Note 9 - ASSET RETIREMENT OBLIGATION

6 Months Ended

Jun. 30, 2011

Asset Retirement Obligation Disclosure [Text Block]

(9)        ASSET RETIREMENT OBLIGATION

We recognize the present value of asset retirement obligations beginning in the period in which they are incurred if a reasonable estimate of a fair value can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset. A summary of our asset retirement obligations as of June 30, 2011 is as follows (in thousands):

	Asset Retirement
Asset Category	Obligation Liability		Estimated Life
Oil and gas producing properties	$	6,989	0-16 years
Facilities and other property		1,872	6-23 years
	$	8,861

The following table describes all changes to our asset retirement obligation liability during the six months ended June 30, 2011 (in thousands):

Asset retirement obligation at beginning of  year	$	8,937
Additions during the period		-
Disposals during the period		(365	)
Revisions of estimates		-
Accretion of discount		289
Asset retirement obligation at end of period	$	8,861