Asset Retirement Obligations

12 Months Ended

Dec. 31, 2012

8. Asset Retirement Obligations

We estimate the fair values of AROs based on historical experience of plug and abandonment costs and assumptions and judgments regarding factors such 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.

A roll forward of our asset retirement obligation liability is as follows:

	December 31,
	2012			2011
Balance beginning of year	$	10,006,769		$	9,834,021
Accretion expense	495,389			489,077
Liabilities incurred	418,305			87,106
Liabilities settled	(787,745		)	(404,594		)
Revisions	896,488			1,159
Balance end of year	$	11,029,206		$	10,006,769

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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