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Document and Entitiy Information - shares	4 Months Ended
Document and Entitiy Information - shares	Jun. 30, 2011	Aug. 18, 2011
Entity Registrant Name	Oiltanking Partners, L.P.
Entity Central Index Key	0001516007
Document Type	10-Q
Document Period End Date	Jun. 30, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Non-accelerated Filer
Common
Entity Common Stock, Shares Outstanding		19,449,901
Subordinated
Entity Common Stock, Shares Outstanding		19,449,901

Condensed Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2011	Mar. 14, 2011	Dec. 31, 2010
OILTANKING PARTNERS, L.P.
Current assets:
Cash and cash equivalents	$ 0	$ 0
Receivables:
Other assets, net	245	0
Total assets	245	0
Current liabilities:
Accounts payable, affiliates	295	0
Total liabilities	295	0
Commitments and Contingencies
Partners' (deficit) capital:
Limited partner's interest	(48)	1
General partner's interest	(1)	0
Receivables from partners	(1)	(1)
Total partners' deficit	(50)	0
Total liabilities and partners' deficit	245	$ 0
OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.
Current assets:
Cash and cash equivalents	2,853		$ 8,746
Receivables:
Trade	6,188		7,573
Affiliates	8,830		5,708
Refundable federal income taxes due from parent	0		2,964
Other	125		466
Note receivable, affiliate	15,903		12,903
Prepaid expenses and other	1,985		1,584
Deferred tax assets	142		349
Total current assets	36,026		40,293
Property, plant and equipment, net	264,984		265,616
Other assets	2,331		4,560
Total assets	303,341		310,469
Current liabilities:
Accounts payable and accrued expenses	10,795		16,940
Current maturities of long-term debt, affiliates	18,757		18,757
Accounts payable, affiliates	95		3,706
Federal income taxes due to parent	1,423		0
Total current liabilities	31,070		39,403
Long-term debt, affiliates, less current maturities	123,201		129,501
Deferred compensation	0		3,033
Accumulated postretirement benefit obligation	0		7,952
Deferred Revenue	3,115		3,314
Deferred income taxes	27,400		23,217
Total liabilities	184,786		206,420
Commitments and Contingencies
Partners' (deficit) capital:
Limited partner's interest	117,370		104,595
General partner's interest	1,185		1,056
Accumulated other comprehensive loss	0		(1,602)
Total partners' deficit	118,555		104,049
Total liabilities and partners' deficit	$ 303,341		$ 310,469

Condensed Statement of Operations (Unaudited) - OILTANKING PARTNERS, L.P. - USD ($) $ in Thousands	3 Months Ended	4 Months Ended
	Jun. 30, 2011	Jun. 30, 2011
Revenues	$ 0	$ 0
Costs and expenses:
Selling, general and administrative	34	34
Total costs and expenses	34	34
Operating loss	(34)	(34)
Other expense:
Interest expense	(16)	(16)
Total other expense, net	(16)	(16)
Net income (loss)	$ (50)	$ (50)

Condensed Combined Statements of Income and Comprehensive Income (Unaudited) - OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P. - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
Revenues	$ 29,654	$ 28,729	$ 59,609	$ 56,471
Operating costs and expenses:
Operating	8,211	8,231	16,635	16,182
Depreciation and amortization	4,077	3,836	7,952	7,640
Selling, general and administrative	4,559	4,296	9,351	8,392
(Gain) loss on disposal of fixed assets		(12)	544	(25)
Gain on property casualty indemnification			(247)	(3,701)
Total operating costs and expenses	16,847	16,351	34,235	28,488
Operating income	12,807	12,378	25,374	27,983
Other income (expense):
Interest expense	(2,309)	(2,390)	(4,588)	(4,869)
Interest income	9	6	24	9
Other income (expense)	45	(180)	141	(28)
Total other expense, net	(2,255)	(2,564)	(4,423)	(4,888)
Income before income tax expense	10,552	9,814	20,951	23,095
Income tax expense	2,936	2,575	5,715	5,017
Net income (loss)	7,616	7,239	15,236	18,078
Postretirement benefit plan adjustment, net of $43, $13, $33 and $33 tax benefit, respectively	(80)	(25)	(62)	(62)
Total comprehensive income	$ 7,536	$ 7,214	$ 15,174	$ 18,016

Condensed Combined Statements of Income and Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010
OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.
Postretirement benefit plan adjustment, tax	$ 43	$ 13	$ 33	$ 33

