Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

PLANT, PIPELINE AND EQUIPMENT

3 Months Ended

Mar. 31, 2017

PLANT, PIPELINE AND EQUIPMENT [Abstract]

6. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:

	March 31, 2017			December 31, 2016
	(thousands of dollars)
Platinum catalyst metal	$	1,612		$	1,612
Land		5,376			5,376
Plant, pipeline and equipment		156,142			154,107
Construction in progress		45,093			33,391
Total plant, pipeline and equipment		208,223			194,486
Less accumulated depreciation		(56,617	)		(54,477	)
Net plant, pipeline and equipment	$	151,606		$	140,009

Plant, pipeline, and equipment serve as collateral for our amended and restated credit agreement. See Note 9.

Interest capitalized for construction was approximately $373,808 and $31,000 for the three months ended March 31, 2017, and 2016, respectively.

Construction in progress during the first three months of 2017 included equipment purchased for the hydrogenation/distillation project at the TC facility, the new reformer unit and additional tankage at SHR.

Amortization relating to the platinum catalyst which is included in cost of sales was approximately $25,000 and $21,000 for the three months ended March 31, 2017, and 2016, respectively.