PROPERTY AND EQUIPMENT (Tables)

3 Months Ended

Mar. 31, 2014

Property, Plant and Equipment [Abstract]

Divestiture Exit Costs

In connection with the Panhandle divestiture, Forest incurred exit costs consisting of one-time employee termination benefits and other associated costs, as shown in the table below, which includes a reconciliation of the beginning and ending liability balances for these exit costs for the three months ended March 31, 2014.

	One-Time Employee Termination Benefits			Other Associated Costs(1)			Total
	(In Thousands)
Total expected amount(2)	$	4,612		$	7,967		$	12,579
Total incurred through March 31, 2014(3)	4,554			7,967			12,521
Liability balance as of December 31, 2013	$	1,095		$	5,840		$	6,935
Costs incurred(3)	544			—			544
Costs paid	(1,057		)	(5,757		)	(6,814		)
Liability balance as of March 31, 2014(4)	$	582		$	83		$	665

____________________________________________

(1) Other associated costs consist of financial advisor fees and retention bonuses paid to certain employees.

(2) Of the $12.6 million total expected costs, the remaining $.1 million will be accrued in the second quarter of 2014 over the remaining retention period of the affected employees.

(3) Of the $12.5 million costs incurred, (i) $5.5 million was recognized in “General and administrative” expense, $5.0 million during the year ended December 31, 2013 and $.5 million during the quarter ended March 31, 2014, (ii) $5.8 million was recognized in “Other, net” during the year ended December 31, 2013, and (iii) $1.2 million was capitalized in “Oil and natural gas properties” pursuant to the full cost method of accounting, $1.1 million during the year ended December 31, 2013 and the remainder during the quarter ended March 31, 2014.

(4) The March 31, 2014 estimated liability balance is included in “Accounts payable and accrued liabilities” in the Condensed Consolidated Balance Sheet, and Forest expects it will be paid in the second quarter of 2014.