Energy Transfer 2012 Annual Report Download - page 27

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controlling financial interest in Inland, the joint venture is reflected as a consolidated subsidiary in its consolidated financial
statements.
Sunoco Logistics owns equity interests in several common carrier refined products pipelines, summarized in the following table:
Pipeline Equity Ownership Pipeline Mileage
Explorer Pipeline Company (1) 9.4% 1,850
Yellowstone Pipe Line Company (2) 14.0% 700
West Shore Pipe Line Company (3) 17.1% 650
Wolverine Pipe Line Company (4) 31.5% 700
(1) The system, which is operated by Explorer employees, originates from the refining centers of Lake Charles, Louisiana and
Beaumont, Port Arthur and Houston, Texas, and extends to Chicago, Illinois, with delivery points in the Houston, Dallas/Fort
Worth, Tulsa, St. Louis, and Chicago areas. Explorer charges market-based rates for all its tariffs.
(2) The system, which is operated by Phillips 66, originates from the Billings, Montana refining center and extends to Moses
Lake, Washington with delivery points along the way. Tariff rates are regulated by the FERC for interstate shipments and the
Montana Public Service Commission for intrastate shipments in Montana.
(3) The system, which is operated by Buckeye Partners, L.P., originates from the Chicago, Illinois refining center and extends to
Madison and Green Bay, Wisconsin with delivery points along the way. West Shore charges market-based tariff rates in the
Chicago area.
(4) The system, which is operated by Wolverine employees, originates from Chicago, Illinois and extends to Detroit, Grand
Haven, and Bay City, Michigan with delivery points along the way. Wolverine charges market-based rates for tariffs at the
Detroit, Jackson, Niles, Hammond, and Lockport destinations.
Sunoco has agreements with Sunoco Logistics which establish fees for administrative services provided by Sunoco to Sunoco
Logistics and provide indemnifications by Sunoco for certain environmental, toxic tort and other liabilities.
Retail Marketing
The retail marketing segment consists of the retail sale of gasoline and middle distillates and the operation of convenience stores
in 25 states, primarily on the east coast and in the midwest region of the United States. The highest concentrations of outlets are
located in Connecticut, Florida, Maryland, Massachusetts, Michigan, New Jersey, New York, Ohio, Pennsylvania and Virginia.
Retail marketing has a portfolio of outlets that differ in various ways including: product distribution to the outlets; site ownership
and operation; and types of products and services provided.
Direct outlets may be operated by Sunoco or by an independent dealer, and are sites at which fuel products are delivered directly
to the site by Sunoco trucks or by contract carriers. Sunoco or an independent dealer owns or leases the property. These sites
may be traditional locations that sell fuel products under the Sunoco® and Coastal® brands or may include APlus® convenience
stores or Ultra Service Centers® that provide automotive diagnostics and repair. Included among the direct outlets at December 31,
2012 were 73 outlets on turnpikes and expressways in Pennsylvania, New Jersey, New York, Maryland, Ohio and Delaware. Of
these outlets, 57 were Sunoco-operated sites providing gasoline, diesel fuel and convenience store merchandise.
Distributor outlets are sites in which the distributor takes delivery of fuel products at a terminal where branded products are
available. Sunoco does not own, lease or operate these locations.
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