XML 81 R20.htm IDEA: XBRL DOCUMENT v2.4.0.8
Coffeyville Refinery Incident
9 Months Ended
Sep. 30, 2014
Insurance [Abstract]  
Insurance Disclosure [Text Block]
(11) Coffeyville Refinery Incident

On July 29, 2014, the Coffeyville refinery experienced a fire at its isomerization unit. Four employees were injured in the fire, including one employee who was fatally injured. The fire was extinguished, and the refinery was subsequently shut down due to a failure of its plant-wide Distributed Control System, which was directly caused by the fire. The Coffeyville refinery returned to operations in mid-August, with all units except the isomerization unit in operation by August 23, 2014. This interruption adversely impacted production of refined products for the petroleum business in the third quarter of 2014. Total gross repair and other costs recorded related to the incident for the three and nine months ended September 30, 2014 were approximately $5.5 million.

The Refining Partnership maintains property damage insurance policies which have an associated deductible of $5.0 million for the Coffeyville refinery. The Refining Partnership anticipates amounts in excess of the $5.0 million deductible will be recoverable under the property insurance policies. As of September 30, 2014, the Refining Partnership recorded an insurance receivable related to the incident of approximately $0.5 million, which is included in prepaid expenses and other current assets in the Condensed Consolidated Balance Sheet. The recording of the receivable resulted in a reduction of direct operating expenses (exclusive of depreciation and amortization). The Refining Partnership also maintains workers' compensation insurance with a $0.5 million per accident deductible.
 
During the outage at the Coffeyville refinery as discussed above, the Refining Partnership accelerated certain planned turnaround activities scheduled for 2015 and incurred approximately $5.5 million in turnaround expenses for the three and nine months ended September 30, 2014.