K.
UNCONSOLIDATED AFFILIATES
Investments in Unconsolidated Affiliates - The following table sets forth our investments in unconsolidated affiliates for the
periods indicated.
Net Ownership
Interest
Northern Border Pipeline
Bighorn Gas Gathering
Fort Union Gas Gathering
Lost Creek Gathering Company (a)
Other
Investments in unconsolidated affiliates
50%
49%
37%
35%
Various
$
$
December 31,
2007
2006
(Thousands of dollars)
$
437,518
418,982
98,299
97,716
82,220
85,197
74,151
75,612
56,691
78,753
748,879 (b)
756,260 (b) $
(a) - We are entitled to receive an incentive allocation of earnings from third-party gathering services revenue recognized by Lost
Creek Gathering Company. As a result of the incentive, our share of Lost Creek Gathering Company's income exceeds its 35
percent ownership interest.
(b) - Equity method goodwill (Note D) was $185.6 million at December 31, 2007 and 2006.
Equity Earnings from Investments - The following table sets forth our equity earnings from investments for the periods
indicated.
2007
Northern Border Pipeline (a)
Bighorn Gas Gathering
Fort Union Gas Gathering
Lost Creek Gathering Company
Guardian Pipeline (b)
Other
Equity earnings from investments
$
$
62,008
7,416
9,681
4,790
6,013
89,908
Years Ended December 31,
2006
(Thousands of dollars)
$
72,393
$
8,223
9,030
5,363
874
$
95,883
$
2005
9,411
6,747
6,315
2,263
24,736
(a) - Beginning January 1, 2006, our interest in Northern Border Pipeline is accounted for as an investment under the equity
method (Note B). For the first three months of 2006, we included 70 percent of Northern Border Pipeline's income in equity
earnings from investments. After the sale of a 20 percent interest in Northern Border Pipeline in April 2006, we included 50
percent of Northern Border Pipeline's income in equity earnings from investments.
(b) - In April 2006, we acquired the 66-2/3 percent interest in Guardian Pipeline not previously owned by us, increasing our
ownership to 100 percent. Following the completion of the transactions, we consolidated Guardian Pipeline retroactive to
January 1, 2006 (Note B).
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