Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

PLANT, PIPELINE AND EQUIPMENT

9 Months Ended

Sep. 30, 2016

PLANT, PIPELINE AND EQUIPMENT [Abstract]

6. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:

	September 30, 2016			December 31, 2015
	(thousands of dollars)
Platinum catalyst	$	1,612		$	1,612
Land		5,376			4,577
Plant, pipeline and equipment		153,529			128,302
Construction in progress		22,207			8,980
Total plant, pipeline and equipment		182,724			143,471
Less accumulated depreciation		(52,986	)		(46,564	)
Net plant, pipeline and equipment	$	129,738		$	96,907

Plant, pipeline, and equipment serve as collateral for our amended and restated credit agreement. See Note 10.

Interest capitalized for construction was approximately $52,000 and $124,000 for the three and nine months ended September 30, 2016 and $27,000 and $122,000 for the three and nine months ended September 30, 2015.

Construction in progress during the first nine months of 2016 included equipment purchased for the hydrogenation expansion at the TC facility, the new reformer unit, and a new cooling tower for D train, both at SHR.

In May 2016 we purchased the recently shuttered BASF facility adjacent to our TC facility. See Note 7 for additional information.

Amortization relating to the platinum catalyst which is included in cost of sales was approximately $25,000 and $21,000 for the three months and approximately $72,000 and $63,000 for the nine months ended September 30, 2016, and 2015, respectively.