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Fixed Assets and Asset Retirement Obligations | 12 Months Ended
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Dec. 31, 2020
Fixed Assets And Asset Retirement Obligations [Abstract] |
Fixed Assets and Asset Retirement Obligations | Fixed Assets, Mineral Leaseholds and Asset Retirement Obligations Fixed Assets Fixed assets consisted of the following:
| December 31,
| 2020 |  | 2019
Crude oil pipelines and natural gas pipelines and related assets | $ | 2,811,030 |  |  | $ | 2,891,489 |
Alkali facilities, machinery, and equipment | 622,598 |  |  | 591,547 |
Onshore facilities, machinery, and equipment | 267,810 |  |  | 640,376 |
Transportation equipment | 19,470 |  |  | 19,864 |
Marine vessels | 998,553 |  |  | 979,171 |
Land, buildings and improvements | 219,382 |  |  | 238,451 |
Office equipment, furniture and fixtures | 22,001 |  |  | 22,645 |
Construction in progress | 170,740 |  |  | 115,162 |
Other | 41,891 |  |  | 41,891 |
Fixed assets, at cost | 5,173,475 |  |  | 5,540,596 |
Less: Accumulated depreciation | (1,322,141) |  |  | (1,246,121) |
Net fixed assets | $ | 3,851,334 |  |  | $ | 4,294,475 |
Mineral Leaseholds Our Mineral Leaseholds, relating to our acquired Alkali Business, consist of the following:
| December 31, 2020 |  | December 31, 2019
Mineral leaseholds | $ | 566,019 |  |  | $ | 566,019 |
Less: Accumulated depletion | (13,444) |  |  | (10,194) |
Mineral leaseholds, net | $ | 552,575 |  |  | $ | 555,825 |
Depreciation expense was $276.4 million, $295.6 million and $286.0 million for the years ended December 31, 2020, 2019, and 2018, respectively. Depletion expense was $3.2 million, $4.7 million, and $4.0 million for the years ended December 31, 2020, 2019 and 2018, respectively. Asset Sales and Divestitures On October 30, 2020, we reached an agreement with a subsidiary of Denbury Inc. to transfer to it the ownership of our remaining CO2 assets, including the NEJD and Free State pipelines, included within our onshore facilities and transportation segment. As a part of the agreement, we will receive total consideration of $92.5 million, of which $22.5 million was paid in the fourth quarter of 2020 upon execution of the agreements, and the remaining $70 million will be paid in equal installments in each quarter during 2021. We recorded a loss of $22 million, which represents the difference between the proceeds and the net book value of the assets transferred, and is recorded within loss (gain) on sale of assets on the Consolidated Statements of Operations for the year ended December 31, 2020. On October 11, 2018, we completed the divestiture of our Powder River Basin midstream assets, included in our onshore facilities and transportation segment, and received total net proceeds of approximately $300 million. This sale resulted in a gain of $38.9 million recorded in loss (gain) on sale of assets in the Consolidated Statements of Operations for the year ended December 31, 2018. Additionally, we recorded an impairment expense of $21.2 million on our remaining non-core midstream assets in the Powder River Basin as the carrying value exceeded the fair value in the current market at December 31, 2018. We divested these assets during the fourth quarter of 2019. Impairment Expense During the second quarter of 2020, due to the challenging economic environment from the decline in commodity prices (including the collapse in the differential of Western Canadian Select to the Gulf Coast) and Covid-19, crude-by-rail transportation became uneconomic for producers and the current demand and outlook for our rail logistics assets declined. Due to this, we identified a triggering event that required us to perform an impairment test. For our recoverability test, we utilized management's estimates, including current contractual commitments, for our future cash inflows, and our costs and expenses were determined based on the estimated fixed and variable requirements to operate and maintain the related assets. As our rail logistics asset groups did not pass the initial recoverability assessment, we subsequently performed a fair value calculation using a discounted cash flow model under the income approach. As a result of this test, we recognized impairment expense of approximately $277 million associated with the rail logistics assets in our onshore facilities and transportation segment, as the carrying value of our assets exceeded the estimated realizable value, including approximately $272 million of net fixed assets and approximately $5 million of right of use assets, net on the Condensed Consolidated Balance Sheet. The fair value estimates used in the long-lived asset test were primarily based on level 3 inputs of the fair value hierarchy. In addition to this, we recognized impairment expense of $3.3 million during the third quarter of 2020 primarily associated with the full write-down of a non-core gas platform in our offshore transportation segment due to it not having a future use for our operations. During 2018, we recorded impairment expense of $82.0 million associated with certain of our non-core offshore gas assets in the Gulf of Mexico due to a change in contractual arrangements. Included in this amount is the acceleration in timing of the abandonment of one of our offshore hub platforms and pipelines and the write-off of its associated asset retirement obligation assets. The fair value of our assets was determined based on present value techniques. Asset Retirement Obligations We record AROs in connection with legal requirements to perform specified retirement activities under contractual arrangements and/or governmental regulations. For any AROs acquired, we record AROs based on the fair value measurement assigned during the preliminary purchase price allocation. A reconciliation of our liability for asset retirement obligations is as follows:
December 31, 2018 | $ | 239,865 |
Accretion expense | 9,402 |
Revisions in timing and estimated costs of AROs | (20,529) |
Settlements | (53,657) |
December 31, 2019 | 175,081 |
Accretion expense | 9,131 |
Revisions in timing and estimated costs of AROs | 5,792 |
Settlements | (13,152) |
December 31, 2020 | $ | 176,852 |
At December 31, 2020 and December 31, 2019, $14.7 million and $26.6 million are included as current in "Accrued liabilities" on our Consolidated Balance Sheets, respectively. Revisions in timing and estimated costs during 2020 and 2019 are primarily attributable to the accelerated timing and revised costs associated with the abandonment of certain of our non-core offshore gas assets in the Gulf of Mexico. As there are significant judgements involved in deriving our estimates, actual costs, including the scope of work once it is approved by the relative regulatory agency or contracted party, may differ from our estimates. The remainder of the ARO liability at each period is included in "Other long-term liabilities" on our Consolidated Balance Sheet. With respect to our AROs, the following table presents our forecast of accretion expense for the periods indicated:
2021 | $ | 10,058 |
2022 | $ | 9,384 |
2023 | $ | 9,128 |
2024 | $ | 9,783 |
2025 | $ | 10,487 |
Certain of our unconsolidated affiliates have AROs recorded at December 31, 2020 relating to contractual agreements and regulatory requirements. These amounts are immaterial to our Consolidated Financial Statements.

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