Note 4 - Property, Plant and Equipment

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

4. PROPERTY, PLANT AND EQUIPMENT

During the

three

months ended

March 31, 2020,

the Partnership recognized asset impairment expense of 

$5.1

 million.  This impairment primarily relates to a write-down of the value of the Partnership’s crude oil linefill from

$8.1

 million as of

December 31, 2019,

to

$4.0

million as of

March 31, 2020,

based on the market price of crude oil as of

March 31, 2020. 

Early in the quarter,

$0.8

million of incremental crude oil linefill was acquired to meet the requirements of the pipeline system, resulting in a total impairment on the crude oil linefill of

$4.9

million. During the 

three

months ended

March 31, 

2019,

the Partnership recognized asset impairment expense of 

$1.1

million. A change in estimate of the push-down impairment related to Cimarron Express Pipeline, LLC (“Cimarron Express”) resulted in additional impairment expense of 

$0.8

million, which was recorded at the corporate level (see Note

8

 for more information). In addition, a flood at an asphalt terminal in Wolcott, Kansas, led to an impairment of 

$0.3

million during that period.

During the

three

months ended

March 31, 2020,

the Partnership had an immaterial loss on the disposal of assets for repair.  During the 

three

months ended

March 31, 

2019,

the Partnership sold various surplus assets, including the sale of

three

truck stations for 

$1.6

million, which resulted in a gain of 

$1.5

million, and the sale of pipeline linefill for 

$1.6

million, which resulted in a gain of 

$0.2

million. In addition, proceeds received during the 

three

months ended

March 31, 

2019,

included 

$2.6

million related to a sale of pipeline linefill in

December 2018,

for which the proceeds were received in

January 2019.