Related Party Transactions | Related Party Transactions Sales and Receivables Sales to related parties include motor fuels and asphalt sold to other Alon Energy subsidiaries at prices substantially determined by reference to market commodity pricing information. These sales are included in net sales in the consolidated statements of operations. Accounts receivable from related parties includes sales of motor fuels and is shown separately on the consolidated balance sheets. Costs Allocated from Alon Energy The Partnership is a subsidiary of Alon Energy and is operated as a component of the integrated operations of Alon Energy. As such, the executive officers of Alon Energy, who are employed by another subsidiary of Alon Energy, also serve as executive officers of the General Partner and Alon Energy’s other subsidiaries. (a) Corporate Overhead Allocations Alon Energy performs general corporate and administrative services and functions for us and their other subsidiaries, which include accounting, treasury, cash management, tax, information technology, insurance administration and claims processing, legal, environmental, risk management, audit, payroll and employee benefit processing and internal audit services. Alon Energy allocates the expenses actually incurred in performing these services to the Partnership based primarily on the estimated amount of time the individuals performing such services devote to our business and affairs relative to the amount of time they devote to the business and affairs of Alon Energy’s other subsidiaries. The management of Alon Energy and the General Partner consider these allocations to be reasonable. We record the amount of such allocations as selling, general and administrative expenses. Our allocation for selling, general and administrative expenses were $4,245 and $3,347 for the three months ended and $7,665 and $5,972 for the six months ended June 30, 2016 and 2015 , respectively. (b) Labor Costs As we are operated as a component of Alon Energy’s integrated operations, we have no employees. As a result, employee expense costs for Alon Energy employees working in our operations have been allocated to us and recorded as payroll expense in direct operating expenses. The allocated portion of Alon Energy’s employee expense costs included in direct operating expenses were $7,070 and $6,692 for the three months ended and $14,332 and $13,024 for the six months ended June 30, 2016 and 2015 , respectively. (c) Insurance Costs Insurance costs related to the Big Spring refinery and wholesale marketing operations are allocated to us by Alon Energy based on estimated insurance premiums on a stand-alone basis relative to Alon Energy’s total insurance premium. Our allocation for insurance costs included in direct operating expenses were $1,512 and $1,777 for the three months ended and $2,372 and $3,321 for the six months ended June 30, 2016 and 2015 , respectively. Leasing Agreements In June 2014, we entered into six -year lease agreements with a subsidiary of Alon Energy to lease equipment at the Big Spring refinery. The lease agreements were effective July 1, 2014 and require fixed monthly payments amounting to $4,920 annually. Related to these agreements, we recorded selling, general and administrative expense of $1,230 for the three months ended June 30, 2016 and 2015 and $2,460 for the six months ended June 30, 2016 and 2015 . Transactions with Delek US Holdings, Inc. In May 2015, Delek US Holdings, Inc. (“Delek”) completed the purchase of approximately 48% of Alon Energy’s outstanding common stock from Alon Israel Oil Company, Ltd. We have transactions with Delek that occur in the ordinary course of business. Including amounts prior to the transaction, we purchased refined products from Delek of $371 and $2,227 for the three months ended June 30, 2016 and 2015 , respectively, and $785 and $2,400 for the six months ended June 30, 2016 and 2015 , respectively. Distributions During the six months ended June 30, 2016 , we paid cash distributions of $5,001 , or $0.08 per unit, of which $4,080 was paid to Alon Energy. During the six months ended June 30, 2015 , we paid cash distributions of $88,134 , or $1.41 per unit, of which $71,910 was paid to Alon Energy. |