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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2016
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,
 
 
2016
 
2015
 
 
(In thousands)
ARO liability, January 1:
 
$
98,297

 
$
100,567

Accretion of discount
 
2,147

 
2,599

Liability incurred
 
311

 
6,505

Liability settled
 
(874
)
 
(1,933
)
Liability sold (1)
 
(10,758
)
 
(249
)
Revision of estimates (2)
 
(18,102
)

(12,881
)
ARO liability, September 30:
 
71,021

 
94,608

Less current portion
 
3,498

 
3,481

Total long-term ARO
 
$
67,523

 
$
91,127

_______________________ 
(1)
We sold our interest in approximately 1,270 non-core wells to unaffiliated third-parties during the first nine months of 2016.
(2)
Plugging liability estimates were revised in both 2016 and 2015 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.