Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

PLANT, PIPELINE AND EQUIPMENT

6 Months Ended

Jun. 30, 2017

PLANT, PIPELINE AND EQUIPMENT [Abstract]

6. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:

	June 30, 2017			December 31, 2016
	(thousands of dollars)
Platinum catalyst metal	$	1,612		$	1,612
Land		5,386			5,376
Plant, pipeline and equipment		168,640			154,107
Construction in progress		46,538			33,391
Total plant, pipeline and equipment		222,176			194,486
Less accumulated depreciation		(58,994	)		(54,477	)
Net plant, pipeline and equipment	$	163,182		$	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 $287,000 and $41,000 for the three and $660,000 and $72,000 for the six months ended June 30, 2017, and June 30, 2016, respectively.

Construction in progress during the first six months of 2017 included equipment purchased for the hydrogenation/distillation project and updates to B Plant equipment at the TC facility; new reformer unit, tankage upgrades, and an addition to the rail spur at SHR.

Amortization relating to the platinum catalyst which is included in cost of sales was approximately $0 and $25,000 for the three months and $25,000 and $47,000 for the six months ended June 30, 2017, and 2016, respectively.