Allowance Oil	9 Months Ended
Sep. 30, 2017
Predecessor
Oil and Gas In Process Activities [Line Items]
Allowance Oil	Allowance Oil Our tariff for crude oil transportation at BP2 includes a fixed loss allowance (“FLA”). An FLA factor per barrel, a fixed percentage, is a separate fee under the applicable crude oil tariff to cover evaporation and other loss in transit. In the three and nine months ended September 30, 2017 and 2016, all of our revenue at BP2 was generated from services to our Parent. As crude oil is transported, we earn additional income that equals the applicable FLA factor multiplied by the volume transported by our Parent measured at the receipt location. We do not take physical possession of the allowance oil as a result of our services, but record the value of the volumes accumulated as a receivable from our Parent. We recognize the FLA income in Revenue - related parties in the condensed combined statements of operations during the periods when commodities are transported. The amount of revenue recognized is a product of the quantity transported, the applicable FLA factor and the estimated settlement price during the month the product is transported. We cash settle allowance oil receivable with our Parent in the subsequent periods after the transportation service has been performed. The settlement price is a product of the quantity settled and the summation of the calendar-month average price of West Texas Intermediate (“WTI”) on the New York Mercantile Exchange and a differential provided by a trading company wholly owned by our Parent. The differential represents the difference in market price between WTI and the type of allowance oil to be settled and the difference in market price between the current month and the prior month. We measure the embedded derivative along with the allowance oil receivable in their entirety at fair value because the economic characteristics and risks of the embedded derivative are clearly and closely related to the economic characteristics and risks of the host arrangement. We recognize the changes in fair value in earnings in Other income (loss) in the condensed combined statements of operations. The embedded derivative is not designated as a hedging instrument. Refer to Note 7 - Fair Value Measurements for further discussion. As of September 30, 2017 and December 31, 2016, allowance oil receivable, including the embedded derivative, was $3,266 and $2,532, respectively, on the condensed combined balance sheets. In the three and nine months ended September 30, 2017, we recognized income of $2,243 and $6,240, respectively, and a gain/(loss) due to changes in fair value of $380 and $(108), respectively, related to the FLA arrangement with our Parent. In the three and nine months ended September 30, 2016, we recognized income of $1,333 and $4,048, respectively, and a (loss)/gain due to changes in fair value of $(246) and $285, respectively, related to the FLA arrangement with our Parent.

Allowance Oil

Our tariff for crude oil transportation at BP2 includes a fixed loss allowance (“FLA”). An FLA factor per barrel, a fixed percentage, is a separate fee under the applicable crude oil tariff to cover evaporation and other loss in transit. In the three and nine months ended September 30, 2017 and 2016, all of our revenue at BP2 was generated from services to our Parent.

As crude oil is transported, we earn additional income that equals the applicable FLA factor multiplied by the volume transported by our Parent measured at the receipt location. We do not take physical possession of the allowance oil as a result of our services, but record the value of the volumes accumulated as a receivable from our Parent. We recognize the FLA income in Revenue - related parties in the condensed combined statements of operations during the periods when commodities are transported. The amount of revenue recognized is a product of the quantity transported, the applicable FLA factor and the estimated settlement price during the month the product is transported.

We cash settle allowance oil receivable with our Parent in the subsequent periods after the transportation service has been performed. The settlement price is a product of the quantity settled and the summation of the calendar-month average price of West Texas Intermediate (“WTI”) on the New York Mercantile Exchange and a differential provided by a trading company wholly owned by our Parent. The differential represents the difference in market price between WTI and the type of allowance oil to be settled and the difference in market price between the current month and the prior month.

We measure the embedded derivative along with the allowance oil receivable in their entirety at fair value because the economic characteristics and risks of the embedded derivative are clearly and closely related to the economic characteristics and risks of the host arrangement. We recognize the changes in fair value in earnings in Other income (loss) in the condensed combined statements of operations. The embedded derivative is not designated as a hedging instrument. Refer to Note 7 - Fair Value Measurements for further discussion.

As of September 30, 2017 and December 31, 2016, allowance oil receivable, including the embedded derivative, was $3,266 and $2,532, respectively, on the condensed combined balance sheets. In the three and nine months ended September 30, 2017, we recognized income of $2,243 and $6,240, respectively, and a gain/(loss) due to changes in fair value of $380 and $(108), respectively, related to the FLA arrangement with our Parent. In the three and nine months ended September 30, 2016, we recognized income of $1,333 and $4,048, respectively, and a (loss)/gain due to changes in fair value of $(246) and $285, respectively, related to the FLA arrangement with our Parent.