Decommissioning and Other Asset Retirement Obligations

9 Months Ended

Sep. 30, 2013

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 a hurricane. The amount of decommissioning liabilities recorded by Maritech is reduced by amounts allocable to joint interest owners. We also operate facilities in various U.S. and foreign locations that are used in the manufacture, storage, and sale of our products, inventories, and equipment. These facilities are a combination of owned and leased assets. We are required to take certain actions in connection with the retirement of these assets. The value of our asset retirement obligations for non-Maritech properties was approximately $8.0 million and $7.5 million as of September 30, 2013, and December 31, 2012, respectively. The changes in consolidated asset retirement obligations during the three and nine month periods ended September 30, 2013, are as follows:

	Three Months Ended   September 30, 2013			Nine Months Ended   September 30, 2013
	(In Thousands)
Beginning balance for the period, as reported	$	57,330		$	94,921
Activity in the period:
Accretion of liability	173			504
Revisions in estimated cash flows	21,538			54,404
Settlement of retirement obligations	(33,738		)	(104,526		)
Ending balance as of September 30	$	45,303		$	45,303

Revisions in estimated cash flows during the first nine months of 2013 resulted primarily from additional workincurred andanticipated to be required on Maritech’s offshore oil and gas properties. Settlements of asset retirement obligations during the three and nine month periods ended September 30, 2013, include approximately $5.3 million of obligations associated with oil and gas properties that were sold by Maritech during the period.