Condensed Statement of Partners' (Deficit) Capital (Unaudited) - USD ($) $ in Thousands	OILTANKING PARTNERS, L.P.	OILTANKING PARTNERS, L.P. Limited Partner's Interest	OILTANKING PARTNERS, L.P. General Partner's Interest	OILTANKING PARTNERS, L.P. Receivables From Partners	OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.	OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P. Limited Partner's Interest	OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P. General Partner's Interest	OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P. Accumulated Other Comprehensive Loss
Beginning balance at Dec. 31, 2010					$ 104,049	$ 104,595	$ 1,056	$ (1,602)
Postretirement benefit plan adjustment, net of $33 tax benefit					(62)			(62)
Net distribution of assets and liabilities to partners					(668)	(2,309)	(23)	$ 1,664
Net income (loss)					15,236	15,084	152
Ending balance at Jun. 30, 2011	$ (50)	$ (48)	$ (1)	$ (1)	118,555	117,370	1,185
Beginning balance at Mar. 14, 2011	0	0	0	0
Contribution from partners		1		(1)
Net income (loss)	(50)	(49)	(1)
Ending balance at Jun. 30, 2011	$ (50)	$ (48)	$ (1)	$ (1)	$ 118,555	$ 117,370	$ 1,185

- Definition

The amount of ownership interest of different classes of partners in limited partnership.

+ References + Details

Condensed Statement of Partners' (Deficit) Capital (Unaudited) (Parenthetical) - OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P. $ in Thousands	6 Months Ended
	Jun. 30, 2011 USD ($)
Postretirement benefit plan adjustment, tax	$ 33
Accumulated Other Comprehensive Loss
Postretirement benefit plan adjustment, tax	$ 33

Condensed Statement of Cash Flows (Unaudited) - OILTANKING PARTNERS, L.P. $ in Thousands	4 Months Ended
	Jun. 30, 2011 USD ($)
Cash flows from operating activities:
Net loss	$ (50)
Adjustments to reconcile net loss to net cash provided by operating activities:
Amortization of deferred financing costs	5
Changes in assets and liabilities:
Other assets, net	(250)
Accounts payable, affiliates	295
Net cash provided by operating activities	0
Net change in cash and cash equivalents	0
Cash and cash equivalents - Beginning of period	0
Cash and cash equivalents - End of period	$ 0

Condensed Combined Statement of Cash Flows (Unaudited) - OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P. - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2011	Jun. 30, 2010
Cash flows from operating activities:
Net income	$ 15,236	$ 18,078
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,952	7,640
Deferred income taxes	(108)	622
Postretirement net periodic benefit cost	695	761
Unrealized (gain) loss on investment in mutual funds	(96)	168
Increase in cash surrender value of life insurance policies	(42)	(21)
(Gain) loss on disposal of fixed assets	544	(25)
Gain on property casualty indemnification	(247)	(3,701)
Changes in assets and liabilities:
Trade and other receivables	1,356	806
Refundable income taxes	4,387	4,047
Prepaid expenses and other assets	(210)	(809)
Accounts receivable/payable, affiliates	(4,733)	5,389
Accounts payable and accrued expenses	(6,108)	(3,824)
Deferred compensation	453	(654)
Deferred revenue	284	1,846
Total adjustments from operating activities	4,127	12,245
Net cash provided by operating activities	19,363	30,323
Cash flows from investing activities:
Issuance of notes receivable	(3,000)	(32,500)
Collections of notes receivable		8,000
Payments for purchase of property, plant and equiment	(12,248)	(5,535)
Proceeds from sale of property, plant and equiment	14	47
Payment for disposal of assets	(544)
Proceeds from property casualty indemnification	617	5,000
Proceeds from surrender of life insurance policies		2,525
Payments for purchase of mutual funds		(2,525)
Investment in life insurance policies	(1,378)
Proceeds from sale of mutual funds	1,378
Net cash used in investing activities	(15,161)	(24,988)
Cash flows from financing activities:
Borrowings under notes payable, affiliates		4,000
Payments under notes payable, affiliates	(6,300)	(12,978)
Payment of offering costs	(1,795)
Distributions paid to partners	(2,000)
Net cash used in financing activities	(10,095)	(8,978)
Net decrease in cash and cash equivalents	(5,893)	(3,643)
Cash and cash equivalents - Beginning of period	8,746	5,856
Cash and cash equivalents - End of period	$ 2,853	$ 2,213

Nature of Operations	4 Months Ended
Nature of Operations	Jun. 30, 2011
OILTANKING PARTNERS, L.P.
NATURE OF OPERATIONS	1. NATURE OF OPERATIONS Oiltanking Partners, L.P. (“OILT”) is a Delaware limited partnership that was formed on March 14, 2011 to engage in the terminaling, storage and transportation of crude oil, refined petroleum products and liquefied petroleum gas. As of June 30, 2011, Oiltanking Holding Americas, Inc. (“OTA”) had committed to contribute $980 to OILT in exchange for a 98% limited partner interest and OTLP GP, LLC had committed to contribute $20 in exchange for a 2% general partner interest. These contributions receivable are reflected as a reduction to equity in accordance with generally accepted accounting principles. OTLP GP, LLC serves as the general partner of OILT.

