Asset Retirement Obligation

12 Months Ended

Dec. 31, 2011

Asset Retirement Obligation [Abstract]

Note 8. Asset Retirement Obligation

The Company has a non-cash asset and corresponding liability for the present value of the estimated asset retirement obligation associated with certain equipment. The asset is depreciated over the estimated remaining useful life while the liability accretes to the amount of the estimated retirement obligation.

The following is a summary of the change in the carrying amount of the asset retirement obligation, the net book value of the asset related to the retirement obligation and the related depreciation expense recorded.

	2011		2010
Asset retirement obligation balance at beginning of year	$	805	$	772
Liabilities (non-current) incurred		-		-
Liabilities settled		-		-
Accretion expense - cost of goods sold		34		33
Asset retirement obligation balance at end of year	$	839	$	805

Net book value of asset retirement obligation asset at end of year	$	448	$	520

Depreciation expense	$	72	$	72

- 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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