Asset Retirement Obligation

3 Months Ended

Mar. 31, 2016

Asset Retirement Obligation [Abstract]

Changes in the carrying amounts of the asset retirement obligation associated with the Company’s oil and natural gas properties were as follows:



	Three Months Ended			Year Ended
(Thousands of U.S. Dollars)	March 31, 2016			December 31, 2015
Balance, December 31, 2015	$	33,224		$	35,812
Settlements	(194		)	(6,317		)
Liability incurred	923			1,556
Liabilities assumed in acquisition (Note 3)	11,852			—
Accretion	655			1,313
Revisions in estimated liability	—			860
Balance, March 31, 2016	$	46,460		$	33,224

Asset retirement obligation - current	$	3,255		$	2,146
Asset retirement obligation - long-term	43,205			31,078
	$	46,460		$	33,224

For the three months ended March 31, 2016, settlements included cash payments of $0.1 million with the balance in accounts payable and accrued liabilities at March 31, 2016. Revisions to estimated liabilities relate primarily to changes in estimates of asset retirement costs and include, but are not limited to, revisions of estimated inflation rates, changes in property lives and the expected timing of settling the asset retirement obligation. At March 31, 2016, the fair value of assets that are legally restricted for purposes of settling the asset retirement obligation was $8.5 million (December 31, 2015 - $2.9 million). These assets are accounted for as restricted cash on the Company's interim unaudited condensed consolidated balance sheets.