Annual report pursuant to Section 13 and 15(d)

ACCRUED CLOSURE COSTS AND ARO

v3.22.1
ACCRUED CLOSURE COSTS AND ARO
 12 Months Ended
Dec. 31, 2021
Asset Retirement Obligation Disclosure [Abstract]  
ACCRUED CLOSURE COSTS AND ARO

NOTE 12

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, 2021 and 2020, were as follows:

 

Amounts in thousands      
Balance as of December 31, 2019   $ 6,041  
Accretion expense     335  
Spending     (11 )
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  

 

 

The addition to closure liabilities for 2021 reflects 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, 2021 and 2020 with the following activity for the years ended December 31, 2021 and 2020:

 

Amounts in thousands      
Balance as of December 31, 2019   $ 3,539  
Amortization of closure and post-closure asset     (191 )
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  

 

The addition to ARO reflects closure obligations related to our EWOC facility as discussed above.