| Asset Retirement Obligations |
8. Asset Retirement Obligations
A summary of the Company’s ARO for the years ended December 31, 2016 and 2015 is as follows:
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(in thousands of dollars)
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2016
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2015
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ARO liability at beginning of year
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$
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20,980
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$
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13,610
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Liabilities incurred (1)
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6,947
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6,349
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Accretion of ARO liability
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1,263
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1,087
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Liabilities settled due to sale of related properties
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(446)
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(19)
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Liabilities settled due to plugging and abandonment
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(463)
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(69)
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Change in estimate (2)
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(8,223)
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22
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ARO liability at end of year
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20,058
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20,980
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Less: Current portion of ARO at end of year
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(600)
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(679)
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Total long-term ARO at end of year
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$
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19,458
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$
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20,301
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(1) The 2016 amount includes $6.4 million related to wells acquired in the Anadarko Acquisition. See Note 3, “Acquisitions”.
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(1)
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The 2016 amount reflects a reduction in the estimated cost per well, consistent with the decline in actual costs experienced by the Company. |
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