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Asset Retirement Obligations
9 Months Ended
Sep. 30, 2011
Asset Retirement Obligations 
Asset Retirement Obligations

8.     Asset Retirement Obligations

 

The schedule below summarizes changes in Devon's asset retirement obligations.

 

 

Nine Months

Ended September 30,

 

2011

2010

 

(In millions)

Asset retirement obligations as of beginning of period

$         1,497

$         1,513

  Liabilities incurred

                 38

                 36

  Liabilities settled

                (56)

                (94)

  Revision of estimated obligation

                 19

               194

  Liabilities assumed by others

                 —

             (256)

  Accretion expense on discounted obligation

                 69

                 71

  Foreign currency translation

                (41)

                 10

Asset retirement obligations as of end of period

           1,526

           1,474

Less current portion

                 66

                 80

Asset retirement obligations, long-term

$         1,460

$         1,394

 

During the first nine months of 2010, Devon recognized a revision to its asset retirement obligations totaling $194 million. The increase was primarily due to an overall increase in abandonment cost estimates and a decrease in the discount rate used to calculate the present value of the obligations.

 

During the first nine months of 2010, Devon reduced its asset retirement obligations by $256 million for those obligations that were assumed by purchasers of Devon's Gulf of Mexico oil and gas properties in 2010.