C001683 2021-01-01 2021-09-30 C001683 2021-09-30 C001683 2020-01-01 2020-09-30 C001683 2020-09-30 C001683 2021-06-30 C001683 2021-07-01 2021-09-30 C001683 2020-07-01 2020-09-30 C001683 2020-12-31 C001683 2021-07-01 2021-07-31 C001683 2021-08-01 2021-08-31 C001683 2021-09-01 2021-09-30 C001683 2019-12-31 C001683 ScheduleSummaryOfUtilityPlantAndAccumulatedProvisionsForDepreciationAmortizationAndDepletionAbstract 2021-01-01 2021-09-30 C001683 ScheduleMonthlyQuantityRevenueDataByRateScheduleAbstract 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:IntangiblePlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:ProductionPlantManufacturedGasMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:ProductionAndGatheringPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:ProductsExtractionPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:UndergroundGasStoragePlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:OtherStoragePlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:BaseLoadLngTerminalingAndProcessingPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:ProcessingPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:TransmissionPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:DistributionPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:GeneralPlantMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember ferc:CommonPlantGasMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember 2021-01-01 2021-09-30 C001683 ferc:GasUtilityMember 2020-01-01 2020-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2020-01-01 2020-09-30 C001683 2 2021-01-01 2021-09-30 C001683 2 2020-01-01 2020-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2020-01-01 2020-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2020-01-01 2020-09-30 C001683 2 2021-01-01 2021-09-30 C001683 2 2020-01-01 2020-09-30 C001683 3 2021-01-01 2021-09-30 C001683 4 2021-01-01 2021-09-30 C001683 4 2020-01-01 2020-09-30 C001683 5 2021-01-01 2021-09-30 C001683 5 2020-01-01 2020-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2020-01-01 2020-09-30 C001683 ScheduleOtherRegulatoryAssetsAbstract 2021-01-01 2021-09-30 C001683 ScheduleGasProductionAndOtherGasSupplyExpensesAbstract 2021-01-01 2021-09-30 C001683 ferc:NegotiatedRateMember 2021-07-01 2021-07-31 C001683 ferc:DiscountedRateMember 2021-07-01 2021-07-31 C001683 ferc:RecourseRateMember 2021-07-01 2021-07-31 C001683 48 2021-07-01 2021-07-31 C001683 ferc:NegotiatedRateMember 2021-08-01 2021-08-31 C001683 ferc:DiscountedRateMember 2021-08-01 2021-08-31 C001683 ferc:RecourseRateMember 2021-08-01 2021-08-31 C001683 48 2021-08-01 2021-08-31 C001683 ferc:NegotiatedRateMember 2021-09-01 2021-09-30 C001683 ferc:DiscountedRateMember 2021-09-01 2021-09-30 C001683 ferc:RecourseRateMember 2021-09-01 2021-09-30 C001683 48 2021-09-01 2021-09-30 C001683 Stagecoach PL & Storage Co LLC 2021-01-01 2021-09-30 C001683 Stagecoach PL & Storage Co LLC 2021-07-01 2021-09-30 C001683 1 2021-01-01 2021-09-30 C001683 1 2021-06-30 C001683 1 2021-07-01 2021-09-30 C001683 1 2021-09-30 C001683 2 2021-01-01 2021-09-30 xbrli:pure iso4217:USD ferc:dth 544474699 244338856 544474699 244338856 0 0 0 0 0 0 0 0 15513700 15513700 0 0 0 15513700 0 0 0 15513700 Stagecoach PL & Storage Co LLC 462562077 163063897 29678786 10267632 35432618 12972480 1185866 416851 528859347 186720860 477518 333800 476363365 168231480 54315231 18305629 177304 0 763110 251004 532096528 187121913 532096528 187121913 NonMajor N/A NonMajor N/A 0 118503 0 118503 0 328846 0 328846 0 22855 0 22855 0 63423 0 63423 0 141358 0 141358 0 392269 0 392269 0 63000 0 63000 0 174826 0 174826 0 22855 0 22855 0 63423 0 63423 0 85855 0 85855 0 238249 0 238249 0 55503 0 55503 0 154020 0 154020 0 55503 0 55503 0 154020 0 154020 0 55503 0 55503 0 154020 0 154020 0 55503 0 55503 0 154020 0 154020 Gas due from shippers 0 120458 0 120458 0 494119 0 494119 0 23661 0 23661 0 97057 0 97057 0 144119 0 144119 0 591176 0 591176 0 65200 0 65200 0 267451 0 267451 0 23661 0 23661 0 97057 0 97057 0 88861 0 88861 0 364508 0 364508 0 55258 0 55258 0 226668 0 226668 0 55258 0 55258 0 226668 0 226668 0 55258 0 55258 0 226668 0 226668 0 55258 0 55258 0 226668 0 226668 Gas due from shippers 0 119157 0 119157 0 419433 0 419433 0 12217 0 12217 0 43004 0 43004 0 131374 0 131374 0 462437 0 462437 0 64071 0 64071 0 225529 0 225529 0 12217 0 12217 0 43004 0 43004 0 76288 0 76288 0 268533 0 268533 0 55086 0 55086 0 193904 0 193904 0 55086 0 55086 0 193904 0 193904 0 55086 0 55086 0 193904 0 193904 0 55086 0 55086 0 193904 0 193904 Gas due from shippers 1558733 477518 1558733 477518 66775572 476363365 68334305 68334305 Deferred Income Tax Rate Adjustment (amortized through May 2036) 117088 411.1 1963 115125 117088 1963 115125 1 2 544474699 544474699 207010 129874 544681709 544604573 244338856 228825156 300342853 315779417 0 0 0 0 0 0 300342853 315779417 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 8758103 6985583 0 0 0 0 0 0 47823 484196 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 3940071 2197687 0 0 0 0 0 0 0 0 0 0 0 0 0 0 12745997 9667466 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 