C010819 2021-01-01 2021-09-30 barrel_miles C010819 ScheduleStatisticsOfOperationsOwnedByRespondentButOperatedByOthersAbstract 2021-01-01 2021-09-30 C010819 2021-09-30 iso4217:USD C010819 2020-12-31 C010819 2021-07-01 2021-09-30 C010819 Other: 2021-01-01 2021-09-30 C010819 Other: 2021-01-01 2021-09-30 C010819 Other: 2021-01-01 2021-09-30 C010819 Other: 2021-01-01 2021-09-30 C010819 APIC 2021-01-01 2021-09-30 xbrli:pure C010819 Other: 2021-01-01 2021-09-30 C010819 Other: 2021-01-01 2021-09-30 C010819 Other: 2021-01-01 2021-09-30 C010819 ferc:OilProductsMember 2021-01-01 2021-09-30 C010819 ferc:OilProductsTrunkMember 2021-01-01 2021-09-30 C010819 Texas, ferc:OilProductsMember 2021-01-01 2021-09-30 C010819 ferc:OilProductsMember Louisiana, 2021-01-01 2021-09-30 C010819 Texas, 2021-01-01 2021-09-30 C010819 Louisiana, 2021-01-01 2021-09-30 utr:bbl 6-Q Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021 Q3 Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021 Q3 811 Lousiana Street, Suite 2100, Houston, Texas 77002 Nick Deimling Property Accounting Manager 811 Lousiana Street, Suite 2100, Houston, Texas 77002 713-584-1967 O 2021-12-09 Julie Boushka Chief Accounting Officer Julie Boushka 2021-12-09 C010819 <div style="margin-top:2pt;padding-right:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Use this space to paste or type in any Important Changes During the Quarter</span></div><div style="margin-top:2pt;padding-right:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">1) N/A</span></div><div style="margin-top:2pt;padding-right:18pt"><span><br/></span></div><div style="margin-top:2pt;padding-right:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">2) N/A</span></div><div style="margin-top:2pt;padding-right:18pt"><span><br/></span></div><div style="margin-top:2pt;padding-right:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">3) N/A</span></div><div style="margin-top:2pt;padding-right:18pt"><span><br/></span></div><div style="margin-top:2pt;padding-right:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">4) N/A</span></div><div style="margin-top:2pt;padding-right:18pt"><span style="color:#000000;font-family:'Arial',sans-serif;font-size:10pt;font-weight:400;line-height:120%">5) N</span></div> Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021-12-09 2021 Q3 Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021-12-09 2021 Q3 <div style="padding-left:13.5pt;text-indent:-13.5pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%;padding-left:5.77pt">Company Business</span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Targa Gulf Coast NGL Pipeline LLC (TGCPL) is a Delaware limited liability company engaged in the business of transporting natural gas liquids (“NGLs”) in interstate commerce subject to the jurisdiction of the Federal Energy Regulatory Commission (“FERC”) under the Interstate Commerce Act (“ICA”).</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Effective October 1, 2020, TGCPL leased one hundred percent of the capacity of certain pipelines from Targa NGL Pipeline Company LLC. TGCPL leases an eight‐inch diameter pipeline, a 20‐inch diameter pipeline, and a 12‐inch diameter pipeline that run between Mont Belvieu, Texas, and Galena Park, Texas. Each of these pipelines is regulated under the ICA and is part of an extensive mixed NGL and purity NGL pipeline receipt and delivery system that provides interstate and intrastate transportation of NGLs. TGCPL also leases a twenty‐inch diameter pipeline that runs between Mont Belvieu, Texas, and Galena Park, Texas and a twelve‐inch diameter pipeline that runs between Mont Belvieu, Texas and Lake Charles, Louisiana, each of which transport NGLs and that have qualified for a waiver of applicable FERC regulatory requirements under the ICA based on current circumstances. TGCPL also leases pipelines that provide only intrastate service between Mont Belvieu, Texas, and Galena Park, Texas, and intermediate locations.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">On October 31, 2005, Targa Resources Inc. acquired Dynegy Midstream Services, Limited Partnership, including its wholly‐owned subsidiary, Dynegy NGL Pipeline, LLC. On November 8, 2005, Targa Resources Inc. renamed Dynegy NGL Pipeline Company, LLC, “Targa NGL Pipeline Company LLC.”</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">TGCPL is a wholly‐owned subsidiary of Targa Downstream LLC, a Delaware limited liability company.</span></div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Basis of Presentation</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:112%">The financial statements and supporting schedules were prepared in accordance with the Uniform System of Accounts as prescribed by the Federal Energy Regulatory Commission (“FERC”). The FERC‐approved tariff establishes rates, terms and conditions under which the Company provides services to its customers. The Uniform System of Accounts is a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (“GAAP”). The most significant differences between GAAP and the financial statements presented herein are the inclusion of an income tax provision, as well as classifications of certain accounts on the balance sheets, statements of income, and statements of cash flows. </span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Summary of Significant Accounting Policies</span><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Use of Estimates</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The preparation of the Financial Statements in conformity with FERC guidelines requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the period. These estimates include, but are not limited to, the effects of regulation; unbilled revenue; income taxes; valuation of certain financial assets and liabilities, including derivative contracts; long‐lived asset recovery; asset retirement obligations (“AROs”); and accounting for contingencies. Actual results may differ from the estimates used in preparing the Financial Statements.