6. DISPOSITIONS, ASSET IMPAIRMENT AND DISCONTINUED OPERATIONS

Dispositions

For the nine months ended 2017, we sold unnecessary pipe related to the Sandpiper project for cash proceeds of approximately $103.0 million. A gain on disposal of $57.0 million before tax was included in “Gain on sale of assets” on our consolidated statements of income. These assets were part of our Liquids segment.

On March 1, 2017, we completed the sale of the Ozark Pipeline system to a subsidiary of MPLX LP for cash proceeds of approximately $219.6 million, including reimbursement costs. A gain on disposal of $10.6 million before tax was included in “Gain on sale of assets” on our consolidated statements of income. These assets were part of our Liquids segment.

Asset Impairment

During September 2016, we announced that we applied for the withdrawal of regulatory applications pending with the Minnesota Public Utilities Commission (MNPUC), for the Sandpiper Project which was included in our Liquids segment. In connection with this announcement and other factors, we evaluated the project for impairment. As a result of the analysis, we recognized an impairment loss of $756.7 million for the three months ended September 30, 2016, which was included in "Asset impairment" on our consolidated statements of income. Of that amount, $267.4 million was attributable to noncontrolling interests (NCI). The estimated remaining fair value of $54.5 million of the Sandpiper Project was based on the estimated price that would be received to sell unused pipe, land and other related equipment in its current condition, considering the market condition for the assets as of September 2016. The estimated fair value, excluding $2.6 million in land, was reclassified into "Other assets, net" and have been predominately sold as of the third quarter of 2017.

Discontinued Operations

Sale of Natural Gas Business

On June 28, 2017, we completed the sale of all of our ownership interest in our Midcoast gas gathering and processing business to our General Partner for $2.26 billion, which included cash consideration of $1.31 billion and outstanding indebtedness at Midcoast Energy Partners, L.P. (MEP) of $953.0 million. This sale included our 48.4% limited partnership interest in Midcoast Operating, L.P., our 51.9% limited partnership interest in MEP, and our 100% interest in Midcoast Holdings, L.L.C., MEP’s general partner. We recorded no gain or loss on the sale as this transaction was between entities under common control of Enbridge. The carrying value of the net assets sold was $4.29 billion. As a result of the transaction, partners’ capital decreased by $2.13 billion, all of which was allocated to the General Partner’s capital account. NCI in MEP of $296.6 million was eliminated.

The following table presents the operating results from discontinued operations of our Midcoast gas gathering and processing business, which have been segregated from our continuing operations in our consolidated statements of income:



	Three months ended September 30,					Nine months ended September 30,
	2017		2016			2017			2016
Operating revenues:
Commodity sales	$	—	$	440.7		$	1,085.0		$	1,197.9
Commodity sales – affiliate	—		1.3			9.4			7.9
Transportation and other services	—		44.0			66.7			139.7
	—		486.0			1,161.1			1,345.5
Operating expenses:
Commodity costs	—		396.1			968.2			1,082.0
Commodity costs – affiliate	—		7.9			42.1			29.1
Operating and administrative	—		36.6			64.7			111.4
Operating and administrative – affiliate	—		35.8			68.7			112.6
Depreciation and amortization	—		39.2			74.5			118.7
Asset impairment	—		—			—			10.6
	—		515.6			1,218.2			1,464.4
Operating loss	—		(29.6		)	(57.1		)	(118.9		)
Interest expense, net	—		(9.0		)	(17.4		)	(25.5		)
Other income	—		8.1			18.6			22.0
Loss before income taxes	—		(30.5		)	(55.9		)	(122.4		)
Income tax expense	—		(0.6		)	(0.9		)	(2.0		)
Net loss from discontinued operations	$	—	$	(31.1	)	$	(56.8	)	$	(124.4	)

The following table presents the major classes of assets and liabilities for discontinued operations of our Midcoast gas gathering and processing business as presented in the consolidated statements of financial position:



	December 31, 2016
Current assets related to discontinued operations:
Cash and cash equivalents	$	7.4
Restricted cash	11.0
Receivables, trade and other, net of allowance for doubtful accounts	8.5
Due from General Partner and affiliates	2.1
Accrued receivables	20.8
Inventory	28.1
Other current assets	60.7
	$	138.6
Non-current assets related to discontinued operations:
Property, plant and equipment, net	$	4,114.5
Equity investment in joint venture	360.7
Intangible assets, net	251.8
Other assets, net	48.3
	$	4,775.3



	December 31, 2016
Current liabilities related to discontinued operations:
Accounts payable and other	$	66.9
Due to General Partner and affiliates	38.8
Environmental liabilities	0.1
Accrued purchases	171.8
Property and other taxes payable	17.2
Interest payable	5.0
	$	299.8
Non-current liabilities related to discontinued operations:
Long-term debt	$	818.5
Other long-term liabilities	25.8
	$	844.3