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Other Non-Current Liabilities
6 Months Ended
Jun. 30, 2011
Other Non-Current Liabilities  
Other Non-Current Liabilities

4.                          Other Non-Current Liabilities

 

Other non-current liabilities consist of the following:

 

 

 

June 30,

 

December 31,

 

 

 

2011

 

2010

 

 

 

(In thousands)

 

Abandonment obligations

 

$

40,641

 

$

40,444

 

Other

 

857

 

857

 

 

 

$

41,498

 

$

41,301

 

 

Changes in abandonment obligations for the six months ended June 30, 2011 and 2010 are as follows:

 

 

 

Six Months Ended

 

 

 

June 30,

 

 

 

2011

 

2010

 

 

 

(In thousands)

 

Beginning of period

 

$

40,444

 

$

38,412

 

Additional abandonment obligations from new properties

 

863

 

993

 

Sales or abandonments of properties

 

(2,037

)

(1,113

)

Revisions of previous estimates

 

 

(320

)

Accretion expense

 

1,371

 

1,294

 

End of period

 

$

40,641

 

$

39,266

 

 

Our asset retirement obligation is measured using primarily Level 3 inputs.  The significant unobservable inputs to this fair value measurement include estimates of plugging, abandonment and remediation costs, inflation rate and well life.  The inputs are calculated based on historical data as well as current estimated costs.