Asset Retirement Obligations

6 Months Ended

Jun. 30, 2011

7.	Asset Retirement Obligations

Certain costs of removal that have been, and continue to be, included in depreciation rates and collected in the service rates of the rate-regulated subsidiaries are classified as regulatory liabilities and other removal costs on the Condensed Consolidated Balance Sheets (unaudited).

Changes in NiSource's liability for asset retirement obligations for the first six months of 2011 and 2010 are presented in the table below:


(in millions)	2011			2010
Balance as of January 1,	$	138.8		$	138.2
Accretion expense		0.3			0.4
Accretion recorded as a regulatory asset/liability		3.8			3.7
Settlements		(1.1	)		(5.5	)
Change in estimated cash flows		(2.9	)		—

Balance as of June 30,	$	138.9		$	136.8

- Definition

The entire disclosure for an asset retirement obligation and the associated long-lived asset. An asset retirement obligation is a legal obligation associated with the disposal or retirement from service of a tangible long-lived asset that results from the acquisition, construction or development, or the normal operations of a long-lived asset, except for certain obligations of lessees.

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