Fair Value Measurements

9 Months Ended

Sep. 30, 2013

Fair Value Measurements [Abstract]

Fair Value Measurements

6)       Fair Value Measurements

We follow authoritative guidance regarding fair value measurements for all assets and liabilities measured at fair value.  That guidance establishes a fair value hierarchy that prioritizes the inputs the Company uses to measure fair value based on the significance level of the following inputs:

· Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets.

· Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, and model-derived valuations whose inputs or significant value drivers are observable.

· Level 3 - Significant inputs to the valuation model are unobservable.

Our assessment of the significance of a particular input to the fair value measurement requires judgment and may affect the valuation of the nonfinancial assets and liabilities and their placement in the fair value hierarchy levels.  As of September 30, 2013, we held $75,000 of investments in marketable securities.  We determine our estimate of the fair value of derivative instruments using a market approach based on several factors, including quoted prices in active markets, and quotes from third parties.

The following table is a listing of the Company's assets and liabilities that are measured at fair value and their classification within the fair value hierarchy as of September 30, 2013.

	(In thousands)
			Fair Value Measurements at September 30, 2013 Using
	September 30,		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
Description	2013		(Level 1)		(Level 2)		(Level 3)
Commodity risk management assets	$	62	$	--	$	62	$	--
Available for sale securities		75		75		--		--
Total assets	$	137	$	75	$	62	$	--
Commodity risk management liability	$	647	$	--	$	647	$	--
Other accrued liabilities 1		746		--		--		746
Total liabilities	$	1,393	$	--	$	647	$	746

¹ Other accrued liabilities is the company's liability for the executive retirement program

Our other financial instruments include cash and cash equivalents, accounts receivable, accounts payable, other current liabilities and long-term debt.  The carrying amount of cash and cash equivalents, accounts receivable, accounts payable and other current liabilities approximate fair value because of their immediate or short-term maturities.  The carrying value of our debt approximates its fair market value since interest rates have remained generally unchanged from the issuance of the debt.  The fair value and carrying value of our debt was $7.2 million as of September 30, 2013.