</span></div><div><span><br/></span></div><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Allowance for Doubtful Accounts</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Estimated losses on accounts receivable are provided through an allowance for doubtful accounts. In evaluating the adequacy of the allowance, we make judgments regarding each party’s ability and history of making required payments, economic events and other factors. We assess the need for adjustments to our allowance when the financial condition of any party changes or additional information becomes available.</span></div><div><span><br/></span></div><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Property, Plant and Equipment</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Property, plant and equipment is recorded at acquisition cost, less accumulated depreciation. Depreciation is computed using the straight‐line method over the estimated useful lives of the assets. The determination of the useful lives of property, plant and equipment requires us to make various assumptions, including our expected use of the asset and the </span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">supply of and demand for hydrocarbons in the markets served, normal wear and tear of the facilities, and the extent and frequency of maintenance programs. Upon disposition or retirement of property, plant and equipment, any gain or loss is recorded to operations.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Expenditures for routine maintenance and repairs are expensed as incurred. Expenditures to refurbish an asset that increases its existing service potential or prevents environmental contamination are capitalized and depreciated over the remaining useful life of the asset or major asset component. Certain costs directly related to the construction of assets, including internal labor costs, interest and engineering costs, are capitalized.</span></div><div><span><br/></span></div><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Impairment of Long‐Lived Assets</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We evaluate long‐lived assets for impairment when events or changes in circumstances indicate our carrying amount of an asset may not be recoverable. Asset recoverability is measured by comparing the carrying value of the asset or asset group with its expected future pre‐tax undiscounted cash flows. Individual assets are grouped at the lowest level for which the related identifiable cash flows are largely independent of the cash flows of other assets and liabilities. These cash flow estimates require us to make judgments and assumptions related to operating and cash flow results, economic obsolescence, the business climate, contractual, legal and other factors.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">If the carrying amount exceeds the expected future undiscounted cash flows, we recognize an impairment equal to the excess of net book value over fair value as determined by quoted market prices in active markets or present value techniques if quotes are unavailable. The determination of the fair value using present value techniques requires us to make projections and assumptions regarding the probability of a range of outcomes and the rates of interest used in the present value calculations. Any changes we make to these projections and assumptions could result in significant revisions to our evaluation of recoverability of our long‐lived assets and the recognition of additional impairments.</span></div><div><span><br/></span></div><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Asset Retirement Obligations</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Asset retirement obligations (“AROs”) are legal obligations associated with the retirement of tangible long‐lived assets that result from their acquisition, construction, development and/or normal operation. We record a liability and increase the basis in the underlying asset for the present value of each expected asset retirement obligation (“ARO”) when there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Our obligations are estimated based on discounted cash flow estimates. Over time, the ARO liability is accreted to its present value as a period cost and the capitalized amount is depreciated over the asset’s respective useful life. At least annually, we review the projected timing and amount of asset retirement obligations and reflect revisions as an increase or decrease in the carrying amount of the liability and the basis in the underlying asset. Upon settlement, we will recognize any difference between the recorded amount and the actual settlement cost as a gain or loss.