Organization and Basis of Presentation

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

ORGANIZATION AND BASIS OF PRESENTATION

1. ORGANIZATION AND BASIS OF PRESENTATION

Organization

Oiltanking Houston, L.P. (“OTH”) and Oiltanking Beaumont Partners, L.P. (“OTB”) (combined, the “Partnerships”) own and operate storage and terminaling assets located along the upper Gulf Coast of the United States on the Houston Ship Channel and in Beaumont, Texas. The Partnerships are engaged primarily in the storage, terminaling and transportation of crude oil, refined petroleum products and liquefied petroleum gas in the Houston and Beaumont, Texas areas. Through July 12, 2011, OTH and OTB were wholly owned subsidiaries of Oiltanking Holding Americas, Inc. (“OTA”). 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.” Oiltanking Partners, L.P. (“OILT”), a Delaware limited partnership formed in March 2011, completed its initial public offering (“IPO”), and OTA contributed all of its equity interests in OTH and OTB to OILT on July 19, 2011, as discussed further in Note 2.

Basis of Presentation

The accompanying condensed financial statements and related notes present the accounts of the Partnerships on a combined basis. The Partnerships are the accounting predecessor of OILT. These accompanying condensed combined financial statements have been prepared from the separate financial records maintained by the Partnerships and 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 and debt transactions occurring in July 2011 are not reflected in these condensed combined financial statements.

The combined financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). All significant transactions and balances between OTH and OTB have been eliminated in combination.

The accompanying condensed consolidated interim financial statements should be read in conjunction with OILT’s prospectus dated July 13, 2011 (the “Prospectus”) included in its Registration Statement on Form S-1, as amended (SEC File No. 333-173199). Certain information and footnote disclosures required by GAAP for complete annual financial statements have been omitted and, therefore, these interim financial statements should be read in conjunction with the Partnerships’ audited financial statements for the year ended December 31, 2010, which are included in the Prospectus. In the opinion of management, these financial statements, which have been prepared pursuant to the rules of the U.S. Securities and Exchange Commission (“SEC”) and GAAP for interim financial reporting, reflect all adjustments, which consisted only of normal recurring adjustments, necessary to state fairly the results for the interim periods. The results of operations for the three and six months ended June 30, 2011 are not necessarily indicative of those for a full year.

The preparation of the Partnerships’ financial statements in conformity with GAAP requires management to use estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting period. The Partnerships base their estimates and judgments on historical experience and on various other assumptions and information that are believed 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 the operating environment changes. While the Partnerships believe that the estimates and assumptions used in the preparation of the condensed combined financial statements are appropriate, actual results could differ from those estimates.

Partners’ capital for OTH and OTB is as follows at the dates indicated (in thousands):


	June 30, 2011						December 31, 2010
	OTB		OTH		Total		OTH		OTB			Total
Limited partners’ interest	$	61,270	$	56,100	$	117,370	$	55,993	$	48,602		$	104,595
General partner’s interest		619		566		1,185		566		490			1,056
Accumulated other comprehensive loss		—		—		—		—		(1,602	)		(1,602	)

Partners’ capital	$	61,889	$	56,666	$	118,555	$	56,559	$	47,490		$	104,049

- 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
-Name Statement of Position (SOP)
-Publisher AICPA
-Number 94-6
-Paragraph 10
-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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-Number 46R
-Paragraph 4, 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.

