Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NGL Energy

As described in Note 3, we own interests in NGL Energy, which we account for under the equity method.

During the three months and nine months ended September 30, 2015 and 2014, we generated the following transactions with NGL Energy and its subsidiaries (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Revenues	$	19,540	$	103,684	$	139,456	$	384,578
Purchases	$	15,994	$	86,400	$	126,255	$	357,245
Reimbursements from NGL Energy for services	$	—	$	42	$	56	$	126

Transactions with NGL Energy and its subsidiaries primarily relate to marketing, leased storage and transportation services of crude oil, including buy/sell transactions. In accordance with ASC 845-10-15, these transactions were reported as revenue on a net basis in our condensed consolidated statements of operations and comprehensive income (loss) because the purchases of inventory and subsequent sales of the inventory were with the same counterparty.

White Cliffs

As described in Note 3, we account for our ownership interest in White Cliffs under the equity method. During the three months ended September 30, 2015 and 2014, we generated storage revenue from White Cliffs of approximately $1.1 million and $0.7 million, respectively. During the nine months ended September 30, 2015 and 2014, we generated storage revenue from White Cliffs of approximately $3.2 million and $2.2 million, respectively. We incurred $0.8 million and $1.0 million of cost for the three months ended September 30, 2015 and 2014, respectively, related to transportation fees for shipments on White Cliffs. We incurred $2.6 million and $2.7 million of cost for the nine months ended September 30, 2015 and 2014, respectively, related to transportation fees for shipments on White Cliffs. We received $0.1 million and $0.1 million in management fees from White Cliffs for the three months ended September 30, 2015 and 2014, respectively. We received $0.3 million and $0.3 million in management fees from White Cliffs for the nine months ended September 30, 2015 and 2014, respectively.

Glass Mountain

We incurred $0.5 million and $0.3 million of cost for the three months ended September 30, 2015 and 2014, respectively, related to transportation fees for shipments on the Glass Mountain Pipeline. We incurred $1.7 million and $0.4 million of cost for the nine months ended September 30, 2015 and 2014, respectively, related to transportation fees for shipments on the Glass Mountain Pipeline. We received $0.2 million and $0.2 million in fees from Glass Mountain for the three months ended September 30, 2015 and 2014, respectively, related to support and administrative services associated with pipeline operations. We received $0.6 million and $0.6 million in fees from Glass Mountain for the nine months ended September 30, 2015 and 2014, respectively, related to support and administrative services associated with pipeline operations. We made purchases of crude oil of $1.5 million from Glass Mountain during the nine months ended September 30, 2015.

Legal services

The law firm of Conner & Winters, LLP, of which Mark D. Berman is a partner, performs legal services for us. Mr. Berman is the spouse of Candice L. Cheeseman, General Counsel and Secretary. Mr. Berman does not perform any legal services for us. SemGroup paid $0.3 million and $0.4 million in legal fees and related expenses to this law firm during the three months ended September 30, 2015 and 2014, respectively (of which $9.1 thousand was paid by White Cliffs during the three months ended September 30, 2014). SemGroup paid $1.1 million and $1.0 million in legal fees and related expenses to this law firm during the nine months ended September 30, 2015 and 2014, respectively (of which $3.4 thousand and $90.1 thousand was paid by White Cliffs during the nine months ended September 30, 2015 and 2014, respectively).