Asset Retirement Obligations

3 Months Ended

Mar. 31, 2014

6. Asset Retirement Obligations

The Company’s asset retirement obligations primarily represent the estimated fair value of the amounts that will be incurred to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include, but are not limited to, estimates of plugging and abandonment costs, estimated future inflation rates and changes in property lives. The inputs are calculated based on historical data as well as current estimated costs. The following summarizes changes in the Company’s asset retirement obligations during the three months ended March 31, 2014:

	2014
	(In thousands)
Carrying amount at January 1	$	20,601
Accretion expense		440
Carrying amount at March 31	$	21,041

Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying statements of operations.