Asset Retirement Obligations

6 Months Ended

Jun. 30, 2011

Asset Retirement Obligations

Asset Retirement Obligations

NOTE H. Asset Retirement Obligations

The Company's asset retirement obligations primarily relate to the future plugging and abandonment of wells and related facilities. Market risk premiums associated with asset retirement obligations are estimated to represent a component of the Company's credit-adjusted risk-free rate that is utilized in the calculations of asset retirement obligations.

The following table summarizes the Company's asset retirement obligation activity during the three and six months ended June 30, 2011 and 2010:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
	(in thousands)
Beginning asset retirement obligations	$	154,689		$	142,270		$	152,291		$	166,434
Liabilities assumed in acquisitions		—			6			6			6
New wells placed on production		1,404			4,365			2,075			4,644
Changes in estimates		(179	)		—			121			—
Disposition of wells		(367	)		(3,291	)		(448	)		(29,540	)
Liabilities settled		(6,235	)		(8,801	)		(7,469	)		(9,955	)
Accretion of discount from continuing operations		2,658			2,529			5,313			5,388
Accretion of discount from discontinued operations		—			103			81			204
Ending asset retirement obligations	$	151,970		$	137,181		$	151,970		$	137,181

The Company records the current and noncurrent portions of asset retirement obligations in other current liabilities and other liabilities, respectively, in the accompanying consolidated balance sheets. As of June 30, 2011 and December 31, 2010, the current portions of the Company's asset retirement obligations were $14.9 million and $19.9 million, respectively.