Asset Retirement Obligation

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation Disclosure [Abstract]

Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows:


	Year Ended December 31,
(Thousands of U.S. Dollars)	2021		2020
Balance, beginning of year	$	48,214	$	43,419
Liability incurred	4,122		909
Settlements	(805)		(201)
Accretion	4,180		3,464
Revisions in estimated liability	(1,186)		623


Balance, end of year	$	54,525	$	48,214

Revisions in estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling asset retirement obligations. At December 31, 2021, the fair value of assets that was legally restricted for purposes of settling asset retirement obligations was $5.3 million (December 31, 2020 - $3.8 million). These assets were accounted for as restricted cash and cash equivalents on the Company’s balance sheet (Note 16).