DCP MIDSTREAM PARTNERS, LP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Years Ended December 31, 2011, 2010 and 2009 — (Continued)
including a description of the measures that have been implemented, and will be implemented at the facility to
ensure compliance with the relevant air permit terms and conditions. In December we received a proposed
penalty assessment for this matter and we believe that we will likely receive a penalty of up to $0.7 million for
this matter. We do not believe the ultimate resolution of this matter will have a material adverse effect on our
consolidated results of operations, financial position or cash flows.
Indemnification
— DCP Midstream, LLC has indemnified us for certain potential environmental claims,
losses and expenses associated with the operation of the assets of certain of our predecessors.
Other Commitments and Contingencies
— We utilize assets under operating leases in several areas of
operation. Consolidated rental expense, including leases with no continuing commitment, totaled $13.1 million,
$12.8 million and $12.1 million for the years ended December 31, 2011, 2010 and 2009, respectively. Rental
expense for leases with escalation clauses is recognized on a straight line basis over the initial lease term.
Minimum rental payments under our various operating leases in the year indicated are as follows at
December 31, 2011:
(Millions)
2012 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $12.5
2013 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
9.3
2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
4.3
2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
2.2
2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.1
Thereafter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1.0
Total minimum rental payments . . . . . . . . . . . . . . . . . . . . $30.4
18. Business Segments
Our operations are located in the United States and are organized into three reporting segments:
(1) Natural Gas Services; (2) NGL Logistics; and (3) Wholesale Propane Logistics.
Natural Gas Services
— Our Natural Gas Services segment provides services that include gathering,
compressing, treating, processing, transporting and storing natural gas. The segment consists of our Northern
Louisiana system, our Southern Oklahoma system, our Wyoming system, our Michigan system, our 33.33%
interest in the Southeast Texas system, our 50.1% interest in the East Texas system, our 75% interest in the
Colorado system, and our 40% limited liability company interest in Discovery.
NGL Logistics
— Our NGL Logistics segment provides services that include transportation, storage and
fractionation of NGLs. The segment consists of the Seabreeze and Wilbreeze intrastate NGL pipelines, the
Wattenberg and Black Lake interstate NGL pipelines, the NGL storage facility in Michigan and the DJ Basin
NGL Fractionators in Colorado.
Wholesale Propane Logistics
— Our Wholesale Propane Logistics segment provides services that include
the receipt of propane by pipeline, rail or ship to our terminals that deliver the product to retail distributors. The
segment consists of six owned rail terminals, one owned marine import terminal, one leased marine terminal,
one pipeline terminal and access to several open-access pipeline terminals.
These segments are monitored separately by management for performance against our internal forecast and
are consistent with internal financial reporting. These segments have been identified based on the differing
products and services, regulatory environment and the expertise required for these operations. Gross margin is a
performance measure utilized by management to monitor the business of each segment.
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