7. BANK INDEBTEDNESS  8 . DECOMMISSIONING LIABILITY  $^{ }$9. DEFERRED INCOME TAXES 61  The provision for deferred income taxes is different from the amount computed by applying the combined statutory  Canadian federal and provincial tax rates to pre-tax income for the year.  The Company has tax pools associated with exploration and evaluation and property and equipment assets of  approximately $261.0 million as well as non-capital losses of approximately $136.0 million. The non-capital losses  begin to expire in 2023. A deferred tax asset has not been recognized due to uncertainty as to future realization.  Deferred income tax assets and liabilities are based on the differences between the accounting amounts and the  related tax bases of the Company's property and equipment assets, exploration and evaluation assets, commodity  price contracts, decommissioning liability, share issue costs and unrealized gains and losses on investments.  (1)  Relates to changes in the inflation rate and discount rate in 2014 and a change in the discount rate in 2013.  (2)  Cost estimates were adjusted based on actual costs for abandonments and reclamations.  The following table provides a reconciliation of the carrying amount of the obligation associated with the  decommissioning of oil and gas properties:  The Company provides for the future cost of decommissioning oil and gas production assets, including well sites,  gathering systems and facilities. The total decommissioning obligation is estimated based on the Company’ s net  ownership interest in wells and facilities, the estimated costs to abandon and reclaim the wells, gathering systems and facilities and the estimated timing of future costs. The total estimated undiscounted amount required to settle the  Company’ s decommissioning obligation is approximately $37.3 million, which is expected to be paid over the next 25  years. A risk-free discount rate of 2.3% (2013 –3.0%) and an inflation rate of 2.0% (2013 –1.2%) was used to  calculate the present value of the decommissioning obligation, amounting to $23.6 million.  As at December 31, 2014, the Company had an extendible syndicated revolving bank facility in the amount of $130.0  million (December 31, 2013 –$65.0 million) based on the Company’ s producing reserves. The revolving facility is  available to the Company until April 30, 2015. At that time the Company has the option to extend the facility for an  additional year. If the revolving facility is not extended, the facility moves into a term phase whereby the loan is to be  retired with one payment one year later, in an amount equal to the outstanding principal. Interest is paid on the  revolving facility at bankers acceptance rates, plus a stamping fee. Collateral comprises a floating charge demand  debenture on the assets of the Company. At December 31, 2014, the Company is in compliance with all covenants  under the credit facility. The only financial covenant is that net debt including working capital deficiency not exceed  the facility amount.  Year Ended December 31, 2014  Year Ended  December 31, 2013  Balance, beginning of year  $ 8,689 $ 10,924  Obligations incurred  3,797 997  Obligations acquired  710 -  Obligations disposed - (2,515)  Obligations settled  (34 )  (397)  Change in rate estimates$^{(1)}$  6,029 (543)  Change in cost estimates$^{(2)}$  4,011 -  Accretion expense  351 223  Balance, end of year  $ 23,553 $ 8,689 