Decommissioning and Other Asset Retirement Obligations

3 Months Ended

Mar. 31, 2012

Notes to Financial Statements [Abstract]

Decommissioning and Other Asset Retirement Obligations

NOTE D - 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 properties 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 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 months ended March 31, 2012 and 2011, are as follows:

	Three Months Ended March 31,
	2012			2011
	(In Thousands)
Beginning balance for the period, as reported	$	139,835		$	272,815
Activity in the period:
Accretion of liability		520			1,894
Retirement obligations incurred		-			-
Revisions in estimated cash flows		2,233			9,764
Settlement of retirement obligations		(15,744	)		(53,639	)
Ending balance as of March 31	$	126,844		$	230,834

Revisions in estimated cash flows during the first quarter of 2012 resulted primarily from additional work anticipated to be required on one of Maritech's offshore oil and gas properties. Settlements of retirement obligations during the first quarter of 2011 include approximately $46.0 million of obligations associated with oil and gas properties sold by Maritech during the period. Revisions in estimated cash flows during the first quarter of 2011 resulted primarily from additional work anticipated to be required on one of Maritech's hurricane damaged properties.