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Related Party Transactions (Tables)
12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Commercial Agreements
Our material commercial agreements with Delek Holdings include the following:
Asset/Operation
 
Initiation Date
 
Initial/Maximum Term (years) (1)
 
Service
 
Minimum Throughput Commitment (bpd)
 
Fee (/bbl)
 
 
 
 
 
 
 
 
 
 
 
Lion Pipeline System and Gathering Assets (2):
Crude Oil Pipelines (non-gathered)
 
November 2012
 
5 / 15
 
Crude oil and refined products transportation
 
    46,000 (3)
 
$1.03 (4)
Refined Products Pipelines
 
November 2012
 
5 / 15
 
 
 
40,000
 
$0.12
Gathering Assets
 
November 2012
 
5 / 15
 
Crude oil gathering
 
14,000
 
$2.78 (4)
 
 
 
 
 
 
 
 
 
 
 
East Texas Crude Logistics System (2):
Crude Oil Pipelines
 
November 2012
 
5 / 15
 
Crude oil transportation and storage
 
35,000
 
$0.49 (5)
Storage
 
November 2012
 
5 / 15
 
 
 
N/A
 
$303,774/month
East Texas Marketing
 
November 2012
 
10 (6)
 
Marketing products for Tyler Refinery
 
50,000
 
$0.81 (6)
 
 
 
 
 
 
 
 
 
 
 
Big Sandy Terminal: (2) (7)
Refined Products Transportation
 
November 2012
 
5 / 15
 
Refined products transportation, dedicated terminalling services and storage for the Tyler Refinery
 
5,000
 
$0.61
Terminalling
 
November 2012
 
5 / 15
 
 
 
5,000
 
$0.61
Storage
 
November 2012
 
5 / 15
 
 
 
N/A
 
$60,701/month
 
 
 
 
 
 
 
 
 
 
 
Tyler Throughput and Tankage (2):
Refined Products Throughput
 
July 2013
 
8/ 16
 
Dedicated Terminalling and storage
 
50,000
 
$0.38
Storage
 
July 2013
 
8/ 16
 
 
 
N/A
 
$905,056/month
Memphis Pipeline
 
October 2013
 
5
 
Refined Products Transportation
 
10,959
 
$1.25
 
 
 
 
 
 
 
 
 
 
 
El Dorado Throughput and Tankage (2):
Refined Products Throughput
 
February 2014
 
8/ 16
 
Dedicated terminalling and storage
 
11,000
 
$0.55
Storage
 
February 2014
 
8/ 16
 
 
 
N/A
 
$1,416,771/month
 
 
 
 
 
 
 
 
 
 
 
El Dorado Assets Throughput:
Light Crude Throughput
 
March 2015
 
9/15
 
Dedicated Offloading Services
 
N/A (8)
 
$1.09
Heavy Crude Throughput
 
March 2015
 
9/15
 
Dedicated Offloading Services
 
N/A (8)
 
$2.45
 
 
 
 
 
 
 
 
 
 
 
Pipelines, Storage and Throughput Facilities Agreement (Big Spring):
Crude Oil and Refined Products Throughput
 
March 1, 2018
 
10/15
 
Pipeline throughput
 
104,300
 
0.05
Rail Offloading
 
March 1, 2018
 
10/15
 
Offloading services
 
4,500
 
0.42
Terminalling
 
March 1, 2018
 
10/15
 
Dedicated Terminalling
 
29,250
 
0.69
Storage
 
March 1, 2018
 
10/15
 
Storage
 
NA
 
$1,427,827/month
 
 
 
 
 
 
 
 
 
 
 
Asphalt Services Agreement (Big Spring):
Terminalling
 
March 1, 2018
 
10/15
 
Dedicated Asphalt Terminalling and Storage
 
1,020 to 2,380 based on seasonality
 
8.62
Storage
 
March 1, 2018
 
10/15
 
 
N/A
 
$474,156/month
 
 
 
 
 
 
 
 
 
 
 
Marketing Agreement (Big Spring):
Marketing Services
 
March 1, 2018
 
10/15
 
Dedicated Marketing and Selling
 
65,000
 
$0.52 - $0.74
(1) Maximum term gives effect to the extension of the commercial agreement pursuant to the terms thereof.
(2) The current term of the agreement was extended through March 31, 2024 in connection with the amendment and restatement of the DKL Credit Facility (as defined in Note 11). While the current terms of the agreement were extended, the upcoming renewal terms were reduced. Therefore, the overall duration of the maximum term above remains unchanged.
(3) Excludes volumes gathered on the Gathering Assets.
(4) Volumes gathered on the Gathering Assets will not be subject to an additional fee for transportation on our Lion Pipeline System to the El Dorado Refinery.
(5) For any volumes in excess of 50,000 bpd, the throughput fee will be $0.73/bbl.
(6) For any volumes in excess of 50,000 bpd, the throughput fee will be $0.77/bbl. Following the primary term, the marketing agreement automatically renews for a successive one-year term, unless either party provides notice of non-renewal 10 months prior to the expiration of the then-current term. The initial primary term for the marketing agreement has been extended through 2027.
(7) On July 19, 2013, we acquired the Hopewell Pipeline in order to effectively connect it with the Big Sandy Pipeline and thereby return the Big Sandy Terminal to operation. In connection with the acquisition, on July 25, 2013, we and Delek Holdings entered into the Amended and Restated Services Agreement (Big Sandy Terminal and Pipeline), which amended and restated the terminalling services agreement for the Big Sandy Terminal originally entered into in November 2012.
(8) The throughput agreement provides for a minimum throughput fee of $1.6 million per quarter for throughput of a combination of light and heavy crude.
Purchases and Expense Transactions From Affiliates
A summary of revenue, purchases from affiliates and expense transactions with Delek Holdings and its affiliates are as follows (in thousands):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Revenues
$
261,014

 
$
240,809

 
$
156,280

Purchases from Affiliates
$
285,539

 
$
349,089

 
$
54,982

Operating and maintenance expenses 
$
49,904

 
$
36,182

 
$
29,483

General and administrative expenses 
$
7,977

 
$
8,250

 
$
7,492