Environmental |
9 Months Ended |
|---|---|
Sep. 30, 2022 | |
| Environmental Remediation Obligations [Abstract] | |
| Environmental | Environmental We expensed $49 thousand for the three months ended September 30, 2022 and $0.3 million for the nine months ended September 30, 2022, for environmental remediation obligations and we expensed $0.7 million and $1.3 million for the three and nine months ended September 30, 2021, respectively. The accrued environmental liability, net of expected recoveries from indemnifying parties, reflected in our consolidated balance sheets was $13.4 million and $3.9 million at September 30, 2022 and December 31, 2021, of which $11.4 million and $2.4 million was classified as other long-term liabilities for September 30, 2022 and December 31, 2021, respectively. These accruals include remediation and monitoring costs expected to be incurred over an extended period of time. Accrued environmental liabilities assumed in the Sinclair acquisition have preliminarily been fair valued at $10 million. Estimated liabilities could increase in the future as the purchase price allocation for the Sinclair Transportation acquisition is finalized and when the results of ongoing investigations become known, are considered probable and can be reasonably estimated. Under the Omnibus Agreement and certain transportation agreements and purchase agreements with HF Sinclair and/or its subsidiaries, HF Sinclair has agreed to indemnify us, subject to certain monetary and time limitations, for environmental noncompliance and remediation liabilities associated with certain assets transferred to us from HF Sinclair and its subsidiaries and occurring or existing prior to the date of such transfers. Our consolidated balance sheets included additional accrued environmental liabilities of $0.3 million for HF Sinclair indemnified liabilities as of both September 30, 2022 and December 31, 2021, respectively, and other assets included equal and offsetting balances representing amounts due from HF Sinclair related to indemnifications for environmental remediation liabilities. See Note 18 for a discussion of our share of incurred and accrued environmental remediation and recovery expenses associated with the release of crude oil on the Osage pipeline reflected in our equity in earnings (loss) of equity method investments.
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