Business Activities and Related Party Transactions

9 Months Ended

Sep. 30, 2011

Business Activities and Related Party Transactions [Abstract]

Business Activities and Related Party Transactions

4.   Business Activities and Related Party Transactions

We do not receive a fee for our services under the delegation of control agreement, nor do we receive any margin or profit when we are reimbursed for expenses incurred. We incurred, on behalf of KMP, approximately $72.0 million and $215.9 million of expenses during the three and nine months ended September 30, 2011, respectively, and approximately $69.4 million and $220.4 million of expenses during the three and nine months ended September 30, 2010, respectively.  The expense reimbursements by KMP to us are accounted for as a reduction to the expense incurred by us.  At September 30, 2011 and December 31, 2010, $13.6 million and $10.1 million, respectively, primarily receivables from KMP, are recorded in the caption “Accounts receivable, related party” in the accompanying interim Consolidated Balance Sheets.

One of our affiliates provides, and incurs expense with respect to, payroll services to KMP. These expenses are reimbursed by KMP at cost.  These expenses totaled approximately $104.6 million and $294.1 million during the three and nine months ended September 30, 2011, respectively, and $96.7 million and $291.3 million during the three and nine months ended September 30, 2010, respectively.