ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2014

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

7. ASSET RETIREMENT OBLIGATIONS

The following table summarizes the changes in the reserve for future restoration and reclamation costs on the balance sheet:

	September 30,			December 31,
	2014			2013
Balance, beginning of period	$	3,833,608		$	4,498,057
Changes in cash flow estimates	32,997			584,025
Costs incurred	(131,562		)	(1,638,214		)
Accretion expense	307,612			389,740
Balance, end of period	4,042,655			3,833,608
Less: Current portion	(203,553		)	—
Non-current Portion	$	3,839,102		$	3,833,608

The Company’s current liability of $203,553 consists of the estimated costs associated with current plugging and abandonment activities and planned surface reclamation activities during 2015 at the Company’s Rosita project.  The change in cash flow estimates for the period ended September 30, 2014 was due to a change in the timing of planned restoration activities at the Rosita project.  The Company is currently performing plugging and abandonment activities at its Rosita project.