OTHER NON-CURRENT ASSETS |
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| Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| OTHER NON-CURRENT ASSETS |
NOTE 6 — OTHER NON-CURRENT ASSETS
Other non-current assets consist of the following (in thousands):
Land Lease and Purchase Options
During the first quarter of 2022, we exercised the final land purchase options related to the Driftwood terminal. Land purchase options held by the Company as of December 31, 2022 are related to the Driftwood pipeline.
Permitting Costs
Permitting costs primarily represent the purchase of wetland credits in connection with our permit application to the USACE in 2017, which was supplemented in 2018. The permit was issued on May 3, 2019 (the “Permit”). These wetland credits were transferred to construction in progress upon issuing the limited notice to proceed to Bechtel in March 2022. See Note 4, Property, Plant and Equipment, for further information. The purchase of these wetland credits was a condition of the Permit in accordance with the Clean Water Act and the Rivers and Harbors Act, which requires us to mitigate the potential impact to Louisiana wetlands that might be caused by the construction of the Driftwood Project.
Restricted Cash
Restricted cash as of December 31, 2022 and December 31, 2021, represents the cash collateralization of letters of credit associated with finance leases.
Investment in Unconsolidated Entities
On February 24, 2022, the Company purchased 1.5 million ordinary shares of an unaffiliated entity that provides renewable energy services. The total cost of this investment was approximately $6.1 million. This investment does not provide the Company with a controlling financial interest in or significant influence over the operating or financial decisions of the unaffiliated entity. The Company’s investment was recorded at cost.
Note Receivable The Company issued an amended and restated $6.6 million promissory note due June 14, 2024 (the “Promissory Note”) to an unaffiliated entity (the “Borrower”) engaged in the development of infrastructure projects in the energy industry. The Promissory Note is collateralized by a secondary interest in the Borrower’s rights to certain land lease agreements. The Promissory Note bears interest at a rate of 6.00%, which will be capitalized into the outstanding principal balance annually.
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