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PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION | 12 Months Ended
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Sep. 30, 2020
PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION |
PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION | PROPERTY AND EQUIPMENT AND ASSET RETIREMENT OBLIGATION Barnwell’s property and equipment is detailed as follows:
| Estimated Useful Lives |  | Gross Property and Equipment |  | Accumulated Depletion, Depreciation, Amortization, and Impairment |  | Net Property and Equipment
At September 30, 2020: |  |  |  |  |  |  |
Land |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Oil and natural gas properties |  |  |  |  |  |  |
(full cost accounting) |  |  | 64,142,000 |  |  | (61,839,000) |  |  | 2,303,000 |
Drilling rigs and equipment | 3 – 10 years |  | 8,244,000 |  |  | (6,793,000) |  |  | 1,451,000 |
Other property and equipment | 3 – 17 years |  | 1,045,000 |  |  | (1,025,000) |  |  | 20,000 |
Total |  |  | $ | 73,431,000 |  |  | $ | (69,657,000) |  |  | $ | 3,774,000 |
| Estimated Useful Lives |  | Gross Property and Equipment |  | Accumulated Depletion, Depreciation, Amortization, and Impairment |  | Net Property and Equipment
At September 30, 2019: |  |  |  |  |  |  |
Land |  |  | $ | 200,000 |  |  | $ | — |  |  | $ | 200,000 |
Oil and natural gas properties |  |  |  |  |  |  |
(full cost accounting) |  |  | 62,205,000 |  |  | (55,972,000) |  |  | 6,233,000 |
Drilling rigs and equipment | 3 – 10 years |  | 7,882,000 |  |  | (6,484,000) |  |  | 1,398,000 |
Office | 40 years |  | 857,000 |  |  | (338,000) |  |  | 519,000 |
Other property and equipment | 3 – 17 years |  | 1,378,000 |  |  | (1,340,000) |  |  | 38,000 |
Total |  |  | $ | 72,522,000 |  |  | $ | (64,134,000) |  |  | $ | 8,388,000 |
See Note 7 for discussion of acquisitions and divestitures of oil and natural gas properties in fiscal 2020 and 2019. Barnwell recognizes the fair value of a liability for an asset retirement obligation in the period in which it is incurred if a reasonable estimate of fair value can be made. The following is a reconciliation of the asset retirement obligation:
| Year ended September 30,
| 2020 |  | 2019
Asset retirement obligation as of beginning of year | $ | 6,389,000 |  |  | $ | 7,122,000 |
Obligations incurred on new wells drilled or acquired | 227,000 |  |  | 203,000 |
Liabilities associated with properties sold | (169,000) |  |  | (43,000) |
Revision of estimated obligation | (279,000) |  |  | (958,000) |
Accretion expense | 561,000 |  |  | 608,000 |
Payments | (498,000) |  |  | (372,000) |
Foreign currency translation adjustment | (37,000) |  |  | (171,000) |
Asset retirement obligation as of end of year | 6,194,000 |  |  | 6,389,000 |
Less current portion | (647,000) |  |  | (330,000) |
Asset retirement obligation, long-term | $ | 5,547,000 |  |  | $ | 6,059,000 |
Asset retirement obligations were reduced by $169,000 and $43,000, in fiscal 2020 and 2019, respectively, for those obligations that were assumed by purchasers of Barnwell's oil and natural gas properties. Asset retirement obligations were also reduced by $279,000 and $958,000 in fiscal 2020 and 2019, respectively, due to downward revisions related to deferrals in the estimated timing of future abandonments as a result of changes in the estimated funds available to develop the Company's reserves in the Twining area. Asset retirement obligations increased by $227,000 and $203,000 in fiscal 2020 and 2019, respectively, due primarily to our acquisitions (see Note 7 for additional details). The asset retirement obligation reflects the estimated present value of the amount of dismantlement, removal, site reclamation, and similar activities associated with Barnwell's oil and natural gas properties. Barnwell estimates the ultimate productive life of the properties, a credit-adjusted risk-free rate, and an inflation factor in order to determine the current present value of this obligation. The credit-adjusted risk-free rate for the entire asset retirement obligation is a blended rate which ranges from 6% to 13.5%.

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- Definition Represents the entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale and includes the disclosure for an asset retirement obligation. + References No definition available. + Details
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