INCOME TAX	12 Months Ended
Dec. 31, 2015
INCOME TAX
INCOME TAX	14. INCOME TAX The Partnership and the Azure System Predecessor are not taxable entities for U.S. federal income tax purposes or for the majority of states that impose an income tax. Therefore, income taxes are not levied at the entity level, but rather on the individual partners of the Partnership and the Azure System Predecessor. Accordingly, the accompanying consolidated financial statements do not include a provision for federal and state income taxes. The Partnership and the Azure System Predecessor are subject to the Texas Margin Tax, which qualifies as an income tax under GAAP, and requires us to recognize the effect of this tax on the temporary differences between the financial statement assets and liabilities and their tax basis. Our current tax liability will be assessed based upon the gross revenue apportioned to Texas. The Partnership had a non-current deferred tax liability of $1.1 million as of December 31, 2015 that relates primarily to differences between the book basis of property, plant and equipment and their tax basis, as well as the timing of recognition of deferred revenue. The associated deferred income tax expense recorded for the year ended December 31, 2015, associated with the book to tax differences, was $0.7 million. There was no current income tax expense for the year ended December 31, 2015. For the periods prior to the Transactions, the Partnership and the Azure System Predecessor did not have a liability recorded for deferred taxes due to the election of a different calculation method for Texas Margin Tax. As such, current income tax expense of $0.2 million, $26,000 and $0.1 million was recorded for allocated Texas Margin Tax for the years ended December 31, 2014, the period from November 15, 2013 to December 31, 2013 and the period from January 1, 2013 to November 14, 2013. The Partnership did not have any uncertain tax positions as of December 31, 2015.

INCOME TAX

12 Months Ended

Dec. 31, 2015

14. INCOME TAX

The Partnership and the Azure System Predecessor are not taxable entities for U.S. federal income tax purposes or for the majority of states that impose an income tax. Therefore, income taxes are not levied at the entity level, but rather on the individual partners of the Partnership and the Azure System Predecessor. Accordingly, the accompanying consolidated financial statements do not include a provision for federal and state income taxes.

The Partnership and the Azure System Predecessor are subject to the Texas Margin Tax, which qualifies as an income tax under GAAP, and requires us to recognize the effect of this tax on the temporary differences between the financial statement assets and liabilities and their tax basis. Our current tax liability will be assessed based upon the gross revenue apportioned to Texas.

The Partnership had a non-current deferred tax liability of $1.1 million as of December 31, 2015 that relates primarily to differences between the book basis of property, plant and equipment and their tax basis, as well as the timing of recognition of deferred revenue. The associated deferred income tax expense recorded for the year ended December 31, 2015, associated with the book to tax differences, was $0.7 million. There was no current income tax expense for the year ended December 31, 2015.

For the periods prior to the Transactions, the Partnership and the Azure System Predecessor did not have a liability recorded for deferred taxes due to the election of a different calculation method for Texas Margin Tax. As such, current income tax expense of $0.2 million, $26,000 and $0.1 million was recorded for allocated Texas Margin Tax for the years ended December 31, 2014, the period from November 15, 2013 to December 31, 2013 and the period from January 1, 2013 to November 14, 2013.

The Partnership did not have any uncertain tax positions as of December 31, 2015.