11. PROPERTY, PLANT AND EQUIPMENT

Our property, plant and equipment is comprised of the following:

	Depreciation		December 31,
	Rates		2016		2015

			(in millions)
Land		-	$	103.2	$	62.9
Rights-of-way		1.80% – 13.00%		932.2		952.5
Pipelines		1.79% – 13.00%		10,448.6		10,376.3
Pumping equipment, buildings and tanks		1.48% – 13.00%		4,953.8		4,232.3
Compressors, meters and other operating equipment		1.80% – 20.00%		2,182.6		2,147.6
Vehicles, office furniture and equipment		1.33% – 33.33%		233.8		280.0
Processing and treating plants		2.21% – 4.00%		630.0		627.8
Construction in progress				896.8		1,968.8
Total property, plant and equipment				20,381.0		20,648.2
Accumulated depreciation				(3,658.4)		(3,235.8)
Property, plant and equipment, net			$	16,722.6	$	17,412.4

Depreciation expense for the years ended December 31, 2016, 2015, and 2014, was $552.5 million, $512.4 million, and $445.4 million, respectively.

In December 2016, we entered into an agreement to sell the Ozark pipeline system to a subsidiary of MPLX LP for cash proceeds of approximately $209.0 million plus an estimated $10.2 million in reimbursable capital costs up to the closing date of the transaction. Subject to certain pre-closing conditions, the transaction is expected to close by the end of the first quarter of 2017. These assets are part of our Liquids segment and have a carrying value of $206.8 million, which are presented in “Assets held for sale” on our consolidated statements of financial position. As of December 31, 2016, we reclassified these assets from property, plant and equipment to assets held for sale and measured them at the lower of carrying value or fair value less costs to sell, which did not result in a fair value adjustment. We ceased recognizing depreciation expense on these assets upon reclassification.

Impairments

During the years ended December 31, 2016, 2015, and 2014, we recorded non-cash impairment losses of $767.7 million, $74.8 million and $15.6 million, as discussed below, which is included in “Asset impairment” on our consolidated statements of income.

Liquids

On September 1, 2016, we announced that we applied for the withdrawal of regulatory applications pending with the MNPUC for the Sandpiper Project which is included in our Liquids segment. In connection with this announcement and other factors, we evaluated the project for impairment. As a result of the analysis, we recognized an impairment loss of $756.7 million for the year ended December 31, 2016. Of that amount, $267.4 million is attributable to noncontrolling interest, or NCI. The estimated remaining fair value of $54.5 million of the Sandpiper Project is based on the estimated price that would be received to sell unused pipe, land and other related equipment in its current condition, considering the current market conditions for sale of these assets. The valuation considered a range of potential selling prices from various alternatives that could be used to dispose of these assets. The estimated fair value, with the exception of $2.6 million in land, was reclassified to “Other assets, net” on our consolidated statement of financial position as of December 31, 2016.

During the year ended December 31, 2015, due to contracts that would not be renewed after 2016, we recorded a non-cash impairment loss of $62.5 million to write off the remaining carrying value of our Berthold rail facility.

Natural Gas

On August 15, 2016, MEP sold certain trucks, trailers and related facilities which we include in our Natural Gas segment. The sales price was $12.1 million and the assets had a total carrying amount of $14.0 million at the date of sale. The loss on disposal of $1.9 million for the year ended December 31, 2016, is included in “Operating and administrative” expense on our consolidated statement of income. During the year ended December 31, 2016, MEP recorded $10.6 million in non-cash impairment charges on these assets.

On July 31, 2015, MEP sold its non-core Tinsley crude oil pipeline, storage facilities, and docks and its non-core Louisiana propylene pipeline for $1.3 million. These assets are part of our Natural Gas segment and had a combined carrying value of $4.5 million at the date of sale. The loss on disposal of $3.2 million for the year December 31, 2015, is included in “Operating and administrative” expense on our consolidated statement of income. In addition, for each of the years ended December 31, 2015 and 2014, MEP recorded $12.3 million and $15.6 million, respectively, in non-cash impairment charges on these assets.