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Certain Provisions of the Partnership Agreement
6 Months Ended
Jun. 30, 2011
[PartnersCapitalNotesAbstract]  
Certain Provisions of Partnership Agreement

(4)       Certain Provisions of the Partnership Agreement

 

Unless restricted by the terms of the Partnership's credit facility, the Partnership must make distributions of 100.0% of available cash, as defined in the partnership agreement, within 45 days following the end of each quarter. Distributions will generally be made 98.0% to the common unitholders and 2.0% to the general partner, subject to the payment of incentive distributions as described below to the extent that certain target levels of cash distributions are achieved.

Under the quarterly incentive distribution provisions, generally the Partnership's general partner is entitled to 13.0% of amounts the Partnership distributes in excess of $0.25 per unit, 23.0% of the amounts the Partnership distributes in excess of $0.3125 per unit and 48.0% of amounts the Partnership distributes in excess of $0.375 per unit. Incentive distributions totaling $0.6 million and $1.0 million were earned by the Company for the three and six months ended June 30, 2011, respectively. No incentive distributions were earned by the general partner for the three and six months ended June 30, 2010.

The Partnership's first quarter 2011 distribution on its common and preferred units of $0.29 per unit was paid on May 13, 2011. The Partnership increased its second quarter 2011 distribution on its common and preferred units to $0.31 per unit to be paid on August 12, 2011.