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UNCONSOLIDATED AFFILIATES (Notes) | 9 Months Ended
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Sep. 30, 2018
Equity Method Investments and Joint Ventures [Abstract] |
UNCONSOLIDATED AFFILIATES | UNCONSOLIDATED AFFILIATES Equity in Net Earnings from Investments - The following table sets forth our equity in net earnings from investments for the periods indicated:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Thousands of dollars)
Northern Border Pipeline | $ | 16,486 |  |  | $ | 16,440 |  |  | $ | 48,863 |  |  | $ | 50,879 |
Overland Pass Pipeline Company | 16,081 |  |  | 15,793 |  |  | 48,714 |  |  | 44,243 |
Roadrunner Gas Transmission | 6,303 |  |  | 4,898 |  |  | 16,803 |  |  | 14,192 |
Other | 443 |  |  | 2,927 |  |  | 1,690 |  |  | 9,671 |
Equity in net earnings from investments | $ | 39,313 |  |  | $ | 40,058 |  |  | $ | 116,070 |  |  | $ | 118,985 |
Impairment of equity investments | $ | — |  |  | $ | (4,270 | ) |  | $ | — |  |  | $ | (4,270 | )
Unconsolidated Affiliates Financial Information - The following table sets forth summarized combined financial information of our unconsolidated affiliates for the periods indicated:
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2018 |  | 2017 |  | 2018 |  | 2017
| (Thousands of dollars)
Income Statement |  |  |  |  |  |  |
Operating revenues | $ | 160,962 |  |  | $ | 163,627 |  |  | $ | 471,641 |  |  | $ | 475,510 |
Operating expenses | $ | 69,004 |  |  | $ | 69,740 |  |  | $ | 205,525 |  |  | $ | 206,141 |
Net income | $ | 85,361 |  |  | $ | 87,330 |  |  | $ | 247,754 |  |  | $ | 260,533 |
Distributions paid to us | $ | 47,197 |  |  | $ | 49,414 |  |  | $ | 145,437 |  |  | $ | 146,094 |
We incurred expenses in transactions with unconsolidated affiliates of $37.5 million and $39.9 million for the three months ended September 30, 2018 and 2017, respectively, and $113.2 million and $116.0 million for the nine months ended September 30, 2018 and 2017, respectively, primarily related to Overland Pass Pipeline Company and Northern Border Pipeline. Accounts payable to our equity-method investees at September 30, 2018, and December 31, 2017, were $12.6 million and $13.6 million, respectively. Northern Border Pipeline - The Northern Border Pipeline partnership agreement provides that distributions to Northern Border Pipeline’s partners are to be made on a pro rata basis according to each partner’s percentage interest. The Northern Border Pipeline Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, the cash distribution policy of Northern Border Pipeline requires the unanimous approval of the Northern Border Pipeline Management Committee. Cash distributions are equal to 100 percent of distributable cash flow as determined from Northern Border Pipeline’s financial statements based upon EBITDA less interest expense and maintenance capital expenditures. Loans or other advances from Northern Border Pipeline to its partners or affiliates are prohibited under its credit agreement. In the third quarter 2017, we made equity contributions of $83 million to Northern Border Pipeline. In 2018, we made no contributions to Northern Border Pipeline. Northern Border Pipeline entered into a settlement with shippers that was approved by the FERC in February 2018. The settlement provides for tiered tariff rate reductions beginning January 1, 2018, that will reduce tariff rates 12.5 percent by January 2020, compared with previous tariff rates, and requires new tariff rates to be established by January 2024. We do not expect the impact of lower tariff rates on Northern Border Pipeline’s earnings and cash distributions to be material to us. Overland Pass Pipeline Company - The Overland Pass Pipeline Company limited liability company agreement provides that distributions to Overland Pass Pipeline Company’s members are to be made on a pro rata basis according to each member’s percentage interest. The Overland Pass Pipeline Company Management Committee determines the amount and timing of such distributions. Any changes to, or suspension of, cash distributions from Overland Pass Pipeline Company requires the unanimous approval of the Overland Pass Pipeline Company Management Committee. Cash distributions are equal to 100 percent of available cash as defined in the limited liability company agreement. Roadrunner Gas Transmission - The Roadrunner limited liability company agreement provides that distributions to members are made on a pro rata basis according to each member’s ownership interest. As the operator, we have been delegated the authority to determine such distributions in accordance with, and on the frequency set forth in, the Roadrunner limited liability company agreement. Cash distributions are equal to 100 percent of available cash, as defined in the limited liability company agreement. During the nine months ended September 30, 2018 and 2017, we made contributions of $0.5 million and $4.0 million to Roadrunner, respectively. We have an operating agreement with Roadrunner that provides for reimbursement or payment to us for management services and certain operating costs. Reimbursements and payments from Roadrunner included in operating income in our Consolidated Statements of Income for the three and nine months ended September 30, 2018 and 2017, were not material.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 323 -URI http://asc.fasb.org/topic&trid=2196965 + Details
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