A natural disaster, catastrophe or other event could result in severe personal injury, property damage
and environmental damage, which could curtail our operations and otherwise materially adversely affect our cash flow.
Some of our operations
involve risks of personal injury, property damage and environmental damage, which could curtail our operations and otherwise materially adversely affect our cash flow. For example, natural gas pipeline and other facilities operate at high pressures.
Virtually all of our operations are exposed to potential natural disasters, including hurricanes, tornadoes, storms, floods and/or earthquakes.
If one or
more facilities that are owned by us, or that deliver natural gas or other products to us, are damaged by severe weather or any other disaster, accident, catastrophe or event, our operations could be significantly interrupted. Similar interruptions
could result from damage to production or other facilities that supply our facilities or other stoppages arising from factors beyond our control. These interruptions might involve significant damage to people, property or the environment, and
repairs might take from a week or less for a minor incident to six months or more for a major interruption. Any event that interrupts the revenues generated by our operations, or which causes us to make significant expenditures not covered by
insurance, could reduce our cash available for paying distributions to unitholders.
As a result of market conditions, premiums and deductibles for
certain insurance policies can increase substantially, and in some instances, certain insurance may become unavailable or available only for reduced amounts of coverage. As a result, we may not be able to renew existing insurance policies or procure
other desirable insurance on commercially reasonable terms, if at all. If we were to incur a significant liability for which we were not fully insured, it could have a material adverse effect on our financial position and results of operations. In
addition, the proceeds of any such insurance may not be paid in a timely manner and may be insufficient if such an event were to occur.
Terrorist
attacks aimed at our facilities could adversely affect our business, results of operations, cash flows and financial condition.
The United States
government has issued warnings that energy assets, including our nations pipeline infrastructure, may be the future target of terrorist organizations. Some of our facilities are subject to standards and procedures required by the Chemical
Facility Anti-Terrorism Standards. We believe we are in compliance with all material requirements; however, such compliance may not prevent a terrorist attack from causing material damage to our facilities or pipelines. Any such terrorist attack on
our facilities or pipelines, those of our customers, or in some cases, those of other pipelines could have a material adverse effect on our business, financial condition and results of operations.
Our business could be affected adversely by union disputes and strikes or work stoppages by unionized employees.
As of September 30, 2020, approximately 12% of our workforce is covered by a number of collective bargaining agreements with various terms and
dates of expiration. There can be no assurances that we will not experience a work stoppage in the future as a result of labor disagreements. Any work stoppage could, depending on the affected operations and the length of the work stoppage, have a
material adverse effect on our business, financial position, results of operations or cash flows.
Cybersecurity breaches and other disruptions
could compromise our information and operations, and expose us to liability, which would cause our business and reputation to suffer.
In the
ordinary course of our business, we collect and store sensitive data, including intellectual property, our proprietary business information and that of our customers, suppliers and business partners, and personally identifiable information of our
employees, in our data centers and on our networks. The secure processing,
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