12.Related Party Transactions

Solaris Energy Management, LLC

On September 14, 2016, we entered into an administrative services arrangement with Solaris Energy Management, LLC (“SEM”), a company owned by William A. Zartler, our Founder and Executive Chairman, for the provision of certain personnel and administrative services at cost. Beginning in 2020, services provided by SEM are administrative only. In addition, SEM provides office space, equipment and supplies to us under the administrative service agreement.

For the three months ended September 30, 2021 and 2020, we incurred $0.2 million and $0.1 million, respectively, for these services, included in general and administrative expenses. For the nine months ended September 30, 2021 and 2020, we incurred $0.6 million and $0.4 million, respectively, for these services, included in general and administrative expenses.

The Company had $0.05 million outstanding payables to SEM at September 30, 2021 and no outstanding balance at December 31, 2020. As of September 30, 2021 and December 31, 2020, the Company had a prepaid balance to SEM of $0.2 million to cover future rent and other expenses.

Solaris Energy Capital, LLC

There are certain de minimis general and administrative expenses that are paid on our behalf by Solaris Energy Capital, LLC, a company owned by William A. Zartler, and are recorded in general and administrative expenses. As of September 30, 2021 and December 31, 2020, we had no outstanding payables to Solaris Energy Capital, LLC.

Blanco Aviation, LLC

We are a party to an aircraft “dry” lease arrangement with Blanco Air Services, LLC, a company owned by William A. Zartler, for the use of certain aircrafts billed at an hourly rate. We incurred certain general and administrative expenses for services provided by Blanco Aviation, LLC which are recorded in general and administrative expenses. We had no outstanding balance payable to Blanco Aviation, LLC at September 30, 2021 and the balance outstanding at December 31, 2020 was de minimis.

ConocoPhillips

We and ConocoPhillips, one of our principal owners, entered a 13-year water gathering and handling agreement, pursuant to which ConocoPhillips agreed to dedicate all the produced water generated from its current and future acreage in a defined area of mutual interest (“AMI”) in New Mexico and Texas. As of September 30, 2021 and December 31, 2020, the Company had a receivable of $21.6 million and $11.5 million, respectively, from ConocoPhillips that was recorded in Accounts Receivable from Affiliate. As of September 30, 2021 and December 31, 2020, the Company had a payable of $1.2 million and $1.9 million, respectively, to ConocoPhillips that was recorded in Payables to Affiliate. The following table shows revenue and expenses from ConocoPhillips:

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Operating expenses reimbursed to ConocoPhillips are related to the Company’s reimbursement of ConocoPhillips’ costs for operating certain assets on the Company’s behalf between closing and the transfer of the acquired assets.