View Filing Data

Document and Entity Information Document - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2011	Mar. 09, 2012	Jun. 30, 2011
Entity Information [Line Items]
Entity Registrant Name	Oiltanking Partners, L.P.
Entity Central Index Key	0001516007
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2011
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q4
Amendment Flag	false
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Public Float			$ 0
Limited Partners, Common Units [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		19,449,901
Limited Partners, Subordinated Units [Member]
Entity Information [Line Items]
Entity Common Stock, Shares Outstanding		19,449,901

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2011	Dec. 31, 2010
Current assets:
Cash and cash equivalents	$ 23,836	$ 8,746
Receivables:
Trade	5,613	7,573
Affiliates	3,751	5,708
Refundable federal income taxes due from parent	0	2,964
Other	261	466
Note receivable, affiliate	15,300	12,903
Prepaid expenses and other	1,352	1,584
Deferred tax assets	0	349
Total current assets	50,113	40,293
Property, plant and equipment, net	271,644	265,616
Other assets, net	278	4,560
Total assets	322,035	310,469
Current liabilities:
Accounts payable and accrued expenses	13,582	16,940
Current maturities of long-term debt, affiliate	2,500	18,757
Accounts payable, affiliates	3,681	3,706
Federal income taxes due to parent	1,210	0
Total current liabilities	20,973	39,403
Long-term debt, affiliate, less current maturities	18,300	129,501
Deferred compensation	0	3,033
Accumulated postretirement benefit obligation	0	7,952
Deferred revenue	2,915	3,314
Deferred income taxes	0	23,217
Total liabilities	42,188	206,420
Commitments and contingencies
Partners' capital:
Common units (19,449,901 units issued and outstanding at December 31, 2011)	245,314	0
Subordinated units (19,449,901 units issued and outstanding at December 31, 2011)	33,492	0
Limited partners' interests	0	104,595
General partners' interests	1,041	1,056
Accumulated other comprehensive loss	0	(1,602)
Total partners' capital	279,847	104,049
Total liabilities and partners' capital	$ 322,035	$ 310,469

Consolidated Balance Sheets (Parenthetical)	Dec. 31, 2011 shares
Condensed Consolidated Balance Sheets Parenthetical [Abstract]
Common units, units issued	19,449,901
Common units, units outstanding	19,449,901
Subordinated units, units issued	19,449,901
Subordinated units, units outstanding	19,449,901

Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Dec. 31, 2011

Dec. 31, 2010

Dec. 31, 2009

Revenues

$ 117,377

$ 116,450

$ 100,840

Operating costs and expenses:

Operating

31,862

32,415

29,158

Selling, general and administrative

17,985

15,775

13,830

Depreciation and amortization

15,676

15,579

14,191

(Gain) loss on disposal of fixed assets

544

(339)

Gain on property casualty indemnification

(928)

(4,688)

Loss on impairment of assets

155

Total operating costs and expenses

65,139

58,788

57,430

Operating income

52,238

57,662

43,410

Other income (expense):

Interest expense

(5,438)

(9,538)

(8,401)

Loss on early extinguishment of debt

(6,382)

Interest income

Other income

431

1,100

491

Total other expense, net

(11,347)

(8,364)

(7,812)

Income before income tax (expense) benefit

40,891

49,298

35,598

Income tax (expense) benefit:

Current

(5,860)

(7,527)

(5,579)

Deferred

27,366

(3,956)

(4,903)

Total income tax (expense) benefit

21,506

(11,483)

(10,482)

Net income

62,397

37,815

25,116

Allocation of 2011 net income used for earnings per unit calculation:

Net income

62,397

$ 37,815

$ 25,116

Net income prior to initial public offering on July 19, 2011

(38,591)

Net income subsequent to initial public offering on July 19, 2011

23,806

Allocation of net income to partners: (1)

Net income allocated to general partner

^[1]

476

Net income allocated to common unitholders

^[1]

11,665

Net income allocated to subordinated unitholders

^[1]

$ 11,665

Earnings per limited partner unit: (1)

Common unit (basic and diluted)

^[1]

$ 0.60

Subordinated unit (basic and diluted)

^[1]

$ 0.60

Weighted average number of limited partner units outstanding:

Common unit (basic and diluted)

19,450

Subordinated unit (basic and diluted)

19,450

[1]	Reflective of general and limited partner interest in net income since closing of OILT’s initial public offering on July 19, 2011. See Notes 1 and 11 in the Notes to Consolidated Financial Statements.

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Net income	$ 62,397	$ 37,815	$ 25,116
Postretirement benefit plan adjustment, net of $33, $79 and $59 tax benefit, respectively	(62)	(147)	(111)
Comprehensive income	$ 62,335	$ 37,668	$ 25,005

- Definition

The change in equity [net assets] of a business enterprise during a period from transactions and other events and circumstances from non-owner sources which are attributable to the reporting entity. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners, but excludes any and all transactions which are directly or indirectly attributable to that ownership interest in subsidiary equity which is not attributable to the parent.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 8, 9, 10, 11, 12, 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 30
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A5
-Appendix A

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-Name Accounting Standards Codification
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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+ Details

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References

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-Name Emerging Issues Task Force (EITF)
-Number 87-21
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Research Bulletin (ARB)
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph A7
-Appendix A

+ Details

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Postretirement benefit plan adjustment, net of tax benefit	$ 33	$ 79	$ 59

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Cash flows from operating activities:
Net income	$ 62,397	$ 37,815	$ 25,116
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,676	15,579	14,191
Deferred income tax expense (benefit)	(27,366)	3,956	4,903
Postretirement net periodic benefit cost	695	1,265	1,219
Loss on impairment of assets	0	46	155
Unrealized gain on investment in mutual funds	(96)	(124)	0
Increase in cash surrender value of life insurance policies	(42)	(39)	(471)
(Gain) loss on disposal of fixed assets	544	(339)	96
Gain on property casualty indemnification	(928)	(4,688)	0
Amortization of deferred financing costs	66	0	0
Changes in assets and liabilities:
Trade and other receivables	(579)	(1,409)	(990)
Refundable income taxes	4,174	2,821	(1,242)
Prepaid expenses and other assets	665	(498)	1,129
Accounts receivable/payable, affiliates	3,754	2,009	(8,642)
Accounts payable and accrued expenses	(3,070)	2,638	(3,459)
Deferred compensation	453	6	402
Deferred revenue	33	1,640	(154)
Total adjustments from operating activities	(6,021)	22,863	7,137
Net cash provided by operating activities	56,376	60,678	32,253
Cash flows from investing activities:
Issuance of notes receivable, affiliate	(38,500)	(51,500)	0
Collections of notes receivable, affiliate	20,200	26,500	0
Payments for purchase of property, plant and equiment	(27,772)	(11,167)	(34,479)
Proceeds from sale of property, plant and equiment	14	359	10
Payment for disposal of assets	(544)	0	0
Proceeds from property casualty indemnification	1,298	5,617	0
Proceeds from surrender of life insurance policies	0	2,525	0
Payments for purchase of mutual funds	0	(2,525)	0
Investment in life insurance policies	(1,378)	0	0
Proceeds from sale of mutual funds	1,378	0	0
Net cash used in investing activities	(45,304)	(30,191)	(34,469)
Cash flows from financing activities:
Borrowings under notes payable, affiliate	0	6,000	28,000
Payments under notes payable, affiliate	(127,458)	(19,860)	(20,857)
Debt issuance costs	(250)	0	0
Net proceeds from issuance of common units	227,807	0	0
Contributions from partners	1	0	18,100
Distributions paid to partners	(96,082)	(13,737)	(22,000)
Net cash provided by (used in) financing activities	4,018	(27,597)	3,243
Net increase in cash and cash equivalents	15,090	2,890	1,027
Cash and cash equivalents - Beginning of year	8,746	5,856	4,829
Cash and cash equivalents - End of year	$ 23,836	$ 8,746	$ 5,856

Consolidated Statements of Partners' Capital (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2011	Dec. 31, 2010	Dec. 31, 2009
Postretirement benefit plan adjustment, net of tax benefit	$ 33	$ 79	$ 59
Distribution paid to partners		$ 23,737

Consolidated Statements of Partners' Capital - USD ($) $ in Thousands	Total	General Partner [Member] Pre-Formation [Member]	General Partner [Member] Post-Formation [Member]	Limited Partner [Member] Pre-Formation [Member]	Accumulated Other Comprehensive Income (Loss) [Member] Pre-Formation [Member]	Limited Partners, Common Units [Member] Post-Formation [Member]	Limited Partners, Subordinated Units [Member] Post-Formation [Member]
Beginning balance at Dec. 31, 2008	$ 68,991	$ 703	$ 0	$ 69,632	$ (1,344)	$ 0	$ 0
Net income	25,116	251	0	24,865	0	0	0
Postretirement benefit plan adjustment, net of tax benefit	(111)	0	0	0	(111)	0	0
Contribution from partners	18,100	181	0	17,919	0	0	0
Cash distribution to partners	(22,000)	(220)	0	(21,780)	0	0	0
Ending balance at Dec. 31, 2009	90,096	915	0	90,636	(1,455)	0	0
Net income	37,815	378	0	37,437	0	0	0
Postretirement benefit plan adjustment, net of tax benefit	(147)	0	0	0	(147)	0	0
Cash distribution to partners	(25,737)	(257)	0	(25,480)	0	0	0
Non-cash contribution from partners	2,022	20	0	2,002	0	0	0
Ending balance at Dec. 31, 2010	104,049	1,056	0	104,595	(1,602)	0	0
Net income	38,591	386	0	38,205	0	0	0
Postretirement benefit plan adjustment, net of tax benefit	(62)	0	0	0	(62)	0	0
Contribution from partners	1	0	0	1	0	0	0
Net distribution of assets and liabilities to partners	(20,085)	(217)	0	(21,532)	1,664	0	0
Cash distribution to partners	(83,630)	(836)	0	(82,794)	0	0	0
Balance - July 19, 2011, prior to contribution of assets at Jul. 19, 2011	38,864	389	0	38,475	0	0	0
Beginning balance at Dec. 31, 2010	104,049	1,056	0	104,595	(1,602)	0	0
Net income	62,397
Postretirement benefit plan adjustment, net of tax benefit	(62)
Ending balance at Dec. 31, 2011	279,847	0	1,041	0	0	245,314	33,492
Net income	23,806	0	476	0	0	11,665	11,665
Cash distribution to partners	(10,630)	0	(212)	0	0	(5,209)	(5,209)
Contribution of Net Assets to OILT from Predecessor	0	(389)	777	(38,475)	0	11,051	27,036
Issuance of common units to public, net of offering costs	227,807	0	0	0	0	227,807	0
Ending balance at Dec. 31, 2011	$ 279,847	$ 0	$ 1,041	$ 0	$ 0	$ 245,314	$ 33,492

