Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

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PLANT, PIPELINE AND EQUIPMENT
9 Months Ended
Sep. 30, 2017
PLANT, PIPELINE AND EQUIPMENT [Abstract]  
PLANT, PIPELINE AND EQUIPMENT
6. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:
 
   
September 30, 2017
   
December 31, 2016
 
   
(thousands of dollars)
 
Platinum catalyst metal
 
$
1,612
   
$
1,612
 
Land
   
5,428
     
5,376
 
Plant, pipeline and equipment
   
183,472
     
154,107
 
Construction in progress
   
42,930
     
33,391
 
Total plant, pipeline and equipment
   
233,442
     
194,486
 
  Less accumulated depreciation
   
(61,394
)
   
(54,477
)
Net plant, pipeline and equipment
 
$
172,048
   
$
140,009
 


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

Interest capitalized for construction was approximately $218,000 and $52,000 for the three and $878,000 and $124,000 for the nine months ended September 30, 2017, and September 30, 2016, respectively.

Construction in progress during the first nine 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 $72,000 for the nine months ended September 30, 2017, and 2016, respectively.