ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2011

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

6.             ASSET RETIREMENT OBLIGATIONS

We estimate the fair values of asset retirement obligations (“AROs”) based on historical experience of plug and abandonment costs by field and, assumptions and judgments regarding such factors as the existence of a legal obligation for an ARO; estimated probabilities, amounts and timing of settlements; the credit-adjusted risk-free rate to be used and inflation rates.

Asset Retirement Obligations Rollforward
Beginning January 1, 2011 liability	$	9,834,021
Accretion expense	381,510
Liabilities incurred	74,379
Liabilities settled	(223,130		)
Revisions	(10,568		)
Ending September 30, 2011 liability	$	10,056,212