Organization	12 Months Ended
Organization	Dec. 31, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]
ORGANIZATION	ORGANIZATION Organization Oiltanking Partners, L.P. (“OILT”) is a Delaware limited partnership formed by Oiltanking Holding Americas, Inc. (“OTA”) on March 14, 2011 to engage in the storage, terminaling and transportation of crude oil, refined petroleum products and liquefied petroleum gas. OTA owns and controls OILT’s general partner, OTLP GL, LLC. Through its wholly owned subsidiaries, Oiltanking Houston, L.P. (“OTH”) and Oiltanking Beaumont Partners, L.P. (“OTB” and together with OTH, our “Predecessor”), OILT owns and operates storage and terminaling assets located along the Gulf Coast of the United States on the Houston, Texas Ship Channel and in Beaumont, Texas. As discussed further below, OILT completed its initial public offering (“IPO”), and OTA and its affiliates contributed all of their equity interests in OTH and OTB to OILT on July 19, 2011. Through July 18, 2011, OTH and OTB were wholly owned subsidiaries of OTA. At December 31, 2011, OTA owned OILT’s general partner, 7,949,901 common units and 19,449,901 subordinated units. OTA is a wholly owned subsidiary of Oiltanking GmbH. Oiltanking GmbH and its subsidiaries, other than OILT, are collectively referred to herein as the “Oiltanking Group.” As used in this document, the terms “we,” “us,” and “our” and similar terms refer to OILT and its subsidiaries including its Predecessor, where applicable, unless the context indicates otherwise. Initial Public Offering On July 19, 2011, we completed our IPO of 11,500,000 common units, including 1,500,000 common units issued in connection with the underwriters’ exercise of their over-allotment option, at a price of $21.50 per unit. Our common units are listed on the New York Stock Exchange under the symbol “OILT.” In exchange for OTA and its affiliates contributing all of their equity interests in OTH and OTB to OILT on July 19, 2011, OILT issued an aggregate of 7,949,901 common units and 19,449,901 subordinated units, both of which represent limited partner interests, to OTA and its affiliates, and issued incentive distribution rights to its general partner. The net proceeds from the IPO of approximately $231.2 million, after deducting the underwriting discount and the structuring fee, were used to: (i) repay intercompany indebtedness owed to Oiltanking Finance B.V., a wholly owned finance company of the Oiltanking Group, in the amount of approximately $119.5 million, (ii) pay Oiltanking Finance B.V. for approximately $1.0 million of interest due on intercompany indebtedness and reimburse Oiltanking Finance B.V. for approximately $6.4 million of fees incurred in connection with the repayment of such indebtedness, (iii) make distributions to OTA and its affiliates in the aggregate amount of $77.2 million, (iv) pay other offering expenses of approximately $3.4 million and (v) provide us with working capital of approximately $23.7 million. Of the $23.7 million, we invested $20.0 million with Oiltanking Finance B.V. under a short-term note receivable. In anticipation of our IPO, certain assets and liabilities of OTH and OTB were distributed to OTA. We historically sponsored a non-pension postretirement benefit plan for the employees of all entities owned by OTA and a deferred compensation plan for certain employees (see Notes 12 and 14). On June 1, 2011, the postretirement benefit and deferred compensation plans and obligations were distributed to and assumed by OTA, and certain assets used to fund the deferred compensation plan obligations were distributed to OTA. In addition, effective June 1, 2011, our former employees were transferred to OTA, and OTA became the sponsor of our self-insurance program and 401(k) retirement plan (see Notes 12 and 14). OTH and OTB also made non-cash distributions to OTA, consisting of certain land parcels, an office building, other property and equipment, certain accounts receivable and notes receivable, affiliate. OTH and OTB also made cash distributions to OTA. Net deferred tax assets related to these assets and liabilities were also distributed to OTA. See Note 18 for further information regarding the amounts distributed to OTA. At December 31, 2011, we had outstanding (i) 19,449,901 common units and 19,449,901 subordinated units representing limited partner interests, (ii) a 2.0% general partner interest and (iii) incentive distribution rights. Common units held by public security holders represent 29.6% of all of our outstanding limited partner interests, and OTA and its affiliates hold 70.4% of all of our outstanding limited partner interests. The limited partners collectively hold a 98.0% limited partner interest in OILT and the general partner, which is owned and controlled by OTA, holds a 2.0% general partner interest in OILT.

- Definition

The entire disclosure for organization, consolidation and basis of presentation of financial statements disclosure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 51
-Paragraph 2-6
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 4, 14, 15
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+ Details

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2011

Summary of Significant Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

We adhere to the following significant accounting policies in the preparation of our consolidated financial statements.

Basis of Presentation and Principles of Consolidation

Since the contribution of OTH and OTB to OILT was a transaction among businesses under common control, the accounts of OTH and OTB have been reflected retroactively in our financial statements at carryover basis. Therefore, for periods prior to our IPO, the accompanying consolidated financial statements and related notes present the historical accounts of OTH and OTB. The accompanying consolidated financial statements, to the extent they relate to periods prior to the IPO, may not necessarily be indicative of the actual results of operations that might have occurred if OILT had operated separately during those periods. In addition, the effects of the IPO, certain related asset and liability transfers, cash distributions and debt extinguishment transactions occurring in June and July 2011 are reflected in the historical consolidated financial statements on the dates they occurred.

The consolidated financial statements and the accompanying notes are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) and the rules of the U.S. Securities and Exchange Commission (“SEC”). All significant intercompany transactions and balances have been eliminated in consolidation.

Asset Retirement Obligations

We regularly assess our legal obligations with respect to estimated retirements of certain of our long-lived assets to determine if an asset retirement obligation (“ARO”) exists. GAAP requires that the fair value of a liability related to the retirement of long-lived assets be recorded at the time a legal obligation is incurred, if the liability can be reasonably estimated. When the liability is initially recorded, the carrying amount of the related asset is increased by the amount of the liability. Over time, the liability is accreted to its future value, with the accretion recorded to expense. GAAP further clarifies that where there is an obligation to perform an asset retirement activity, even though uncertainties exist about the timing or method of settlement, an entity is required to recognize a liability for the fair value of a conditional ARO if the fair value of the liability can be determined.

Our assets generally consist of storage tanks and underground pipelines and related facilities along rights-of-way and related facilities. Our rights-of-way agreements typically do not require the dismantling, removal and reclamation of the right-of-way upon permanent removal of the pipelines and related facilities from service. Additionally, we are unable to predict when, or if, our pipelines, storage tanks and related facilities would become completely obsolete and require decommissioning. Accordingly, we have not recorded a liability or corresponding asset as both the amounts and timing of such potential future costs are indeterminable.

Business Segments

We have one reportable segment. We derive our net revenues from two operating segments — OTH and OTB. The two operating segments have been aggregated into one reportable segment because they have similar long-term economic characteristics, types and classes of customers and provide similar services. The aggregation of operating segments into one reportable segment requires management to evaluate whether there are similar expected long-term economic characteristics for each operating segment, and is an area of significant judgment. If the expected long-term economic characteristics of our operating segments were to become dissimilar, then we could be required to re-evaluate the number of reportable segments. See Note 19 for further information regarding our business segment.

Capitalization of Interest

Interest on borrowed funds is capitalized on projects during construction based on the approximate average interest rate of our debt. Interest capitalized for the years ended December 31, 2011, 2010 and 2009 was $0.6 million, less than $0.05 million and $1.3 million, respectively.

Cash and Cash Equivalents

Cash equivalents represent all highly liquid investments with original maturities of three months or less. The carrying value of cash equivalents approximates fair value because of the short term nature of these investments. At December 31, 2011 and 2010, cash and cash equivalents was comprised of cash held in banks.

Our consolidated statements of cash flows are prepared using the indirect method. The indirect method derives net cash flows from operating activities by adjusting net income to remove (i) the effects of all deferrals of past operating cash receipts and payments, such as changes during the period in deferred income and similar transactions, (ii) the effects of all accruals of expected future operating cash receipts and cash payments, such as changes during the period in receivables and payables, (iii) the effects of all items classified as investing or financing cash flows, such as gains or losses on sale of property, plant and equipment or extinguishment of debt, and (iv) other non-cash amounts such as depreciation and amortization.

Concentrations of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk consist principally of cash, cash equivalents, trade receivables and other receivables. Cash and cash equivalents are held on deposit with major banks. We maintain our cash and cash equivalents at financial institutions for which the combined account balances in individual institutions may exceed Federal Deposit Insurance Corporation (“FDIC”) insurance coverage and, as a result, there is a credit risk related to amounts on deposits in excess of FDIC coverage. We believe that the financial institutions holding these amounts are financially sound and, accordingly, minimal credit risk exists with respect to these assets.

We extend credit to our customers primarily in the petroleum and related service industries but do not consider there to be any concentration of credit risk with any single customer. See Note 17 for additional information.

Contingencies

Certain conditions may exist as of the date our consolidated financial statements are issued that may result in a loss to us, but which will only be resolved when one or more future events occur or fail to occur. Our management, with input from legal counsel, assesses such contingent liabilities, and such assessment inherently involves an exercise in judgment. In assessing loss contingencies related to legal proceedings that are pending against us or unasserted claims that may result in proceedings, our management, with input from legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of liability can be estimated, then the estimated liability would be accrued in our consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss if determinable and material, is disclosed.

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

Debt Issuance Costs

Costs incurred to issue our debt instruments are capitalized and amortized over the life of the associated debt instrument using the effective interest method. If the debt instrument is retired before its scheduled maturity date, any remaining issuance costs associated with that debt instrument are expensed in the same period.

Deferred Compensation

We established and maintained an unfunded, non-qualified deferred compensation plan for a select group of management or highly compensated employees. The purpose of the deferred compensation plan was to permit designated employees to accumulate additional retirement income through a non-qualified deferred compensation plan that enabled them to defer compensation to which they will become entitled in the future. On June 1, 2011, the deferred compensation plan and obligations were distributed to and assumed by OTA, and certain assets to be used to fund the deferred compensation plan obligations were distributed to OTA.

