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PROPERTY, PLANT, AND EQUIPMENT, NET
9 Months Ended
Sep. 30, 2020
Property Plant And Equipment [Abstract]  
PROPERTY, PLANT, AND EQUIPMENT, NET

4. PROPERTY, PLANT AND EQUIPMENT, NET

Details on property, plant and equipment follow.

 

 

 

September 30, 2020

 

 

December 31, 2019

 

 

 

(In thousands)

 

Gathering and processing systems and related equipment

 

$

2,197,087

 

 

$

2,182,950

 

Construction in progress

 

 

78,146

 

 

 

78,716

 

Land and line fill

 

 

10,440

 

 

 

10,137

 

Other

 

 

60,589

 

 

 

54,595

 

Total

 

 

2,346,262

 

 

 

2,326,398

 

Less accumulated depreciation

 

 

(505,978)

 

 

 

(443,909)

 

Property, plant and equipment, net

 

$

1,840,284

 

 

$

1,882,489

 

 

In March 2020, in connection with the cancellation of a compressor station project in the DJ Basin due to delays in customer drilling plans, the Partnership recorded an impairment charge of $3.6 million for the related soft project costs.

In March 2019, certain events occurred which indicated that certain long-lived assets in the DJ Basin and Barnett Shale reporting segments could be impaired. Consequently, in the first quarter of 2019, the Partnership performed a recoverability assessment of certain assets within these reporting segments, the results of which are described below.

In March 2019, the Partnership determined that certain processing plant assets in the DJ Basin related to its existing 20 MMcf/d plant would no longer be utilized due to the Partnership’s expansion plans for the Niobrara G&P system. Based on the results of the recoverability assessment and the conclusion that the carrying value was not fully recoverable, the Partnership recorded an impairment charge of $34.7 million related to these assets in the first quarter of 2019.

In March 2019, the Partnership determined that certain compressor station assets in the Barnett Shale were impaired and recorded an impairment charge of $10.2 million, comprised of a $9.7 million impairment of fixed assets and a $0.5 million impairment of rights-of-way.

 

Depreciation expense and capitalized interest follow.

 

 

 

Three months ended September 30,

 

 

Nine months ended September 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

 

 

(In thousands)

 

Depreciation expense

 

$

21,537

 

 

$

19,474

 

 

$

64,899

 

 

$

58,160

 

Capitalized interest

 

 

1,449

 

 

 

1,391

 

 

 

2,268

 

 

 

5,752