Asset Retirement Obligations

9 Months Ended

Sep. 30, 2017

Asset Retirement Obligation Disclosure [Abstract]

(10) 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 the nine months ended September 30, 2017 is as follows (in thousands):

	Nine Months Ended September 30, 2017
Beginning of period	$	257,943
Liabilities incurred		5,597
Liabilities settled		(6,125	)
Disposition of wells		(2,427	)
Accretion expense		11,022
Change in estimate		862
End of period		266,872
Less current portion		(7,271	)
Long-term asset retirement obligations	$	259,601

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