Asset Retirement Obligations

9 Months Ended

Sep. 30, 2022

Asset Retirement Obligation Disclosure [Abstract]

(9) ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well lives. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for nine months ended September 30, 2022 and the year ended December 31, 2021 is as follows (in thousands):


	Nine Months Ended September 30, 2022			Year Ended December 31, 2021
Beginning of period	$	95,836		$	79,822
Liabilities incurred		2,926			73
Liabilities settled		(8,887	)		(8,197	)
Accretion expense		5,190			5,511
Change in estimate		464			18,627
End of period		95,529			95,836
Less current portion		(5,310	)		(5,310	)
Long-term asset retirement obligations	$	90,219		$	90,526

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