ALLIANCE RESOURCE PARTNERS LP
For the period ended Dec 31, 2025. Filed Feb 26, 2026.
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FY2025 · Filed Feb 26, 2026
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15. Asset Retirement Obligations
The following table presents the activity affecting our asset retirement and mine closing liability:
| · · · · · · · | |||||
|---|---|---|---|---|---|
| · · Year Ended December 31, | |||||
| · · 2025 · · 2024 | |||||
| · · (in thousands) · | |||||
| · · · · · · · | |||||
| Beginning balance | | $158,777 | | $150,443 | |
| Accretion expense | | 4,969 | | 4,528 | |
| Payments | | (1,937) | | (1,770) | |
| Allocation of liability associated with mine development and change in assumptions | | (4,242) | | 5,576 | |
| Ending balance | | $157,567 | | $158,777 | |
The decrease in the allocation of liability associated with mine development and change in assumptions for the year ended December 31, 2025 was largely attributable to lower cost assumptions.
The increase in the allocation of liability associated with mine development and change in assumptions for the year ended December 31, 2024 was largely attributable to higher cost assumptions.
Estimated payments of asset retirement obligations are as follows:
| · · · · | |||
|---|---|---|---|
| Year Ended · · · · | |||
| December 31, · · (in thousands) | |||
| · · · · | |||
| 2026 | | $4,320 | |
| 2027 | | 4,376 | |
| 2028 | | 3,152 | |
| 2029 | | 7,890 | |
| 2030 | | 3,467 | |
| Thereafter | | 246,703 | |
| Aggregate undiscounted asset retirement obligations | | 269,908 | |
| Less: effect of discounting | | (112,341) | |
| Total asset retirement obligations | | 157,567 | |
| Less: current portion | | (4,320) | |
| Non-current asset retirement obligations | | $153,247 | |
As of December 31, 2025 and 2024, we had $158.0 million and $170.1 million, respectively, in surety bonds outstanding to secure the performance of our reclamation obligations.
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