PLANT, PIPELINE AND EQUIPMENT

9 Months Ended

Sep. 30, 2017

PLANT, PIPELINE AND EQUIPMENT [Abstract]

PLANT, PIPELINE AND EQUIPMENT

6. PLANT, PIPELINE AND EQUIPMENT

Plant, pipeline and equipment consisted of the following:

	September 30, 2017			December 31, 2016
	(thousands of dollars)
Platinum catalyst metal	$	1,612		$	1,612
Land		5,428			5,376
Plant, pipeline and equipment		183,472			154,107
Construction in progress		42,930			33,391
Total plant, pipeline and equipment		233,442			194,486
Less accumulated depreciation		(61,394	)		(54,477	)
Net plant, pipeline and equipment	$	172,048		$	140,009

Plant, pipeline, and equipment serve as collateral for our amended and restated credit agreement. See Note 10.

Interest capitalized for construction was approximately $218,000 and $52,000 for the three and $878,000 and $124,000 for the nine months ended September 30, 2017, and September 30, 2016, respectively.

Construction in progress during the first nine months of 2017 included equipment purchased for the hydrogenation/distillation project and updates to B Plant equipment 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 and $25,000 and $72,000 for the nine months ended September 30, 2017, and 2016, respectively.