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Asset Retirement Obligations
 6 Months Ended
Jun. 30, 2014
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
ASSET RETIREMENT OBLIGATIONS

We are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets. Our oil and natural gas wells are plugged and abandoned when the oil and natural gas reserves in those wells are depleted or the wells are no longer able to produce. The plugging and abandonment liability for a well is recorded in the period in which the obligation is incurred (at the time the well is drilled or acquired). None of our assets are restricted for purposes of settling these AROs. All of our AROs relate to the plugging costs associated with our oil and gas wells.

The following table shows certain information about our AROs for the periods indicated:
 
Six Months Ended
 
June 30,
 
2014
 
2013
 
(In thousands)
ARO liability, January 1:
$
133,657

 
$
146,159

Accretion of discount
2,366

 
2,825

Liability incurred
1,900

 
2,869

Liability settled
(1,917
)
 
(3,192
)
Liability sold
(877
)
 
(324
)
Revision of estimates (1)
(14,538
)

(11,298
)
ARO liability, June 30:
120,591

 
137,039

Less current portion
3,118

 
2,948

Total long-term ARO
$
117,473

 
$
134,091

_______________________ 
(1)
Plugging liability estimates were revised in both 2014 and 2013 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.