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+ Details

Initial Public Offering of OilTanking Partners, L.P.	4 Months Ended	6 Months Ended
Initial Public Offering of OilTanking Partners, L.P.	Jun. 30, 2011	Jun. 30, 2011
INITIAL PUBLIC OFFERING OF OILTANKING PARTNERS, L.P.		2. INITIAL PUBLIC OFFERING OF OILTANKING PARTNERS, L.P. On July 13, 2011, OILT priced 10,000,000 common units in its IPO at a price of $21.50 per unit, and on July 14, 2011, OILT’s common units began trading on the New York Stock Exchange under the symbol “OILT.” On July 19, 2011, OILT closed its IPO of 11,500,000 common units, 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) reimburse Oiltanking Finance B.V. for approximately $7.4 million of interest and 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 estimated offering expenses of approximately $3.7 million and (v) provide OILT working capital of approximately $23.4 million. Of the $23.4 million, OILT invested $20.0 million with Oiltanking Finance B.V. under a short-term note receivable until the funds are needed for working capital purposes. In connection with the closing of the IPO, OTA and its affiliates contributed their interests in OTH and OTB to OILT, and OILT issued an aggregate of 7,949,901 common units and 19,449,901 subordinated units representing limited partner interests in OILT to OTA and its affiliates, and issued incentive distribution rights to its general partner. In connection with the IPO, certain assets and liabilities of the Partnerships were distributed to OTA. The Partnerships historically have sponsored a non-pension postretirement benefit plan for the employees of all entities owned by OTA and a deferred compensation plan for certain employees of the Partnerships (see Notes 10 and 12). In connection with the anticipated IPO, on June 1, 2011, the postretirement benefit and deferred compensation plans 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. In addition, effective June 1, 2011, OTA became the sponsor of the Partnerships’ self-insurance program and 401(k) retirement plan (see Notes 10 and 12). The Partnerships also made non-cash distributions to OTA, consisting of certain land parcels and an office building. Net deferred tax assets related to these assets and liabilities were also distributed to OTA. See Note 13 for a detailed listing of the amounts distributed to OTA in June 2011. In July 2011, the Partnerships also distributed $2.6 million of cash, $5.5 million of accounts receivable, $15.9 million of notes receivable, affiliates and $0.8 million of property, plant and equipment to OTA. On June 15, 2011, OILT entered into a two-year $50.0 million 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 OILT’s 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 August 18, 2011, OILT had no outstanding borrowings under the Credit Agreement. OILT paid an arrangement fee of $0.3 million in connection with entering into the Credit Agreement, which was deferred and will be amortized over the life of the Credit Agreement. The Credit Agreement requires OILT to maintain certain Financial Parameters (as defined), 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). As of August 18, 2011, OILT was in compliance with respect to all covenants contained in the Credit Agreement. Agreements with Affiliates Services Agreement. On July 19, 2011, in connection with the closing of the IPO, OILT entered into a Services Agreement (the “Services Agreement”) with its general partner and Oiltanking North America, LLC (“OTNA”) pursuant to which OTNA agreed to provide OILT and its subsidiaries certain specified selling, general and administrative services necessary to operate and manage its business. OILT and its subsidiaries 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. OILT also agreed to reimburse OTNA for all expenses it incurs as a result of OILT’s becoming a publicly traded partnership, and all expenses that it incurs with respect to insurance coverage for OILT’s business, with such reimbursement obligations not subject to any cap. 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 OILT or OTNA provides 180 days written notice of its intention to terminate the agreement. During this time, the $17.0 million cap to which OILT’s and its subsidiaries’ reimbursement obligations related to selling, general and administrative expenses are subject, will be adjusted upwards 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 the general partner of OILT, the reimbursement cap may be adjusted to account for growth in OILT’s business or asset base. Omnibus Agreement. On July 19, 2011, in connection with the closing of the IPO, OILT entered into an Omnibus Agreement (the “Omnibus Agreement”) with its general partner and OTA, pursuant to which OTA agreed to provide OILT with a license to use the name “Oiltanking” and related marks in connection with its business at no cost to OILT. The Omnibus Agreement also provides for certain indemnification obligations between OILT and OTA with respect to the assets which were contributed to OILT by OTA in connection with the closing of the IPO. OTA’s indemnification obligations to OILT include the following: (i) for a period of three years after the closing of the IPO, OTA will indemnify OILT for environmental losses arising out of any event or circumstance associated with the operation of OILT’s 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 OILT exceeds $0.5 million in any calendar year; (ii) until 60 days after the applicable statute of limitations, any of OILT’s federal, state and local income tax liabilities attributable to the ownership and operation of OILT’s assets and the assets of OILT’s subsidiaries prior to the closing of the IPO; (iii) for a period of three years after the closing of the IPO, the failure to have all necessary consents and governmental permits necessary for OILT to operate its 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, OILT’s failure to have valid and indefeasible easement rights, rights-of-way, leasehold and/or fee ownership interest in the lands where OILT’s assets are located if such failure prevents OILT from using or operating its 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 the general partner of OILT, or unless mutually terminated by the parties.
OILTANKING PARTNERS, L.P.
INITIAL PUBLIC OFFERING OF OILTANKING PARTNERS, L.P.	2. INITIAL PUBLIC OFFERING OF OILTANKING PARTNERS, L.P. On March 31, 2011, a Registration Statement on Form S-1 was filed with the U.S. Securities and Exchange Commission (“SEC”) relating to a proposed underwritten initial public offering (“IPO”) of limited partnership interests in OILT. On July 13, 2011, OILT priced 10,000,000 common units in its IPO at a price of $21.50 per unit, and on July 14, 2011, OILT’s common units began trading on the New York Stock Exchange under the symbol “OILT.” On July 19, 2011, OILT closed its IPO of 11,500,000 common units, 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) reimburse Oiltanking Finance B.V. for approximately $7.4 million of interest and 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 estimated offering expenses of approximately $3.7 million and (v) provide OILT working capital of approximately $23.4 million. Of the $23.4 million, OILT invested $20.0 million with Oiltanking Finance B.V. under a short-term note receivable until the funds are needed for working capital purposes. In connection with the closing of the IPO, OTA and its affiliates contributed their interests in Oiltanking Houston, L.P. (“OTH”) and Oiltanking Beaumont Partners, L.P. (“OTB”) to OILT, and OILT issued an aggregate of 7,949,901 common units and 19,449,901 subordinated units representing limited partner interests in OILT to OTA and its affiliates, and issued incentive distribution rights to its general partner. Upon the closing of the IPO, the combined historical financial statements of OTH and OTB became the historical financial statements of OILT. On June 15, 2011, OILT entered into a two-year $50.0 million 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 OILT’s 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 August 18, 2011, OILT had no outstanding borrowings under the Credit Agreement. OILT paid an arrangement fee of $0.3 million in connection with entering into the Credit Agreement, which was deferred and will be amortized over the life of the Credit Agreement. Amortization of these deferred financing costs are included in interest expense in the statement of operations. The Credit Agreement requires OILT to maintain certain Financial Parameters (as defined), 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). As of August 18, 2011, OILT was in compliance with respect to all covenants contained in the Credit Agreement.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Article 4
-Section 08
-Paragraph d

