Asset Retirement Obligations

12 Months Ended

Dec. 31, 2013

Asset Retirement Obligation [Abstract]

Asset Retirement Obligations

QEP records asset retirement obligations when there are legal obligations associated with the retirement of tangible long-lived assets. The Company's ARO liability applies primarily to abandonment costs associated with oil and gas wells, production facilities, midstream assets, and certain other properties. The fair values of such costs are estimated by Company personnel based on abandonment costs of similar assets and depreciated over the life of the related assets. Revisions to the ARO estimates result from changes in expected cash flows or material changes in estimated asset retirement costs. The ARO liability is adjusted to present value each period through an accretion calculation using a credit-adjusted risk-free interest rate. Of the $193.6 million and $193.1 million ARO liability for both the years ended December 31, 2013 and 2012, $1.8 million was included as a liability in "Accounts payable and accrued expenses" on the Consolidated Balance Sheet.

The following is a reconciliation of the changes in the Company's ARO for the periods specified below:

	Asset Retirement Obligations
	2013			2012
	(in millions)
ARO liability at January 1,	$	193.1		$	163.9
Accretion	8.9			10.5
Liabilities incurred	11.0			8.5
Revisions	(4.4		)	11.1
Liabilities related to assets sold	(11.4		)	—
Liabilities settled	(3.6		)	(0.9		)
ARO liability at December 31,	$	193.6		$	193.1