Asset Retirement Obligation

12 Months Ended

Dec. 31, 2012

Asset Retirement Obligation [Abstract]

12. Asset Retirement Obligation

Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following table summarizes the Company's Asset Retirement Obligation transactions for the years ended December 31, 2011 and 2012: (in thousands):


Balance December 31, 2010	$	1,437

Accretion expense		96
Liabilities incurred		57
Liabilities settled		(165	)
Revision in estimated liabilities		502
Balance December 31, 2011	$	1,927

Accretion expense		132
Liabilities incurred		92
Liabilities settled		(52	)
Revisions in estimated liabilities		-

Balance December 31, 2012	$	2,099

The revisions in estimated liabilities in 2011 resulted primarily from increasing estimated plugging cost on Kansas and Tennessee wells based on the actual cost incurred on the wells plugged in 2010 and 2011.

- 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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