Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

PLANT, PIPELINE AND EQUIPMENT

6 Months Ended

Jun. 30, 2015

PLANT, PIPELINE AND EQUIPMENT [Abstract]

5. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:

	June 30, 2015			December 31, 2014
	(thousands of dollars)
Platinum catalyst	$	1,612		$	1,612
Land		4,577			4,577
Plant, pipeline and equipment		97,576			95,351
Construction in progress		26,025			11,590
Total plant, pipeline and equipment		129,790			113,130
Less accumulated depreciation		(43,138	)		(39,319	)
Net plant, pipeline and equipment	$	86,652		$	73,811

Plant, pipeline, and equipment serve as collateral for our amended and restated loan agreement. See Note 8.

Interest capitalized for construction was approximately $56,000 and $95,000 for the three and six months ended June 30, 2015. No amounts were capitalized during 2014.

Construction in progress during the first six months of 2015 included petrochemical construction on the D Train expansion, purchase of additional manufacturing equipment such as towers and tanks, additions to the tank farm, upgrades to the electrical and flaring systems, and initial construction on the specialty wax hydrogenation project at TC.

Amortization relating to the platinum catalyst which is included in cost of sales was $21,067 for the three months and $42,135 for the six months ended June 30, 2015, and 2014.