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Related Party Transactions
 12 Months Ended
Dec. 31, 2012
Related Party Transactions  
Related Party Transactions

Note 14—Related Party Transactions

 

Reimbursement of Expenses of Our General Partner and its Affiliates

 

We do not pay our general partner a management fee, but we do reimburse our general partner for all direct and indirect costs of services provided to us or incurred on our behalf, including the costs of employee, officer and director compensation and benefits allocable to us as well as all other expenses necessary or appropriate to the conduct of our business (other than expenses related to grants of AAP LP Class B Units). We record these costs on the accrual basis in the period in which our general partner incurs them. Our partnership agreement provides that our general partner will determine the expenses that are allocable to us in any reasonable manner determined by our general partner in its sole discretion. Total costs reimbursed by us to our general partner for the years ended December 31, 2012, 2011 and 2010 were $535 million, $419 million and $374 million, respectively.

 

Vulcan Energy Corporation

 

In December 2010, Vulcan Energy Corporation sold its 50.1% ownership interest in our general partner. Substantially all of the interest sold was acquired by existing owners of our general partner or their affiliates.

 

Occidental Petroleum Corporation

 

As of December 31, 2012, a subsidiary of Occidental Petroleum Corporation (“Oxy”) owned approximately 35% of our general partner interest and had a representative on the board of directors of Plains All American GP LLC. During the three years ended December 31, 2012, we recognized sales and transportation revenues and purchased petroleum products from companies  affiliated with Oxy. These transactions were conducted at posted tariff rates or prices that we believe approximate market. See detail below (in millions):

 

 

 

Year Ended December 31,

 

 

 

2012

 

2011

 

2010

 

Revenues

 

$

1,636

 

$

2,568

 

$

2,189

 

 

 

 

 

 

 

 

 

Purchases and related costs

 

$

557

 

$

361

 

$

221

 

 

We currently have a netting arrangement with Oxy. Our gross receivable and payable amounts with affiliates of Oxy were as follows (in millions):

 

 

 

December 31,

 

 

 

2012

 

2011

 

Trade accounts receivable and other receivables

 

$

231

 

$

132

 

 

 

 

 

 

 

Accounts payable

 

$

129

 

$

155

 

 

Other

 

We also have transactions with companies in which we hold an investment accounted for under the equity method of accounting (see Note 2 for information related to these investments). We recorded revenues of approximately $18 million during the year ended December 31, 2012, primarily associated with sales of crude oil to Eagle Ford Pipeline LLC for its linefill requirements.  These sales did not result in any gain for us. Revenues from transactions with our equity method investees in 2011 and 2010 were immaterial. During the three years ended December 31, 2012, we utilized transportation services provided by these companies. Costs related to these services totaled approximately $42 million, $33 million and $36 million for the years ended December 31, 2012, 2011 and 2010, respectively. These transactions were conducted at posted tariff rates or contracted rates or prices that we believe approximate market. Receivables from our equity method investees totaled approximately $8 million and $10 million at December 31, 2012 and 2011, respectively. Accounts payable at December 31, 2012 and 2011 were approximately $4 million and $5 million, respectively.