Earnings per Limited Partner Unit

Basic and diluted net income per unit is determined by dividing net income, after deducting the general partner’s interest, allocated to each class of limited partner units, by the weighted average number of limited partner units for such class outstanding during the period. The limited partners’ interest in net income is calculated by first reducing net income by the distribution pertaining to the current period’s net income, which is to be paid in the subsequent quarter (including the incentive distribution rights in excess of the 2.0% general partner interest, if applicable). Then, the remaining undistributed earnings or excess distributions over earnings, if any, are allocated to the general partner and limited partner interests in accordance with the contractual terms of the partnership agreement. Diluted earnings per limited partner unit reflects, where applicable, the potential dilution that could occur if securities or other agreements to issue additional units of a limited partner class, such as phantom unit awards, were exercised, settled or converted into such units (see Note 11). We currently have none of these types of awards outstanding.

Environmental Expenditures

Environmental costs are expensed if they relate to an existing condition caused by past operations and do not contribute to current or future revenue generation. Liabilities are recorded when site restoration, environmental remediation, cleanup or other obligations are either known or considered probable and can be reasonably estimated. At December 31, 2011 and 2010, we had not identified any environmental obligations that would require accrual in our consolidated financial statements.

Estimates

The preparation of our consolidated financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting periods. We base our estimates and judgments on historical experience and on various other assumptions and information that we believe to be reasonable under the circumstances. Estimates and assumptions about future events and their effects cannot be perceived with certainty and, accordingly, these estimates may change as new events occur, as more experience is acquired, as additional information is obtained and as our operating environment changes. While we believe that the estimates and assumptions used in the preparation of the consolidated financial statements are appropriate, actual results could differ from those estimates.

Fair Values

Cash and cash equivalents, trade receivables, other current assets, accounts payable, accrued expenses and other current liabilities are reported in the consolidated balance sheets at amounts which approximate fair value due to the relatively short period to maturity of these financial instruments. The carrying values of our fixed-rate debt approximate fair value based upon borrowing rates currently available to us for loans with similar terms. The fair values of our variable-rate debt are their carrying amounts, as the carrying amount reasonably approximates fair value due to the variability of the interest rates. At December 31, 2011, we did not have any variable rate indebtedness. Our only assets and liabilities that were required to be carried at fair value were those associated with the deferred compensation plan. On June 1, 2011, the deferred compensation plan and obligations were distributed to and assumed by OTA, and certain assets to be used to fund the deferred compensation plan obligations were distributed to OTA (see Notes 12 and 13). Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a specified measurement date.

Fair value measurements are derived using inputs and assumptions that market participants would use in pricing an asset or liability, including assumptions about risk. GAAP establishes a valuation hierarchy for disclosure of the inputs to valuation used to measure fair value. A financial asset’s or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement.

The methods described above may produce fair value estimates that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with the values that would be determined by market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

Impairment Assessment of Long-Lived Assets

We periodically evaluate whether events or circumstances have occurred that indicate that the estimated remaining useful life of long-lived assets, including property and equipment, may warrant revision or that the carrying value of these assets may be impaired. We evaluate the potential impairment of long-lived assets based on undiscounted cash flow expectations for the related asset relative to its carrying value. These future estimates are based on historical results, adjusted to reflect our best estimates of future market and operating conditions. Actual results may vary materially from our estimates, and accordingly may cause a full impairment of the long-lived assets. If a long-lived asset is considered to be impaired, the impairment loss is measured as the amount by which the carrying amount of the asset exceeds its fair value, calculated using a discounted future cash flows analysis. There were no impairments recorded for the year ended December 31, 2011. During the years ended December 31, 2010 and 2009, we recorded impairments of assets totaling approximately $0.05 million and $0.2 million, respectively.

Income Taxes

For periods prior to the IPO, no provision for U.S. federal income taxes has been made in our consolidated financial statements related to the operations of OTB, as OTB has been treated as a partnership not subject to federal income tax and the tax effects of OTB’s operations were included in the consolidated federal income tax return of OTA. OTH also was included in the consolidated federal income tax return of OTA, but OTH historically has elected to be taxed as a corporation, and income tax expense included provisions that were calculated as if OTH had filed a separate tax return utilizing a statutory rate of 35%. Deferred income taxes resulted from temporary differences between the income tax basis of the assets and liabilities and the amounts reported in OTH’s financial statements.

In July 2011, OTH elected to be treated as a disregarded entity for U.S. federal income tax purposes. Due to the change in tax status of OTH, we recognized a non-recurring income tax benefit of $27.1 million related to the elimination of the deferred tax account balances, which is included in our consolidated statement of income for the year ended December 31, 2011.

The financial statement benefit of an uncertain tax position is recognized only after considering the probability that a tax authority would sustain the position in an examination. For tax positions meeting a “more-likely-than-not” threshold, the amount recognized in the financial statements is the benefit expected to be realized upon settlement with the tax authority. For tax positions not meeting the threshold, no financial statement benefit is recognized. We recognize interest and other charges relating to unrecognized tax benefits as additional tax expense.

Effective January 1, 2007, the Texas margin tax applied to legal entities conducting business in Texas, including previously non-taxable entities such as limited partnerships and limited liability partnerships. The margin tax is based on our Texas sourced taxable margin. The tax is calculated by applying a tax rate to a base that considers both revenues and expenses and therefore has the characteristics of an income tax.

Investments

We held mutual funds and life insurance policies with cash surrender values in conjunction with our deferred compensation plan. The investments were carried at fair value, with unrealized gains and losses reported as other income (expense). On June 1, 2011, the deferred compensation plan and obligations were distributed to and assumed by OTA, and certain assets to be used to fund the deferred compensation plan obligations were distributed to OTA.

Net Income Allocation

We allocate net income to our partners for two primary purposes: (i) under the two-class method for purposes of computing earnings per limited partner unit and (ii) in accordance with the partnership agreement for purposes of maintaining our limited partners’ and general partner’s capital accounts.

In accordance with our partnership agreement, we allocate net income to our limited partners and our general partner based upon their respective ownership interests in us. We first allocate net income to our general partner based on the incentive distributions, if any, allocable for the current quarter. After the allocation of the incentive distribution interests, the general partner and limited partners share in the remaining income or loss based upon their proportionate interest in us.

Other Comprehensive Income (Loss)

Our other comprehensive income (loss) consists of postretirement benefit plan costs not recognized in earnings, and is reflected net of the related income tax effects. In connection with the IPO, the postretirement benefit plan was transferred to OTA.

Postretirement Benefit Plan Obligations

Prior to the IPO, we sponsored an unfunded multi-employer postretirement healthcare benefit plan, covering employees and retirees of OTH, OTB and other subsidiaries of OTA. Because OTH was the primary obligor, the postretirement benefit liabilities represented the present value of all of the benefit obligations of the plan. Postretirement benefit costs were developed from actuarial valuations. Actuarial assumptions were established to anticipate future events and were used in calculating the expense and liabilities related to this plan. These factors included assumptions management made with regards to interest rates, rates of increase in health care costs and employee turnover rates, among others. Management reviewed and updated these assumptions on an annual basis. The actuarial assumptions that were used could have differed from actual results due to changing market rates or other factors. These differences could have impacted the amount of postretirement benefit expense recorded. Effective June 1, 2011, OTA became the sponsor of our postretirement healthcare benefit plan, and our obligations under this plan along with our former employees were transferred to OTA.

Property, Plant and Equipment

We record property, plant and equipment at its original acquisition cost. Property, plant and equipment are stated at the lower of historical cost less accumulated depreciation or fair value less subsequent accumulated depreciation, if impaired. We capitalize all direct and indirect construction costs and related interest. Indirect construction costs include general engineering, taxes and the cost of funds used during construction. Costs, including complete asset replacements and enhancements or upgrades that increase the original efficiency, productivity or capacity of property, plant and equipment, are also capitalized. The costs of repairs, minor replacements and maintenance projects which do not increase the original efficiency, productivity or capacity of property, plant and equipment, are expensed as incurred.

Property, plant and equipment are depreciated using the straight-line method, over the estimated useful life of each asset as follows:



	Estimated Life in Years
Terminal facilities	4 to 40
Production facilities	10 to 40
Rights of way	10 to 15

We assign asset lives based on reasonable estimates when an asset is placed into service. Subsequent events could cause us to change our estimates, which would impact the future calculation of depreciation expense.

Revenue Recognition

We provide integrated storage, throughput and ancillary services for third-party companies engaged in the production, distribution and marketing of crude oil, refined petroleum products and liquefied petroleum gas. We generate revenues through the provision of fee-based services to our customers under a combination of multi-year and month-to-month agreements. Certain agreements contain “take-or-pay” provisions whereby we are entitled to a minimum throughput or storage fee. We recognize revenues when the service is provided, the crude oil, refined petroleum products and liquefied petroleum gas are handled or when the customer’s ability to make up the minimum volume has expired, in accordance with the terms of the contracts.

We recognize revenues in accordance with applicable accounting standards. Our assessment of each of the four revenue recognition criteria as they relate to our revenue producing activities is as follows:


•	Persuasive Evidence of an Arrangement Exists. Our customary practices are to enter into a written contract, executed by both the customer and us.


•	Service is Provided. We consider services provided when the crude oil, refined petroleum products and liquefied petroleum gas are shipped through, delivered by or stored in our pipelines, terminals and storage facilities, as applicable.


•	Fixed or Determinable Fee. We negotiate the fees for our services at the outset of our fee-based agreements. Under certain contracts, the fees generally are due in advance on the first of the month. For other agreements, the amount of revenue is determinable after services are provided and volumes handled can be measured.

•

Collection is Deemed Probable. Collectability is evaluated on a customer-by-customer basis. We conduct a credit review for all customers at the inception of a new agreement to determine the creditworthiness of potential and existing customers. Collection is deemed probable if we expect that the customer will be able to pay amounts under the agreement as payments become due. If we determine that collection is not probable, revenues are deferred and recognized upon cash collection.

We collect taxes on certain revenue transactions to be remitted to governmental authorities, which may include sales, use, value added and some excise taxes. These taxes are not included in revenue.

Trade Receivables and Allowance for Doubtful Accounts

Trade accounts receivable are customer obligations due under agreed-upon trade terms. We regularly perform credit evaluations of our customers and generally do not require collateral. We regularly review trade accounts receivable to determine if any receivables could potentially be uncollectible, and if so, include a determined amount in the allowance for doubtful accounts. Based on the information available, we believe no allowance for doubtful accounts was needed at December 31, 2011 or 2010. However, actual write-offs may occur.

