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Asset Retirement Obligations
 12 Months Ended
Dec. 31, 2013
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations
ASSET RETIREMENT OBLIGATIONS
 

The Company recognizes a liability for the fair value of asset retirement obligations (ARO) in the period incurred. Subsequent to initial measurement, liabilities are accreted to their present value and capitalized costs are depreciated over the estimated useful life of the related assets. Upon settlement of the liability, the Company may recognize a gain or loss for differences between estimated and actual settlement costs. The ARO fair value liability is recognized on a discounted basis incorporating an estimate of performance risk specific to the Company. Revisions in estimates to the ARO result from revisions to the estimated timing or amount of the underlying cash flows. In 2013, 2012 and 2011, Energen Resources recognized amounts representing expected future costs associated with site reclamation, facilities dismantlement, and plug and abandonment of wells as follows:

(in thousands)
 
Balance as of December 31, 2010
$
97,415

Liabilities incurred
4,627

Liabilities settled
(1,539
)
Accretion expense (including discontinued operations of $1,138)
6,837

Balance as of December 31, 2011
107,340

Liabilities incurred
3,994

Liabilities settled
(845
)
Accretion expense (including discontinued operations of $1,195)
7,534

Balance as of December 31, 2012
118,023

Liabilities incurred
2,772

Liabilities settled
(5,525
)
Accretion expense (including discontinued operations of $1,197)
8,192

Reclassification associated with held for sale properties*
(14,929
)
Balance as of December 31, 2013
$
108,533


* Asset retirement obligation associated with North Louisiana/East Texas properties are included as liabilities related to assets held for sale in current liabilities on the balance sheet.

The Company recognizes conditional obligations if such obligations can be reasonably estimated and a legal requirement to perform an asset retirement activity exists. Alagasco accrues removal costs on certain gas distribution assets over the useful lives of its property, plant and equipment through depreciation expense in accordance with rates approved by the APSC. Alagasco recorded a conditional asset retirement obligation, on a discounted basis, of $27.5 million and $24.9 million to purge and cap its gas pipelines upon abandonment and to remediate other related obligations, as a regulatory liability as of December 31, 2013 and 2012, respectively. Regulatory assets for rate recovery of accumulated asset removal costs of $4.6 million and $3.3 million as of December 31, 2013 and 2012, respectively, are included as regulatory assets