Energy Transfer 2015 Annual Report Download - page 129

Table of Contents
in the oil and gas industry. In addition, as a public company director at various other companies, Mr. Collins has been involved in succession planning,
compensation, employee management and the evaluation of acquisition properties.
Michael K. Grimm. Mr. Grimm is one of the original founders of Rising Star Energy, L.L.C., a privately held upstream exploration and production company
active in onshore continental United States, and served as its President and Chief Executive Officer from 1995 until 2006 when it was sold. Currently,
Mr. Grimm is President of Rising Star Energy Development Company, Rising Star Petroleum, LLC and is Chairman of the Board of RSP Permian (NYSE:
RSPP), which is active in the drilling and developing of West Texas Permian Basin oil reserves. Prior to the formation of the first Rising Star companies,
Mr. Grimm was Vice President of Worldwide Exploration and Land for Placid Oil Company from 1990 to 1994. Prior to joining Placid Oil Company,
Mr. Grimm was employed by Amoco Production Company for 13 years. Mr. Grimm has been an active member of the Independent Petroleum Association of
America, the American Association of Professional Landmen, Dallas Producers Club, Dallas Wildcat Committee, and Fort Worth Wildcatters. Mr. Grimm has
served as a director of our General Partner since December 2005 and is Chairman of the Audit Committee and the Compensation Committee. He has a B.B.A.
from the University of Texas at Austin. The Board selected Mr. Grimm to serve as a director because of his extensive experience in the energy industry and
his service as a senior executive at several energy-related companies, in addition to his contacts in the industry gained through his involvement in energy-
related organizations.
James R. (Rick) Perry. Mr. Perry has served as a director of our general partner since February 2015. Prior to joining ETP, Mr. Perry served as Governor of the
State of Texas from 2000 to 2015. Mr. Perry served as Lieutenant Governor of Texas from 1998 to 2000, and as Agriculture Commissioner from 1991 to 1998.
Prior to 1991, Mr. Perry also served in the Texas House of Representatives. The Board selected Mr. Perry to serve as a director because of his vast experience
as an executive in the highest office of state government. In addition, Mr. Perry has been involved in finance and budget planning processes throughout his
career in government as a member of the Texas House Appropriations Committee, the Legislative Budget Board and as Governor.
David K. Skidmore. Mr. Skidmore has served as a director of our General Partner since March 2013. He has been Vice President of Ventex Oil & Gas, Inc.
since 1995 and has been actively involved in exploration and production throughout the Gulf Coast and mid-Continent regions for over 35 years. He
founded Skidmore Exploration, Inc. in 1981 and has been an independent oil and gas producer since that time. From 1977 to 1981, he worked for Paraffine
Oil Corporation and Texas Oil & Gas in Houston. He holds BS degrees in both Geology and Petroleum Engineering, is a Certified Petroleum Geologist and
Registered Professional Engineer, and active member of the AAPG, and SPE. Mr. Skidmore is a member of both the Audit Committee and Compensation
Committee. The Board selected Mr. Skidmore to serve as a director because of his continual involvement in geological, geophysical, legal, engineering and
accounting aspects of an active oil and gas exploration and production company. As an energy professional, active oil and gas producer and successful
business owner, Mr. Skidmore possesses valuable first-hand knowledge of the energy transportation business and market conditions affecting its economics.
Compensation of the General Partner
Our General Partner does not receive any management fee or other compensation in connection with its management of the Partnership and the Operating
Companies. Our General Partner and its affiliates performing services for the Partnership and the Operating Companies are reimbursed at cost for all expenses
incurred on behalf of the Partnership, including the costs of employee compensation allocable to, but not paid directly by, the Partnership, if any, and all
other expenses necessary or appropriate to the conduct of the business of, and allocable to, the Partnership. Our employees are employed by our Operating
Companies, and thus, our General Partner does not incur additional reimbursable costs.
Our General Partner is ultimately controlled by the general partner of ETE, which general partner entity is partially-owned by certain of our current and prior
named executive officers. We pay quarterly distributions to our General Partner in accordance with our Partnership Agreement with respect to its ownership of
a general partner interest and the incentive distribution rights specified in our Partnership Agreement. The amount of each quarterly distribution that we must
pay to our General Partner is based solely on the provisions of our Partnership Agreement, which agreement specifies the amount of cash we distribute to our
General Partner based on the amount of cash that we distribute to our limited partners each quarter. Accordingly, the cash distributions we make to our
General Partner bear no relationship to the level or components of compensation of our General Partner’s executive officers. Our General Partner’s
distribution rights are described in detail in Note 8 to our consolidated financial statements. Our named executive officers also own directly and indirectly
certain of our limited partner interests and, accordingly, receive quarterly distributions. Such per unit distributions equal the per unit distributions made to all
our limited partners and bear no relationship to the level of compensation of the named executive officers.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Exchange Act requires our officers and directors, and persons who own more than 10% of a registered class of our equity securities, to file
reports of beneficial ownership and changes in beneficial ownership with the SEC. Officers,
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