Unit-Based Compensation

We have a long-term incentive plan, the Oiltanking Partners, L.P. Long-Term Incentive Plan (the “LTIP”), for employees, consultants and directors of the general partner and those of its affiliates, including Oiltanking North America, LLC (“OTNA”), a subsidiary of OTA, who perform services for us. The LTIP provides for the grant of restricted units, unit options, phantom units, unit payments, unit appreciation rights, other equity-based awards, distribution equivalent rights and performance awards. As of December 31, 2011, no awards had been granted under the LTIP. See Note 15 for further information.

Related Party Transactions

12 Months Ended

Dec. 31, 2011

RELATED PARTY TRANSACTIONS

We have engaged in certain transactions with other OTA subsidiaries, as well as other companies that are related by common ownership. Ongoing transactions include providing storage and ancillary services. Prior to July 19, 2011, we provided certain centralized administrative services including, among others, rental of administrative and operations office facilities, human resources, information technology, engineering, environmental and regulatory, treasury and certain financial services. Amounts earned for storage and ancillary services are classified as revenues. Amounts associated with the other administrative services discussed above are classified as a reduction of selling, general and administrative expense. Effective July 19, 2011, OTA began providing these administrative services to us and other OTA affiliates.

Total revenues earned for these related party services were as follows for the periods indicated (in thousands):



	Year Ended December 31,
	2011		2010		2009

Storage and ancillary service fees	$	3,142	$	3,256	$	2,868
Other revenues	1,565		2,437		2,709
Total related party revenues	$	4,707	$	5,693	$	5,577

Prior to the IPO, we paid fees directly to Oiltanking GmbH for various general and administrative services, which included, among others, risk management, environmental compliance, legal consulting, information technology, engineering, centralized cash management and certain treasury and financial services. Oiltanking GmbH allocated these costs to us using several factors, such as our tank capacity and total volumes handled. In management’s estimation, the costs charged for these services approximate the amounts that would have been incurred for similar services purchased from third parties or provided by our own employees. Subsequent to the IPO, these services are provided pursuant to the Services Agreement discussed below.

Effective June 1, 2011, in anticipation of the IPO, all of our former employees were transferred to OTA. OTA employees conduct all of our business, and OTA charged us $1.4 million for its services for the period from June 1, 2011 through July 19, 2011. Effective July 19, 2011, certain operating and selling, general and administrative services necessary to operate our business are provided by OTA pursuant to the Services Agreement discussed below. We incurred $4.4 million of operating expenses and $6.6 million of selling, general and administrative expenses under the Services Agreement from the period July 19, 2011 through December 31, 2011. These charges are included in operating and selling, general and administrative expenses in the year ended December 31, 2011 in the table below.

We also pay annual maintenance and technical support costs for proprietary software owned by Oiltanking GmbH, which we use in performing terminaling services for our customers. Each terminal location is allocated a portion of the global Oiltanking GmbH maintenance costs based on the number of users located at each facility. In management’s estimation, the costs incurred approximate the amounts that would have been incurred for similar third-party software programs for terminaling operations. During the years ended December 31, 2011, 2010 and 2009, we capitalized $0.9 million, $0.4 million and $1.0 million, respectively, of related party engineering services into construction in progress. Subsequent to the IPO, these services are provided pursuant to the Services Agreement.

At December 31, 2011 and 2010, total related party accounts receivable were $3.8 million and $5.7 million, respectively. Total related party accounts payable were $3.7 million at both December 31, 2011 and 2010, respectively. Additionally, we had $2.0 million and $0.8 million within accounts payable and accrued expenses at December 31, 2011 and 2010, respectively, associated with related party administrative fees (see Note 6).

Notes payable to Oiltanking Finance B.V., both current and long-term portions, at December 31, 2011 and 2010, were $20.8 million and $148.3 million, respectively. In July 2011, we repaid approximately $119.5 million of the outstanding notes payable, affiliate, with proceeds from the IPO. We also reimbursed Oiltanking Finance B.V. for approximately $6.4 million of fees incurred in connection with the repayment of such indebtedness. See Note 9 for further details of our debt and credit agreements.

At December 31, 2011 and 2010, total interest and commitment fees payable to Oiltanking Finance B.V. under term loans and credit financing arrangements of $0.3 million and $1.0 million, respectively, were included in accounts payable and accrued expenses (see Note 6).

From time to time, we invest cash with Oiltanking Finance B.V. in short-term notes receivable at then-prevailing market rates. At December 31, 2011 and 2010, we have short-term notes receivable of $15.3 million and $12.9 million, respectively, from Oiltanking Finance B.V., bearing weighted-average interest rates of 0.51% and 0.34%, respectively.

The following table summarizes related party operating expenses, selling, general and administrative expenses, interest expense and interest income that are reflected in the consolidated statements of income for the periods indicated (in thousands):



	Year Ended December 31,
	2011		2010		2009

Operating	$	4,795	$	—	$	—
Selling, general and administrative	10,622		3,526		3,464
Interest expense (net of amounts capitalized)	5,413		9,508		8,361
Loss on early extinguishment of debt	6,382		—		—
Interest income	42		73		11

OTH was included in the consolidated OTA federal tax returns for periods prior to the IPO, and as a result reimburses OTA for the excess of tax liabilities computed on a separate return basis over taxes paid or is entitled to the excess of taxes paid over its tax liabilities computed on a separate return basis. At December 31, 2011, we had recorded a payable of $1.2 million for federal income taxes due to our parent. At December 31, 2010, we had recorded refundable federal income taxes due from our parent of $3.0 million.

In 2010, we received a contribution in the form of land from OTA, which was recorded at OTA’s carrying value of $2.0 million.

See Notes 1 and 18 for a discussion of asset and liability transfers made in connection with our IPO.

Transactions with a Certain Director

One of the directors of our general partner, David L. Griffis, is employed by and a shareholder of the law firm of Crain, Caton & James, P.C., a firm that provides legal counsel for OTA and its affiliates. Fees for legal services paid to Crain, Caton & James, P.C. totaled $0.8 million, $0.9 million and $0.9 million for the years ended December 31, 2011, 2010 and 2009, respectively.

Agreements with Affiliates

Services Agreement. On July 19, 2011, in connection with the closing of the IPO, we entered into a services agreement (the “Services Agreement”) with our general partner and OTNA, a subsidiary of OTA, pursuant to which OTNA agreed to provide us certain specified operating and selling, general and administrative services necessary to operate and manage our business. We agreed to reimburse OTNA for all reasonable costs and expenses incurred in connection with such services, subject to a maximum annual reimbursement obligation of $17.0 million for specified selling, general and administrative expenses. We also agreed to reimburse OTNA for all operating expenses, all expenses it incurs as a result of our becoming a publicly traded partnership, and all operating expenses that it incurs with respect to insurance coverage for our business, with such reimbursement obligations not subject to any cap.

We subsequently amended the Services Agreement on December 31, 2011, but effective as of July 19, 2011, to provide for an annual fixed fee of $14.9 million, payable in equal monthly installments, for the specified selling, general and administrative services that were previously reimbursable.

The initial term of the Services Agreement is 10 years, and it will automatically renew for additional 12-month periods following the expiration of the initial term unless and until either we or OTNA provides 180 days written notice of our intention to terminate the agreement. During this time, the $14.9 million fee related to selling, general and administrative expenses will be adjusted as necessary each year to account for inflation as measured by the consumer price index. In addition, with the approval of the Conflicts Committee of the board of directors of our general partner, the fee may be adjusted to account for growth in our business or asset base.

Omnibus Agreement. On July 19, 2011, in connection with the closing of the IPO, we entered into an omnibus agreement (the “Omnibus Agreement”) with our general partner and OTA, pursuant to which OTA agreed to provide us with a license to use the name “Oiltanking” and related marks in connection with our business at no cost to us.

The Omnibus Agreement also provides for certain indemnification obligations between us and OTA with respect to the assets which were contributed to us by OTA in connection with the closing of the IPO. OTA’s indemnification obligations to us include the following: (i) for a period of three years after the closing of the IPO, OTA will indemnify us for environmental losses arising out of any event or circumstance associated with the operation of our assets prior to the closing of the IPO of up to $15.0 million in the aggregate, provided that OTA will only be liable to provide indemnification for losses to the extent that the aggregate dollar amount of losses suffered by us exceeds $0.5 million in any calendar year; (ii) until 60 days after the applicable statute of limitations, OTA will indemnify us for any additional federal, state and local income tax liabilities attributable to the ownership and operation of our assets and the assets of our subsidiaries prior to the closing of the IPO; (iii) for a period of three years after the closing of the IPO, OTA will indemnify us for any losses resulting from the failure to have all necessary consents and governmental permits necessary for us to operate our assets in substantially the same manner in which they were used and operated immediately prior to the closing of the IPO; and (iv) for a period of three years after the closing of the IPO, OTA will indemnify us for any losses resulting from our failure to have valid and indefeasible easement rights, rights-of-way, leasehold and/or fee ownership interest in the lands where our assets are located if such failure prevents us from using or operating our assets in substantially the same manner as they were operated immediately prior to the closing of the IPO. The Omnibus Agreement will generally remain in effect so long as OTA controls our general partner, or unless mutually terminated by the parties.

- Definition

The entire disclosure for related party transactions, including the nature of the relationship(s), a description of the transactions, the amount of the transactions, the effects of any change in the method of establishing the terms of the transaction from the previous period, stated interest rate, expiration date, terms and manner of settlement per the agreement with the related party, and amounts due to or from related parties. If the entity and one or more other entities are under common ownership or management control and this control affects the operating results or financial position, disclosure includes the nature of the control relationship even if there are no transactions between the entities. Disclosure may also include the aggregate amount of current and deferred tax expense for each statement of earnings presented where the entity is a member of a group that files a consolidated tax return, the amount of any tax related balances due to or from affiliates as of the date of each statement of financial position presented, the principal provisions of the method by which the consolidated amount of current and deferred tax expense is allocated to the members of the group and the nature and effect of any changes in that method. Examples of related party transactions include transactions between (a) a parent company and its subsidiary; (b) subsidiaries of a common parent; (c) and entity and its principal owners; and (d) affiliates.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph k

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 3A
-Section 04
-Paragraph b

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 57
-Paragraph 1-4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39603-107864

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(k))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39691-107864

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Property, Plant and Equipment

12 Months Ended

Dec. 31, 2011

Property, Plant and Equipment [Abstract]

PROPERTY, PLANT AND EQUIPMENT

Property, plant and equipment consist of the following at the dates indicated (in thousands):



	December 31,
	2011			2010

Land	$	9,125		$	12,483
Terminal facilities	29,805			32,321
Production facilities	402,614			391,163
Rights-of-way	30			30
Construction in progress	16,506			5,048
Total property, plant and equipment	458,080			441,045
Less: accumulated depreciation	(186,436		)	(175,429		)
Total property, plant and equipment, net	$	271,644		$	265,616

Depreciation expense was $15.7 million, $15.6 million and $14.2 million for the years ended December 31, 2011, 2010 and 2009, respectively.

