Quarterly report pursuant to Section 13 or 15(d)

PROPERTY AND EQUIPMENT

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PROPERTY AND EQUIPMENT
 9 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT PROPERTY AND EQUIPMENT
The major categories of property and equipment and related accumulated depletion, depreciation, amortization ("DD&A") and impairment as of September 30, 2020 and December 31, 2019 are as follows:
September 30, 2020 December 31, 2019
(In thousands)
Oil and natural gas properties $ 10,786,305  $ 10,595,735 
Accumulated DD&A and impairment (8,735,750) (7,191,957)
Oil and natural gas properties, net 2,050,555  3,403,778 
Other depreciable property and equipment 91,101  91,198 
Land 4,820  5,521 
Accumulated DD&A (43,954) (36,703)
Other property and equipment, net 51,967  60,016 
Property and equipment, net $ 2,102,522  $ 3,463,794 

Under the full cost method of accounting, the Company is required to perform a ceiling test each quarter. The test determines a limit, or ceiling, on the book value of the Company's oil and natural gas properties. At September 30, 2020, the net book value of the Company's oil and gas properties was above the calculated ceiling primarily as a result of reduced commodity prices for the period leading up to September 30, 2020. As a result, the Company was required to record impairments of its oil and natural gas properties of $270.9 million and $1.4 billion for the three and nine months ended September 30, 2020, respectively. The Company was required to record impairments of its oil and natural gas properties of $571.4 million in each of the three and nine months ended September 30, 2019.
Based on prices for the last nine months and the short-term pricing outlook for the fourth quarter of 2020, recognition of an additional full cost impairment in the fourth quarter of 2020 is possible. The amount of any future impairments is difficult to predict as it depends on future commodity prices, production rates, proved reserves, evaluation of costs excluded from amortization, future development costs and production costs. Any future full cost impairments are not expected to have an impact to the Company's future cash flows or liquidity.
General and administrative costs capitalized to the full cost pool represent management’s estimate of costs incurred directly related to exploration and development activities such as geological and other costs associated with overseeing exploration and development activities. All general and administrative costs not directly associated with exploration and development activities are charged to expense as they are incurred. Capitalized general and administrative costs were approximately $6.2 million and $19.8 million for the three and nine months ended September 30, 2020, respectively, and $9.8 million and $26.3 million for the three and nine months ended September 30, 2019, respectively.
The following table summarizes the Company’s unevaluated properties excluded from amortization by area at September 30, 2020:
September 30, 2020
(In thousands)
Utica $ 850,643 
SCOOP 674,280 
Other 2,018 
$ 1,526,941 
At December 31, 2019, approximately $1.7 billion of unevaluated properties were not subject to amortization.
The Company evaluates the costs excluded from its amortization calculation at least annually. Individually insignificant unevaluated properties are grouped for evaluation and periodically transferred to evaluated properties over a timeframe consistent with their expected development schedule.
Asset Retirement Obligation
A reconciliation of the Company’s asset retirement obligation for the nine months ended September 30, 2020 and 2019 is as follows:
September 30, 2020 September 30, 2019
(In thousands)
Asset retirement obligation, beginning of period $ 60,355  $ 79,952 
Liabilities incurred 2,343  5,769 
Liabilities settled —  (117)
Liabilities removed due to divestitures (2,033) (30,035)
Accretion expense 2,270  3,173 
Revisions in estimated cash flows —  1,077 
Asset retirement obligation as of end of period $ 62,935  $ 59,819