DISPOSALS OR IMPAIRMENTS OF LONG-LIVED ASSETS

Year Ended December 31, 2014

On June 1, 2014, our SemGas segment sold certain natural gas gathering assets in Eastern Oklahoma resulting in a $20.1 million pre-tax loss on a cash sales price of $2.4 million. The assets sold were made up of property, plant and equipment with a net book value of $22.5 million. The loss on the sale was reported in "loss (gain) on disposal or impairment of long-lived assets, net" in the consolidated statement of operations and comprehensive income. The operations of the gas gathering assets were not material to SemGroup.

During the year ended December 31, 2014, we recorded an impairment charge of $11.9 million related to leaseholds of unproved oil and gas properties located in Kansas. These assets were written off when due to the downturn in crude oil prices and the remaining life of the leaseholds, it became apparent that these properties would not be developed. These assets were held by a subsidiary included in Corporate and Other in our segment disclosures (Note 9).

Year Ended December 31, 2013

There were no significant gains (losses) recorded during the year ended December 31, 2013 related to the disposal of long-lived assets.

Year Ended December 31, 2012

Gains (losses) recorded during the year ended December 31, 2012 related to the disposal of long-lived assets including the following (in thousands):



Event	Segment	Pre-Tax Gain
White Cliffs settlement (a)	Crude	$	3,500
Sale of SemStream residential division assets and liabilities (b)	SemStream	$	3,090

(a)

We sold a portion of our ownership interest in White Cliffs during September 2010. At the time, we recorded a loss of $6.8 million on disposal of that asset. In September 2012, we reached a settlement in a dispute concerning the selling price of that ownership interest and reduced the loss by $3.5 million. This $3.5 million gain is reported in "gain on disposal or impairment of long-lived assets, net" in the consolidated statements of operations and comprehensive income.

(b)

On September 12, 2012, we entered into a definitive agreement to sell the assets and liabilities of SemStream’s Arizona residential business which was subject to regulatory approval by the Arizona Corporation Commission (the "ACC"). In early December 2012, the ACC granted SemStream regulatory approval to proceed with the sale. The sale closed on December 31, 2012 and resulted in a gain of $3.1 million on a cash sales price of $12.3 million. The $3.1 million gain is reported in "income (loss) from discontinued operations, net of income taxes" in the consolidated statements of operations and comprehensive income. Property, plant, and equipment with a carrying value of $9.4 million represented the majority of assets included in the sale.