Asset Retirement Obligations

12 Months Ended

Jun. 30, 2013

Note 6—Asset Retirement Obligations

Our asset retirement obligations represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. The following is a reconciliation of the beginning and ending asset retirement obligation for the years ended June 30, 2013 and 2012:

	Year Ended

	2013			2012
Asset retirement obligations—beginning of period	$	968,677		$	859,586
Liabilities incurred		60,143			175,943
Liabilities settled		(51,086	)		(61,936	)
Liabilities sold		(439,927	)		—
Accretion		72,312			77,505
Revisions to previous estimates		5,432			(82,421	)

Asset retirement obligations—end of period	$	615,551		$	968,677

- 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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