Asset Retirement Obligations

9 Months Ended

Sep. 30, 2012

Asset Retirement Obligations [Abstract]

5) Asset Retirement Obligations

We record the fair value of the reclamation liability for our inactive mining properties and our operating oil and gas properties as of the date that the liability is incurred. We review the liability each quarter and determine if a change in estimate is required as well as accrete the discounted liability on a quarterly basis for the future liability. Final determinations are made during the fourth quarter of each year. We deduct any actual funds expended for reclamation during the quarter in which it occurs.

The following is a reconciliation of the total liability for asset retirement obligations:

	(In thousands)
	September 30,		December 31,
	2012		2011
Beginning asset retirement obligation	$	510	$	303
Accretion of discount		25		23
Liabilities incurred		133		187
Liabilities sold		--		(3	)
Ending asset retirement obligation	$	668	$	510

Mining properties	$	158	$	149
Oil & Gas wells		510		361
Ending asset retirement obligation	$	668	$	510

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

+ References+ Details