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Research Bulletin (ARB)
-Number 43
-Chapter 1
-Section B
-Paragraph 7, 11A
-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 129
-Paragraph 2, 3, 4, 5, 6, 7, 8
-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 SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 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 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 29, 30, 31
-Article 5

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section E

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 4
-Section C

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 12: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 17: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 18: http://www.xbrl.org/2003/role/presentationRef
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Reference 20: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 21: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Preferred Stock
-URI http://asc.fasb.org/extlink&oid=6521494

Reference 22: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
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Reference 23: http://www.xbrl.org/2003/role/presentationRef
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-Paragraph 4
-Subparagraph (SAB TOPIC 4.C)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187143-122770

+ Details

Related Party Transactions

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

RELATED PARTY TRANSACTIONS

3. RELATED PARTY TRANSACTIONS

During the periods presented, the Partnerships were wholly owned subsidiaries of OTA and engaged in certain transactions with other OTA subsidiaries, as well as other companies that are related by common ownership. Transactions include providing storage and ancillary services, as well as 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, these administrative services will be provided by OTA under the Services Agreement. Total revenues earned for these related party services were as follows for the periods indicated (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Storage and ancillary service fees	$	771	$	819	$	1,523	$	1,556
Other revenues		761		613		1,504		1,144

Total related party revenues	$	1,532	$	1,432	$	3,027	$	2,700

During the periods presented, the Partnerships paid fees 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 the Partnerships using several factors, such as the Partnerships’ 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 the Partnerships’ own employees. The following table summarizes related party costs and expenses, interest income and interest expense that are reflected in the accompanying condensed combined statements of income (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Operating	$	299	$	—	$	299	$	—
Selling, general and administrative		1,628		1,146		2,710		2,224
Interest income		9		24		24		27
Interest expense (net of amounts capitalized)		2,303		2,382		4,576		4,853

Effective June 1, 2011, in anticipation of the IPO, all of the Partnerships’ employees were transferred to OTA. During June 2011, OTA employees conducted all of the Partnerships’ business, and OTA charged the Partnerships $0.9 million for these services. This amount is included in operating and selling, general and administrative expenses in the three and six month periods ended June 30, 2011 in the table above. Effective July 19, 2011, these services will be provided for and will be reimbursable under the Services Agreement.