For the years ended December 31, 2011, 2010 and 2009, interest costs of $0.6 million, less than $0.05 million and $1.3 million, respectively, were capitalized as part of the costs of construction in progress.

In 2008, one of our docks in Beaumont was struck by a vessel owned and operated by a third party. The primary assets impacted included the dock, dock platform and related unloading equipment. Our remaining docks were not affected by the damages. The terminal facility is covered by replacement cost property casualty insurance and business interruption insurance. To account for the property casualty damage, in 2008, we charged demolition costs to expense as incurred and also wrote off the net book value of the assets that were damaged or destroyed. We offset the book value of all damaged and destroyed assets and demolition costs incurred with indemnity proceeds receivable in the future, according to the provisions of the insurance policies in force. We also incurred capital expenditures related to the reconstruction and replacement of the damaged assets, which were capitalized. During 2009, the dock reconstruction and replacement was completed and placed in service.

We settled substantially all of our insurance claims related to the Beaumont dock in late 2010 for approximately $6.0 million in total recoveries, of which $5.0 million was related to physical property damage recoveries and $1.0 million was related to business interruption recoveries. Insurance recoveries aggregating $1.3 million, which were previously deemed probable and reasonably estimable, were recognized to the extent of the related loss in 2008. The remaining $4.7 million was recognized as a gain during the year ended December 31, 2010, of which $4.3 million was received in 2010, with the remaining amount collected in January 2011. At December 31, 2010, we had a receivable due from the incident of $0.4 million, which was recorded in other receivables. During the year ended December 31, 2011, we collected and recognized an additional $0.2 million gain related to this incident.

During the year ended December 31, 2011, we also collected and recognized a gain of $0.7 million under an insurance contract related to damages sustained during a hurricane in 2008.

In connection with the IPO, OTH and OTB made non-cash distributions to OTA, consisting of certain land parcels, an office building and other property and equipment. See Notes 1 and 18 for further information regarding the amounts distributed to OTA.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Other Assets

12 Months Ended

Dec. 31, 2011

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

OTHER ASSETS

Other assets consist of the following at the dates indicated (in thousands):



	December 31,
	2011		2010

Investments in mutual funds (1)	$	—	$	2,649
Cash surrender value of life insurance policies (1)	—		1,224
Deferred financing costs, net	184		—
Other	94		687
Total other assets	$	278	$	4,560

_____________

(1) In connection with the anticipated IPO, on June 1, 2011, the deferred compensation plan and obligations were distributed to and assumed by OTA, and certain assets to be used to fund the deferred compensation plan obligations were distributed to OTA. See Notes 1 and 18 for further discussion.

Accounts Payable and Accrued Expenses

12 Months Ended

Dec. 31, 2011

Payables and Accruals [Abstract]

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

Accounts payable and accrued expenses consist of the following at the dates indicated (in thousands):



	December 31,
	2011		2010

Accounts payable, trade	$	3,060	$	3,791
Accrued compensation	1,253		4,553
Accrued property taxes	5,078		5,289
Related party interest and commitment fees payable	288		967
Related party administrative fees payable	2,004		834
Deferred compensation (1)	—		637
Deferred revenue	801		378
Other	1,098		491
Total accounts payable and accrued expenses	$	13,582	$	16,940

___________

Deferred Revenue	12 Months Ended
Deferred Revenue	Dec. 31, 2011
Deferred Revenue Disclosure [Abstract]
DEFERRED REVENUE	DEFERRED REVENUE During 2007, we entered into a modification of a lease as a lessor and received a one-time upfront rental payment of $2.5 million, which is being amortized on a straight-line basis over the term of the lease, approximately sixteen years. At December 31, 2011 and 2010, deferred revenue related to this upfront rental payment was $1.7 million and $1.9 million, respectively, of which $0.2 million at each date was current and included in accounts payable and accrued expenses. During 2010, we entered into a modification of a revenue agreement and received a one-time payment of $2.0 million, which is being amortized on a straight-line basis over the remaining term of the agreement, approximately nine years. At December 31, 2011 and 2010, deferred revenue related to this one-time payment was $1.6 million and $1.8 million, respectively, of which $0.2 million at each date was current and included in accounts payable and accrued expenses. In addition to the above items, at December 31, 2011, we have an additional $0.4 million of current deferred revenue related to an advance payment received from a customer, and such amount is included in accounts payable and accrued expenses.

Income Taxes

12 Months Ended

Dec. 31, 2011

Income Tax Disclosure [Abstract]

INCOME TAXES

Due to our status as a partnership, we and our subsidiaries, including OTH and OTB, are not subject to U.S. federal or state income taxes, with the exception of Texas margin tax.

Total income tax (expense) benefit differed from the amounts computed by applying the tax rate to income before income tax (expense) benefit as a result of the following for the periods indicated (in thousands):



	Year Ended December 31,
	2011			2010			2009

Income before income tax (expense) benefit	$	40,891		$	49,298		$	35,598
U.S. Federal corporate statutory rate	35		%	35		%	35		%
Expected income tax expense	(14,312		)	(17,254		)	(12,459		)
OILT, OTB and OTH income not subject to income tax	8,974			5,920			1,998
Elimination of deferred tax account balances	27,052			—			—
Texas margin tax, net of federal income tax benefit	(208		)	(149		)	(21		)
Total income tax (expense) benefit	$	21,506		$	(11,483	)	$	(10,482	)

The following table presents the tax effect of temporary differences that gave rise to significant components of the deferred income tax assets and deferred income tax liabilities at December 31, 2010 (in thousands):



Current Deferred Tax Asset:
Accrued liabilities	$	546
Current Deferred Tax Liability:
Prepaid assets	197
Net current deferred tax asset	$	349
Long-term Deferred Tax Asset:
Deferred compensation	$	1,060
Accumulated postretirement benefit obligation	2,812
Deferred revenue	553
Long-term deferred tax asset	4,425
Long-term Deferred Tax Liability:
Property, plant and equipment	27,642
Net long-term deferred tax liability	$	23,217

Our policy is to classify any interest and penalties associated with income taxes as income tax expense. During the years ended December 31, 2011, 2010 and 2009, we did not recognize any amounts in respect of potential interest and penalties associated with income taxes.

Our 2007 through 2011 tax years are subject to examination by the federal and state taxing jurisdictions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Debt

12 Months Ended

Dec. 31, 2011

Debt Disclosure [Abstract]

DEBT

Term Borrowings

During 2003, the Oiltanking Group enacted a policy of centrally financing the expansion and growth of their global holdings of terminaling subsidiaries and in 2008, established Oiltanking Finance B.V., a wholly owned finance company of Oiltanking GmbH located in Amsterdam, The Netherlands. Oiltanking Finance B.V. serves as the global bank for the Oiltanking Group’s terminal holdings, including us, and arranges loans and notes at market rates and terms for approved terminal construction projects.

Notes payable, affiliate, consists of the following at the dates indicated (in thousands):



	December 31,
	2011			2010

5.93% Note due 2014	$	—		$	12,800
6.81% Note due 2015	—			11,200
5.96% Note due 2017	—			12,500
6.63% Note due 2018	—			2,858
6.63% Note due 2018	—			15,000
6.88% Note due 2018	—			6,000
4.90% Note due 2018	—			24,000
4.90% Note due 2018	—			24,000
7.59% Note due 2018	—			4,000
6.78% Note due 2019	7,200			8,100
6.35% Note due 2019	—			12,600
7.45% Note due 2019	6,400			7,200
7.02% Note due 2020	7,200			8,000
Total debt	20,800			148,258
Less current portion	(2,500		)	(18,757		)
Total long-term debt, affiliate	$	18,300		$	129,501

The following table presents the scheduled maturities of principal amounts of our debt obligations for the next five years and in total thereafter (in thousands):



	Years Ending
	December 31,

2012	$	2,500
2013	2,500
2014	2,500
2015	2,500
2016	2,500
Thereafter	8,300
Total	$	20,800

In connection with the IPO, we repaid intercompany indebtedness owed to Oiltanking Finance B.V. in the amount of approximately $119.5 million, reimbursed Oiltanking Finance B.V. for approximately $6.4 million of fees incurred in connection with the repayment of such indebtedness, and paid $1.0 million of interest. The $6.4 million payment is reflected as a loss on the early extinguishment of debt in our consolidated statement of income for the year ended December 31, 2011.

Historically, OTH and OTB have had separate debt agreements. Certain of the debt agreements with Oiltanking Finance B.V. contain loan covenants that required OTH and OTB to maintain certain debt, leverage and equity ratios and prohibited these entities from pledging their assets to third parties or incurring any indebtedness other than from Oiltanking Finance B.V. without its consent. At December 31, 2011, no assets had been pledged to third parties. At December 31, 2011, two of the outstanding debt agreements contained financial loan covenants. The loan covenants in these agreements require OTB to maintain certain Financial Parameters (as such term is defined in the debt agreements), including: (i) a ratio of Stockholders’ Equity to non-current assets of 30% or greater, (ii) a ratio of EBITDA to Total Debt Service of 1.2 or greater and (iii) a ratio of Net Financial Indebtedness to EBITDA of 3.75 or less (as such terms are defined in the debt agreements). At December 31, 2011, OTB’s ratio of Stockholders’ Equity to non-current assets, the ratio of EBITDA to Total Debt Service and the ratio of Net Financial Indebtedness to EBITDA (as such terms are defined in the debt agreements) was 92.0%, 3.7 and 0.23, respectively. At December 31, 2011 and 2010, OTB was in compliance with all covenants under the respective debt agreements.

Effective December 15, 2010, we entered into an additional agreement with Oiltanking Finance B.V., which provided for a maximum borrowing of $24.0 million and was payable in semi-annual installments of $1.2 million, plus accrued interest, through December 15, 2021. The borrowings bore interest at the ten-year USD swap rate plus 2.5% per annum. This agreement was terminated, without penalty, on June 30, 2011, in connection with our entry into a $50.0 million credit agreement with Oiltanking Finance B.V. (see Credit Agreement below). No borrowings had been made under this agreement.