268027 0 0 0 0 0 0 0 0 0 0 0 268027 0 313356877 325446883 0 0 0 0 0 0 0 0 0 0 308919414 322281408 0 0 0 0 0 0 0 0 0 0 0 0 308919414 322281408 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 462944 231334 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 944159 773279 0 0 0 0 0 0 1407103 1004613 0 0 0 0 0 0 0 0 121012 0 0 0 0 2915235 2039850 0 0 3030360 2160862 313356877 325446883 64980404 24100860 21542011 68334305 64980404 12572860 12079805 2712505 3787312 12572860 12079805 429220 1402829 -549561 401203 429220 1402829 15513700 15524560 5166758 5173137 15513700 15524560 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 4426135 3756789 1648917 1352685 4426135 3756789 4344300 3060058 2431380 1029189 4344300 3060058 1611700 690699 1179927 232303 1611700 690699 875385 397902 610018 132855 875385 397902 5887 0 5887 0 5887 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 39767413 36912642 13194057 12108684 39767413 36912642 28566892 28067762 10906803 9433327 28566892 28067762 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 87 0 87 0 0 0 0 0 87 0 87 0 28566805 28067762 10906716 9433327 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 28566805 28067762 10906716 9433327 0 0 0 28067762 0 0 0 28566805 0 0 0 0 0 Distribution of Earnings to Member 211 -28566805 -28067762 Balance Transferred from Income (Acct 433 less Acct 418.1) 28566805 28067762 1 2 Amortization of regulatory liability 0 -5888 0 -5888 1 Distributions to Member 47884799 53593755 47884799 53593755 1 0 0 0 0 0 0 0 0 0 39797 0 149443 519306 0 4763319 99209 18419 1877833 163021 106770 7737117 0 0 34726 302403 3315 0 88776 429220 8166337 0 0 0 8166337 0 0 2907634 94303 0 401552 63463 532451 258917 418311 85181 73931 4835743 4835743 15513700 15524560 869498 397902 0 0 1336147 -692090 0 -178604 0 0 402490 3264679 0 0 0 0 0 0 0 0 3945589 5465464 47961935 53585173 77136 -8581 0 0 0 0 0 0 0 0 0 0 77136 -8581 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -77136 8581 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 -47884799 -53593755 0 -1 0 0 0 0 Change in prepayments -1742384 -1646189 Change in miscellaneous deferred debits -268027 0 Allocation of corporate overhead 0 3360896 Current income taxes 5956000 3750757 1 2 3 4 <div><p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">1. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">2. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">3. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">4. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">5. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">6. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">7. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">8. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">9. See page 122.1, Notes to Financial Statements, Note 4 "Litigation and Environmental."</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">10. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">11. None.</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">12. Changes made during the nine months ended September 30, 2021:</font></font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Appointments:</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Meli Armstrong - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Debbie Cone - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">David Dewey - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Adam Forman - Vice President and Secretary</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Christopher Graeter - Vice President and Treasurer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Kevin Grahmann - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Daniel G. Gredvig - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Kenneth Grubb - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Mark Huse - Vice President and Chief Information Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Catherine James - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Anders Johnson - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Denise Mathews - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">David Michels - Vice President and Chief Financial Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Jordan Mintz - Vice President and Chief Tax Officer</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">William E. Morgan - Vice President, Operational Controller</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Gene Nowak - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Ernesto Ochoa - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Rob Perkins - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">C. Todd Piczak - Vice President and Chief Compliance Officer</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Michael Pitta - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Christa Robbins - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Dayton Robertson - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Greg Ruben - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Corey Staab - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Jorge