 31,		December 31,
	2020		2019
Receivables:
ANSAC	$	66,256	$	68,075
Payables:
ANSAC	$	832	$	2,103