From time to time, the Partnerships invest cash with Oiltanking Finance B.V. in short-term notes receivable. At June 30, 2011 and December 31, 2010, the Partnerships have short-term notes receivables of $15.9 million and $12.9 million, respectively, from Oiltanking Finance B.V., bearing interest at 0.10% and 0.34%, respectively.

Notes payable to Oiltanking Finance B.V., both current and long-term portions, at June 30, 2011 and December 31, 2010 were $142.0 million and $148.3 million, respectively (see Note 9).

See Note 2 for a discussion of OILT’s entry into the Services Agreement and Omnibus Agreement.

- 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
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-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39622-107864

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-SubTopic 10
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-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39678-107864

+ Details

Property, Plant and Equipment

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

PROPERTY, PLANT AND EQUIPMENT

4. PROPERTY, PLANT AND EQUIPMENT

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


	June 30,			December 31,
	2011			2010
Land	$	9,125		$	12,483
Office facilities		31,458			32,321
Production facilities		391,333			391,163
Rights-of-way		30			30
Construction in progress		14,056			5,048


Total property, plant and equipment		446,002			441,045
Less: accumulated depreciation		(181,018	)		(175,429	)


Total property, plant and equipment, net	$	264,984		$	265,616

Depreciation expense was $4.1 million and $3.8 million for the three months ended June 30, 2011 and 2010, respectively. For the six months ended June 30, 2011 and 2010, depreciation expense was $8.0 million and $7.6 million, respectively.

During the six months ended June 30, 2010, the Partnerships recognized a gain of $3.7 million from insurance recoveries resulting from property damages which occurred in 2008 at a dock in Beaumont. During the six months ended June 30, 2011, the Partnerships collected and recognized an additional $0.2 million gain.

- 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

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

OTHER ASSETS

5. OTHER ASSETS

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


	June 30,		December 31,
	2011		2010
Capitalized offering costs	$	1,995	$	—
Investments in mutual funds		—		2,649
Cash surrender value of life insurance policies		—		1,224
Other		336		687

Total other assets	$	2,331	$	4,560

Accounts Payable and Accrued Expenses

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

ACCOUNTS PAYABLE AND ACCRUED EXPENSES

6. ACCOUNTS PAYABLE AND ACCRUED EXPENSES

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


	June 30,		December 31,
	2011		2010
Accounts payable, trade	$	3,133	$	3,791
Accrued salaries and benefits		1,189		4,553
Accrued property taxes		2,695		5,289
Related party interest and commitment fees payable		992		967
Related party administrative fees payable		681		834
Accrued offering costs		200		—
Deferred compensation		—		637
Deferred revenue		852		378
Other		1,053		491

Total accounts payable and accrued expenses	$	10,795	$	16,940

Deferred Revenue	6 Months Ended
Deferred Revenue	Jun. 30, 2011
OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.
DEFERRED REVENUE	7. DEFERRED REVENUE During 2007, the Partnerships 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 June 30, 2011 and December 31, 2010, deferred rental revenue was $1.9 million and $1.9 million, respectively, of which $0.2 million and $0.2 million, respectively, was current and included in accrued expenses. Annual rental payments are not significant. During 2010, the Partnerships 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 June 30, 2011 and December 31, 2010, deferred revenue was $1.7 million and $1.8 million, respectively, of which $0.2 million and $0.2 million, respectively, was current and included in accrued expenses. In addition to the above items, the Partnerships have an additional $0.5 million of current deferred revenue related to an advance billing received from a customer related to a contract.

Income Taxes

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

INCOME TAXES

8. INCOME TAXES

For periods prior to the IPO, no provision for U.S. federal income taxes has been made in the Partnerships’ combined 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 the amounts included in income tax expense 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.

Prior to the IPO, OTH elected to be treated as a disregarded entity for U.S federal income tax purposes. Due to OILT’s status as a partnership, OILT and its subsidiaries, including OTH and OTB, will not be subject to U.S. federal or state income taxes, with the exception of Texas margin tax.

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


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Income from operations before income tax expense	$	10,552		$	9,814		$	20,951		$	23,095
U.S. Federal corporate statutory rate		35	%		35	%		35	%		35	%

Expected income tax expense		3,693			3,435			7,333			8,083
OTB income not subject to income tax		(757	)		(874	)		(1,664	)		(3,129	)
Texas margin tax, net of federal income tax benefit		—			14			46			63

Total income tax expense	$	2,936		$	2,575		$	5,715		$	5,017

- 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
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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319

+ Details

Debt

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

DEBT

9. DEBT

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 the Partnerships, and arranges loans and notes at market rates and terms for approved terminal construction projects.

