November 2010. There will be a subjective evaluation between the minimum and maximum levels of
performance made by the compensation committee taking into account the amount of distribution growth
and the overall operating and economic environment.
3.
Total Shareholder Return vs. Peer Group.
Maintain a competitive total shareholder return compared to the
following peer group of publicly held midstream natural gas master limited partnerships:
Copano Energy, L.L.C.
MarkWest Energy Partners, L.P.
Crestwood Midstream Partners LP
ONEOK Partners, L.P.
Duncan Energy Partners L.P.
Penn Virginia Resource Partners, L.P.
Enbridge Energy Partners, L.P.
Regency Energy Partners LP
Enterprise Products Partners L.P.
Targa Resources Partners LP
Inergy, L.P.
Western Gas Partners, LP
Williams Partners, L.P.
Final results will be based upon these companies average stock exchange closing prices for the last 20
trading days of 2011 compared to the last 20 trading days of 2010. We believe that using total shareholder
return as a performance measure provides incentive for the continued growth of our operating footprint
and distributions to unitholders. For this Partnership objective, if our TSR ranking among the companies
listed in our peer group is below the 25
th
percentile, 0% — 50% of the STI will be awarded. If the TSR
ranking among the companies listed in our peer group is greater than the 25
th
percentile but less than or
equal to the 50
th
percentile, 50% — 100% of the STI will be awarded. If the TSR ranking among the
companies listed in our peer group is greater than the 50
th
percentile but less than or equal to the 75
th
percentile, 100% — 175% of the STI will be awarded. If the TSR ranking among the companies listed in
our peer group is greater than the 75
th
percentile, 175% — 200% of the STI will be awarded. Total
shareholder return will be based on data obtained from Bloomberg and assumes that any dividends or
distributions are reinvested.
4.
Recordable Injury Rate (RIR).
A safety objective covering both our assets and the assets of DCP
Midstream, LLC, the owner of our general partner and the operator of our assets. For this objective,
the target level of performance during the year will be an RIR of 0.59, the maximum level of
performance will be an RIR of 0.30 and a minimum level of performance will be an RIR of 0.90.
5.
Title V Environmental Deviations.
An environmental objective of non-routine air emissions, natural
gas vented or flared, covering both our assets and the assets of DCP Midstream, LLC, the owner of
our general partner and operator of our assets. For this objective, we have established certain levels of
emissions at the assets of DCP Midstream, LLC and the Partnership that comprise the minimum,
target and maximum level of performance for this objective.
The payout on these Partnership objectives ranged from 0% if the minimum level of performance is not
achieved, 50% if the minimum level of performance is achieved, 100% if the target level of performance is
achieved and 200% if the maximum level of performance is achieved. When the performance level falls
between these percentages, payout will be determined by straight-line interpolation.
The level of performance achieved in 2011 for each of the Partnership objectives was as follows:
STI Partnership Objectives
Level of
Performance Achieved
1) Distributable Cash Flow per Unit . . . . . . . . . . . . Between Target and Maximum
2) Distribution Growth . . . . . . . . . . . . . . . . . . . . . . Between Target and Maximum
3) Total Shareholder Return vs. Peers . . . . . . . . . . Between Target and Maximum
4) Recordable Injury Rate (RIR) . . . . . . . . . . . . . . Between Minimum and Target
5) Title V Environmental Deviations . . . . . . . . . . . Between Target and Maximum
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