Sunoco 2015 Annual Report Download - page 81

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• Marcus Hook Industrial Complex Storage and Terminalling Services: In connection with the 2013 acquisition of
the Marcus Hook Industrial Complex, the Partnership assumed an agreement to provide butane storage and
terminal services to PES at the facility. The 10 year agreement extends through September 2022.
• Refined Products Storage Agreements: The Partnership has agreements with an affiliated entity to utilize storage
services at the Mont Belvieu, Texas and Hattiesburg, Mississippi terminal locations. The agreements run through
November 2018.
• Purchase and Sale Agreements: The Partnership has agreements for the purchase and sale of crude oil, NGLs and
refined products with affiliated entities. These agreements are negotiated at market-based rates, do not extend
beyond 2016, and can be terminated by either party in certain cases.
• Terminalling Services: The Partnership has agreements with affiliates for the use of its terminal assets, as well as
its use of an affiliated terminal asset to facilitate the Partnership's acquisition and marketing activities. The
agreements are based on market terms and negotiated based on the respective term. These agreements vary in
duration and can be terminated by either party in certain cases.
• Petroleum Products Supply Agreements: The Partnership has agreements to supply crude oil and condensate
products to affiliated parties from their Texas terminalling facilities. The agreement is based on market terms and
can be terminated by either party on a monthly basis.
• Pipeline Agreements: The Partnership has agreements with affiliated parties to utilize its pipelines to supply their
business needs. All pipeline movements are on the same terms that would be available to unaffiliated customers
under similar terms and are based on published tariff rates on the respective pipeline.
Advances to/from Affiliate
The Partnership previously participated in Sunoco's centralized cash management program pursuant to a treasury services
agreement. Under the program, the Partnership's cash receipts and cash disbursements were processed, together with those of
Sunoco and its other subsidiaries, through Sunoco's cash accounts with a corresponding credit or charge to an affiliated
account. The Partnership established separate cash accounts in the fourth quarter 2013, and ceased participation in Sunoco's
cash management program in 2014.
Administrative Services
The Partnership has no employees. The operations of the Partnership are carried out by employees of the general partner.
The Partnership reimburses the general partner and its affiliates for certain costs and other direct expenses incurred on the
Partnership's behalf. These costs may be increased if the acquisition or construction of new assets or businesses requires an
increase in the level of services received by the Partnership. Additional general and administrative costs incurred are paid
directly by the Partnership.
Under the Omnibus Agreement, the Partnership pays ETP an annual administrative fee that includes expenses incurred by
ETP and its affiliates to perform certain centralized corporate functions, such as legal, accounting, engineering, information
technology, insurance, office space rental, and other corporate services, including the administration of employee benefit plans.
The costs may be increased if the acquisition or construction of new assets or businesses requires an increase in the level of
general and administrative services received by the Partnership. These fees do not include the costs of shared insurance
programs (which are allocated to the Partnership based upon its share of the cash premiums incurred), the salaries of pipeline
and terminal personnel or other employees of the general partner, or the cost of their employee benefits. The amounts incurred
in connection with the centralized corporate functions and shared insurance costs were not material to the Partnership's results
of operations during the three year period ended December 31, 2015.
The Partnership participates in various employee benefit plans with ETP and its affiliates, including employee and retiree
medical, dental and life insurance plans, defined contribution 401(k) plans, incentive compensation plans and other such
benefits. The total expense of benefit plan participation was $54, $45, and $36 million for the years ended December 31, 2015,
2014 and 2013, respectively. These expenses are reflected in operating expenses and selling, general and administrative
expenses in the consolidated statements of comprehensive income.
Affiliated Revenues and Accounts Receivable, Affiliated Companies
The Partnership is party to various agreements with ETP and its affiliates to supply crude oil and refined products, as well
as to provide pipeline and terminalling services. Affiliated revenues in the consolidated statements of comprehensive income
consist of revenues from ETP and its affiliated entities related to sales of crude oil and refined products, and services, including
pipeline transportation, terminalling, storage and blending.