XML 43 R22.htm IDEA: XBRL DOCUMENT v3.6.0.2
Commitments and Contingencies
12 Months Ended
Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
13.  COMMITMENTS AND CONTINGENCIES

Environmental obligations. WGP, through its partnership interest in WES, is subject to various environmental-remediation obligations arising from federal, state and local regulations regarding air and water quality, hazardous and solid waste disposal and other environmental matters. As of December 31, 2016 and 2015, the consolidated balance sheets included $2.2 million and $2.6 million, respectively, of liabilities for remediation and reclamation obligations. The current portion of these amounts is included in Accrued liabilities and the long-term portion of these amounts is included in Asset retirement obligations and other. The recorded obligations do not include any anticipated insurance recoveries. The majority of payments related to these obligations are expected to be made over the next five years. Management regularly monitors the remediation and reclamation process and the liabilities recorded and believes its environmental obligations are adequate to fund remedial actions to comply with present laws and regulations, and that the ultimate liability for these matters, if any, will not differ materially from recorded amounts nor materially affect the overall results of operations, cash flows or financial condition of WGP. There can be no assurance, however, that current regulatory requirements will not change, or past non-compliance with environmental issues will not be discovered. See Note 10 and Note 11.

Litigation and legal proceedings. From time to time, WGP, through its partnership interests in WES, is involved in legal, tax, regulatory and other proceedings in various forums regarding performance, contracts and other matters that arise in the ordinary course of business. Management is not aware of any such proceeding the final disposition of which could have a material adverse effect on the financial condition, results of operations or cash flows of WGP.

Other commitments. WES has short-term payment obligations, or commitments, related to its capital spending programs, as well as those of its unconsolidated affiliates. As of December 31, 2016, WES had unconditional payment obligations for services to be rendered or products to be delivered in connection with its capital projects of $50.9 million, the majority of which is expected to be paid in the next twelve months. These commitments relate primarily to the construction of Train VI at the DBM complex, expansion projects at the DBJV system and the DBM complex and the construction of two produced-water disposal systems in West Texas.
13.  COMMITMENTS AND CONTINGENCIES (CONTINUED)

Lease commitments. Anadarko, on WES’s behalf, has entered into lease agreements for corporate offices, shared field offices and a warehouse supporting WES’s operations, for which Anadarko charges WES rent. The leases for the corporate offices and shared field offices extend through 2017 and 2019, respectively, and the lease for the warehouse extends through February 2017.
Rent expense associated with the office, warehouse and equipment leases was $35.9 million, $34.1 million and $25.9 million for the years ended December 31, 2016, 2015 and 2014, respectively.
The amounts in the table below represent existing contractual operating lease obligations as of December 31, 2016, that may be assigned or otherwise charged to WES pursuant to the reimbursement provisions of the omnibus agreement:
thousands
 
Operating Leases
2017
 
$
7,322

2018
 
898

2019
 
764

2020
 
122

2021
 

Thereafter
 

Total
 
$
9,106