Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions Disclosure [Text Block]

Related Party Transactions

We settle substantially all of our related party transactions immediately through division equity. The balances in accounts payable and accrued liabilities represent amounts owed to employees of Western and to third-party vendors.

We are part of the consolidated operations of Western, and we derive substantially all of our revenue from transactions with Western and its affiliates. Our service fees charged to Western accounted for approximately 64% and 73% , respectively, of our combined revenues for the three and nine months ended September 30, 2013, and 82% of our combined revenues for the three and nine months ended September 30, 2012, respectively. The contractual rates used for these revenue transactions may be materially different than rates we might have received had they been transacted with third parties.

We have no employees. Western has the sole responsibility to provide the personnel necessary to conduct our operations, whether through Western employees or through third-party personnel. Western and its affiliates employ or contract with all of the personnel that will conduct our business. As of the completion of the Offering, Western will provide certain specified employees seconded to us to for operating, maintenance and other services with respect to the assets that we own and operate under our direction, supervision and control pursuant to a services agreement described under Note 9, Subsequent Events. Western also provides overhead support for us.

We have included indirect charges for executive oversight, accounting, treasury, tax, legal, procurement, engineering, logistics, maintenance and information technology and similar items. We have classified these indirect charges between general and administrative expenses and operating and maintenance expenses based on the functional nature of the services being performed for our operations. Indirect charges were as follows:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2013		2012		2013		2012
	(in thousands)
Indirect charges:
General and administrative expenses	$	1,148	$	969	$	3,338	$	3,069
Operating and maintenance expenses	4,303		2,756		12,451		8,456
Total indirect charges	$	5,451	$	3,725	$	15,789	$	11,525

Our management believes the indirect charges allocated to us are a reasonable reflection of the utilization of services provided. However, those allocations may not fully reflect the expenses that we would have incurred had we been a stand‑alone company during the periods presented.