Asset Retirement Obligation

9 Months Ended

Sep. 30, 2012

Asset Retirement Obligation [Abstract]

ASSET RETIREMENT OBLIGATION

10. 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 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 upward revisions to the original estimate, 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 a straight-line basis over the expected closure period. Following is a summary of activity recorded during the first nine months of 2012 and 2011:

In thousands	2012			2011
Balance at Jan. 1,	$	9,679		$	9,717
Accretion		347			388
Payments		(945	)		(1,018	)
Balance at Sept. 30,	$	9,081		$	9,087

At September 30, 2012, $3.1 million of the total liability is recorded in the accompanying consolidated balance sheet, under the caption “Other current liabilities” and $6.0 million is recorded under the caption “Other long-term liabilities.”