Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

v3.5.0.2
Asset Retirement Obligations
9 Months Ended
Sep. 30, 2016
Asset Retirement Obligation Disclosure [Abstract]  
Asset Retirement Obligations

3.  Asset Retirement Obligations

Our ARO primarily represents the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws.  

A summary of the changes to our ARO is as follows (in thousands):  

 

Balance, December 31, 2015

$

378,322

 

Liabilities settled

 

(56,167

)

Accretion of discount

 

13,359

 

Revisions of estimated liabilities (1)

 

11,292

 

Balance, September 30, 2016

 

346,806

 

Less current portion

 

90,150

 

Long-term

$

256,656

 

 

 

(1)

Revisions were primarily related to sustained casing pressure issues for idle iron at our West Cameron fields identified while performing preliminary plug and abandonment work at these fields.  In addition, increases were attributable to non-operated properties.  Partially offsetting are cost reduction estimates from service providers for plug and abandonment work at certain locations.