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TRANSACTIONS WITH AFFILIATES
12 Months Ended
Dec. 31, 2019
TRANSACTIONS WITH AFFILIATES  
TRANSACTIONS WITH AFFILIATES

(2) TRANSACTIONS WITH AFFILIATES

Operations and reimbursement agreement—Frontera.  We have a 50% ownership interest in the Frontera Brownsville LLC joint venture (Frontera). We operate Frontera, in accordance with an operations and reimbursement agreement executed between us and Frontera, for a management fee that is based on our costs incurred. Our agreement with Frontera stipulates that we may resign as the operator at any time with the prior written consent of Frontera, or that we may be removed as the operator for good cause, which includes material noncompliance with laws and material failure to adhere to good industry practice regarding health, safety or environmental matters. For the years ended December 31, 2019, 2018 and 2017 we recognized approximately $5.8 million, $5.8 million and $5.3 million, respectively, of revenue related to this operations and reimbursement agreement. 

Terminaling services agreements—Brownsville terminals. We have two terminaling services agreements with Frontera relating to our Brownsville, Texas facility that will expire in June 2020, subject to automatic renewals unless terminated by either party upon 90 days’ and 180 days’ prior notice, respectively. In exchange for its minimum throughput commitments, we have agreed to provide Frontera with approximately 301,000 barrels of storage capacity. For the years ended December 31, 2019, 2018 and 2017 we recognized revenue related to this agreement of approximately $2.6 million, $2.5 million and $1.9 million, respectively. 

Terminaling services agreement—Gulf Coast terminals. Associated Asphalt Marketing, LLC is a wholly-owned indirect subsidiary of ArcLight. Effective January 1, 2018, a third party customer assigned their terminaling services agreement relating to our Gulf Coast terminals to Associated Asphalt Marketing, LLC. The agreement will expire in April 2021, subject to two, two-year automatic renewals unless terminated by either party upon 180 days’ prior notice. In exchange for its minimum throughput commitment, we have agreed to provide Associated Asphalt Marketing, LLC with approximately 750,000 barrels of storage capacity. For the years ended December 31, 2019, 2018 and 2017 we recognized revenue related to this agreement with Associated Asphalt Marketing, LLC of approximately $8.5 million, $8.5 million and $nil, respectively. 

Operating and administrative agreement—SeaPort Midstream Partners, LLC (“SMP”)—Central services.  We operate two refined products terminals in Seattle, Washington and Portland, Oregon, on behalf of SMP, in accordance with an operating and administrative agreement executed between us and SMP, for a management fee that is based on our costs incurred plus an annual fee. SMP is a joint venture between SeaPort Midstream Holdings LLC, an ArcLight subsidiary, and BP West Coast Products LLC.  SeaPort Midstream Holdings LLC owns 51% of SMP. The operating and administrative agreement will expire in November 2020, subject to one-year automatic renewals unless terminated by either party upon 180 days’ prior notice. Our agreement with SMP stipulates that we may resign as the operator at any time with the prior written consent of SMP, or that we may be removed as the operator for good cause, which includes material noncompliance with laws and material failure to adhere to good industry practice regarding health, safety or environmental matters. For the years ended December 31, 2019, 2018 and 2017 we recognized revenue related to this operations and administrative agreement of approximately $3.4 million, $3.4 million and $1.2 million, respectively.

Operations and reimbursement agreement—SeaPort Sound Terminal, LLC (“SeaPort Sound”)—Central services.  Our subsidiary, TMS, operates a refined products terminal in Tacoma, Washington on behalf of SeaPort Midstream Holdings LLC, an ArcLight subsidiary.  We receive a management fee based on our costs incurred plus an annual fee. For the years ended December 31, 2019, 2018 and 2017 we recognized revenue related to this operations and reimbursement agreement of approximately $7.2 million, $0.7 million and $nil, respectively.

Other affiliates—Central services.    We manage additional terminal facilities that are owned by affiliates of ArcLight, including LHT, and, prior to July 1, 2019, the Baltimore Terminal. For the years ended December 31, 2019, 2018 and 2017 we recognized revenue related to reimbursements from these affiliates of approximately $1.2 million, $0.1 million and $nil, respectively. Our management of the Baltimore Terminal terminated on July 1, 2019.

Services Agreement – TMC.  Following the TMS Contribution, our executive officers who provide services to the Company are employed by TMC, a wholly owned subsidiary of ArcLight, which also provides services to certain other ArcLight affiliates.  Pursuant to a services agreement, dated August 18, 2019, between TMS and TMC, TMS continues to provide certain payroll functions and maintains all employee benefits programs on behalf of TMC.  TMC is reimbursed for the payroll and benefits expenses related to the executive officers, plus a 1% administration fee.  Aggregate fees paid by us to TMC with respect to the services agreement were approximately $0.8 million for the year ended December 31, 2019. TMC officer awards vested in 2019 were insignificant and accounted for as a Contribution from TLP Holdings.

See also Note 1(a) of Notes to consolidated financial statements, Nature of business, for information regarding the TMS Contribution.