Related Party Transactions

6 Months Ended

Jun. 30, 2016

NGL Energy

As described in Note 3, we own a general partner interest in NGL Energy which is accounted for as an equity method investment.

During the three months and six months ended June 30, 2016 and 2015, we generated the following transactions with NGL Energy and its subsidiaries (in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2016		2015		2016		2015
Revenues	$	8,303	$	74,447	$	16,832	$	119,916
Purchases	$	6,366	$	75,027	$	13,196	$	110,261
Reimbursements from NGL Energy for services	$	—	$	14	$	—	$	56

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

During the three months ended June 30, 2016 and 2015, we generated storage revenue from White Cliffs of approximately $1.1 million and $1.1 million, respectively. During the six months ended June 30, 2016 and 2015, we generated storage revenue from White Cliffs of approximately $2.2 million and $2.1 million, respectively. We incurred $2.7 million and $1.1 million of cost for the three months ended June 30, 2016 and 2015, respectively, related to transportation fees for shipments on White Cliffs. We incurred $5.2 million and $1.8 million of cost for the six months ended June 30, 2016 and 2015, 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 June 30, 2016 and 2015, respectively. We received $0.2 million and $0.2 million in management fees from White Cliffs for the six months ended June 30, 2016 and 2015, respectively. During the three and six months ended June 30, 2016, we purchased $3.5 million of crude oil from White Cliffs. There were no product purchases from White Cliffs in the prior year.

Glass Mountain

We incurred $1.4 million and $0.7 million of cost for the three months ended June 30, 2016 and 2015, respectively, related to transportation fees for shipments on the Glass Mountain Pipeline. We incurred $3.3 million and $1.2 million of cost for the six months ended June 30, 2016 and 2015, 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 June 30, 2016 and 2015, respectively, related to support and administrative services associated with pipeline operations. We received $0.4 million and $0.4 million in fees from Glass Mountain for the six months ended June 30, 2016 and 2015, respectively, related to support and administrative services associated with pipeline operations. We made purchases of crude oil of $0.4 million and $1.5 million from Glass Mountain during the six months ended June 30, 2016 and 2015, respectively. There were no purchases of crude oil from Glass Mountain during the three months ended June 30, 2016 and 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, Vice President and General Counsel. 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 June 30, 2016 and 2015, respectively (of which $0.1 thousand and $0.1 thousand was paid by White Cliffs during the three months ended June 30, 2016 and 2015, respectively). SemGroup paid $0.4 million and $0.7 million in legal fees and related expenses to this law firm during the six months ended June 30, 2016 and 2015, respectively (of which $1.6 thousand and $3.4 thousand was paid by White Cliffs during the six months ended June 30, 2016 and 2015, respectively).