INCOME TAXES

9 Months Ended

Sep. 30, 2011

INCOME TAXES [Abstract]

INCOME TAXES

NOTE 5 – INCOME TAXES

We are not subject to federal income taxes, as our profits or losses are reported to the taxing authorities by the individual partners.

We are subject to Texas margin tax. We recorded a deferred tax liability of less than $0.1 million related to our operations located in Texas as of September 30, 2011. We recorded a deferred tax asset of $0.3 million related to our operations located in Texas as of December 31, 2010. The deferred tax asset is included in noncurrent assets and the deferred tax liability is included in noncurrent liabilities on the consolidated balance sheet. We recognized income tax expense of $0.3 million and $0.4 million for the three and nine months ended September 30, 2011.