Note 15   Commitments and Contingencies Legal Proceedings We are a party to various legal proceedings and/or regulatory proceedings and certain claims, suits and complaints arising in the ordinary course of business that have been filed or are pending against us. We believe all such matters are without merit or involve amounts which, if resolved unfavorably, would not have a material effect on our financial position, results of operations, or cash flows. Contingent Consideration Pursuant to the Membership Interest Purchase and Sale Agreement ( MIPSA ), the Partnership acquisition of Badlands was subject to a contingent payment of $50 million (the  contingent consideration ) if aggregate crude oil gathering volumes exceeded certain stipulated monthly thresholds during the period from January 2013 through June 2014. If the threshold is not attained during the contingency period, no payment is owed. Accounting standards require that the contingent consideration be recorded at fair value at the date of acquisition and revalued at subsequent reporting dates under the acquisition method of accounting. At December 31, 2012, the Partnership recorded a $15.3 million accrued liability representing the fair value of this contingent consideration, determined by a probability-based model measuring the likelihood of meeting certain volumetric measures identified in the MIPSA. Changes in the fair value of this accrued liability are included in earnings and reported as Other income (expense) in the Consolidated Statement of Operations. As of June 30, 2013, the contingent consideration was re-estimated to be $9.1 million, a decrease of $6.2 million, reflecting at that time management s updated assessment. The contingent period expired June 2014, with no contingent thresholds obtained.