Note 6 - Property, Plant and Equipment

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Property, Plant and Equipment Disclosure [Text Block]

6 . PROPERTY, PLANT AND EQUIPMENT

	Estimated
	Useful Lives		As of December 31,
	(Years)		2018			2019
			(dollars in thousands)
Land		N/A	$	24,705		$	24,705
Land improvements		10-20		5,758			5,831
Pipelines and facilities		5-30		116,155			105,985
Storage and terminal facilities		10-35		321,096			328,092
Transportation equipment		3-10		2,798			3,613
Office property and equipment and other		3-20		26,980			27,292
Pipeline linefill and tank bottoms		N/A		10,297			8,148
Construction-in-progress		N/A		4,026			3,515
Property, plant and equipment, gross				511,815			507,181
Accumulated depreciation				(263,554	)		(274,404	)
Property, plant and equipment, net			$	248,261		$	232,777

Plant, property and equipment under operating leases at

December 31, 2019

, in which the Partnership is the lessor, had a cost basis of

$287.7

 million and accumulated depreciation of

$181.4

 million.

Depreciation expense for the years ended

December 31, 2018

and

2019

was

$26.9

 million and

$22.5

 million, respectively.

During the year ended

December 31, 2019,

the Partnership sold various surplus assets, including

three

truck stations, a portion of pipeline linefill, and a

35

-mile, standalone portion of its Mid-Continent pipeline system.  Proceeds received during the year for these sales were

$5.7

 million and resulted in a net gain on sale of assets of

$0.5

 million.  In addition, proceeds received during the year ended ended

December 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.

During the year ended

December 31, 2018,

the Partnership recognized fixed asset impairment expenses of approximately

$40.7

million related to a markdown of our pipeline system to estimated fair value,

$1.7

million related to the market value of its pipeline linefill assets and

$0.4

million related to the value of obsolete trucking stations in Oklahoma and Colorado.

On

July 12, 2018,

the Partnership sold certain asphalt terminals, storage tanks and related real property, contracts, permits, assets and other interests located in Lubbock and Saginaw, Texas and Memphis, Tennessee (the “Divestiture”) to Ergon Asphalt & Emulsion, Inc. for a purchase price of

$90.0

million, subject to customary adjustments. The Divestiture does

not

qualify as discontinued operations as it does

not

represent a strategic shift that will have a major effect on the Partnership’s operations or financial results. The Partnership used the proceeds received at closing to prepay revolving debt under its credit agreement.

In

April 2018,

the Partnership sold its producer field services business. The Partnership received cash proceeds at closing of approximately

$3.0

million and recorded a gain of

$0.4

million. The Partnership used the proceeds received at closing to repay revolving debt under its credit facility. The sale of the producer field services business does

not

qualify as discontinued operations as it does

not

represent a strategic shift that will have a major effect on the Partnership’s operations or financial results.

On

March 7, 2018,

the Partnership acquired an asphalt terminalling facility located in Oklahoma from a

third

party for

$22.0

million.