Investments in Non-Controlled Entities

Texas Frontera. We own a 50% interest in Texas Frontera, which owns approximately one million barrels of refined products storage at our Galena Park, Texas terminal. The storage capacity owned by this venture is leased to an affiliate of Texas Frontera under a long-term lease agreement. Texas Frontera began operations in October 2012. We receive management fees from Texas Frontera, which we report as affiliate management fee revenue on our consolidated statements of income.

Osage. We own a 50% interest in Osage, which owns a 135-mile crude oil pipeline in Oklahoma and Kansas that we operate. We receive management fees from Osage, which we report as affiliate management fee revenue on our consolidated statements of income.

Double Eagle. We own a 50% interest in Double Eagle, which transports condensate from the Eagle Ford shale formation in South Texas via a 195-mile pipeline to our terminal in Corpus Christi, Texas. Double Eagle is operated by an affiliate of the other 50% member of Double Eagle. We receive connection fees from Double Eagle that are included in our transportation and terminals revenue on our consolidated statements of income. For the year ended December 31, 2013, we received connection fees of $1.4 million and recognized a $0.2 million trade accounts receivable from Double Eagle at December 31, 2013.

BridgeTex. We own a 50% interest in BridgeTex, which is in the process of constructing a 450-mile pipeline with related infrastructure to transport crude oil from Colorado City, Texas for delivery to Houston and Texas City, Texas refineries. This pipeline is expected to begin service in mid-2014. We receive construction management fees from BridgeTex, which we report as affiliate management fee revenue on our consolidated statements of income.

During 2013, we received $4.8 million from BridgeTex as a deposit for the purchase of emission reduction credits, which we expect to transfer to BridgeTex during the first half of 2014. Also in 2013, we received $1.4 million from BridgeTex for the purchase of easement rights from us, of which $0.7 million was recorded as a reduction of operating expense and $0.7 million was recorded as an adjustment to our investment in BridgeTex, which will be amortized as a reduction of operating expense over the weighted average depreciable lives of the BridgeTex assets.

A summary of our investments in non-controlled entities follows (in thousands):



	Texas Frontera		Osage			Double Eagle		BridgeTex			Consolidated
Investment at December 31, 2012	$	15,728	$	18,888		$	40,840	$	31,900		$	107,356
Additional investment	—		—			35,500		214,995			250,495
Earnings (losses) of non-controlled entities:
Proportionate share of earnings (losses)	2,494		4,383			82		(20		)	6,939
Amortization of excess investment	—		(664		)	—		—			(664		)
Earnings (losses) of non-controlled entities	2,494		3,719			82		(20		)	6,275
Less:
Distributions of earnings from investments in non-controlled entities	2,494		—			—		—			2,494
Distributions in excess of earnings of non-controlled entities	780		—			—		—			780
Investment at December 31, 2013	$	14,948	$	22,607		$	76,422	$	246,875		$	360,852

The operating results from Texas Frontera are included in our marine storage segment and the operating results from Osage, Double Eagle and BridgeTex are included in our crude oil segment.

Our initial investment in Osage included an excess net investment amount of $21.7 million. Excess investment is the amount by which our initial investment exceeded our proportionate share of the book value of the net assets of the investment. The unamortized excess net investment amount at December 31, 2013 was $15.1 million.