Quarterly report pursuant to Section 13 or 15(d)

PLANT, PIPELINE AND EQUIPMENT

PLANT, PIPELINE AND EQUIPMENT

3 Months Ended

Mar. 31, 2018

PLANT, PIPELINE AND EQUIPMENT [Abstract]

6. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:

	March 31, 2018			December 31, 2017
	(thousands of dollars)
Platinum catalyst metal	$	1,612		$	1,612
Land		5,428			5,428
Plant, pipeline and equipment		188,529			186,946
Construction in progress		60,441			50,996
Total plant, pipeline and equipment		256,010			244,982
Less accumulated depreciation		(65,871	)		(63,240	)
Net plant, pipeline and equipment	$	190,139		$	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 $304,000 and $374,000 for the three months ended March 31, 2018 and 2017, respectively.

Labor capitalized for construction was approximately $1.2 million and $0.8 million for the three months ended March 31, 2018, and 2017, respectively.

Construction in progress during the first three 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 $25,000 for the three months ended March 31, 2018 and 2017, respectively.