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Asset Retirement Obligations
 9 Months Ended
Sep. 30, 2017
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 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,
 
 
2017
 
2016
 
 
(In thousands)
ARO liability, January 1:
 
$
70,170

 
$
98,297

Accretion of discount
 
2,112

 
2,147

Liability incurred
 
1,123

 
311

Liability settled
 
(1,350
)
 
(874
)
Liability sold (1)
 
(1,563
)
 
(10,758
)
Revision of estimates (2)
 
4,993


(18,102
)
ARO liability, September 30:
 
75,485

 
71,021

Less current portion
 
2,947

 
3,498

Total long-term ARO
 
$
72,538

 
$
67,523

_______________________ 
(1)
We sold our interest in a number of non-core wells to unaffiliated third-parties during the first nine months of 2017 and 2016, respectively.
(2)
Plugging liability estimates were revised in both 2017 and 2016 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments.