PENSIONS AND OTHER POSTRETIREMENT BENEFITS (Tables)

12 Months Ended

Dec. 31, 2011

Reconciliation of Projected Benefit Obligations, Plan Assets and the Funded Status of the RIGP and the Retiree Medical Plan

The following table provides a reconciliation of projected benefit obligations, plan assets and the funded status of the RIGP and the Retiree Medical Plan for the periods indicated (in thousands):

		$00,000			$00,000			$00,000			$00,000
	RIGP						Retiree Medical Plan
	Year Ended December 31,						Year Ended December 31,
	2011			2010			2011			2010
Change in benefit obligation:
Benefit obligation at beginning of year	$	17,959		$	19,103		$	39,835		$	35,449
Service cost		284			263			303			295
Interest cost		827			906			1,927			1,982
Plan participants’ contributions		—			—			486			397
Actuarial loss (gain)		3,689			1,281			(781	)		4,490
Settlements		(1,375	)		—			—			—
Benefit payments		(93	)		(3,594	)		(2,773	)		(2,778	)
Benefit obligation at end of year	$	21,291		$	17,959		$	38,997		$	39,835
Change in plan assets:
Fair value of plan assets at beginning of year	$	4,807		$	5,427		$	—		$	—
Actual return on plan assets		890			244			—			—
Plan participants’ contributions		—			—			486			397
Employer contribution		2,389			2,730			2,287			2,381
Settlements		(1,375	)		—			—			—
Benefits paid		(93	)		(3,594	)		(2,773	)		(2,778	)
Fair value of plan assets at end of year	$	6,618		$	4,807		$	—		$	—
Funded status at end of year	$	(14,673	)	$	(13,152	)	$	(38,997	)	$	(39,835	)

Amounts Recognized in Consolidated Balance Sheets

Amounts recognized in our consolidated balance sheets consist of the following at the dates indicated (in thousands):

		$00,000		$00,000		$00,000			$00,000
	RIGP				Retiree Medical Plan
	December 31,				December 31,
	2011		2010		2011			2010
Liabilities:
Accrued employee benefit liabilities—current	$	—	$	—	$	3,071		$	3,817
Accrued employee benefit liabilities—noncurrent	$	14,673	$	13,152	$	35,926		$	36,018
AOCI:
Net actuarial loss	$	11,160	$	9,829	$	13,078		$	15,103
Prior service credit		—		—		(4,353	)		(7,318	)
Total	$	11,160	$	9,829	$	8,725		$	7,785

Accumulated Benefit Obligation in Excess of Plan Assets for the RIGP

Information regarding the accumulated benefit obligation in excess of plan assets for the RIGP is as follows at the dates indicated (in thousands):

	RIGP
	December 31,
	2011		2010
Projected benefit obligation	$	21,291	$	17,959
Accumulated benefit obligation		14,687		11,119
Fair value of plan assets		6,618		4,807

Increasing or Decreasing the Assumed Health Care Cost Trend Rates by One Percentage Point for Each Future Year

To illustrate, increasing or decreasing the assumed health care cost trend rates by one percentage point for each future year would have had the following effects on 2011 results:

	1% Increase		1% (Decrease)
Effect on total service cost and interest cost components	$	101		$	(90	)
Effect on postretirement benefit obligation		1,449			(1,301	)

Components of Net Periodic Benefit Cost for RIGP and Retiree Medical Plan

The components of the net periodic benefit cost and other amounts recognized in OCI for the RIGP and the Retiree Medical Plan were as follows for the periods indicated (in thousands):

	RIGP									Retiree Medical Plan
	Year Ended December 31,									Year Ended December 31,
	2011			2010			2009			2011			2010			2009
Components of net periodic benefit cost:
Service cost	$	284		$	263		$	495		$	303		$	294		$	339
Interest cost		827			907			1,182			1,927			1,982			1,941
Expected return on plan assets		(347	)		(344	)		(570	)		—			—			—
Recognized gain due to curtailments		—			—			—			—			—			(749	)
Amortization of prior service cost benefit		—			(46	)		(485	)		(2,964	)		(2,964	)		(3,240	)
Actuarial loss due to settlements		694			—			7,280			—			—			—
Amortization of unrecognized losses		1,121			967			1,069			1,244			894			1,016
Net periodic benefit costs	$	2,579		$	1,747		$	8,971		$	510		$	206		$	(693	)
Other changes in plan assets and benefit obligations recognized in OCI:
Net actuarial loss (gain)	$	3,287		$	1,380		$	5,328		$	(781	)	$	4,490			875
Amortization of net actuarial gain		(1,815	)		(967	)		(1,069	)		(1,244	)		(894	)		(1,016	)
Actuarial loss due to settlements		—			—			(7,280	)		—			—			—
Amortization of prior service cost		—			46			485			2,964			2,964			3,240
Total recognized in OCI	$	1,472		$	459		$	(2,536	)	$	939		$	6,560		$	3,099
Total recognized in net period benefit cost and OCI	$	4,051		$	2,206		$	6,435		$	1,449		$	6,766		$	2,406

Amounts Currently Included in OCI in Consolidated Statement of Operations

During the year ending December 31, 2012, we expect that the following amounts currently included in OCI will be recognized in our consolidated statement of operations (in thousands):

	RIGP		Retiree Medical Plan
Amortization of unrecognized losses	$	1,389	$	1,036
Amortization of prior service cost benefit		—		(2,964	)

Estimated Benefit Payments from Expected Future Service

We estimate the following benefit payments, which reflect expected future service, as appropriate, will be paid in the years indicated (in thousands):

	RIGP		Retiree Medical Plan
2012	$	2,413	$	3,141
2013		1,575		3,217
2014		1,730		3,229
2015		2,070		3,270
2016		2,264		3,236
Thereafter		10,861		13,937

Summary of Investments in the RIGP

A summary of investments in the RIGP are as follows at the dates indicated (in thousands):

	December 31,
	2011				2010
	(Level 1)		(Level 3)		(Level 1)		(Level 3)
Mutual fund—equity securities (1)	$	880	$	—	$	609	$	—
Mutual fund—money market		1,736		—		760		—
Coal lease (2)		—		3,468		—		3,438
Fair value of plan assets	$	2,616	$	3,468	$	1,369	$	3,438

(1) This mutual fund generally seeks long-term growth of capital and income and invests in a portfolio consisting of 100% in equities.

(2) This value was determined using an expected present value of future cash flows valuation model. This plan asset relates to a 20.8% interest in a coal lease, which derives value from specified minimum royalty payments received from CONSOL Energy Inc. related to coal reserves mined from two Pennsylvania mines owned by the lessor. The coal lease extends through 2023.

Summary of Activity in Level 3 Pension Assets

The following table summarizes the activity in our Level 3 pension assets for the periods indicated (in thousands):

	Year Ended December 31,
	2011			2010
Beginning balance, January 1	$	3,438		$	3,564
Lease payments received		296			392
Unrealized gain (loss)		30			(126	)
Transfers out of Level 3		(296	)		(392	)
Ending balance, December 31	$	3,468		$	3,438

Benefit Costs

Assumptions Used in Determining Net Benefit Cost and Liabilities

The assumptions used in determining net benefit cost for the RIGP and the Retiree Medical Plan were as follows for the periods indicated:

	RIGP									Retiree Medical Plan
	Year Ended December 31,									Year Ended December 31,
	2011			2010			2009			2011			2010			2009
Weighted average expense assumptions:
Discount rate		4.7	%		5.3	%		5.5	%		5.1	%		5.8	%		5.8	%
Expected return on plan assets		6.0	%		6.0	%		7.5	%		N/A			N/A			N/A
Rate of compensation increase		4.0	%		4.0	%		4.0	%		N/A			N/A			N/A

Benefit Obligations

Assumptions Used in Determining Net Benefit Cost and Liabilities

The assumptions used in determining net benefit liabilities for the RIGP and the Retiree Medical Plan were as follows at the dates indicated:

	RIGP						Retiree Medical Plan
	December 31,						December 31,
	2011			2010			2011			2010
Weighted average balance sheet assumptions:
Discount rate		4.2	%		4.7	%		4.6	%		5.1	%
Expected return on plan assets		5.8	%		6.0	%		N/A			N/A