XML 87 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Asset retirement obligations
 12 Months Ended
Dec. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Asset retirement obligations
Asset retirement obligations
The following table presents the balance and activity of our asset retirement obligations for the years ended December 31, 2013 and 2012. 
 
 
For the year ended December 31,
 
 
2013
 
2012
Beginning balance
 
$
49,214

 
$
46,493

Liabilities incurred and assumed in current period
 
2,313

 
1,079

Revisions in estimated cash flows
 
6,723

 
—

Liabilities settled or disposed in current period
 
(7,016
)
 
(2,303
)
Accretion
 
3,945

 
3,945

 
 
55,179

 
49,214

Less current portion
 
1,874

 
2,900

 
 
$
53,305

 
$
46,314


Liabilities incurred and assumed includes obligations related to new wells drilled and wells acquired during the period. Liabilities settled or disposed for the year ended December 31, 2013 increased significantly primarily due to the divestiture of certain non-strategic oil and natural gas properties sold during 2013 combined with increased plugging and abandoning activity. The revisions in the 2013 estimates are primarily due to increases in plugging and abandonment cost estimates based in part on actual costs incurred on recently plugged wells.
We have funds held in escrow that are legally restricted for certain of our asset retirement obligations. The balance of this escrow account was $1,586 and $1,631 at December 31, 2013 and 2012, respectively, and is included in “Other assets” in our consolidated balance sheets. The balance is not intended to reflect our total future financial obligation for the plugging and abandonment of these wells.
See “Note 7—Fair value measurements” for additional information regarding fair value measurements.