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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2016
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

Note 12. Asset Retirement Obligations

The Company has asset retirement obligations associated with the future plugging and abandonment of oil and gas properties and related facilities. Revisions to the liability typically occur due to changes in the estimated abandonment costs, well economic lives, and the discount rate.

The following table summarizes the Company’s asset retirement obligation transactions recorded during the years ended December 31, 2016 and 2015 (in thousands):

 

 

 

2016

 

 

2015

 

Beginning asset retirement obligations

 

$

5,075

 

 

$

6,078

 

Liabilities incurred

 

 

165

 

 

 

126

 

Liabilities settled

 

 

(15

)

 

 

(108

)

Accretion expense

 

 

551

 

 

 

550

 

Acquisitions (1)

 

 

250

 

 

 

—

 

Purchase price adjustment (2)

 

 

—

 

 

 

(1,192

)

Property dispositions

 

 

—

 

 

 

(403

)

Revision of estimates

 

 

(13

)

 

 

24

 

Ending asset retirement obligations

 

$

6,013

 

 

$

5,075

 

 

 

(1)

See Note 3 Acquisitions and Divestitures for additional information on the Company's acquisition activities.

 

(2)

The Company recorded a purchase price adjustment in 2015 related to the Exchange.  The adjustment decreased the allocation of asset retirement obligations due to adjusting the estimates of liabilities assumed to match the Company’s methodology.  See Note 3 Acquisition and Divestitures.