Notes payable, affiliates consist of the following at the dates indicated (in thousands):


	June 30,			December 31,
	2011			2010
5.93% Note due 2014	$	11,000		$	12,800
6.81% Note due 2015		10,000			11,200
5.96% Note due 2017		11,500			12,500
6.63% Note due 2018		2,858			2,858
6.63% Note due 2018		15,000			15,000
6.88% Note due 2018		6,000			6,000
4.90% Note due 2018		22,500			24,000
4.90% Note due 2018		24,000			24,000
7.59% Note due 2018		4,000			4,000
6.78% Note due 2019		8,100			8,100
6.35% Note due 2019		12,600			12,600
7.45% Note due 2019		6,800			7,200
7.02% Note due 2020		7,600			8,000

Total debt		141,958			148,258
Less current portion		(18,757	)		(18,757	)

Total long-term debt, affiliates	$	123,201		$	129,501

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 their consent. At June 30, 2011 and December 31, 2010, both OTH and OTB were in compliance with all covenants under their respective debt agreements. At June 30, 2011, the covenants restricted OTB from declaring distributions in excess of $26.5 million.

In connection with the IPO, OILT repaid intercompany indebtedness owed to Oiltanking Finance B.V. in the amount of approximately $119.5 million, and reimbursed Oiltanking Finance B.V. for approximately $7.4 million of interest and fees incurred in connection with the repayment of such indebtedness. After the IPO, the 6.78% Notes, the 7.45% Notes and the 7.02% Notes remained outstanding.

See Note 2 for a discussion of OILT’s entry into the Credit Agreement.

Employee Benefits	6 Months Ended
Employee Benefits	Jun. 30, 2011
OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.
EMPLOYEE BENEFITS	10. EMPLOYEE BENEFITS 401(K) Retirement Plan The Partnerships sponsor 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 (ERISA) 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. The Partnerships make contributions into the plan on behalf of all OTA subsidiaries and are then reimbursed by the related subsidiary. The Partnerships’ contributions to the retirement plan, net of amounts charged to other OTA entities, were $0.3 million and $0.3 million for the three months ended June 30, 2011 and 2010, respectively. For the six months ended June 30, 2011 and 2010, the Partnerships’ contributions to the retirement plan, net of amounts charged to other OTA entities, were $0.6 million and $0.5 million, respectively. Effective June 1, 2011, in anticipation of the IPO, the Partnerships’ employees were transferred to OTA, and OTA became the sponsor of the 401(k) retirement plan. Deferred Compensation Plan Effective August 15, 1994, the Partnerships 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 the Partnerships as defined by the plan. The Partnerships recognized $0.05 million and $0.05 million of accrued compensation to participants for the three months ended June 30, 2011 and 2010, respectively. For the six months ended June 30, 2011 and 2010, the Partnerships recognized $0.1 million and $0.1 million of accrued compensation to participants, respectively. Payments of accrued compensation for the three months ended June 30, 2011 and 2010 totaled $0 and $0.1 million, respectively. For the six months ended June 30, 2011 and 2010, payments of accrued compensation totaled $0.2 million and $0.3 million, respectively. Employee deferrals for the three months ended June 30, 2011 and 2010 totaled $0.1 million and less than $0.05 million, respectively. For the six months ended June 30, 2011 and 2010, employee deferrals totaled $0.4 million and $0.2 million, respectively. The Partnerships purchased life insurance policies on certain of the Partnerships’ employees and invested in mutual funds to assist in funding the deferred compensation liability. To date, all payments of accrued compensation to participants have been funded by the Partnerships’ 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 the Partnerships’ employees, were transferred to OTA.

Fair Value Measurments

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

FAIR VALUE MEASUREMENTS

11. FAIR VALUE MEASUREMENTS

The Partnerships record certain investment securities at fair value. Fair value is determined based on the price that would be received for 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 the Partnerships’ own assumptions concerning unobservable inputs to a valuation model. The Partnerships do not have any financial assets that are measured at fair value using Level 3 inputs.

