Asset Retirement Obligation

9 Months Ended

Sep. 30, 2011

Asset Retirement Obligation [Abstract]

ASSET RETIREMENT OBLIGATION

12. ASSET RETIREMENT OBLIGATION

During 2008, we recorded $11.5 million representing the estimated fair value of asset retirement obligations related to the legal requirement to close several lagoons at the Spring Grove, PA facility. Historically, the lagoons were used to dispose of residual waste material. Closure of the lagoons will be accomplished by filling the lagoons, and installing a non-permeable liner which will be covered with soil to construct the required cap over the lagoons. The amount referred to above, in addition to an upward revision in 2009, was accrued with a corresponding increase in the carrying value of the property, equipment and timberlands caption on the consolidated balance sheet. The amount capitalized is being amortized as a charge to operations on the straight-line basis over the expected closure period. Following is a summary of activity recorded during the first nine months of 2011 and 2010:

In thousands	2011			2010
Balance at January 1,	$	9,717		$	11,292
Accretion		388			457
Payments		(1,018	)		(1,008	)
Balance at September 30,	$	9,087		$	10,741

Of the total liability at September 30, 2011, $1.5 million is recorded in the accompanying consolidated balance sheet, under the caption “Other current liabilities” and $7.6 million is recorded under the caption “Other long-term liabilities.”