Decommissioning Obligations

12 Months Ended

Dec. 31, 2019

Decommissioning Obligations

Decommissioning Obligations

Note 17. Decommissioning Obligations

	2019		2018
Decommissioning obligations, beginning of year	$	13,641	$	13,699
Changes in estimates		1,167		(338)
Accretion		210		280
Decommissioning obligations, end of year	$	15,018	$	13,641

Decommissioning obligations represent the present value of estimated remediation and reclamation costs associated with hydrocarbon properties and property, plant and equipment. As at December 31, 2019 and 2018, management revised its estimates of the expected decommissioning obligations related to its hydrocarbon production and processing assets. The Group discounted the decommissioning obligations using an average discount rate of 1.61% (2018: 1.98%), which is the risk-free rate in Canada for blended government securities.

The Group’s decommissioning obligations are unsecured and will be funded from future cash flows from operations.