Credit Agreement

On June 15, 2011, we entered into a two-year $50.0 million unsecured revolving line of credit agreement with Oiltanking Finance B.V., which was amended by Addendum No. 1, dated June 22, 2011 (the “Credit Agreement”). From time to time upon our written request and in the sole determination of Oiltanking Finance B.V., the revolving credit commitment can be increased up to an additional $75.0 million, for a maximum revolving credit commitment of $125.0 million. Borrowings bear interest at LIBOR plus a margin of 2.00% and any unused portion of the revolving line of credit is subject to a commitment fee of 0.50% per annum. The maturity date of the Credit Agreement is June 30, 2013. As of December 31, 2011, we had no outstanding borrowings under the Credit Agreement. We paid an arrangement fee of $0.3 million in connection with entering into the Credit Agreement, which was deferred and is being amortized over the life of the Credit Agreement. Amortization of these deferred financing costs is included in interest expense in the consolidated statements of income.

The Credit Agreement requires us to maintain, on an calendar year basis, certain Financial Parameters (as such term is defined in the Credit Agreement), including: (i) a ratio of Stockholders’ Equity to non-current assets of 30% or greater, (ii) a ratio of EBITDA to Total Debt Service of 1.2 or greater and (iii) a ratio of Net Financial Indebtedness to EBITDA of 3.75 or less (as such terms are defined in the Credit Agreement). At December 31, 2011, the ratio of Stockholders’ Equity to non-current assets, the ratio of EBITDA to Total Debt Service and the ratio of Net Financial Indebtedness to EBITDA (as such terms are defined in the Credit Agreement) was 101.1%, 4.7 and (0.04), respectively. At December 31, 2011, we were in compliance with all covenants contained in the Credit Agreement.

Partners' Capital and Distributions

12 Months Ended

Dec. 31, 2011

Partners' Capital and Distributions [Abstract]

PARTNERS' CAPITAL AND DISTRIBUTIONS

PARTNERS’ CAPITAL AND DISTRIBUTIONS

Initial Public Offering

As discussed in Note 1, in connection with the closing of the IPO, OTA and its affiliates contributed their interests in OTH and OTB to us, and we issued an aggregate of 7,949,901 common units and 19,449,901 subordinated units, both of which represent limited partner interests, to OTA and its affiliates, and issued incentive distribution rights to our general partner.

On July 19, 2011, we issued 11,500,000 common units to the public, which included 1,500,000 common units issued pursuant to the underwriters’ exercise of their over-allotment option. The net proceeds from the IPO of approximately $231.2 million, after deducting the underwriting discount and the structuring fee, were used to: (i) repay intercompany indebtedness owed to Oiltanking Finance B.V., a wholly owned finance company of Oiltanking GmbH, in the amount of approximately $119.5 million, (ii) pay Oiltanking Finance B.V. for approximately $1.0 million of interest due on intercompany indebtedness and reimburse Oiltanking Finance B.V. for approximately $6.4 million of fees incurred in connection with the repayment of such indebtedness, (iii) make distributions to OTA and its affiliates in the aggregate amount of $77.2 million, (iv) pay other offering expenses of approximately $3.4 million and (v) provide us working capital of approximately $23.7 million.

From the closing of our IPO on July 19, 2011 through December 31, 2011, we had 19,449,901 and 19,449,901 issued and outstanding common and subordinated units, respectively.

Subordinated Units

All of our subordinated units are owned directly or indirectly by OTA. The principal difference between our common units and subordinated units is that in any quarter during the subordination period, holders of the subordinated units are not entitled to receive any distribution until the common units have received the minimum quarterly distribution (defined below) plus any arrearages in the payment of the minimum quarterly distribution from prior quarters. Subordinated units will not accrue arrearages.

The subordination period will end on the first business day after we have earned and paid at least: (i) $1.35 (the minimum quarterly distribution on an annualized basis) on each outstanding common unit and subordinated unit and the corresponding distribution on our general partner’s 2.0% interest for each of three consecutive, non-overlapping four-quarter periods ending on or after September 30, 2014; or (ii) $2.025 (150.0% of the annualized minimum quarterly distribution) on each outstanding common unit and subordinated unit and the corresponding distribution on our general partner’s 2.0% interest and the related distribution on the incentive distribution rights for the four-quarter period immediately preceding that date, in each case provided there are no arrearages on our common units at that time.

The subordination period also will end upon the removal of our general partner other than for cause if no subordinated units or common units held by the holder(s) of subordinated units or their affiliates are voted in favor of that removal.

When the subordination period ends, all subordinated units will convert into common units on a one-for-one basis, and thereafter no common units will be entitled to arrearages.

Summary of Changes in Outstanding Units

The following is a reconciliation of our limited partner units outstanding for the periods indicated:



	Limited Partner Units
	Common	Subordinated	Total

Limited partner units outstanding at December 31, 2010	—	—	—
Units issued in IPO on July 19, 2011	19,449,901	19,449,901	38,899,802
Limited partner units outstanding at December 31, 2011	19,449,901	19,449,901	38,899,802

Distributions

Our partnership agreement requires that, within 45 days after the end of each quarter, beginning with the quarter ended September 30, 2011, we distribute all of our available cash to unitholders of record on the applicable record date.

On November 14, 2011, we paid a quarterly cash distribution totaling $10.6 million, or $0.2678 per unit, and a corresponding distribution on our general partner’s interest, to all unitholders of record on November 3, 2011. The quarterly cash distribution for the three months ended September 30, 2011 was calculated as the minimum quarterly cash distribution of $0.3375 per unit, pro-rated for the period beginning immediately after the closing date of the IPO, July 19, 2011, and ending on September 30, 2011.

Our partnership agreement requires that we distribute all of our available cash each quarter in the following manner:


•	first, 98.0% to the holders of our common units and 2.0% to our general partner, until each common unit has received the minimum quarterly distribution of $0.3375 plus any arrearages from prior quarters; and


•	second, 98.0% to the holders of our subordinated units and 2.0% to our general partner, until each subordinated unit has received the minimum quarterly distribution of $0.3375.

The general partner’s incentive distribution rights provide that if cash distributions to our unitholders exceed $0.38813 per common unit and subordinated unit in any quarter, our unitholders and our general partner will receive, including its 2.0% general partner interest, distributions according to the following percentage allocations:



	Target Quarterly Distribution Target Amount	Marginal Percentage Interest in Distributions
	Target Quarterly Distribution Target Amount	Unitholders	General Partner
Minimum quarterly distribution	above $0.3375 up to $0.38813	98.0%	2.0%
First target distribution	above $0.38813 up to $0.42188	85.0%	15.0%
Second target distribution	above $0.42188 up to $0.50625	75.0%	25.0%
Thereafter	above $0.50625	50.0%	50.0%

Our general partner, as the initial holder of all of our incentive distribution rights, has the right, at any time when there are no subordinated units outstanding and it has received incentive distributions at the highest level to which it is entitled (48.0%, in addition to distributions paid on its 2.0% general partner interest) for each of the prior four consecutive whole fiscal quarters, to reset the initial target distribution levels at higher levels based on our cash distributions at the time of the exercise of the reset election. If our general partner transfers all or a portion of the incentive distribution rights in the future, then the holder or holders of a majority of our incentive distribution rights will be entitled to exercise this right. The following assumes that our general partner holds all of the incentive distribution rights at the time that a reset election is made. Following a reset election, the minimum quarterly distribution will be adjusted to equal the reset minimum quarterly distribution, and the target distribution levels will be reset to correspondingly higher levels based on the same percentage increases above the reset minimum quarterly distribution as the current target distribution levels.

If our general partner elects to reset the target distribution levels, it will be entitled to receive a number of common units and a general partner interest necessary to maintain its general partner interest in us immediately prior to the reset election. The number of common units to be issued to our general partner will equal the number of common units that would have entitled the holder to an average aggregate quarterly cash distribution in the prior two quarters equal to the average of the distributions to our general partner on the incentive distribution rights in such prior two quarters.

On January 23, 2012, the board of directors of our general partner declared a cash distribution to our unitholders of $0.34 per unit and a corresponding distribution on our general partner’s interest. The cash distribution totaling $13.5 million was paid on February 14, 2012 to unitholders of record at the close of business on February 3, 2012.

- Definition

The entire disclosure for the formation, structure, control and ownership of the partnership. Disclosures related to accounts comprising partners' capital. Includes balances of general partners' capital account, limited partners' capital account, preferred partners' capital account and total partners' capital account and units outstanding; accumulated other comprehensive income; amount and nature of changes to amount of partner's capital and units outstanding by class, rights and privileges for each class of units; distribution policies and distributions paid by unit class; impact of and correction of an error in previously issued financial statements; limitations of partners' liability; redemption, conversion and distribution policies; and deferred compensation related to the issuance of units.

+ References + Details

Earnings Per Limited Partner Unit

12 Months Ended

Dec. 31, 2011

Earnings Per Limited Partner Unit [Abstract]

EARNINGS PER LIMITED PARTNER UNIT

The following table sets forth the computation of basic and diluted earnings per limited partner unit for the period from July 19, 2011 (the closing of our IPO) through December 31, 2011 (amounts in thousands, except per unit data):



	July 19, 2011 through December 31, 2011

Net income	$	23,806
Less: General partner’s incentive distribution earned (1)	—
Less: General partner’s 2.0% ownership	476
Net income allocated to limited partners	$	23,330

Numerator for basic and diluted earnings per limited partner unit:
Allocation of net income among limited partner interests:
Net income allocable to common units	$	11,665
Net income allocable to subordinated units	11,665
Net income allocated to limited partners	$	23,330

Denominator:
Basic and diluted weighted average number of limited partner units outstanding:
Common units	19,450
Subordinated units	19,450

Basic and diluted net income per limited partner unit:
Common units	$	0.60
Subordinated units	$	0.60

____________


(1)	Based on the amount of the distribution declared per common and subordinated unit related to earnings for the period from July 19, 2011 through December 31, 2011, our general partner was not entitled to receive any incentive distributions for this period.

