ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2016

19. ASSET RETIREMENT OBLIGATIONS

The liability for the expected cash flows as recognized in the financial statements reflected discount rates ranging from 1.7% to 11.0% (2015 - 1.7% to 9.4%). A reconciliation of movements in the Company’s ARO is as follows:

December 31,	2016		2015
(millions of Canadian dollars)
Obligations at beginning of year	198		185
Liabilities incurred	2		2
Liabilities settled	(33	)	(45	)
Change in estimate	63		30
Foreign currency translation adjustment	(5	)	21
Accretion expense	7		5

Obligations at end of year	232		198

Presented as follows:
Accounts payable and other (Note 16)	2		9
Other long-term liabilities (Note 18)	230		189

	232		198

In 2014, the Company recognized ARO in the amount of $177 million. Of this amount, $74 million related to the decommissioning of certain portions of Line 6B of EEP’s Lakehead System and $103 million related to the Canadian and United States portions of the Line 3 Replacement Program, which is targeted to be completed in 2019, whereby the Company will replace the existing Line 3 pipeline in Canada and the United States.