Torres - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Kimberly S. Watson - President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Matthew Wojtalewicz - Vice President and Controller</font></p> <p style="padding-left: 30px;"><font style="font-size: 34.6667px; font-family: arial, helvetica, sans-serif;">Bill Wolf - Vice President</font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Resignations:</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">Peter Carnavos - Vice President</font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Steven M. Dougherty - Vice President and Treasurer</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;"><font style="font-size: 34.6667px;">Vanessa Franklin - Assistant Corporate Secretary</font></font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Benjamin Hansen - Vice President</font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;"><font style="font-size: 34.6667px;">Mark T. Mitchell - Senior Vice President</font></font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;"><font style="font-size: 34.6667px;">William H. Moore - President</font></font></font></p> <p style="padding-left: 30px;"><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">Michael K. Post - Vice President and Corporate Secretary</font></font></p> <p style="padding-left: 30px;"></p> <p style="text-align: justify;"><font style="font-family: arial, helvetica, sans-serif; font-size: 34.6667px;">On July 8, 2021, Kinder Morgan Inc. acquired Stagecoach Pipeline &amp; Storage Company, LLC and certain other assets from Stagecoach Gas Services LLC, a joint venture equally owned by a wholly-owned subsidiary of Crestwood Midstream Partners, LP and a wholly-owned subsidiary of Consolidated Edison, Inc. See Page 122.1, Notes to Financial Statements, Note 1 "General" for additional information.</font></p> <p><font style="font-family: arial, helvetica, sans-serif;"><font style="font-size: 34.6667px;">13. N/A.</font></font></p></div> William E. Morgan Vice President, Operational Controller /s/ William E. Morgan 2021-12-06 2/3-Q Stagecoach Pipeline & Storage Company LLC C001683 2021 Q3 1001 Louisiana Street, Suite 1000, Houston, TX 77002 James M. Brossett Director, Financial Reporting 2 North Nevada Avenue, Colorado Springs, CO 80903 719-520-4721 O 2021-09-30 <div><p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold';">1. General </font></strong></p> <p class="MsoNormal" style="margin-bottom: .0001pt; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><em style="mso-bidi-font-style: normal;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold'; mso-bidi-font-weight: bold;">Organization</font></em></p> <p class="MsoNormal" style="text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none; margin: 0in 0in .0001pt .25in;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">Stagecoach Pipeline &amp; Storage Company, LLC is a New York limited liability company formed in 2001. When we refer to "us", "we", "our", "the Company", or "Stagecoach Pipeline" we are describing Stagecoach Pipeline &amp; Storage Company, LLC. Stagecoach Pipeline is an indirect wholly-owned subsidiary of Kinder Morgan, Inc. (KMI) which, on July 8, 2021, acquired Stagecoach Pipeline and certain other assets from Stagecoach Gas Services LLC (Stagecoach Gas), a joint venture equally owned by a wholly-owned subsidiary of Crestwood Midstream Partners, LP (Crestwood Midstream) and a wholly-owned subsidiary of Consolidated Edison, Inc. (Consolidated Edison).</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><em style="mso-bidi-font-style: normal;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold'; mso-bidi-font-weight: bold;">Description of Operations</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">Stagecoach Pipeline owns natural gas storage and natural gas transportation facilities that are regulated by the Federal Energy Regulatory Commission (FERC). The natural gas storage and transportation facilities owned by Stagecoach Pipeline are subject to regulation by the FERC with respect to, among other items, rates, services, and accounting practices.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">For purposes of this report, references to Respondent mean Stagecoach Pipeline solely in its capacity as the owner and operator of the North-South and Marc I Projects (described below). The financial statements and results of operations reported herein for the Respondent relate exclusively to the North-South and Marc I Projects. References to Stagecoach Pipeline mean Stagecoach Pipeline in its capacity as a legal entity, thus capturing all of the company's assets and operations (including the North-South and Marc I Projects). Except as specifically noted, the financial statements and results of operations reported herein are not (and do not) reflect the consolidated financial statements and results of operations for Stagecoach Pipeline as a going concern. