Asset Retirement Obligations

6 Months Ended

Jun. 30, 2014

6.Asset Retirement Obligations

We recognize the fair value of liabilities for retirement obligations associated with tangible long-lived assets in the period in which there is a legal obligation associated with the retirement of such assets and the amount can be reasonably estimated. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. This liability includes costs related to the plugging and abandonment of wells, the removal of facilities and equipment, and site restorations. Subsequent to initial measurement, the asset retirement liability is required to be accreted each period. If the fair value of a recorded asset retirement obligation changes, a revision is recorded to both the asset retirement obligation and the asset retirement capitalized cost. Capitalized costs are included as a component of the DD&A calculations.

The following table reflects the components of the change in the carrying amount of the asset retirement obligation for the six months ended June 30, 2014:



(in thousands)
Asset retirement obligation at January 1, 2014	$	154,026
Liabilities incurred		7,905
Liability settlements and disposals		(7,302)
Accretion expense		3,756
Revisions of estimated liabilities		8,210
Asset retirement obligation at June 30, 2014		166,595
Less current obligation		(15,176)
Long-term asset retirement obligation	$	151,419