Asset Retirement Obligations

3 Months Ended

Mar. 31, 2014

(9) ASSET RETIREMENT OBLIGATIONS

Our asset retirement obligations primarily represent the estimated present value of the amounts we will incur to plug, abandon and remediate our producing properties at the end of their productive lives. Significant inputs used in determining such obligations include estimates of plugging and abandonment costs, estimated future inflation rates and well life. The inputs are calculated based on historical data as well as current estimated costs. A reconciliation of our liability for plugging and abandonment costs for the three months ended March 31, 2014 is as follows (in thousands):

	Three Months Ended March 31, 2014
Beginning of period	$	230,077
Liabilities incurred		2,128
Liabilities settled		(384	)
Disposition of wells		(122	)
Accretion expense		3,707
Change in estimate		1,089
End of period		236,495
Less current portion		(5,037	)
Long-term asset retirement obligations	$	231,458

Accretion expense is recognized as a component of depreciation, depletion and amortization expense in the accompanying statements of operations.