Related Party Transactions

9 Months Ended

Sep. 30, 2013

Note 8: Related Party Transactions

Gulf South makes advances to or receives advances from Boardwalk Pipelines under a cash management program. At September 30, 2013, and December 31, 2012, advances due to Gulf South from Boardwalk Pipelines totaled $193.7 million and $101.0 million. The advances are represented by demand notes. The interest rate on intercompany demand notes is compounded monthly based on LIBOR plus one percent and is adjusted quarterly.

Boardwalk Pipelines provides certain management and other services to Gulf South. Boardwalk Pipelines charged Gulf South $1.7 million and $0.6 million for the three months ended September 30, 2013 and 2012. Boardwalk Pipelines charged Gulf South $5.5 million and $5.6 million for the nine months ended September 30, 2013 and 2012. These costs were based on actual costs incurred and allocated to Gulf South based on the modified Massachusetts formula, which utilizes three components as the basis for allocation: 1) the gross book value of property, plant and equipment; 2) operating revenues; and 3) payroll dollars. This allocation method has been consistently applied for all periods presented. Management believes the assumptions and allocations were made on a reasonable basis. Due to the nature of the shared costs, it is not practicable to estimate what the costs would have been had Gulf South operated on a stand-alone basis.

In 2012, Gulf South transferred PPE with a carrying amount of $30.6 million, which transfer occurred by a non-cash distribution to Boardwalk Pipelines.

Amounts applicable to transportation and storage services with affiliates, including fuel costs, shown on Gulf South's Statements of Income are as follows (in millions):



	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
Affiliate:	2013		2012		2013		2012
Gulf Crossing:
Gas transportation revenue - affiliates	$	18.3	$	18.5	$	54.7	$	53.6
Texas Gas:
Gas transportation revenue - affiliates	0.7		0.7		2.1		2.1
Fuel and gas transportation expense - affiliates	3.2		3.1		9.4		10.0
Petal Gas Storage, LLC:
Parking and lending - affiliates	$	0.1	$	—	$	0.1	$	—
Fuel and gas transportation expense - affiliates	$	—	$	0.8	$	0.1	$	0.9

- Definition

The entire disclosure for related party transactions. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References+ Details

Gulf South Pipeline Company, LP 10-Q