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ACCRUED CLOSURE COSTS AND ARO
 12 Months Ended
Dec. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
ACCRUED CLOSURE COSTS AND ARO

NOTE 13 ACCRUED CLOSURE COSTS AND ARO

 

Accrued closure costs represent our estimated environmental liability to clean up our fixed-based regulated facilities as required by our permits, in the event of closure. Changes to reported closure liabilities (current and long-term) for the years ended December 31, 2022 and 2021, were as follows:

 

Amounts in thousands    
Balance as of December 31, 2020  $6,365 
Accretion expense   377 
Addition to closure liability   499 
Spending   (50)
Balance as of December 31, 2021  $7,191 
Accretion expense   411 
Addition to closure liability   1,339 
Spending   (975)
Balance as of December 31, 2022  $7,966 

 

In 2022, the Company recorded a total of approximately $1,339,000 in additional estimated closure liabilities of which approximately $465,000 (within long-term) was recorded in connection with the footprint expansion at one of our facilities and an update to a processing enclosure area at another facility. The remaining additional closure liabilities was recorded for our EWOC facility for decommissioning activities due to changes in estimated closure costs. At December 31, 2022, current portion of the closure liabilities totaled approximately $682,000 which reflects primarily closure liabilities for our EWOC facility. The spending made in 2022 was primarily for our EWOC facility.

 

The addition to closure liabilities for 2021 reflected primarily estimated costs for decommissioning activities required to restore the leased property at our EWOC facility back to its original condition at the end of its lease term. As of December 31, 2021, current portion of the closure liabilities totaled approximately $578,000 which consists primarily of the closure liabilities for our EWOC facility.

 

 

The reported closure asset or ARO, is reported as a component of “Net Property and equipment” in the Consolidated Balance Sheets at December 31, 2022 and 2021 with the following activity for the years ended December 31, 2022 and 2021:

 

Amounts in thousands    
Balance as of December 31, 2020  $3,348 
Addition to closure and post-closure asset   478 
Amortization of closure and post-closure asset   (250)
Balance as of December 31, 2021  $3,576 
Addition to closure and post-closure asset   1,128 
Amortization of closure and post-closure asset   (603)
Balance as of December 31, 2022  $4,101 

 

The addition to ARO reflects closure obligations as discussed above.