ASSET RETIREMENT OBLIGATIONS

9 Months Ended

Sep. 30, 2011

ASSET RETIREMENT OBLIGATIONS

ASSET RETIREMENT OBLIGATIONS

6. ASSET RETIREMENT OBLIGATIONS

The following table shows the change in the balance of the restoration and reclamation liability during the nine months ended September 30, 2011:

Reserve for future restoration and reclamation costs beginning of period	$	5,043,645
Additions	340,883
Costs incurred	(1,170,956		)
Changes in cash flow estimates	506,500
Accretion expense	95,562
Reserve for future restoration and reclamation costs at end of period	$	4,815,634

The change in cash flow estimates is primarily related to the Company increasing the monthly undiscounted cost estimate at the Kingsville Dome project from $60,000 to $70,000 per month over the remaining restoration period.