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Fair Value
 3 Months Ended
Mar. 31, 2012
Fair Value [Abstract]  
Fair Value

8. Fair Value

The Partnership’s financial instruments consist of cash and cash equivalents, accounts receivable, contractual override – affiliate, accounts payable and long-term debt. The carrying amount of the Partnership’s financial instruments included in accounts receivable and accounts payable approximates their fair value due to their short-term nature. The Partnership’s cash and cash equivalents include money market accounts and are considered a Level 1 measurement. The fair market value and carrying value of the contractual override and long-term debt are as follows:

 

 

                                 
    Fair Value As Of     Carrying Value As Of  
    March 31, 2012     December 31, 2011     March 31, 2012     December 31, 2011  
    (In thousands)  
    (Unaudited)           (Unaudited)        

Assets

                                

Contractual overriding agreement, current and long-term

   $ 10,291     $ —       $ 8,998     $ —    

Liabilities

                                

Long-term debt, current and long-term

   $ 893,650     $ 915,959     $ 851,878     $ 867,070  

The fair value of both the contractual override and long-term debt is estimated by management using comparable term risk-free treasury issues with a market rate component determined by current financial instruments with similar characteristics which is a Level 3 measurement. Since the Partnership’s credit facility is variable rate debt, its fair value approximates its carrying amount.