Asset Retirement Obligations

12 Months Ended

Sep. 30, 2024

Asset Retirement Obligation Disclosure [Abstract]

ASSET RETIREMENT OBLIGATION

In accordance with accounting guidance for conditional Asset Retirement Obligations (ARO), the Company recognizes a liability for the fair value of an ARO on the obligation date if the liability's fair value can be reasonably estimated and is conditional on a future event. Settlement dates and future costs are reasonably estimated when sufficient information becomes available. Management has identified an ARO related to our Class VI injection and monitoring wells’ facility closure plan and has performed fair value calculations, reflecting expected probabilities for settlement scenarios.

The fair value of an ARO is recorded as a liability in Other Long-Term Liabilities with a corresponding amount included in Property, Plant and Equipment, Net on the accompanying balance sheets. The ARO assets are depreciated, and the ARO liabilities are accreted over the estimated life of the obligation with corresponding credits recorded as accumulated depreciation and ARO liabilities, respectively.

A reconciliation of the beginning and ending carrying amounts of the Company’s ARO liabilities are as follows:


	September 30, 2024		September 30, 2023
Balance as of Beginning of Year	$	900,521	$	900,521
Accretion	101,511		—
Balance as of end of year	$	1,002,032	$	900,521

Any changes in the assumptions used to calculate the fair value of the ARO are recorded as an offset to the related regulatory asset. Surety bonds have been established to cover the cost of a portion of the facility closure plan.