</span></div><div><span><br/></span></div><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Environmental Liabilities and Other Loss Contingencies</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We accrue a liability for loss contingencies, including environmental remediation costs arising from claims, assessments, litigation, fines, penalties and other sources, when the loss is probable and reasonably estimable.</span></div><div><span><br/></span></div><div style="margin-bottom:6pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Income Taxes</span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company is organized as a limited liability company and is treated as a partnership for U.S. federal and state income tax purposes. As such, the Company is generally not subject to federal or state income taxes. All revenues and expenses of the Company are reportable in the federal and state income tax returns of its Members.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">FERC allows adjustments to the financial statements for allowable income taxes. The below table describes the state and federal income tax provision for the nine months ended September 30, 2021 and the related effective tax rate.</span></div><div style="text-align:justify"><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:100.000%"><tr><td style="width:1.0%"/><td style="width:85.060%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:12.740%"/><td style="width:0.1%"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">TOTAL PROVISION</span></td><td colspan="3" style="padding:0 1pt"/></tr><tr style="height:14pt"><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">State Deferred Income Tax</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(18,653)</span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Federal Deferred Income Tax</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(284,048)</span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Current Provision/(Benefit) - State</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">129,917 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Current Provision/(Benefit) - Federal</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">1,978,373 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/></tr><tr style="height:14pt"><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Total 2021 Provision/(benefit)</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">1,805,589 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/></tr><tr style="height:14pt"><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:0 1pt"/></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Effective Tax Rate</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">22.07 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">%</span></td></tr></table></div><div style="text-align:justify"><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Revenue Recognition</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s revenues are primarily derived from pipeline transportation service and are measured based on consideration specified in contracts with customers.</span></div><div><span><br/></span></div><div style="text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s customer contracts contain a single performance obligation to provide pipeline transportation service. The underlying activities performed by the Company (i.e., (i) reserving a portion of pipeline capacity; and (ii) receiving, transporting, and delivering NGLs on the customer’s behalf) are considered inputs to an integrated service and not separable because such activities in combination are required to successfully transfer the single overall pipeline transportation service that the customer has contracted for and expects to receive. Therefore, the underlying activities in such contracts are not considered to be distinct services. The performance obligation is a series of distinct days of pipeline transportation service over the life of the contract (fundamentally a stand‐ready service), whereby the Company recognizes revenue over time using an output method of progress based on the passage of time (i.e., each day of service). This output method is appropriate because it directly relates to the value of service transferred to the customer to date, relative to the remaining days of service promised under the contract.</span></div><div><span><br/></span></div><div style="margin-bottom:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The transaction price for the Company’s customer contracts is typically comprised of variable consideration, which is primarily dependent on the volume of the NGLs received and transported. The variable consideration is generally commensurate with the Company’s efforts to perform the service and the terms of the variable payments relate specifically to its efforts to satisfy each day of distinct service. Therefore, the variable consideration is typically not estimated at contract inception, but rather the allocation exception for variable consideration is applied, whereby the variable consideration is allocated to each day of service and recognized as revenue when each day of service is provided. In addition, if the transaction price includes a fixed component (i.e., a fixed capacity reservation fee), the fixed component is recognized ratably on a straight‐line basis over the contract term, as each day of service has elapsed, which is consistent with the output method of progress selected for the performance obligation.