Asset Retirement Obligations

9 Months Ended

Sep. 30, 2015

Asset Retirement Obligation [Abstract]

QEP records asset retirement obligations (ARO) 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 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 $188.5 million and $195.1 million ARO liability for the periods ended September 30, 2015 and December 31, 2014, $0.8 million and $1.3 million were included, respectively, as a current liability within "Accounts payable and accrued expenses" on the Condensed Consolidated Balance Sheets.

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



	Asset Retirement Obligations
	2015
	(in millions)
ARO liability at January 1,	$	195.1
Accretion	6.4
Additions	3.0
Revisions	0.3
Liabilities related to divestitures	(14.8		)
Liabilities settled	(1.5		)
ARO liability at September 30,	$	188.5