Decommissioning and Other Asset Retirement Obligations

9 Months Ended

Sep. 30, 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 decommissioning and debris removal costs associated with one remaining offshore platform previously destroyed by hurricanes. The amount of decommissioning liabilities recorded by Maritech is reduced by amounts allocable to joint interest owners and any contractual amounts to be paid by the previous owners of the oil and gas properties when the liabilities are satisfied.

The changes in the asset retirement obligations during the three and nine month periods ended September 30, 2012 and 2011, are as follows:

	Three Months Ended September 30,
	2012		2011
	(In Thousands)
Beginning balance for the period, as reported	$	113,138	$	144,525
Activity in the period:
Accretion of liability		285		631
Revisions in estimated cash flows		9,187		14,311
Settlement of retirement obligations		(23,104)		(25,872)
Ending balance as of September 30	$	99,506	$	133,595

	Nine  Months Ended September 30,
	2012		2011
	(In Thousands)
Beginning balance for the period, as reported	$	139,835	$	272,815
Activity in the period:
Accretion of liability		1,306		3,789
Revisions in estimated cash flows		19,293		40,120
Settlement of retirement obligations		(60,928)		(183,129)
Ending balance as of September 30	$	99,506	$	133,595

Revisions in estimated cash flows during the third quarter of 2012 resulted primarily from additional work anticipated to be required on Maritech's offshore oil and gas properties. Settlements of retirement obligations during the three and nine month periods ended September 30, 2011, include approximately $3.3 and $122.0 million, respectively, of obligations associated with oil and gas properties sold by Maritech during these periods.