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Asset Retirement Obligations
 9 Months Ended
Sep. 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:
 
Nine Months Ended
 
September 30,
 
2014
 
2013
 
(In thousands)
ARO liability, January 1:
$
133,657

 
$
146,159

Accretion of discount
3,538

 
4,152

Liability incurred
2,889

 
3,820

Liability settled
(3,936
)
 
(3,439
)
Liability sold
(1,206
)
 
(632
)
Revision of estimates (1)
(38,263
)

(16,166
)
ARO liability, September 30:
96,679

 
133,894

Less current portion
2,718

 
2,954

Total long-term ARO
$
93,961

 
$
130,940

_______________________ 
(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.