DCP SOUTHEAST TEXAS HOLDINGS, GP
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Years Ended December 31, 2011, 2010 and 2009
We had balances with related parties and affiliates as follows:
December 31,
2011
2010
(Millions)
DCP Midstream:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $33.8 $38.6
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (0.8) $ —
Unrealized losses on derivative instruments — long-term . . . . . . . . . . . . . . . . . . . $ (2.6) $ —
ConocoPhillips:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.7 $ 6.3
Unrealized gains on derivative instruments — current . . . . . . . . . . . . . . . . . . . . . $ — $ 0.1
Unrealized losses on derivative instruments — current . . . . . . . . . . . . . . . . . . . . . $ — $ (0.3)
Spectra Energy:
Accounts receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 0.1 $ 0.3
5. Property, Plant and Equipment
Property, plant and equipment by classification is as follows:
Depreciable
Life
December 31,
2011
2010
(Millions)
Gathering and transmission systems . . . . . . . . . . . . . . . . . . . 15 — 30 Years $ 180.9 $ 175.8
Processing and storage facilities . . . . . . . . . . . . . . . . . . . . . . 0 — 50 Years 226.2 221.4
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0 — 30 Years
2.7
2.3
Construction work in progress . . . . . . . . . . . . . . . . . . . . . . . .
67.3
24.2
Property, plant and equipment . . . . . . . . . . . . . . . . . . . . . .
477.1 423.7
Accumulated depreciation . . . . . . . . . . . . . . . . . . . . . . . . . . .
(159.5)
(142.2)
Property, plant and equipment, net . . . . . . . . . . . . . . . . . . . .
$ 317.6 $ 281.5
The above amounts include accrued capital expenditures of $1.3 million, $9.5 million and $0.3 million for
the years ended December 31, 2011, 2010 and 2009, respectively. There was no interest capitalized on
construction projects for the years ended December 31, 2011, 2010, and 2009. As of December 31, 2011, we
had $4.2 million of non-cancelable purchase obligations for capital projects.
Depreciation expense was $17.3 million, $13.2 million and $12.0 million for the years ended
December 31, 2011, 2010 and 2009, respectively.
Asset Retirement Obligations
— Asset retirement obligations, included in other long-term liabilities in the
consolidated balance sheets, are $1.0 million and $0.9 million at December 31, 2011 and 2010, respectively.
Accretion expense was $0.1 million for each of the years ended December 31, 2011, 2010 and 2009.
We identified various assets as having an indeterminate life, for which there is no requirement to establish
a fair value for future retirement obligations associated with such assets. These assets include certain pipelines,
gathering systems and processing facilities. A liability for these asset retirement obligations will be recorded
only if and when a future retirement obligation with a determinable life is identified. These assets have an
indeterminate life because they are owned and will operate for an indeterminate future period when properly
maintained. Additionally, if the portion of an owned plant containing asbestos were to be modified or
dismantled, we would be legally required to remove the asbestos. We currently have no plans to take actions
that would require the removal of the asbestos in these assets. Accordingly, the fair value of the asset retirement
obligation related to this asbestos cannot be estimated and no obligation has been recorded.
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