Asset Retirement Obligations, Contractual Third-Party Reclamation Receivables, and Reclamation Deposits

6 Months Ended

Jun. 30, 2011

Asset Retirement Obligations, Contractual Third-Party Reclamation Receivables, and Reclamation Deposits [Abstract]

ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS

ASSET RETIREMENT OBLIGATIONS, CONTRACTUAL THIRD-PARTY RECLAMATION RECEIVABLES, AND RECLAMATION DEPOSITS

The asset retirement obligations, contractual third-party reclamation receivables, and reclamation deposits for each of the Company’s mines and ROVA at June 30, 2011 are summarized below:


			Contractual Third-
	Asset Retirement		Party Reclamation		Reclamation
	Obligations		Receivables		Deposits
	(In thousands)
Rosebud	$	107,608	$	15,034	$	71,997
Jewett		80,692		80,692		—
Absaloka		33,150		527		—
Beulah		18,543		—		—
Savage		2,789		—		—
ROVA		742		—		—

Total	$	243,524	$	96,253	$	71,997

Asset Retirement Obligations

Changes in the Company’s asset retirement obligations are as follows:


	Six Months Ended
	June 30,
	2011			2010
	(In thousands)
Asset retirement obligations, beginning of period	$	241,643		$	244,614
Accretion		10,039			9,584
Liabilities settled		(8,158	)		(6,628	)

Asset retirement obligations, end of period		243,524			247,570
Less current portion		(15,956	)		(16,201	)

Asset retirement obligations, less current portion	$	227,568		$	231,369

Contractual Third-Party Reclamation Receivables

The Company has recognized an asset of $96.3 million as contractual third-party reclamation receivables, representing the present value of customer obligations to reimburse the Company for reclamation expenditures at the Company’s Rosebud, Jewett and Absaloka Mines.

Reclamation Deposits

The Company’s reclamation deposits will be used to fund final reclamation activities. The Company’s carrying value and estimated fair value of its reclamation deposits at June 30, 2011 are as follows:


	Carrying Value		Fair Value
	(In thousands)
Cash and cash equivalents	$	36,353	$	36,353
Held-to-maturity securities		18,624		20,097
Time deposits		15,903		15,903
Available-for-sale securities		1,117		1,117

	$	71,997	$	73,470

The Company recorded a gain of $0.1 million on the sale of available-for-sale securities held as reclamation deposits in the six months ended June 30, 2011.

Held-to-maturity and Available-for-sale Reclamation Deposits

The amortized cost, gross unrealized holding gains and losses and fair value of held-to-maturity securities at June 30, 2011 are as follows (in thousands):


Amortized cost	$	18,624
Gross unrealized holding gains		1,493
Gross unrealized holding losses		(20	)

Fair value	$	20,097

Maturities of held-to-maturity securities at June 30, 2011 are as follows:


	Amortized Cost		Fair Value
	(In thousands)
Due in five years or less	$	7,092	$	7,256
Due after five years to ten years		5,004		5,442
Due in more than ten years		6,528		7,399

	$	18,624	$	20,097

The cost basis, gross unrealized holding gains and fair value of available-for-sale securities at June 30, 2011 are as follows (in thousands):


Cost basis	$	1,000
Gross unrealized holding gains		117

Fair value	$	1,117