Asset Retirement Obligations

12 Months Ended

Dec. 31, 2022

Asset Retirement Obligation

Asset Retirement Obligations

15. 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,
	2022		2021
(In thousands)
Balance at beginning of period (including current portion)	$	214,453	$	257,764
Accretion expense		17,721		21,748
Obligations of divested operations		—		—
Adjustments to the liability from changes in estimates		25,914		(26,012)
Reclamation work completed		(13,720)		(39,047)
Balance at period end	$	244,368	$	214,453
Current portion included in accrued expenses		(8,632)		(21,781)
Noncurrent liability	$	235,736	$	192,672

As of December 31, 2022, the Company had $457.1 million in reclamation surety bonds outstanding and posted $0.6 million in cash as collateral related to the surety bonds; this amount is recorded within “Noncurrent assets” on the Consolidated Balance Sheets.  Additionally, through December 31, 2022, the Company has contributed $136.0 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 are invested in highly rated securities, such as U.S. Treasuries, which fall within Level 1 of the fair value hierarchy.  The funds will only be utilized for final mine closure reclamation activities.