PROPERTY AND EQUIPMENT

6 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Abstract]

Our property and equipment consist of the following as of the dates indicated:



	June 30, 2017			December 31, 2016			Estimated Useful Lives (Years)
	(in thousands)						Estimated Useful Lives (Years)
Land	$	10,775		$	9,636		N/A
Trackage and facilities	124,527			108,782			20
Pipeline	15,653			10,313			20
Equipment	12,531			8,234			5-10
Furniture	82			44			5
Total property and equipment	163,568			137,009
Accumulated depreciation	(17,764		)	(13,821		)
Construction in progress	2,822			2,514
Property and equipment, net	$	148,626		$	125,702

The amounts classified as “Construction in progress” are excluded from amounts being depreciated. These amounts represent property that is not yet ready to be placed into productive service as of the respective consolidated balance sheet date.

On June 2, 2017, we acquired a 76-acre crude oil terminal in Stroud, Oklahoma, the Stroud terminal, for $22.8 million in cash, to facilitate rail-to-pipeline shipments of crude oil from our Hardisty terminal to Cushing, Oklahoma. The Stroud terminal includes unit train-capable unloading capacity of approximately 50,000 barrels per day, or Bpd, expandable to approximately 70,000 Bpd, as well as onsite tanks with 140,000 barrels of total capacity and a truck bay. Additionally, the terminal includes a 12-inch diameter, 17-mile pipeline with a direct connection to the crude oil storage hub located in Cushing, Oklahoma. Our acquisition of the Stroud terminal also included the purchase of approximately $1.4 million of crude oil used by the prior owner for line fill and tank bottoms and approximately $1.3 million of one-time costs we capitalized in connection with the transaction.

We accounted for the acquisition of the Stroud Terminal as an asset purchase, as a result of our early adoption of Financial Accounting Standards Board, or FASB, Accounting Standards Update No. 2017-01, or ASU 2017-01, which clarifies the definition of a business as set forth in Topic 805 of the FASB Accounting Standards Codification, or ASC.