CorEnergy Infrastructure Trust, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment

Property and Equipment

6 Months Ended

Jun. 30, 2016

Property, Plant and Equipment [Abstract]

Property and equipment consists of the following:



Property and Equipment
	June 30, 2016			December 31, 2015
Land	$	580,000		$	580,000
Natural gas pipeline	124,713,233			124,386,349
Vehicles and trailers	570,267			524,921
Office equipment and computers	87,696			87,696
Gross property and equipment	$	125,951,196		$	125,578,966
Less: accumulated depreciation	(7,615,837		)	(5,948,988		)
Net property and equipment	$	118,335,359		$	119,629,978

Depreciation of property and equipment is as follows:



	For the Three Months Ended				For the Six Months Ended
	June 30, 2016		June 30, 2015		June 30, 2016		June 30, 2015
Depreciation Expense	$	842,040	$	833,456	$	1,676,945	$	1,665,658

Assets and Liabilities Held for Sale

Effective February 29, 2016, the Company foreclosed on 100 percent of the equity of BB Intermediate, the holding company of BBWS, the borrower of the Black Bison financing notes. On June 16, 2016 the Company entered into an asset sale agreement with Expedition Water Solutions for the sale of specified disposal wells and related equipment as outlined in the sale agreement. Consideration received by the company included $748 thousand cash, net of fees, and the future right to cash payments totaling $6.5 million, which was fair valued at $450 thousand and is included in Accounts and other receivables within the Consolidated Balance Sheet at June 30, 2016. The rights to future cash payments are tied to the future volumes of water disposed in each of the wells sold. Also as a result of the sale, the Company recognized a loss of approximately $369 thousand which has been included in the Provision for loan losses within the Consolidated Statement of Income.

On June 30, 2016, assets acquired by BBWS in a seller-financed transaction prior to the Company's foreclosure on BB Intermediate, were returned to the seller in full satisfaction of the remaining note balance of approximately $439 thousand.

There were no assets or liabilities held for sale at June 30, 2016 or December 31, 2015.