Transactions with Related Parties

9 Months Ended

Sep. 30, 2022

The transactions with related parties were as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Revenues:

Revenues from services and fees to Poseidon(1)	$	3,854	$	3,193	$	10,952	$	10,221
Revenues from product sales to ANSAC	109,046		61,651		294,556		200,935


Costs and expenses:
Amounts paid to our CEO in connection with the use of his aircraft	$	165	$	165	$	495	$	495
Charges for services from Poseidon(1)	268		242		777		720
Charges for services from ANSAC	2,596		400		5,781		1,097

(1)We own a 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.

Transactions with Unconsolidated Affiliates

Poseidon

We provide management, administrative and pipeline operator services to Poseidon under an Operation and Management Agreement. Currently, that agreement automatically renews annually unless terminated by either party (as defined in the agreement). Our revenues for the three and nine months ended September 30, 2022 include $2.4 million and $7.3 million, respectively, of fees we earned through the provision of services under that agreement. Our revenues for the three and nine months ended September 30, 2021 include $2.4 million and $7.1 million, respectively, of fees we earned through the provision of services under that agreement. At September 30, 2022 and December 31, 2021, Poseidon owed us $2.0 million and $2.4 million, respectively, for services rendered.

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 because we experience certain risks and rewards from our relationship with them. 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 September 30, 2022, such amount is not material to us.

Net Sales to ANSAC were $109.0 million and $294.6 million, respectively, during the three and nine months ended September 30, 2022, and were $61.7 million and $200.9 million, respectively, during the three and nine months ended September 30, 2021. The costs charged to us by ANSAC, included in sodium minerals and sulfur services operating costs, were $2.6 million and $5.8 million, respectively, during the three and nine months ended September 30, 2022, and were $0.4 million and $1.1 million, respectively, during the three and nine months ended September 30, 2021.

Receivables from and payables to ANSAC as of September 30, 2022 and December 31, 2021 are as follows:


	September 30,		December 31,
	2022		2021
Accounts receivable - trade, net:
ANSAC	$	103,582	$	64,799
Accounts payable - trade:
ANSAC	$	2,596	$	116