XML 57 R13.htm IDEA: XBRL DOCUMENT
v3.22.4

MEDFORD INCIDENT (Notes) | 12 Months Ended
--- | ---
Dec. 31, 2022
Unusual or Infrequent Items, or Both [Abstract] |
Unusual or Infrequent Items, or Both, Disclosure [Text Block] | MEDFORD INCIDENT On July 9, 2022, a fire occurred at our 210 MBbl/d Medford, Oklahoma, natural gas liquids fractionation facility. All personnel were safe and accounted for with temporary evacuations of local residents taken as a precautionary measure. Subject to the terms and conditions of our insurance policies and any applicable sub-limits, we have property damage and business interruption coverage with a combined per occurrence limit of $2 billion and deductibles of $5 million per occurrence for property damage and a 45-day waiting period per occurrence for business interruption coverage. Beginning in August 2022, we developed claims related to the Medford incident and recorded accruals for the expected insurance recoveries. We assessed incurred costs and lost earnings related to business interruption and property damage to our facility, as well as timing of recognition under applicable insurance recovery guidance, and recorded accruals of $150.7 million in 2022. We received a $100 million unallocated payment from our insurers in the fourth quarter 2022. We assessed the property damage to our facility and wrote off assets totaling $45.6 million for the year ended December 31, 2022, which represents the value associated with certain damaged Medford facility property. We recorded an insurance receivable that was probable of recovery and fully offsets our noncash property losses, resulting in no impact to our Consolidated Statement of Income. We expect to continue to operate NGL pipeline assets in Medford along with existing offices for regional operations. In addition, we are preserving certain Medford assets for future potential NGL facilities that could be constructed in Medford to enhance our NGL business as the market evolves. Our property insurance policy also includes coverage for expenses incurred in response to the Medford incident. For the year ended December 31, 2022, we recorded accruals of $9 million related to the incurred costs in excess of our $5 million deductible that were probable of recovery, with an offset to the operations and maintenance line item in our Consolidated Statement of Income. Our business interruption insurance provides coverage including, but not limited to (i) incurred costs and losses that are either unavoidable or incurred to mitigate or reduce losses and (ii) lost earnings. We record recoveries for incurred costs and losses related to our business interruption coverage for the amount probable of recovery, not to exceed the actual losses incurred and for lost earnings that have been realized and are no longer considered a gain contingency. For the year ended December 31, 2022, we recorded accruals of $96.1 million, related primarily to third-party fractionation costs incurred subsequent to the 45-day business interruption waiting period. Accruals for business interruption insurance proceeds are recorded to other operating (income) expense, net in our Consolidated Statement of Income. Subsequent Event - On January 9, 2023, we reached an agreement with our insurers to settle all claims for physical damage and business interruption related to the Medford incident. Under the terms of the settlement agreement, we agreed to resolve the claims for total insurance payments of $930 million, $100 million of which was received in 2022. The remaining $830 million was received in January and February 2023. The proceeds serve as settlement for property damage, business interruption claims to the date of the settlement and as payment in lieu of future business interruption insurance claims. In the first quarter 2023, we applied the $830 million received to our outstanding insurance receivable at December 31, 2022 of $50.7 million, and recorded an operational gain for the remaining $779.3 million.

X
- References No definition available. + Details
Name: | us-gaap_ExtraordinaryAndUnusualItemsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for an event or transaction that is unusual in nature or infrequent in occurrence, or both. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 220 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=114868817 + Details
Name: | us-gaap_UnusualOrInfrequentItemsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration