Related Party Transactions

12 Months Ended

Sep. 30, 2012

Text Block [Abstract]

Related Party Transactions

Related Party Transactions

The Company has recorded sales to Inergy of $11.8 million, $4.0 million and $0.5 million for the years ended September 30, 2012, 2011 and 2010, respectively. The sales relate to storage space leased at the Company's Bath storage facility. These sales increased the Company's net income by $7.8 million, $1.3 million and $0.5 million for the years ended September 30, 2012, 2011 and 2010, respectively.

NRGM GP, LLC Change of Control Event

In connection with the IPO, Inergy and Inergy Holdings GP, LLC (“Holdings GP”), the indirect owner of Inergy's general partner, entered into a membership interest purchase agreement under which, under certain circumstances, Holdings GP will be required to purchase from Inergy, and Inergy will be required to sell to Holdings GP, all of the membership interests in MGP GP, LLC, the entity that controls the Company's general partner, for nominal consideration. MGP GP, LLC is a wholly owned subsidiary of Inergy and the general partner of Inergy Midstream Holdings, L.P., which is the sole member of the Company's general partner and direct holder of all of its incentive distribution rights. Under the agreement, Holdings GP is required to purchase MGP GP, LLC in the event that (i) a change of control of Inergy occurs at a time when Inergy is entitled to receive less than 50% of all cash distributed with respect to the Company's limited partner interests and incentive distribution rights or (ii) through dilution or a distribution to the Inergy common unitholders of Inergy's interests in us. Inergy is entitled to receive less than 25% of all cash distributed with respect to the Company's limited partner interests and incentive distribution rights.

As discussed in Note 2, prior to the Company's IPO, Inergy funded certain of the Company's activities.