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">Stagecoach Pipeline owns the Stagecoach natural gas storage facility, which was originally placed into service in 2001 and subsequently expanded, and provides storage services to customers under market-based rate authority granted by the FERC. In 2007, Stagecoach Pipeline purchased from Tennessee Gas Pipeline Company (TGP) the Stagecoach South Lateral, an approximate 21-mile 30" pipeline that connects the Stagecoach Central Compressor Station in Tioga County, New York to TGP's 300 Line in Bradford County, Pennsylvania. In 2008, Stagecoach Pipeline constructed the Stagecoach North Lateral, an approximate 10-mile 20" pipeline that connects the Stagecoach Central Compressor Station to the Millennium Pipeline in Tioga County, New York. These storage laterals were originally purchased or constructed as storage laterals to provide Stagecoach storage customers access to the TGP and Millennium interstate pipelines. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The North-South Project consists of certain facilities used to provide firm wheeling services to shippers. The facilities include two compressor stations and related piping additions / modifications (known as the NS-1 and NS-2 Compressor Stations located in Tioga County, New York and Bradford County, Pennsylvania, respectively) that were installed and placed into service in 2011. The North-South facilities also include the Stagecoach Central Compressor Station and the North and South Laterals. Thus, the North-South facilities include pre-existing facilities (i.e., the Stagecoach Central Compressor Station and its North and South Laterals) and the NS-1 and NS-2 Compressor Stations and appurtenant facilities.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The Respondent offers firm wheeling services through its North and South Laterals to/from TGP's 300 Line and the Millennium Pipeline and various points in between. Firm Wheeling shippers are able to wheel gas on a firm basis up to their Maximum Daily Firm Wheeling Quantity between primary contracted receipt and delivery points on the North and/or South Laterals and the Respondent derives revenues from the natural gas transportation services provided to its customers using the North-South Project facilities. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">On December 1, 2012 the Marc I Project facilities were placed into service. The Marc I Project facilities consist of a 39-mile, 30-inch interstate natural gas pipeline that extends from the Respondent's Stagecoach South Lateral interconnect with TGP's 300 Line and Transcontinental Gas Pipeline Corporation's (Transco) Leidy Line and traverses portions of Bradford, Sullivan, and Lycoming counties in Pennsylvania. The Marc I Project facilities also include two compressor stations known as the M1-N and M1-S Compressor Stations, which are located in Bradford and Sullivan counties in Pennsylvania, respectively. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">Stagecoach Pipeline provides natural gas storage services at market-based rates, and the Respondent provides firm wheeling services and firm transport services at negotiated rates (subject to cost-of-service recourse rates). See the basis of presentation below for important notes regarding the presentation of the financial statements. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><strong style="mso-bidi-font-weight: normal;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">2. </font></strong><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold';">Basis of Presentation</font></strong></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The Respondent's financial statements are prepared in accordance with the accounting requirements of the FERC as set forth in its Uniform System of Accounts and published accounting releases, which is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America. In management's opinion, these financial statements reflect normal and recurring adjustments that are necessary for a fair presentation of the Respondent's financial results for the interim periods presented, and adequate disclosures have been made to make the information presented not misleading. These interim financial statements should be read along with the financial statements and related notes included in our 2020 Annual Report of Non-Major Natural Gas Companies on Form No. 2-A. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">Management has evaluated subsequent events through December 6, 2021, the date the financial statements were available to be issued.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The Respondent's financial statements are inclusive of a portion of Stagecoach Pipeline's financial results and represent the results exclusively of the North-South and Marc I Projects. As such, these financial statements are reflective only of a portion of the financial results of Stagecoach Pipeline as a legal entity. