Asset Retirement Obligation

9 Months Ended

Sep. 30, 2011

Asset Retirement Obligation [Abstract]

Note 5 — Asset Retirement Obligation

The Company accounts for asset retirement obligations in accordance with ASC Topic 410-20, which requires recording the fair value of an asset retirement obligation associated with tangible long-lived assets in the period incurred. Asset retirement obligations associated with long-lived assets included within the scope of ASC Topic 410-20 are those for which there is a legal obligation to settle under existing or enacted law, statute, written or oral contract or by legal construction under the doctrine of promissory estoppel. The Company has legal obligations to plug, abandon and dismantle existing wells and facilities that it has acquired and constructed.

The following table describes all changes to the Company’s asset retirement obligation liability (in thousands):


	Nine Months Ended
	September 30,
	2011			2010
Asset retirement obligation, beginning of period	$	24,592		$	23,916
Liabilities incurred		100			175
Liabilities settled		(551	)		(6,760	)
Accretion expense		1,612			1,300
Revisions in estimated cash flows		1,597			1,168

Asset retirement obligation, end of period		27,350			19,799
Less: current portion of asset retirement obligation		(2,483	)		(1,785	)

Long-term asset retirement obligation	$	24,867		$	18,014