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PROPERTY AND EQUIPMENT | 9 Months Ended
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Sep. 30, 2018
Property, Plant and Equipment [Abstract] |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT The major categories of property and equipment and related accumulated depletion, depreciation, amortization and impairment as of September 30, 2018 and December 31, 2017 are as follows:
| September 30, 2018 |  | December 31, 2017
| (In thousands)
Oil and natural gas properties | $ | 9,936,714 |  |  | $ | 9,169,156 |
Office furniture and fixtures | 42,302 |  |  | 37,369 |
Building | 44,565 |  |  | 44,565 |
Land | 5,521 |  |  | 4,820 |
Total property and equipment | 10,029,102 |  |  | 9,255,910 |
Accumulated depletion, depreciation, amortization and impairment | (4,506,306 | ) |  | (4,153,733 | )
Property and equipment, net | $ | 5,522,796 |  |  | $ | 5,102,177 |
Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the oil and natural gas properties. At September 30, 2018, the calculated ceiling was greater than the net book value of the Company’s oil and natural gas properties, thus no ceiling test impairment was required for the nine months ended September 30, 2018. No impairment was required for oil and natural gas properties for the nine months ended September 30, 2017. Included in oil and natural gas properties at September 30, 2018 is the cumulative capitalization of $194.4 million in general and administrative costs incurred and capitalized to the full cost pool. General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other administrative costs associated with overseeing the exploration and development activities. All general and administrative costs not directly associated with exploration and development activities were charged to expense as they were incurred. Capitalized general and administrative costs were approximately $10.6 million and $28.8 million for the three and nine months ended September 30, 2018, respectively, and $8.9 million and $25.6 million for the three and nine months ended September 30, 2017, respectively. The average depletion rate per Mcfe, which is a function of capitalized costs, future development costs and the related underlying reserves in the periods presented, was $0.94 and $0.89 per Mcfe for the nine months ended September 30, 2018 and 2017, respectively. The following table summarizes the Company’s non-producing properties excluded from amortization by area at September 30, 2018:
| September 30, 2018
| (In thousands)
Utica | $ | 1,522,633 |
MidContinent | 1,401,392 |
Niobrara | 449 |
Southern Louisiana | 571 |
Bakken | 100 |
| $ | 2,925,145 |
At December 31, 2017, approximately $2.9 billion of non-producing leasehold costs was not subject to amortization. The Company evaluates the costs excluded from its amortization calculation at least annually. Subject to industry conditions and the level of the Company’s activities, the inclusion of most of the above referenced costs into the Company’s amortization calculation typically occurs within three to five years. However, the majority of the Company’s non-producing leases in the Utica Shale have five-year extension terms which could extend this time frame beyond five years. A reconciliation of the Company’s asset retirement obligation for the nine months ended September 30, 2018 and 2017 is as follows:
| September 30, 2018 |  | September 30, 2017
| (In thousands)
Asset retirement obligation, beginning of period | $ | 75,100 |  |  | $ | 34,276 |
Liabilities incurred | 1,468 |  |  | 11,557 |
Liabilities settled | (719 | ) |  | (2,520 | )
Accretion expense | 3,056 |  |  | 1,148 |
Revisions in estimated cash flows | (374 | ) |  | — |
Asset retirement obligation as of end of period | 78,531 |  |  | 44,461 |
Less current portion | 120 |  |  | 195 |
Asset retirement obligation, long-term | $ | 78,411 |  |  | $ | 44,266 |

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- Definition The entire disclosure for long-lived, physical assets used in the normal conduct of business and not intended for resale. Includes, but is not limited to, accounting policies and methodology, roll forwards, depreciation, depletion and amortization expense, including composite depreciation, accumulated depreciation, depletion and amortization expense, useful lives and method used, income statement disclosures, assets held for sale and public utility disclosures. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 + Details
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