Net Investment In Direct Financing Leases

12 Months Ended

Dec. 31, 2011

Net Investment In Direct Financing Leases [Abstract]

Net Investment In Direct Financing Leases

7. Net Investment in Direct Financing Leases

Our direct financing leases include a lease of the Northeast Jackson Dome ("NEJD") Pipeline. Under the terms of the agreement, we are paid quarterly payments, which commenced August 30, 2008. These quarterly payments are fixed at approximately $20.7 million per year during the lease term at an interest rate of 10.25%. At the end of the lease term in 2028, we will convey all of our interests in the NEJD Pipeline to the lessee for a nominal payment.

The following table lists the components of the net investment in direct financing leases:

	December 31,
	2011			2010
Total minimum lease payments to be received	$	341,917		$	365,169
Estimated residual values of leased property (unguaranteed)		1,287			1,287
Unamortized initial direct costs		1,992			2,184
Less unearned income		(176,726	)		(195,586	)
Net investment in direct financing leases		168,470			173,054
Less current portion (included in other current assets)		(6,010	)		(4,616	)
Long-term portion of net investment in direct financing leases	$	162,460		$	168,438

At December 31, 2011, minimum lease payments to be received for each of the five succeeding fiscal years are $21.8 million for 2012, $21.3 million for 2013, $21.2 million for 2014 and $20.7 million per year for 2015 and 2016.