Land, Property and Equipment

9 Months Ended

Sep. 30, 2022

Property, Plant and Equipment [Abstract]

Land, Property and Equipment

Note 10—Land, Property and Equipment

Land, property and equipment, net as of December 31, 2021 and September 30, 2022 consisted of the following (in thousands):

	December 31,		September 30,
	2021		2022
Land	$	3,476	$	3,476
LNG liquefaction plants		94,633		94,633
Station equipment		354,699		353,132
Trailers		72,783		73,117
Other equipment		93,135		95,799
Construction in progress		74,963		76,660
		693,689		696,817
Less accumulated depreciation		(431,928)		(447,915)
Total land, property and equipment, net	$	261,761	$	248,902

Included in "Land, property and equipment, net" are capitalized software costs of $33.8 million and $35.0 million as of December 31, 2021 and September 30, 2022, respectively. Accumulated amortization of the capitalized software costs are $30.4 million and $31.7 million as of December 31, 2021 and September 30, 2022, respectively.

The Company recorded amortization expense related to capitalized software costs of $0.3 million and $0.7 million for the three months ended September 30, 2021 and 2022, respectively, and $1.2 million and $1.3 million for the nine months ended September 30, 2021 and 2022, respectively.

As of December 31, 2021 and September 30, 2022, $2.1 million and $2.9 million, respectively, are included in "Accounts payable" and "Accrued liabilities" in the accompanying condensed consolidated balance sheet, representing

amounts related to purchases of property and equipment. These amounts are excluded from the accompanying condensed consolidated statements of cash flows as they are non-cash investing activities.

Fueling Station Equipment Removal

The Company was requested by Pilot Travel Centers LLC (“Pilot”) to remove station equipment at select Pilot locations to accommodate Pilot making physical changes to the premises, which required the removal of the Company’s station equipment. The premises, where the affected fueling stations are located, were secured by long-term lease agreements between Pilot and the Company pursuant to which the Company had contractual rights to operate its fueling stations until the expiration of the respective leases. However, in July 2022, the Company entered into an amendment (the “Amendment”) to the Liquefied Natural Gas Fueling Station and LNG Master Sales Agreement between Pilot and Clean Energy, dated August 2, 2010, to decommission and remove station equipment from the premises where the affected fueling stations are located in accordance with a phased removal schedule. The Amendment requires the Company to remove station equipment and site improvements from the premises beginning in the third quarter of 2022 and to complete removal by the end of the first quarter of 2023. In connection with the removal of station equipment and site improvements, the Company recognized $8.1 million in accelerated depreciation expense relating to the change in depreciable life of the affected station assets and $0.7 million in incremental asset retirement obligation (“ARO”) charges. Amounts associated with the accelerated depreciation expense and incremental ARO charges are included in “Depreciation and amortization” in the accompanying condensed consolidated statements of operations for the three and nine months ended September 30, 2022.