Asset Retirement Obligations

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

NOTE E - DECOMMISSIONING AND OTHER ASSET RETIREMENT OBLIGATIONS

The large majority of our asset retirement obligations consists of the future well abandonment and decommissioning costs for offshore oil and gas facilities and platforms owned by our Maritech subsidiary, including the remaining abandonment, decommissioning, and debris removal costs associated with offshore platforms destroyed by hurricanes. The amount of decommissioning liabilities recorded by Maritech is reduced by amounts allocable to joint interest owners, anticipated insurance recoveries, and any contractual amount to be paid by the previous owner of the oil and gas property when the liabilities are satisfied.

The changes in the asset retirement obligations during the three month and nine month periods ended September 30, 2011 and 2010 are as follows:

	Three Months Ended September 30,
	2011			2010
	(In Thousands)

Beginning balance as of June 30	$	144,525		$	216,147
Activity in the period:
Accretion of liability		631			1,392
Retirement obligations incurred		-			-
Revisions in estimated cash flows		14,311			19,897
Settlement of retirement obligations		(25,872	)		(35,201	)
Ending balance as of September 30	$	133,595		$	202,235

	Nine Months Ended September 30,
	2011			2010
	(In Thousands)
Beginning balance as of December 31 of
the preceding year	$	272,815		$	224,110
Activity in the period:
Accretion of liability		3,789			4,090
Retirement obligations incurred		-			-
Revisions in estimated cash flows		40,120			42,081
Settlement of retirement obligations		(183,129	)		(68,046	)
Ending balance as of September 30	$	133,595		$	202,235

Revisions in estimated cash flows for the three months and nine months ended September 30, 2011, are primarily related to the retained Maritech facilities and platforms. Settlements of asset retirement obligations during the three months and nine months ended September 30, 2011, include approximately $3.3 million and $122.0 million, respectively, of obligations associated with oil and gas properties that were sold by Maritech during the periods.