Asset Retirement Obligations

3 Months Ended

Mar. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

The Partnership has recognized an estimated asset retirement obligation liability (“ARO”) for future plugging and abandonment costs. A liability for the estimated fair value of the future plugging and abandonment costs is recorded with a corresponding increase in the full cost pool at the time a new well is drilled. Accretion expense associated with estimated plugging and abandonment costs is recognized in accordance with the full cost methodology.

The Partnership estimates a liability for plugging and abandonment costs based on historical experience and estimated well life. The liability is discounted using the credit-adjusted risk-free rate. Revisions to the liability could occur due to changes in well plugging and abandonment costs or well useful lives, or if federal or state regulators enact new well restoration requirements. The Partnership recognizes accretion expense in connection with the discounted liability over the remaining life of the well.

A reconciliation of the Partnership’s liability for well plugging and abandonment costs as of and for the three months ended March 31, 2022 and the year ended December 31, 2021 is as follows:

	2022		2021
Balance, beginning of period	$	1,162,293	$	1,125,589
Liabilities reduced due to plugging and abandonments		—		(9,467	)
Accretion expense		11,874		46,171
Balance, end of period	$	1,174,167	$	1,162,293

MEWBOURNE ENERGY PARTNERS 09-A, L.P. 10-Q