Note 12 - Accrued Closure Costs and ARO
|12 Months Ended|
Dec. 31, 2016
|Notes to Financial Statements|
|Asset Retirement Obligation Disclosure [Text Block]||
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 for the years ended
2015,were as follows:
As a result of the Company’s decision to close the M&EC subsidiary by
2018,the Company recorded an additional
$1,626,000in closure liabilities during the
2016due to a change in estimated closure costs (see “Note
3– M&EC Facility” for further information of this additional closure liability). The Company also increased the closure liabilities for its PFNWR facility in the amount of approximately
$707,000resulting from a change in estimated closure costs. In
2016,the Company had spendings of approximately
$410,000in closure related activities for the M&EC and PFNWR subsidiaries, respectively. The spendings at PFNWR facility were made in connection with the closure of certain processing unit/equipment.
2016,total accrued closure liabilities for our M&EC subsidiary totaled approximately
$2,177,000are recorded as current liabilities.
The decreases in closure liabilities in
$331,000of costs incurred in connection with the closure of processing unit/equipment at our PFNWR facility and a reduction of approximately
$175,000in closure liabilities at our PFNWR facility resulting from a change in estimated closure costs.
The reported closure asset or ARO, is reported as a component of “Net Property and equipment” in the Consolidated Balance Sheet for the years ended
The adjustment to the ARO for
2016was due to the adjustment made to our closure liability as discussed above.
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.
Reference 1: http://www.xbrl.org/2003/role/presentationRef