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">As indicated above, Stagecoach Pipeline's facilities are used to provide wheeling services, transport services, and storage related services. The property, plant, and equipment presented in the Respondent's financial statements is unique to the Stagecoach Pipeline assets that provide and/or support wheeling services and lateral services for certain market-based contracts (i.e., the Stagecoach Central Compressor Station, the North and South Laterals, NS-1, and NS-2 Compressor Stations and appurtenant facilities) and transport services (i.e., the Marc I Pipeline and the M1-N and M1-S Compressor Stations and appurtenant facilities).</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The Respondent has included the cost of service-based revenues (firm wheeling services, firm transportation services and interruptible transportation services) related to the North-South and Marc I Projects only; storage related revenues are not included in the results of operations in these financial statements. Expenses are directly assigned to the cost-based transportation services whenever possible and expenses that are specifically unique to providing market-based storage services have been excluded for the periods presented. Where direct assignment of costs is not possible, costs are allocated to the Marc I facilities and the North-South Lateral facilities based on gross plant balances for each. The North-South Lateral allocation is further broken down between cost-based and market-based activities on the laterals based on the percentage of contract demand for cost-based services relative to total contract demand on the laterals. The expenses allocated to market-based activities and services as described above are excluded for the periods presented. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><em style="mso-bidi-font-style: normal;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold'; mso-bidi-font-weight: bold;">Statements of Cash Flows</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">During 2020, we reflected a corporate cost allocation (described below in "Related Party Transactions"), as a part of "Distributions to Member" in financing cash flows on our statement of cash flows. During 2021, the corporate cost allocation is reflected as operating cash flows on our statement of cash flows.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><em style="mso-bidi-font-style: normal;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold'; mso-bidi-font-weight: bold;">Income Taxes</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">As an unincorporated entity, federal and state income taxes are not payable or provided for by the Respondent. However, prior to July 8, 2021, in accordance with FERC policy regarding income tax allowances for rate purposes, the accompanying financial statements include an allowance for income taxes based on the weighted average composite tax rate of Consolidated Edison (the parent company of Con Edison Gas Pipeline and Storage Northeast LLC, which owned a 50% interest in the joint venture parent of the Respondent). The composite tax rates of the unit holders of Crestwood Equity Partners (the parent company of Crestwood Midstream, which owned the other 50% interest in the joint venture parent of the Respondent) were not included in the calculation of income taxes in accordance with the FERC's revised policy on income taxes that disallows entities organized as Master Limited Partnerships to recover an income tax allowance in their cost of service rates. The weighted average composite tax rate used to calculate income taxes was 13% for the period January 1, 2021 to July 8, 2021 and for the nine months ending September 30, 2020. The difference between the 13% composite tax rate and the federal statutory rate of 21% was due to the weighting discussed above and state taxes, net of federal benefit. KMI is a taxable C-corporation; therefore, effective with the July 8, 2021 acquisition of Stagecoach Pipeline by KMI, the allowance for income taxes is calculated on Respondent's total reported operations as if it was a taxable corporation. The allowance for current income taxes for the three and nine months ended September 30, 2021 and 2020 is reflected in accounts 409.1, Income Taxes - Federal and Income Taxes - Other, and is settled as a part of distributions to Member.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The Respondent accounts for income taxes in accordance with ASC 740, whereby deferred taxes are provided on temporary differences arising from assets and liabilities whose bases are different for financial reporting and income tax purposes. Our deferred taxes are solely attributable to differences in book and tax plant depreciation and are recorded in the comparative balance sheet in account 282, Accumulated Deferred Income Taxes - Other Property. