Asset Retirement Obligations

12 Months Ended

Dec. 31, 2021

Asset Retirement Obligation

Asset Retirement Obligations

16. Asset Retirement Obligations

The Company’s asset retirement obligations arise from the Federal Surface Mining Control and Reclamation Act of 1977 and similar state statutes, which require that mine property be restored in accordance with specified standards and an approved reclamation plan. The required reclamation activities to be performed are outlined in the Company’s mining permits. These activities include reclaiming the pit and support acreage at surface mines, sealing portals at underground mines, reclaiming refuse areas and slurry ponds and water treatment.

The following table describes the changes to the Company’s asset retirement obligation liability:

	Year Ended		Year Ended
	December 31,		December 31,
	2021		2020
(In thousands)
Balance at beginning of period (including current portion)	$	257,764	$	252,798
Accretion expense		21,748		19,887
Obligations of divested operations		—		(15,455)
Adjustments to the liability from changes in estimates		(26,012)		14,889
Reclamation work completed		(39,047)		(14,355)
Balance at period end	$	214,453	$	257,764
Current portion included in accrued expenses		(21,781)		(27,032)
Noncurrent liability	$	192,672	$	230,732

As of December 31, 2021, the Company had $500.5 million in surety bonds outstanding and $20.0 million letters of credit to secure reclamation bonding obligations. The Company has posted $0.6 million in cash as collateral related to reclamation surety bonds; this amount is recorded within “Noncurrent assets” on the Consolidated Balance Sheets.  Additionally, in the fourth quarter of 2021, the Company contributed $20 million to a fund that will serve to defease the long-term asset retirement obligation for its thermal asset base; this amount is recorded as “Fund for asset retirement obligations” on the Consolidated Balance Sheets.  The funds will be utilized for final mine closure reclamation activities.