</span></div><div style="margin-bottom:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The Company’s customers are typically billed on a monthly basis and payment is typically due within 10 days. As a practical matter, the Company defines the unit of account for revenue recognition purposes based on the passage of time during one month, rather than each day. This is because the financial reporting outcome is the same regardless of whether each day or month is treated as the distinct service in the series. That is, at the end of each month, the variability associated with the amount of consideration for which the Company is entitled to, is resolved, and can be included in that month’s revenue.</span></div><div style="margin-bottom:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Significant Judgments</span></div><div style="margin-bottom:9pt;text-align:justify"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For contracts with minimum volume commitments, the Company generally expects the customer to meet the commitment. However, such contracts are reassessed throughout the term of the commitment, and if the Company no longer expects the customer to meet the commitment, the allocation exception for variable consideration would not be met. That is, from that point onwards, an allocation based on the applicable fee applied to the volumes serviced does not depict the amount of consideration that we expect to be entitled to, in exchange for the service. In such instance, revenue will be recognized up to the minimum volume commitment in proportion to the days of service elapsed and the remaining duration of the commitment.</span></div><div style="margin-bottom:9pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Leases</span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We recognize the following for all leases (with the exception of short‐term leases) at the commencement date:</span></div><div><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:13.02pt">A lease liability, which is a lessee’s obligation to make lease payments arising from a lease.</span></div><div><span><br/></span></div><div style="padding-left:36pt;text-indent:-18pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">•</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%;padding-left:13.02pt">A right‐of‐use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We determine if an arrangement is or contains a lease at inception. Leases with an initial term of twelve months or less are considered short‐term leases, which are excluded from the balance sheet. Right‐of‐use assets and lease liabilities are recognized at the commencement date based on the present value of future lease payments over the lease term. The right‐of‐use asset also includes any lease prepayments and excludes lease incentives. As most of the Company’s leases do not provide an implicit interest rate, we use our incremental borrowing rate as the discount rate to compute the present value of our lease liability. The discount rate applied is determined based on information available on the date of adoption for all leases existing as of that date, and on the date of lease commencement for all subsequent leases. Our lease arrangements may include variable lease payments based on an index or market rate, or may be based on performance. For variable lease payments based on an index or market rate, we estimate and apply a rate based on information available at the commencement date. Variable lease payments based on performance are excluded from the calculation of the right‐of‐use asset and lease liability, and are recognized in our Consolidated Statements of Operations when the contingency underlying such variable lease payments is resolved. Our lease terms may include options to extend or terminate the lease. Such options are included in the measurement of our right‐of‐use asset and liability, provided we determine that we are reasonably certain to exercise the option.</span></div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Property, Plant and Equipment</span><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Property, Plant and Equipment</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Property, plant and equipment as of September 30, 2021, consists of pipeline assets leased through Targa NGL Pipeline company LLC.</span></div><div><span><br/></span></div><div><table style="border-collapse:collapse;display:inline-table;margin-bottom:5pt;vertical-align:text-bottom;width:92.559%"><tr><td style="width:1.0%"/><td style="width:47.613%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:18.031%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:17.549%"/><td style="width:0.1%"/><td style="width:1.0%"/><td style="width:12.407%"/><td style="width:0.1%"/></tr><tr><td colspan="3" style="padding:0 1pt"/><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">September 30, 2021</span></td><td colspan="3" style="padding:2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">December 31, 2020</span></td><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%;text-decoration:underline">Useful Life</span></td></tr><tr><td colspan="3" style="padding:2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Capacity Finance Lease, Right-of-use Assets</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">29,774,314 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">29,774,314 </span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="3" style="padding:2px 