LONG-LIVED ASSETS

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

LONG-LIVED ASSETS

LONG-LIVED ASSETS

Property, Plant and Equipment

Property, plant and equipment consisted of the following (in thousands):

	Estimated Useful Life (yrs)	March 31, 2014			December 31, 2013
Pipelines	30	$	381,052		$	344,721
Gas processing, treating and other plants	15	258,101			254,133
Compressors	7	20,144			20,030
Rights of way and easements	15	24,998			20,729
Furniture, fixtures and equipment	5	3,428			3,347
Capital lease vehicles	3-5	1,703			1,396
Total property, plant and equipment		689,426			644,356
Accumulated depreciation and amortization		(88,414		)	(79,908		)
Total		601,012			564,448
Construction in progress		10,960			6,039
Land and other		5,190			5,308
Property, plant and equipment, net		$	617,162		$	575,795

Depreciation is provided using the straight-line method based on the estimated useful life of each asset.  Depreciation expense for the three months ended March 31, 2014 and 2013 was $8.5 million and $7.2 million, respectively.

Costs related to projects under construction, including interest on funds borrowed to finance the construction of facilities, are capitalized as construction in progress.  For the three months ended March 31, 2014 and 2013, we capitalized interest of $0.1 million and $0.6 million, respectively.

In January 2013, we shut down our Gregory facility to perform extensive turnaround maintenance activities and to connect additional equipment to enhance NGL recoveries.  As the turnaround maintenance was nearing completion in January 2013, we experienced a fire at this facility.  In connection with the fire, we spent approximately $5.3 million to return the plant to service and filed an insurance claim related to these costs.  We recovered $1.0 million from insurance for this loss during the second quarter of 2013 and believe it is probable that we will recover the remaining costs, less a $0.3 million deductible, under our insurance policies.

Intangible Assets

Intangible assets of $1.6 million as of March 31, 2014 and 2013 represent the unamortized value assigned to the long-term supply and gathering contracts acquired in 2011. These intangible assets are amortized on a straight-line basis over the 30-year expected useful lives of the contracts. Amortization expense in the consolidated financial statements presented and over the next five years related to intangible assets for the periods presented is not material.