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


	June 30, 2011				December 31, 2010
			Significant				Significant
	Quoted Prices		Other		Quoted Prices		Other
	in Active		Observable		in Active		Observable
	Markets		Inputs		Markets		Inputs
	(Level 1)		(Level 2)		(Level 1)		(Level 2)
Cash surrender value of life	$	—	$	—	$	—	$	1,224
insurance policies (1)
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 the Partnerships’ 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)
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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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 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Medical Insurance and Postretirement Benefit Obligation

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

MEDICAL INSURANCE AND POSTRETIREMENT BENEFIT OBLIGATIONS

12. MEDICAL INSURANCE AND POSTRETIREMENT BENEFIT OBLIGATIONS

The Partnerships sponsor a self-insurance program for medical and dental insurance administered by a third party, which covers all employees of the Partnerships. The total expense and obligations to the administrator is a result of administrative fees, premiums and actual incidence of claims. Under the program, the Partnerships are responsible for predetermined limit of claims per participant per year, or a maximum of $3.0 million to $4.0 million in the aggregate per year, in accordance with the plan agreements. Claims exceeding these amounts are covered by an insurance policy. Effective June 1, 2011, the Partnerships’ employees were transferred to OTA, and OTA became the sponsor of the self-insurance program.

Effective June 1, 2004, OTH established a non-pension postretirement benefit plan. The plan is designed to provide healthcare coverage, upon retirement, to the employees of OTA who meet the age and service requirements. The health plan is contributory, with participants’ contributions adjusted annually. OTH is required to disclose 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. OTH used a December 31 measurement date for the plan. Effective June 1, 2011, OTA became the sponsor of the postretirement benefit plan, and the Partnerships’ obligations under this plan along with the Partnerships’ employees were transferred to OTA.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Service cost	$	147	$	320	$	447	$	549
Interest cost		76		78		190		157
Amortization of unrecognized amounts:
Prior service cost		18		28		47		55
Net actuarial loss		11		—		11		—

Net periodic benefit costs	$	252	$	426	$	695	$	761

Supplemental Cash Flow Information

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

SUPPLEMENTAL CASH FLOW INFORMATION

13. SUPPLEMENTAL CASH FLOW INFORMATION

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


	Six Months Ended
	June 30,
	2011			2010
Cash paid for interest (net of capitalized interest)	$	4,430		$	4,671
Cash taxes paid		1,366			200
Interest costs capitalized		93			12

Non-cash transactions: (1)
Distribution of certain land parcels and office building to OTA	$	5,075		$	—
Transfer of postretirement plan obligation to OTA (including $2.6 million of associated accumulated other comprehensive loss)		(8,824	)		—
Transfer of deferred compensation plan obligations to OTA		(4,124	)		—
Transfer of deferred compensation plan assets to OTA		4,010			—
Net deferred tax assets related to asset and liabilities transferred to OTA		4,531			—


(1)		In June 2011, in connection with the anticipated IPO, the Partnerships made non-cash distributions to OTA, consisting of certain land parcels and an office building. Also, 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. In addition, related net deferred tax assets were transferred to OTA.

During the six months ended June 30, 2011 and 2010, the Partnerships paid distributions to OTA of $2.0 million and $10.0 million, respectively. The $2.0 million distribution, which was paid in January 2011, was declared during December 2010 and was included in accounts payable, affiliates at December 31, 2010. The $10.0 million distribution was settled by reducing a short-term note receivable due from Oiltanking Finance B.V.

Segment Reporting

6 Months Ended

Jun. 30, 2011

OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.

SEGMENT REPORTING

14. SEGMENT REPORTING

The Partnerships derive their 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.

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


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Storage service fees	$	22,668	$	21,898	$	44,551	$	43,254
Throughput fees		5,706		5,150		12,299		10,308
Ancillary service fees		1,280		1,681		2,759		2,909

Total revenues	$	29,654	$	28,729	$	59,609	$	56,471

- 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)
-Number 131
-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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+ Details

Contingencies	6 Months Ended
Contingencies	Jun. 30, 2011
OILTANKING HOUSTON, L.P. AND OILTANKING BEAUMONT PARTNERS, L.P.
CONTINGENCIES	15. CONTINGENCIES Litigation From time to time, the Partnerships 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 the Partnerships’ 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 June 30, 2011 and December 31, 2010, we have not identified any environmental obligations that would require accrual in our combined 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 loss and gain contingencies. Describes any existing condition, situation, or set of circumstances involving uncertainty as of the balance sheet date (or prior to issuance of the financial statements) as to a probable or reasonably possible loss incurred by an entity that will ultimately be resolved when one or more future events occur or fail to occur, and typically discloses the amount of loss recorded or a range of possible loss, or an assertion that no reasonable estimate can be made.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
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-Paragraph 3
-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.

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