Item 1B.
Unresolved Staff Comments
None.
Item 2.
Properties
As of February 23, 2012, we own and operate processing plants and gathering systems located in
Arkansas, Colorado, Louisiana, Michigan, Oklahoma, Texas and Wyoming, all within our Natural Gas Services
segment, two owned and operated pipelines located in Texas, one owned and operated pipeline located in Texas
and Louisiana, one owned and operated pipeline located in Colorado and Kansas, one owned and operated
underground storage facility located in Michigan and two owned fractionation facilities located in Colorado
within our NGL Logistics segment, six owned propane rail terminals, five of which we operate, located in
Maine, Massachusetts, New York, Pennsylvania and Vermont, one owned and operated marine import terminal
located in Virginia, and one owned and operated propane pipeline terminal located in Pennsylvania within our
Wholesale Propane Logistics Segment. In addition within our Natural Gas Services segment, we own a 40%
interest in Discovery Producer Services, LLC, which owns an offshore gathering pipeline, a natural gas
processing plant and an NGL fractionator plant in Louisiana, operated by a third party; a 33.33% interest in
DCP Southeast Texas Holdings, GP, which owns processing plants, gathering systems and natural gas storage
in Texas, operated by DCP Midstream, LLC; and our East Texas system, which includes a natural gas
processing complex, connected gathering system and pipeline hub in Texas, operated by DCP Midstream, LLC.
For additional details on these plants, storage facilities, propane terminals and pipeline systems, please read
“Business — Natural Gas Services Segment,” “Business — NGL Logistics Segment” and “Business —
Wholesale Propane Logistics Segment.” We believe that our properties are generally in good condition, well
maintained and are suitable and adequate to carry on our business at capacity for the foreseeable future.
Our real property falls into two categories: (1) parcels that we own in fee; and (2) parcels in which our
interest derives from leases, easements, rights-of-way, permits or licenses from landowners or governmental
authorities permitting the use of such land for our operations. Portions of the land on which our plants and other
major facilities are located are owned by us in fee title, and we believe that we have satisfactory title to these
lands. The remainder of the land on which our plant sites and major facilities are located are held by us pursuant
to ground leases between us, as lessee, and the fee owner of the lands, as lessors. We, or our predecessors, have
leased these lands for many years without any material challenge known to us relating to the title to the land
upon which the assets are located, and we believe that we have satisfactory leasehold estates to such lands. We
have no knowledge of any challenge to the underlying fee title of any material lease, easement, right-of-way,
permit or license held by us or to our title to any material lease, easement, right-of-way, permit or lease, and we
believe that we have satisfactory title to all of our material leases, easements, rights-of-way, permits and
licenses.
Our principal executive offices are located at 370 17th Street, Suite 2775, Denver, Colorado 80202, our
telephone number is 303-633-2900 and our website address is
www.dcppartners.com
.
Item 3.
Legal Proceedings
We are not a party to any significant legal proceedings, other than those listed below, but are a party to
various administrative and regulatory proceedings and commercial disputes that have arisen in the ordinary
course of our business. Management currently believes that the ultimate resolution of these matters, taken as a
whole, and after consideration of amounts accrued, insurance coverage or other indemnification arrangements,
will not have a material adverse effect upon our consolidated results of operations, financial position or cash
flows. For more information, please read “Business — Regulation of Operations” and “Business —
Environmental Matters.”
Prospect
— During the fourth quarter of 2011, we received a claim for arbitration (the “Claim”) filed with
the American Arbitration Association by Prospect Street Energy, LLC and Prospect Street Ventures I, LLC
(together, the “Claimants”) against EE Group, LLC (“EE Group”) and a number of other parties that previously
owned, directly or indirectly, our Marysville NGL storage facility (collectively, the “Respondents”). EE Group
is our indirect subsidiary which we acquired in connection with our acquisition of Marysville Hydrocarbons
Holdings, LLC (“MHH”) on December 30, 2010 (the “Acquisition”). The Claim involves actions taken and
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