v2.4.0.6
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES (Tables)
 6 Months Ended
Jun. 30, 2012
DERIVATIVES AND RISK MANAGEMENT ACTIVITIES [Abstract]  
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Text Block]
The fair values of our derivative instruments included in our consolidated balance sheets were as follows:
 
 
 
Asset Derivatives
 
Liability Derivatives
 
Balance Sheet Location
 
June 30, 2012
 
December 31, 2011
 
June 30, 2012
 
December 31, 2011
 
 
 
(Thousands of Dollars)
Derivatives Designated as
Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
$
5,776

 
$
36,116

 
$
(5,010
)
 
$
(33,616
)
Commodity contracts
Other long-term assets, net
 
36,782

 
86,052

 
(27,220
)
 
(66,175
)
Interest rate swaps
Other long-term assets, net
 
—

 
2,335

 
—

 
—

Commodity contracts
Accrued liabilities
 
35,863

 
—

 
(50,514
)
 
—

Interest rate swaps
Accrued liabilities
 
—

 
—

 
(37,291
)
 
(22,009
)
Commodity contracts
Other long-term liabilities
 
9,652

 
—

 
(16,496
)
 
—

Interest rate swaps
Other long-term liabilities
 
—

 
—

 
—

 
(27,190
)
Total
 
 
88,073

 
124,503

 
(136,531
)
 
(148,990
)
 
 
 
 
 
 
 
 
 
 
Derivatives Not Designated
as Hedging Instruments:
 
 
 
 
 
 
 
 
 
Commodity contracts
Other current assets
 
91,480

 
15,568

 
(46,371
)
 
(5,956
)
Commodity contracts
Other long-term assets, net
 
13,921

 
7,207

 
(14,387
)
 
—

Commodity contracts
Accrued liabilities
 
32,997

 
519

 
(55,483
)
 
(5,943
)
Commodity contracts
Other long-term liabilities
 
20,279

 
—

 
(14,780
)
 
—

Total
 
 
158,677

 
23,294

 
(131,021
)
 
(11,899
)
 
 
 
 
 
 
 
 
 
 
Total Derivatives
 
 
$
246,750

 
$
147,797

 
$
(267,552
)
 
$
(160,889
)
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance [Text Block]
The earnings impact of our derivative activity was as follows:
Derivatives Designated as Fair Value Hedging Instruments
 
Income Statement
Location
 
Amount of Gain
(Loss) Recognized
in Income on
Derivative
(Effective Portion)
 
Amount of  Gain
(Loss)
Recognized in
Income on
Hedged Item
 
Amount of Gain
(Loss) Recognized
in Income  on
Derivative
(Ineffective Portion)
 
 
 
 
(Thousands of Dollars)
Three months ended June 30, 2012:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
(19,573
)
 
$
19,573

 
$
—

Commodity contracts
 
Cost of product sales
 
5,222

 
(5,837
)
 
(615
)
Total
 
 
 
$
(14,351
)
 
$
13,736

 
$
(615
)
 
 
 
 
 
 
 
 
 
Three months ended June 30, 2011
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
14,528

 
$
(14,812
)
 
$
(284
)
Commodity contracts
 
Cost of product sales
 
1,002

 
(1,650
)
 
(648
)
Total
 
 
 
$
15,530

 
$
(16,462
)
 
$
(932
)
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2012:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
(17,345
)
 
$
17,345

 
$
—

Commodity contracts
 
Cost of product sales
 
2,635

 
(3,447
)
 
(812
)
Total
 
 
 
$
(14,710
)
 
$
13,898

 
$
(812
)
 
 
 
 
 
 
 
 
 
Six months ended June 30, 2011:
 
 
 
 
 
 
 
 
Interest rate swaps
 
Interest expense, net
 
$
8,614

 
$
(8,852
)
 
$
(238
)
Commodity contracts
 
Cost of product sales
 
(11,064
)
 
10,720

 
(344
)
Total
 
 
 
$
(2,450
)
 
$
1,868

 
$
(582
)
 
Derivatives Designated as Cash Flow Hedging Instruments
 
Amount of Gain
(Loss) Recognized 
in OCI 
on Derivative
(Effective Portion)
 
Income Statement
Location (a)
 
Amount of Gain
(Loss) Reclassified
from
Accumulated OCI
into  Income
(Effective Portion)
 
Amount of Gain
(Loss) Recognized
in Income  on
Derivative
(Ineffective Portion)
 
 
(Thousands of Dollars)
 
 
 
(Thousands of Dollars)
Three months ended June 30, 2012:
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
(16,749
)
 
Interest expense, net
 
$
(629
)
 
$
—

Commodity contracts
 
4,461

 
Cost of product sales
 
(8,518
)
 
—

Total
 
$
(12,288
)
 
 
 
$
(9,147
)
 
$
—

 
 
 
 
 
 
 
 
 
Three months ended June 30, 2011
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
(15,708
)
 
Interest expense, net
 
$
—

 
$
—

Commodity contracts
 
(16,454
)
 
Cost of product sales
 
(1,225
)
 
—

Total
 
$
(32,162
)
 
 
 
$
(1,225
)
 
$
—

 
 
 
 
 
 
 
 
 
Six months ended June 30, 2012:
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
(13,451
)
 
Interest expense, net
 
$
(1,052
)
 
$
—

Commodity contracts
 
(52,660
)
 
Cost of product sales
 
(15,862
)
 
4,010

Total
 
$
(66,111
)
 
 
 
$
(16,914
)
 
$
4,010

 
 
 
 
 
 
 
 
 
Six months ended June 30, 2011:
 
 
 
 
 
 
 
 
Interest rate swaps
 
$
(12,830
)
 
Interest expense, net
 
$
—

 
$
—

Commodity contracts
 
(16,454
)
 
Cost of product sales
 
(1,225
)
 
—

Total
 
$
(29,284
)
 
 
 
$
(1,225
)
 
$
—

(a)
Amounts are included in specified location for both the gain (loss) reclassified from accumulated other comprehensive income (OCI) into income (effective portion) and the gain (loss) recognized in income on derivative (ineffective portion).
Derivatives Not Designated as Hedging Instruments
 
Income Statement
Location
 
Amount of Gain (Loss)
Recognized in Income
 
 
 
 
(Thousands of Dollars)
Three months ended June 30, 2012:
 
 
 
 
Commodity contracts
 
Revenues
 
$
(8,164
)
Commodity contracts
 
Cost of product sales
 
28,255

 
 
 
 
$
20,091

 
 
 
 
 
Three months ended June 30, 2011
 
 
 
 
Commodity contracts
 
Revenues
 
$
(29
)
Commodity contracts
 
Cost of product sales
 
4,462

 
 
 
 
$
4,433

 
 
 
 
 
Six months ended June 30, 2012:
 
 
 
 
Commodity contracts
 
Revenues
 
$
(7,654
)
Commodity contracts
 
Cost of product sales
 
23,937

 
 
 
 
$
16,283

 
 
 
 
 
Six months ended June 30, 2011:
 
 
 
 
Commodity contracts
 
Revenues
 
$
235

Commodity contracts
 
Cost of product sales
 
(11,167
)
Commodity contracts
 
Operating expenses
 
46

 
 
 
 
$
(10,886
)