Asset Retirement Obligations

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation

Asset Retirement Obligations

12. 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,
	2023		2022
(In thousands)
Balance at beginning of period (including current portion)	$	244,368	$	214,453
Accretion expense		21,170		17,721
Adjustments to the liability from changes in estimates		17,747		25,914
Reclamation work completed		(21,456)		(13,720)
Balance at period end	$	261,829	$	244,368
Current portion included in accrued expenses		(6,089)		(8,632)
Noncurrent liability	$	255,740	$	235,736

As of December 31, 2023, the Company had $455.7 million in reclamation surety bonds outstanding and posted $0.6 million in cash as collateral; this amount is recorded within “Noncurrent assets” on the Consolidated Balance Sheets.  Additionally, through December 31, 2023, the Company has contributed $142.3 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.