1pt;text-align:center;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">25</span></td></tr><tr><td colspan="3" style="padding:2px 1pt 2px 19pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Property, Plant and Equipment</span></td><td colspan="2" style="border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">29,774,314</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></td><td style="border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="2" style="border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">29,774,314</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></td><td style="border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="3" style="padding:0 1pt"/></tr><tr><td colspan="3" style="padding:2px 1pt 2px 19pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Accumulated Depreciation</span></td><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(1,290,220)</span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="2" style="padding:2px 0 2px 1pt;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">(297,743)</span></td><td style="padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="3" style="padding:0 1pt"/></tr><tr><td colspan="3" style="padding:2px 1pt 2px 37pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Property, Plant and Equipment, net</span></td><td style="border-bottom:1pt solid #000;border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">$</span></td><td style="border-bottom:1pt solid #000;border-top:1pt solid #000;padding:2px 0;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">28,484,094</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></td><td style="border-bottom:1pt solid #000;border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td style="border-bottom:1pt solid #000;border-top:1pt solid #000;padding:2px 0 2px 1pt;text-align:left;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">$</span></td><td style="border-bottom:1pt solid #000;border-top:1pt solid #000;padding:2px 0;text-align:right;vertical-align:bottom"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">29,476,571</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> </span></td><td style="border-bottom:1pt solid #000;border-top:1pt solid #000;padding:2px 1pt 2px 0;text-align:right;vertical-align:bottom"/><td colspan="3" style="padding:0 1pt"/></tr></table></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:112%">For the nine months ended September 30, 2021 and twelve months ended December 31, 2020, depreciation expense was $992.5 thousand and $297.7 thousand.</span></div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Related Party Transactions</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:120%">For the nine months ended September 30, 2021, TGCPL recorded transportation revenues of approximately $11.8M from TGCPL affiliates. In addition, TGCPL reimburses Targa Resources LLC for direct and indirect costs based on Targa employees who provide services to TGCPL and for other costs, primarily general and administrative expenses, related to TGCPL’s operations. Targa Resources LLC allocates indirect costs to TGCPL using the Massachusets Formula, which is a 3-factor caculation incorporating weighted averages of net revenue, total labor and gross PP&amp;E. For the nine months ended September 30, 2021, TNGLPL recorded general and administrative costs allocated from Targa Resources LLC of approximately $251.3 thousand.</span><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Commitments and Contingencies</span><div style="margin-bottom:6pt"><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-style:italic;font-weight:700;line-height:120%">Legal Proceedings</span></div><span style="color:#000000;font-family:'Calibri',sans-serif;font-size:10pt;font-weight:400;line-height:112%">The Company is party to various legal, administrative and regulatory proceedings that have arisen in the ordinary course of its business.</span> Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021-12-09 2021 Q3 Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021-12-09 2021 Q3 Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021-12-09 2021 Q3 Targa Gulf Coast NGL Pipeline LLC Targa Gulf Coast NGL Pipeline LLC 2021-12-09 2021 Q3 N/A 15017275 6151557 15017275 6151557 29774314 29774314 1290220 297743 28484094 29476571 28484094 29476571 43501369 35628128 4484830 1899669 163448 816351 797029 5464629 2696698 27281918 27302940 -52306 1196968 27229613 28499908 32694242 31196606 1000 1000 10806127 4430522 10807127 4431522 43501369 35628128 11811227 4211619 2944053 910118 8867175 3301501 685981 306910 -685981 -306910 8181194 2994591 2108290 748522 -302701 -87616 6375605 2333685 6375605 2333685 6375605 2333685 4430522 6375605 6375605 6375605 10806127 10806127 6375605 992477 -302701 8865718 1800337 Other: Other: Other: Other: APIC 63 64 Other: Other: Other: 11811227 11811227 11811227 11811227 1700000 1700000 1700000 1700000 1700000 1700000 251276 251276 251276 992477 992477 992477 300 300 300 1244053 1244053 1244053 2944053 2944053 2944053 Texas Louisiana 16 17 108555775 15097 108555775 15097 108555775 15097 108555775 15097 108570872 108570872 108570872 108570872 108570872 108570872 108570872 108570872 2886594776 108570872 Texas Louisiana 108555775 15097 108555775 15097 108555775 15097 108555775 15097 108570872 108570872 108570872 108570872 108570872 108570872 108570872 108570872 2886594776 108570872