Employee Benefits	12 Months Ended
Employee Benefits	Dec. 31, 2011
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFITS	EMPLOYEE BENEFITS 401(K) Retirement Plan We historically sponsored a retirement plan which is available to all employees who have six months of continuous service and covers all employees of OTA. The plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 and is qualified under Section 401(k) of the Internal Revenue Code. The contributions to the plan, as determined by management, are discretionary but may not exceed the maximum amount deductible under the applicable provisions of the Internal Revenue Code. We made contributions into the plan on behalf of all OTA subsidiaries and were then reimbursed by the related subsidiary. Our contributions to the retirement plan, net of amounts charged to other OTA entities, were $0.6 million, $1.0 million and $0.7 million for the years ended December 31, 2011, 2010 and 2009, respectively. Effective June 1, 2011, in anticipation of the IPO, our former employees were transferred to OTA, and OTA became the sponsor of the 401(k) retirement plan. Subsequent to our entry into the Services Agreement (see Note 3), costs for the 401(k) retirement plan are included in the services billed to us by OTA pursuant to the Services Agreement. Deferred Compensation Plan Effective August 15, 1994, we adopted a special non-qualified deferred compensation plan for the purpose of providing deferred compensation to certain employees. The plan provides for elective salary deferrals by participants and discretionary contributions by us as defined by the plan. We recognized $0.1 million, $0.1 million and $0.1 million of accrued compensation to participants for the years ended December 31, 2011, 2010 and 2009, respectively. Payments of accrued compensation for the years ended December 31, 2011, 2010 and 2009 totaled $0.2 million, $0.6 million and $0.5 million, respectively. Employee deferrals for the years ended December 31, 2011, 2010 and 2009 totaled $0.4 million, $0.3 million and $0.2 million, respectively. We purchased life insurance policies on certain of our employees and invested in mutual funds to assist in funding the deferred compensation liability. All payments of accrued compensation to participants were funded by our operating cash flows. At December 31, 2010, the cash surrender value of the life insurance policies and the fair value of the mutual fund assets totaled $3.9 million. At December 31, 2010, the deferred compensation liability totaled $3.7 million, of which $0.6 million was classified as current based on the expected payments for the upcoming year. The deferred compensation liability was determined by hypothetical investment accounts based on actual mutual funds or money market funds selected by each participant. On June 1, 2011, in anticipation of the IPO, the deferred compensation plan obligations, related insurance policies and mutual funds, along with our former employees, were transferred to OTA. Subsequent to our entry into the Services Agreement (see Note 3), costs for the deferred compensation plan are included in the services billed to us by OTA pursuant to the Services Agreement.

Fair Value Measurements

12 Months Ended

Dec. 31, 2011

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

We record certain investment securities at fair value. Fair value is determined based on the price that would be received to sell an asset or paid to transfer a liability in the most advantageous market, utilizing a hierarchy of three different valuation techniques:

Level 1: Quoted market prices for identical instruments in active markets;

Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs, or significant value drivers, are observable; and

Level 3: Prices reflecting our own assumptions concerning unobservable inputs to a valuation model; we do not have any financial assets that are measured at fair value using Level 3 inputs.

The following table summarizes our financial assets that are measured at fair value. We did not have any nonfinancial assets or nonfinancial liabilities which required remeasurement at fair value as of the dates indicated (in thousands):



	December 31,
	2011				2010
	Quoted Prices in Active Markets		Significant Other Observable Inputs		Quoted Prices in Active Markets		Significant Other Observable Inputs
	(Level 1)		(Level 2)		(Level 1)		(Level 2)

Cash surrender value of life insurance policies (1)	$	—	$	—	$	—	$	1,224
Investments in mutual funds (1)	—		—		2,649		—
Fair value	$	—	$	—	$	2,649	$	1,224

__________


(1)	On June 1, 2011, in anticipation of the IPO, the deferred compensation plan obligations along with our former employees were transferred to OTA. As a result, all assets related to this plan were also transferred to OTA.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 133
-Paragraph 44A, 44B
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15C, 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-Subparagraph a-d
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15B
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 3, 10, 14, 15
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 157
-Paragraph 32, 33, 34
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 159
-Paragraph 17-22, 27, 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19207-110258

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 825
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-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13433-108611

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
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-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=6957238&loc=d3e14172-108612

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
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-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13504-108611

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 820
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6925170&loc=d3e19296-110258

+ Details

Medical Insurance and Postretirement Benefit Obligation

12 Months Ended

Dec. 31, 2011

Compensation and Retirement Disclosure [Abstract]

MEDICAL INSURANCE AND POSTRETIREMENT BENEFIT OBLIGATIONS

Medical Insurance

Prior to June 1, 2011, we sponsored a self-insurance program for medical and dental insurance administered by a third party, which covered all of our former employees. The total expense and obligations to the administrator was a result of administrative fees, premiums and actual incidence of claims. Under the program, we were responsible for a predetermined limit of claims per participant per year, or a maximum of approximately $3.0 million to $4.0 million in the aggregate per year, in accordance with the plan agreements. Claims exceeding these amounts were covered by an insurance policy. During the years ended December 31, 2011, 2010 and 2009, we incurred administrative fees, premiums and claims totaling $1.3 million, $2.2 million and $1.9 million, respectively. Effective June 1, 2011, our former employees were transferred to OTA, and OTA became the sponsor of the self-insurance program. Subsequent to our entry into the Services Agreement (see Note 3), costs for the insurance program plan are included in the services billed to us by OTA pursuant to the Services Agreement.

Postretirement Benefit Plan

Effective June 1, 2004, we established a non-pension postretirement benefit plan. The plan was designed to provide health care coverage, upon retirement, to the employees of OTA who met the age and service requirements. The health plan was contributory, with participants’ contributions adjusted annually. We were required to reflect the funded status of the defined benefit postretirement health plan as a prepaid asset or an accrued liability and to recognize the net deferred and unrecognized gains and losses, net of tax, as part of accumulated other comprehensive income within partners’ capital. We used a December 31 measurement date for the plan. Effective June 1, 2011, OTA became the sponsor of the postretirement benefit plan, and our obligations under this plan along with our former employees were transferred to OTA. Subsequent to our entry into the Services Agreement (see Note 3), costs for the postretirement benefit plan are included in the services billed to us by OTA pursuant to the Services Agreement.

The following table provides information related to the postretirement benefit obligation and the fair value of plan assets for the periods indicated (in thousands):



	Year Ended December 31,
	2011			2010

Change in benefit obligation:
Benefit obligation at beginning of year	$	8,034		$	6,543
Service cost	447			840
Interest cost	190			315
Contributions by employer	10			13
Contributions by plan participants	8			46
Actuarial loss	153			336
Benefits paid	(18		)	(59		)
Benefit plan transferred to OTA	(8,824		)	—
Benefit obligation at end of year	$	—		$	8,034

Change in plan assets:
Fair value of plan assets at beginning of year	$	—		$	—
Actual return on plan assets	—			—
Employer contributions	10			13
Plan participants’ contributions	8			46
Benefits paid	(18		)	(59		)
Fair value of plan assets at end of year	$	—		$	—

Funded status:
Benefit obligation at end of year	$	—		$	8,034
Fair value of plan assets at end of year	—			—
Funded status at end of year	$	—		$	8,034

Amounts recognized in our consolidated balance sheets consist of the following at the dates indicated (in thousands):



	December 31,
	2011		2010

Liabilities:
Current liabilities	$	—	$	82
Noncurrent liabilities	—		7,952
Net medical postretirement obligation	$	—	$	8,034

Accumulated Other Comprehensive Income (Loss):
Unrecognized prior service cost	$	—	$	1,120
Unrecognized net actuarial loss	—		1,344
Total	$	—	$	2,464

The following table presents our net periodic benefit costs for the periods indicated (in thousands):



	Year Ended December 31,
	2011		2010		2009

Service cost	$	447	$	840	$	777
Interest cost	190		315		320
Amortization of unrecognized amounts:
Prior service cost	47		110		109
Net actuarial loss	11		—		13
Net periodic benefit costs	$	695	$	1,265	$	1,219

The following table presents changes in plan assets and benefit obligations recognized in other comprehensive income (loss) for the periods indicated (in thousands):



	Year Ended December 31,
	2011			2010			2009

Current period net loss	$	(153	)	$	(336	)	$	(292	)
Amortization of prior service cost	47			110			109
Amortization of prior net actuarial loss	11			—			13
Total recognized in other comprehensive loss	(95		)	(226		)	(170		)
Net periodic postretirement benefit cost	(695		)	(1,265		)	(1,219		)
Total recognized in net periodic postretirement benefit cost
and other comprehensive income	$	(790	)	$	(1,491	)	$	(1,389	)

The assumptions used in determining net benefit cost were as follows for the periods indicated:



	Year Ended December 31,
	2011	2010	2009

Weighted average expense assumptions:
Discount rate at the beginning of year	5.68%	6.00%	6.25%
Initial health care cost trend rate	9.50% (1)	9.50% (1)	8.00% (2)
Ultimate health care cost trend rate	5.00%	5.00%	5.00%
Number of years to reach ultimate trend	10	10	8

__________


(1)	Rate represents assumed medical cost trend rate for all employee costs. Drug costs have a trend rate of 8.5%.


(2)	Rate represents assumed trend rate for pre-age 65 employee costs. Post-age 65 employee costs have a trend rate of 7.5% and drug costs have a trend rate of 9.0%.

The assumptions used in determining the actuarial present value of the project benefit obligation were as follows at the dates indicated:



	December 31,
	2011	2010

Weighted average balance sheet assumptions:
Discount rate at the end of the year	5.68%	5.68%
Initial health care cost trend rate	9.50% (1)	9.50% (1)
Ultimate health care cost trend rate	5.00%	5.00%
Number of years to reach ultimate trend	9	9

______________


(1)	Rate represents assumed medical cost trend rate for all employee costs. Drug costs have a trend rate of 8.5%.

The discount rates are based on a discount rate analysis using the Citigroup Pension Discount Curve and the expected postretirement benefit cash flows. The resulting discount rates are consistent with the duration of plan liabilities.

