Asset Retirement Obligations (Notes)

12 Months Ended

Dec. 31, 2013

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATIONS.

The accrued obligations relate to underground storage caverns, offshore platforms, pipelines, and gas transmission facilities. At the end of the useful life of each respective asset, we are legally obligated to plug storage caverns and remove any related surface equipment, to dismantle offshore platforms, to cap certain gathering pipelines at the wellhead connection and remove any related surface equipment, and to remove certain components of gas transmission facilities from the ground.

During 2013 and 2012, our overall asset retirement obligation changed as follows (in thousands):



	2013			2012
Beginning balance	$	296,870		$	302,768
Accretion	31,461			23,052
New obligations	2,225			2,556
Changes in estimates of existing obligations (1)	(27,628		)	10,895
Property dispositions/obligations settled	(28,941		)	(42,401		)
Ending balance	$	273,987		$	296,870

(1)

The 2013 changes in estimates of existing obligations reflects decreases of $36 million, primarily due to a revision in the estimated remaining life of the assets, which is among several factors considered in the annual review process, including inflation rates, current estimates for removal cost and discount rates. These decreases are partially offset by an increase of $9 million related to changes in the timing and method of abandonment of our Eminence natural gas storage caverns that were associated with a leak in 2010. The 2012 changes in estimates of existing obligations is primarily due to an increase of $13 million related to changes in the timing and method of abandonment of our Eminence natural gas storage caverns that were associated with a leak in 2010.

We are entitled to collect in rates the amounts necessary to fund our ARO. All funds received for such retirements are deposited into an external trust account dedicated to funding our ARO. Under our current rate settlement our annual funding obligation is approximately $36.4 million, with installments to be deposited monthly.