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: 'TimesNewRoman\,Bold';">3. Related Party Transactions</font></strong></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">Pursuant to a management agreement in effect prior to July 8, 2021 between Crestwood Midstream Operations LLC, a wholly owned subsidiary of Crestwood Midstream, and Stagecoach Gas, Crestwood Midstream provided managerial, administrative and financial operations, and technical support services for the Respondent. Included in the statement of income is an allocation of corporate costs involved with providing these services. The corporate allocation was calculated using an average of three ratios based on the Respondent's amounts as a percentage of the corporate totals for (1) EBITDA, (2) gross property, plant and equipment, and (3) head count. Subsequent to the July 8, 2021 acquisition, we are managed and operated by KMI, who provides services to us. Under KMI policies, we reimburse KMI at cost for direct and indirect costs incurred on our behalf and allocated general and administrative costs. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">The total corporate allocation for the three months and nine months ended September 30, 2021 amounted to $3.6M and $6.0 million, respectively. The total corporate allocation for the three months and nine months ended September 30, 2020 amounted to $1.1 million and $3.4 million, respectively. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; text-indent: .5in; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-fareast-font-family: TimesNewRoman;">We have transportation agreements with Consolidated Edison which, prior to July 8, 2021 was an affiliate of Stagecoach Pipeline. These agreements extend through March 2028. The agreements provide for daily transportation rights of approximately 0.1 billion cubic feet. We recognized affiliate revenues of $1.5 million and $3.0 million under these agreements for the three and nine months ended September 30, 2021. We recognized revenues of $1.5 million and $4.6 million under these agreements for the three and nine months ended September 30, 2020.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Affiliate Balances and Activities</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">The following table summarizes our other balance sheet affiliate balances (in millions):</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <div align="center"> <table class="MsoNormalTable" style="border-collapse: collapse; border: none; mso-border-alt: solid windowtext .5pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-border-insideh: .5pt solid windowtext; mso-border-insidev: .5pt solid windowtext;" border="1" cellspacing="0" cellpadding="0"> <tr style="mso-yfti-irow: 0; mso-yfti-firstrow: yes; height: 30.0pt;"> <td style="border-width: 1pt 1pt 4.5pt; border-style: solid; border-color: windowtext; border-image: initial; padding: 0in 5.4pt; height: 30pt; width: 138.641px;" rowspan="2"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Account</font></strong></p> </td> <td style="width: 758px; border-top: 1pt solid windowtext; border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-image: initial; border-left: none; padding: 0in 5.4pt; height: 30pt;" rowspan="2" valign="top"> <p class="MsoNormal" style="line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 269.25pt 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in; mso-layout-grid-align: none; text-autospace: none; margin: 0in 3.75pt .0001pt 0in;"></p> </td> <td style="width: 238.375px; border-top: 1pt solid windowtext; border-left: none; border-bottom: none; border-right: 1pt solid windowtext; padding: 0in 5.4pt; height: 30pt;" colspan="2" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">September 30, </font></strong></p> </td> <td style="width: 230.375px; border-top: 1pt solid windowtext; border-left: none; border-bottom: none; border-right: 1pt solid windowtext; padding: 0in 5.4pt; height: 30pt;" colspan="2" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">December 31, </font></strong></p> </td> </tr> <tr style="mso-yfti-irow: 1; height: 30.0pt;"> <td style="width: 238.375px; border-top: none; border-left: none; border-bottom: 4.5pt solid windowtext; border-right: 1pt solid windowtext; padding: 0in 5.4pt; height: 30pt;" colspan="2" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">2021</font></strong></p> </td> <td style="width: 230.375px; border-top: none; border-left: none; border-bottom: 4.5pt solid windowtext; border-right: 1pt solid windowtext; padding: 0in 5.4pt; height: 30pt;" colspan="2" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">2020</font></strong></p> </td> </tr> <tr> <td style="border-right: 1pt solid windowtext; border-bottom: 1pt solid windowtext; border-left: 1pt solid windowtext; border-image: initial; border-top: none; padding: 0in 5.4pt; width: 138.641px;" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: center; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="center"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">146</font></p> </td> <td style="border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0in 5.4pt; width: 758px;" valign="bottom"> <p class="MsoNormal" style="line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 269.25pt 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in; mso-layout-grid-align: none; text-autospace: none; margin: 0in 3.75pt .0001pt 0in;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Accounts receivable from associated companies</font></p> </td> <td