8.	RELATED-PARTY TRANSACTIONS

The Partnership leases asphalt facilities and provides asphalt terminalling services to Ergon. For the

three

months ended

March 31, 2019

and

2020

, the Partnership recognized related-party revenues of

$9.1

million and

$9.0

million, respectively, for services provided to Ergon. As of

December 31, 2019

, and

March 31, 2020

, the Partnership had receivables from Ergon of

$1.1

million and

$0.9

million, respectively. As of

December 31, 2019

, and

March 31, 2020

, the Partnership had unearned revenues from Ergon of

$5.1

million and

$4.8

million, respectively.

Effective

April 1, 2018,

the Partnership entered into an agreement with Ergon under which the Partnership purchases crude oil in connection with its crude oil marketing operations. For the

three

months ended

March 31, 2019

and

2020

, the Partnership made purchases of crude oil under this agreement totaling

$29.7

million and

$27.8

million, respectively. As of

March 31, 2020

, the Partnership had payables to Ergon related to this agreement of

$7.3

million related to the

March

crude oil settlement cycle, and this balance was paid in full on

April 20, 2020.

May 2018,

the Partnership, along with Kingfisher Midstream and Ergon, announced the execution of definitive agreements to form Cimarron Express. Cimarron Express was planned to be a new

-inch diameter,

-mile crude oil pipeline running from northeastern Kingfisher County, Oklahoma to the Partnership’s Cushing, Oklahoma crude oil terminal, with an original anticipated in-service date in the

second

half of

2019.

Ergon formed a Delaware limited liability company, Ergon - Oklahoma Pipeline, LLC (“DEVCO”), which held Ergon’s

50%

membership interest in Cimarron Express. The Partnership and Ergon had an agreement (the “Agreement”) that gave each party certain rights to obligate the counterparty to either sell or purchase the outstanding membership interests in DEVCO for a purchase price computed by taking Ergon’s total investment in Cimarron Express plus interest, subject to certain terms and conditions as described in the Agreement.

December 2018,

the Partnership and Ergon were informed that Kingfisher Midstream made the decision to suspend future investments in Cimarron Express as Kingfisher Midstream determined that the anticipated volumes from the dedicated acreage, and the resultant project economics, did

not

support additional investment from Kingfisher Midstream. The Partnership considered the SEC staff’s opinions outlined in SAB

107

Topic

5.T

Accounting for Expenses or Liabilities Paid by Principal Stockholders, and, as the Agreement was designed to have the Partnership, ultimately and from the onset, bear any risk of loss on the construction of the pipeline project and eventually own a

50%

interest in the pipeline, the Partnership recorded impairments on a push-down basis based on Ergon’s

50%

interest in Cimarron Express. During the

three

months ended

March 31,

2019,

the Partnership recorded impairment expense of

$0.8

million related to the Agreement, which included a change in estimate and accrued interest. The Partnership’s contingent liability as of

December 31, 2019,

consisted of Ergon’s

$10.2

million investment plus accrued interest of

$2.0

million. In

November 2019,

Ergon and Kingfisher Midstream wound up the business, distributed assets, and dissolved Cimarron Express. On

January 2, 2020,

Ergon exercised its right under the Agreement to require the Partnership to purchase the outstanding member interest in DEVCO, and the Partnership paid the amount in full on

January 3, 2020.

This cash payment is reflected as an acquisition of DEVCO in the investing cash flows section on the Partnership’s condensed consolidated statement of cash flows for the

three

months ended

March 31, 2020.