Decommissioning Liabilities

3 Months Ended

Mar. 31, 2015

Decommissioning Liabilities [Abstract]

(7)Decommissioning Liabilities

The Company records estimated future decommissioning liabilities in accordance with the authoritative guidance related to asset retirement obligations, which requires entities to record the fair value of a liability for an asset retirement obligation in the period in which it is incurred, with a corresponding increase in the carrying amount of the related long-lived asset. Subsequent to initial measurement, the decommissioning liability is required to be accreted each period to present value.

The Company’s decommissioning liabilities associated with the Bullwinkle platform and its related assets consist of costs related to the plugging of wells, the removal of the related platform and equipment, and site restoration. The Company reviews the adequacy of its decommissioning liabilities whenever indicators suggest that the estimated cash flows needed to satisfy the liabilities have changed materially.

The following table summarizes the activity for the Company’s decommissioning liabilities for the three months ended March 31, 2015 and 2014 (in thousands):



	Three Months Ended March 31,
	2015		2014
Decommissioning liabilities, December 31, 2014 and 2013, respectively	$	88,000	$	83,519
Liabilities acquired and incurred		840		-
Accretion		1,163		1,133
Revisions in estimated timing and cash flows		1,482		-
Total decommissioning liabilities, March 31, 2015 and 2014, respectively	$	91,485	$	84,652