Asset Retirement Obligations

3 Months Ended

Mar. 31, 2021

13. Asset Retirement Obligations

Asset retirement obligations were estimated by management based on Epsilon’s net ownership interest in all wells and the gathering system, estimated costs to reclaim and abandon such assets and the estimated timing of the costs to be incurred in future periods.

The following tables summarize the changes in asset retirement obligations for the periods indicated:


	Three Months Ended		Year ended
		March 31,		December 31,
	2021		2020
Balance beginning of period	$	3,150,243	$	2,909,855
Liabilities from drilling of new wells		6,908		5,826
Wells plugged and abandoned		(31,945)		(850)
Change in estimates		—		32,668
Accretion		25,923		202,744
Balance end of period	$	3,151,129	$	3,150,243