OTHER LONG-TERM LIABILITIES AND DEFERRED CREDITS

12 Months Ended

Dec. 31, 2011

OTHER LONG-TERM LIABILITIES AND DEFERRED CREDITS

OTHER LONG-TERM LIABILITIES AND DEFERRED CREDITS

10. OTHER LONG-TERM LIABILITIES AND DEFERRED CREDITS

        Other long-term liabilities and deferred credits on the balance sheet consisted of:

	December 31,
	2011		2010
Reserve for future restoration and reclamation costs (Asset Retirement Obligations), net of current portion of $1,227,000 and $1,240,000 in 2011 and 2010, respectively. (Note 2)	$	3,508,634	$	3,804,057
Royalties payable		500,000		500,000
	$	4,008,634	$	4,304,057

        The following table shows the change in the balance of the restoration and reclamation liability (Asset Retirement Obligation) during the years ended December 31, 2011 and 2010:

	December 31,
	2011			2010
Reserve for future restoration and reclamation costs at January 1,	$	5,043,645		$	5,526,949
Changes in cash flow estimates		1,101,234			733,981
Costs incurred		(1,530,303	)		(1,373,228	)
Accretion expense		121,183			155,943
Reserve for future restoration and reclamation costs at December 31,	$	4,735,759		$	5,043,645