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Related Party Transactions
12 Months Ended
Dec. 31, 2017
Related Party Transactions [Abstract]  
Related Party Transactions
Related Party Transactions
The Company historically sold a portion of its natural gas production to Hiland Partners, LP and its subsidiaries (“Hiland”). Hiland was controlled by the Company's principal shareholder through February 13, 2015, at which time it was sold to an unaffiliated third party. As a result of the sale, the prior related party relationship between the Company and Hiland terminated as of February 13, 2015. For the year ended December 31, 2015, sales to Hiland amounted to $1.4 million, net of transportation and processing costs, which is included in the caption “Crude oil and natural gas sales to affiliates” in the consolidated statements of comprehensive income (loss).
The Company capitalized costs of $0.1 million and $2.6 million in 2016 and 2015, respectively, associated with drilling rig services and demobilization of a drilling rig provided by an affiliate. Hiland historically provided field services such as compression, purchases of residue fuel gas and reclaimed crude oil, and reimbursements of generator rentals and fuel. Production and other expenses attributable to these transactions with Hiland prior to its sale were $1.7 million for the year ended December 31, 2015. The total amount paid to these affiliates, a portion of which was billed to other interest owners, was $0.1 million and $7.7 million for the years ended December 31, 2016 and 2015, respectively. No amounts were due to these affiliates at December 31, 2017 and 2016 related to the transactions.
Certain officers of the Company own or control entities that own working and royalty interests in wells operated by the Company. The Company paid revenues to these affiliates, including royalties, of $0.5 million, $0.4 million, and $0.7 million and received payments from these affiliates of $0.3 million, $0.3 million, and $0.5 million during the years ended December 31, 2017, 2016, and 2015, respectively, relating to the operations of the respective properties. At December 31, 2017 and 2016, approximately $58,000 and $90,000 was due from these affiliates, respectively, and approximately $48,000 and $45,000 was due to these affiliates, respectively, relating to these transactions.
The Company allows certain affiliates to use its corporate aircraft and crews and has used the aircraft of those same affiliates from time to time in order to facilitate efficient transportation of Company personnel. The rates charged between the parties vary by type of aircraft used. In 2016, the Company also purchased an existing prepaid maintenance account from an affiliate for use in major engine overhaul to be applied as needed for corporate aircrafts. For usage during 2017, 2016, and 2015, the Company charged affiliates approximately $19,400, $9,500, and $9,600, respectively, for use of its corporate aircraft crews, fuel, and reimbursement of expenses and received approximately $18,600, $6,800, and $33,000 from affiliates in 2017, 2016, and 2015, respectively. The Company was charged approximately $460,000, $292,000, and $236,000, respectively, by affiliates for use of their aircraft and reimbursement of expenses during 2017, 2016 (including the prepayment), and 2015 and paid $368,000, $195,000, and $221,000 to the affiliates in 2017, 2016, and 2015, respectively. At December 31, 2017 and 2016, approximately $4,200 and $3,400 was due from an affiliate, respectively, and approximately $92,000 and $97,000 was due to an affiliate, respectively, relating to these transactions.
The Company incurred costs for various field projects that had been ongoing with an entity that became an affiliate of the Company in the third quarter of 2014. During the fourth quarter of 2015, the affiliate relationship terminated. The total amount invoiced and capitalized for 2015 associated with the projects was $8.8 million. The total amount paid, a portion of which was billed to other interest owners, was $9.2 million for 2015.