Environmental Liabilities

9 Months Ended

Sep. 30, 2022

Environmental Liabilities.

Environmental Liabilities

Note 10.    Environmental Liabilities

In connection with the acquisitions of retail gasoline and convenience store assets described in Note 2, the Partnership assumed certain environmental liabilities, including certain ongoing environmental remediation efforts. As a result, the Partnership recorded, on an undiscounted basis, a total environmental liability of approximately $2.1 million, $4.8 million and $7.2 million for Tidewater, Miller Oil and Consumers Petroleum, respectively, as of September 30, 2022.

The following table presents a summary roll forward of the Partnership’s environmental liabilities at September 30, 2022 (in thousands):

	Balance at								Other		Balance at
	December 31,		Additions		Payments		Dispositions		Adjustments		September 30,
Environmental Liability Related to:	2021		2022		2022		2022		2022		2022
Retail gasoline stations	$	49,261	$	14,131	$	(2,558)	$	(469)	$	5,011	$	65,376
Terminals		3,544		—		(46)		(1,543)		—		1,955
Total environmental liabilities	$	52,805	$	14,131	$	(2,604)	$	(2,012)	$	5,011	$	67,331
Current portion	$	4,642									$	4,582
Long-term portion		48,163										62,749
Total environmental liabilities	$	52,805									$	67,331

The Partnership’s estimates used in these environmental liabilities are based on all known facts at the time and its assessment of the ultimate remedial action outcomes. Among the many uncertainties that impact the Partnership’s estimates are the necessary regulatory approvals for, and potential modification of, its remediation plans, the amount of data available upon initial assessment of the impact of soil or water contamination, changes in costs associated with environmental remediation services and equipment, relief of obligations through divestitures of sites and the possibility of existing legal claims giving rise to additional claims. Dispositions generally represent relief of legal obligations through the sale of the related property with no retained obligation. Other adjustments generally represent changes in estimates for existing obligations or obligations associated with new sites. Therefore, although the Partnership believes that these environmental liabilities are adequate, no assurances can be made that any costs incurred in excess of these environmental liabilities or outside of indemnifications or not otherwise covered by insurance would not have a material adverse effect on the Partnership’s financial condition, results of operations or cash flows.