Unit Based Compensation	12 Months Ended
Unit Based Compensation	Dec. 31, 2011
Unit Based Compensation [Abstract]
UNIT BASED COMPENSATION	UNIT-BASED COMPENSATION On July 13, 2011, in connection with the IPO, the board of directors of our general partner adopted the Oiltanking Partners, L.P. Long-Term Incentive Plan (the “LTIP”) for employees, consultants and directors of the general partner and those of its affiliates who perform services for us. The LTIP provides for the grant of restricted units, unit options, phantom units, unit payments, unit appreciation rights, other equity-based awards, distribution equivalent rights and performance awards. The LTIP limits the number of common units that may be delivered pursuant to awards under the plan to 3,889,980 units. Common units withheld to satisfy exercise prices or tax withholding obligations are available for delivery pursuant to other awards. The LTIP may be administered by the board of directors of our general partner or a committee appointed by the board of directors, which may be a committee of the board of directors or managers of an affiliate. As of December 31, 2011, no awards had been granted under the LTIP.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

+ Details

Interest Expense and Other Income (Expense)

12 Months Ended

Dec. 31, 2011

Interest Expense and Other Income (Expense) [Abstract]

INTEREST EXPENSE AND OTHER INCOME (EXPENSE)

The following table presents the components of interest expense for the periods indicated (in thousands):



	Year Ended December 31,
	2011			2010			2009

Related party interest expense	$	(6,032	)	$	(9,529	)	$	(9,651	)
Capitalized related party interest	619			21			1,290
Other	(25		)	(30		)	(40		)
Total interest expense	$	(5,438	)	$	(9,538	)	$	(8,401	)

The following table presents the components of other income (expense) for the periods indicated (in thousands):



	Year Ended December 31,
	2011		2010		2009

Unrealized gain on the cash surrender value of
life insurance policies	$	42	$	39	$	471
Gain on sale of residual product	290		930		—
Unrealized gain on investments in mutual funds	96		124		—
Other	3		7		20
Total other income (expense)	$	431	$	1,100	$	491

Major Customers

12 Months Ended

Dec. 31, 2011

Major Customers [Abstract]

MAJOR CUSTOMERS

The following table presents the percentage of revenues and receivables associated with our significant customers for the periods indicated:



	% of Revenues						% of Receivables
	Year Ended December 31,						December 31,
	2011		2010		2009		2011		2010

BP p.l.c.	15	%	14	%	11	%	2	%	1	%
LyondellBasell Industries	13	%	12	%	18	%	12	%	13	%
Enterprise Products Partners	12	%	12	%	12	%	24	%	22	%
Exxon Mobil Corporation	12	%	12	%	13	%	11	%	1	%
Royal Dutch Shell plc	11	%	11	%	12	%	19	%	36	%
Total	63	%	61	%	66	%	68	%	73	%

No other customer accounted for more than 10% of our revenues during the years ended December 31, 2011, 2010 and 2009.

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 107
-Paragraph 15A
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 94-6
-Paragraph 21, 22, 24
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13537-108611

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 16
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6327-108592

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
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-URI http://asc.fasb.org/extlink&oid=6947722&loc=d3e13531-108611

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
-Section 50
-Paragraph 18
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6351-108592

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
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-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6404-108592

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 275
-SubTopic 10
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-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=6927468&loc=d3e6442-108592

+ Details

Supplemental Cash Flow Information

12 Months Ended

Dec. 31, 2011

Supplemental Cash Flow Elements [Abstract]

SUPPLEMENTAL CASH FLOW INFORMATION

Supplemental cash flows and non-cash transactions were as follows for the periods indicated (in thousands):



	Year Ended December 31,
	2011			2010		2009

Cash paid for interest (net of capitalized interest) (1)	$	12,401		$	9,996	$	9,764
Cash taxes paid	1,686			2,130		1,394
Interest costs capitalized	619			21		1,290
Non-cash transactions:
Distribution of certain land parcels and office building to OTA (2)	$	6,215		$	—	$	—
Distribution of certain accounts and notes receivable to OTA (2)	18,277			—		—
Transfer of postretirement plan obligation to OTA (including $1.7 million of associated accumulated other comprehensive loss) (2)	(8,824		)	—		—
Transfer of deferred compensation plan obligations to OTA (2)	(4,124		)	—		—
Transfer of deferred compensation plan assets to OTA (2)	4,010			—		—
Net deferred tax assets related to asset and liabilities transferred to OTA (2)	4,531			—		—
Cash distribution payable (3) (4)	178			2,000		—
Loan repayment by reducing short-term note receivable (5)	—			2,097		—
Settlement of distribution by reducing short-term note receivable (4)	—			10,000		—
Contribution of land from OTA (6)	—			2,022		—

_____________


(1)	2011 amount includes $6.4 million of fees incurred in connection with the repayment of indebtedness in connection with the IPO (see Note 9).

(2)

In connection with the IPO, OTH and OTB made non-cash distributions to OTA, consisting of certain land parcels, an office building and other property and equipment, certain accounts receivable and notes receivable, affiliate. In addition, the postretirement benefit and deferred compensation plans and obligations and certain assets to be used to fund the deferred compensation plan obligations were transferred to OTA. Related net deferred tax assets were also transferred to OTA.

(3)

At December 31, 2011, we had an accrued distribution to OTA of $0.2 million, which was recorded in accounts payable, affiliates. During the year ended December 31, 2011, we paid pre-IPO distributions to OTA of $85.5 million, consisting of: (i) $2.0 million, which had been declared during December 2010 and paid in January 2011, and was included in accounts payable, affiliates at December 31, 2010 and (ii) $83.4 million, which was paid to OTA in July 2011, $77.0 million of which was paid using proceeds from the public issuance of the common units.


(4)	During the year ended December 31, 2010, we declared distributions of $25.7 million and paid $13.7 million to OTA. Of the remaining $12.0 million, $10.0 million was paid by reducing a short-term note receivable due from Oiltanking Finance B.V. and $2.0 million was paid in January 2011 and was recorded in accounts payable, affiliates at December 31, 2010.


(5)	During the year ended December 31, 2010, we paid a $2.1 million loan payment to Oiltanking Finance B.V. by reducing a $2.1 million short-term note receivable due from Oiltanking Finance B.V.


(6)	During the year ended December 31, 2010, we received a non-cash contribution of land from OTA, which was recorded at OTA’s book value of $2.1 million.

Segment Reporting

12 Months Ended

Dec. 31, 2011

Segment Reporting [Abstract]

SEGMENT REPORTING

We derive our revenues from two operating segments — OTH and OTB. The two operating segments have been aggregated into one reportable segment because they have similar long-term economic characteristics, types and classes of customers and provide similar services.

Revenues by service category are as follows for the periods indicated (in thousands):



	Year Ended December 31,
	2011		2010		2009

Storage service fees	$	87,794	$	87,172	$	74,865
Throughput fees	23,973		23,150		20,270
Ancillary service fees	5,610		6,128		5,705
Total revenues	$	117,377	$	116,450	$	100,840

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Commitments and Contingencies

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Commitments

We entered into a land lease agreement covering approximately 63 acres with a third party beginning December 15, 2010 through December 14, 2035. The lease provides for annual rental payments of $0.6 million, which will be adjusted to correspond with variations in the Consumer Price Index beginning with the sixth year of the lease. We can terminate the lease at the end of the fifth or tenth year and pay a termination fee of $3.0 million, as provided in the lease agreement. The agreement also contains an option to purchase the land for a price ranging from $6.0 million to $6.7 million. Future minimum lease payments under this non-cancelable lease as of December 31, 2011 are as follows (in thousands):



2012	$	600
2013	600
2014	600
2015	600
2016	600
Thereafter	10,800
Total	$	13,800

Litigation

From time to time, we may become a party to certain claims or legal complaints arising in the ordinary course of business. In the opinion of management, the ultimate resolution of the potential or existing claims and complaints will not have a material adverse effect on our financial position, results of operations or cash flows.

Environmental Liabilities

We may experience releases of crude oil, petroleum products and fuels, liquid petroleum gas or other contaminants into the environment, or discover past releases that were previously unidentified. Although we maintain an inspection program designed to prevent and, as applicable, to detect and address such releases promptly, damages and liabilities incurred due to any such environmental releases from our assets may affect our business. As of December 31, 2011 and 2010, we have not identified any environmental obligations that would require accrual in our consolidated financial statements.

Other

Our liquid storage and transport systems may experience damage as a result of an accident, natural disaster or terrorist activity. These hazards can cause personal injury and loss of life, severe damage to and destruction of property, and equipment, pollution or environmental damage and suspension of operations. We maintain insurance of various types that we consider adequate to cover our operations and properties. The insurance covers our assets in amounts considered reasonable. The insurance policies are subject to deductibles that we consider reasonable and not excessive. Our insurance does not cover every potential risk associated with operating our facilities, including the potential loss of significant revenues.

The occurrence of a significant event not fully insured, indemnified or reserved against, or the failure of a party to meet its indemnification obligations, could materially and adversely affect our operations and financial condition.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Number 14
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+ Details

Quarterly Financial Data (Unaudited)

12 Months Ended

Dec. 31, 2011

Quarterly Financial Information Disclosure [Abstract]

QUARTERLY FINANCIAL INFORMATION (UNAUDITED)

QUARTERLY FINANCIAL DATA (UNAUDITED)

Summarized quarterly financial data for the years ended December 31, 2011 and 2010 is set forth below (in thousands, except per unit amounts).



	First		Second		Third		Fourth
	Quarter		Quarter		Quarter		Quarter		Total
2011
Revenue	$	29,955	$	29,654	$	28,867	$	28,901	$	117,377
Operating income (1)	12,567		12,807		14,891		11,973		52,238
Net income (1) (2)	7,620		7,616		35,310		11,851		62,397
Net income subsequent to IPO on July 19, 2011 (3)					11,955		11,851		23,806
Earnings per common unit – basic and diluted					$	0.30	$	0.30	$	0.60
Earnings per subordinated unit – basic and diluted					0.30		0.30		0.60

2010
Revenue	$	27,742	$	28,729	$	28,875	$	31,104	$	116,450
Operating income (4)	15,605		12,378		12,899		16,780		57,662
Net income (4)	10,839		7,239		7,804		11,933		37,815

______________


(1)	The first and third quarters of 2011 include gains of $0.2 million and $0.7 million, respectively, from proceeds received under an insurance contract (see Note 4). The first quarter of 2011 includes a loss of $0.5 million on the disposal of fixed assets.


(2)	The third quarter of 2011 includes a non-recurring gain of $27.1 million related to the elimination of the deferred tax account balances, upon the change in tax status in connection with our IPO (see Note 8). The third quarter of 2011 also includes a loss of $6.4 million on the early extinguishment of debt, repaid with proceeds from our IPO (see Note 9).


(3)	Reflects net income since the closing of our IPO on July 19, 2011.


(4)	The first and fourth quarters of 2010 include gains of $3.7 million and $0.9 million, respectively, from proceeds received under an insurance contract relating to damages sustained at a dock facility that was struck by a vessel owned and operated by a third party during 2008 (see Note 4).

- Definition

The entire disclosure for the quarterly financial data in the annual financial statements. The disclosure may include a tabular presentation of financial information for each fiscal quarter for the current and previous year, including revenues, gross profit, income or loss before extraordinary items and earnings per share data. It also includes an indication if the information in the note is unaudited, comments on the aggregate effect of year-end adjustments, and an explanation of matters or transactions that affect comparability or are pertinent to an understanding of the information furnished.

+ References + Details