Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

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PLANT, PIPELINE AND EQUIPMENT
6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Abstract]  
PLANT, PIPELINE AND EQUIPMENT
PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:
 
 
June 30, 2018

 
December 31, 2017

 
 
(thousands of dollars)
Platinum catalyst metal
 
$
1,612

 
$
1,612

Land
 
5,428

 
5,428

Plant, pipeline and equipment
 
189,866

 
186,946

Construction in progress
 
63,510

 
50,996

Total plant, pipeline and equipment
 
260,416

 
244,982

Less accumulated depreciation
 
(68,332
)
 
(63,240
)
Net plant, pipeline and equipment
 
$
192,084

 
$
181,742



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

Interest capitalized for construction was approximately $427,000 and $287,000 for the three and $731,000 and $660,000 for the six months ended June 30, 2018 and 2017, respectively.

Labor capitalized for construction was approximately $0.9 million and $0.9 million for the three and $2.1 million and $1.6 million for the six months ended June 30, 2018, and 2017, respectively.

Construction in progress during the first six months of 2018 included equipment purchased for various equipment updates 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 $0 for the three and $0 and $25,000 for the six months ended June 30, 2018 and 2017, respectively.