style="border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid windowtext; padding: 0in 5.4pt; width: 46px;" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">$</font></p> </td> <td style="width: 178px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0in 5.4pt;" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">-</font></p> </td> <td style="width: 49px; border-top: none; border-right: none; border-left: none; border-image: initial; border-bottom: 1pt solid windowtext; padding: 0in 5.4pt;" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">$</font></p> </td> <td style="width: 167px; border-top: none; border-left: none; border-bottom: 1pt solid windowtext; border-right: 1pt solid windowtext; padding: 0in 5.4pt;" valign="bottom"> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: right; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;" align="right"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">0.5</font></p> </td> </tr> </table> </div> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Other Affiliate Agreement</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif; mso-bidi-font-style: italic;">KMI and substantially all of its wholly owned domestic subsidiaries, including us, are a party to a cross guarantee agreement whereby each party to the agreement unconditionally guarantees, jointly and severally, the payment of specified indebtedness of each other party to the agreement.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><strong><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">4. Litigation and Environmental</font></strong></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Legal Matters</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">We are party to various legal, regulatory and other matters arising from the day-to-day operations of our business that may result in claims against the Company. Although no assurance can be given, we believe, based on our experiences to date and taking into account established reserves, that the ultimate resolution of such items will not have a material adverse impact on our business. We believe we have meritorious defenses to the matters to which we are a party and intend to vigorously defend the Company. When we determine a loss is probable of occurring and is reasonably estimable, we accrue an undiscounted liability for such contingencies based on our best estimate using information available at that time. If the estimated loss is a range of potential outcomes and there is no better estimate within the range, we accrue the amount at the low end of the range. We disclose contingencies where an adverse outcome may be material, or in the judgment of management, we conclude the matter should otherwise be disclosed.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">We had no accruals for any outstanding legal proceedings as of September 30, 2021 and December 31, 2020.</font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><em><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Environmental Matters</font></em></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">We are subject to environmental cleanup and enforcement actions from time to time. In particular, the Comprehensive Environmental Response, Compensation and Liability Act generally imposes joint and several liability for cleanup and enforcement costs on current and predecessor owners and operators of a site, among others, without regard to fault or the legality of the original conduct, subject to the right of a liable party to establish a "reasonable basis" for apportionment of costs. Our operations are also subject to federal, state and local laws and regulations relating to protection of the environment. Although we believe our operations are in substantial compliance with applicable environmental laws and regulations, risks of additional costs and liabilities are inherent in our operations, and there can be no assurance that we will not incur significant costs and liabilities. Moreover, it is possible that other developments could result in substantial costs and liabilities to us, such as increasingly stringent environmental laws, regulations and enforcement policies under the terms of authority of those laws, and claims for damages to property or persons resulting from our operations. </font></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"></p> <p class="MsoNormal" style="margin-bottom: .0001pt; text-align: justify; line-height: normal; tab-stops: .5in 1.0in 1.5in 2.0in 2.5in 3.0in 3.5in 4.0in 4.5in 5.0in 5.5in 6.0in 6.5in 7.0in; mso-layout-grid-align: none; text-autospace: none;"><font style="font-size: 26.0pt; font-family: 'Arial',sans-serif;">Although it is not possible to predict the ultimate outcomes, we believe that the resolution of the environmental matters, and other matters to which we are a party, will not have a material adverse effect on our business. We had no accruals for any outstanding environmental matters as of September 30, 2021 and December 31, 2020.</font></p></div> Recorded pursuant to Docket No. AI93-5-000 issued April 23, 1993 (Accounting for Income Taxes).