Asset Retirement Obligations

6 Months Ended

Jun. 30, 2013

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

ASSET RETIREMENT OBLIGATIONS

We are required to record the estimated fair value of the liabilities relating to the future retirement of our long-lived assets. Our oil and natural gas wells are plugged and abandoned when the oil and natural gas reserves in those wells are depleted or the wells are no longer able to produce. The plugging and abandonment liability for a well is recorded in the period in which the obligation is incurred (at the time the well is drilled or acquired). None of our assets are restricted for purposes of settling these AROs. All of our AROs relate to the plugging costs associated with our oil and gas wells.

The following table shows certain information about our AROs for the periods indicated:

	Six Months Ended June 30,
	2013			2012
	(In thousands)
ARO liability, January 1:	$	146,159		$	96,446
Accretion of discount	2,825			2,126
Liability incurred	2,869			4,420
Liability settled	(3,516		)	(1,447		)
Revision of estimates (1)	(11,298		)	(5,022		)
ARO liability, June 30:	137,039			96,523
Less current portion	2,948			2,909
Total long-term ARO	$	134,091		$	93,614

(1) Plugging liability estimates were revised in both 2013 and 2012 for updates in the cost of services used to plug wells over the preceding year. We had various upward and downward adjustments as well as changes in estimated timing of cash flows.