Decommissioning Liability

12 Months Ended

Dec. 31, 2023

Asset Retirement Obligation Disclosure [Abstract]

Decommissioning Liability

(5) Decommissioning Liability

The following table presents our decommissioning liability as of the periods indicated:

	December 31, 2023			December 31, 2022
Wells	$	96,603		$	96,171
Platform		73,680			64,500
Total decommissioning liability		170,283			160,671
Note receivable		(69,005	)		(69,679	)
Total decommissioning liability, net of note receivable	$	101,278		$	90,992

In December 2023, revisions to our decommissioning cost estimates resulted in an $11.4 million increase in our decommissioning liability. During the Current Year, we incurred $11.5 million in costs associated with our decommissioning program.

The following table presents the activity during 2023 impacting our decommissioning liability, the related note receivable and oil and gas producing assets:

	December 31,			2023			2023		December 31,
	2022			Activity (1)			Revision		2023
Wells	$	96,171		$	(5,606	)	$	6,038	$	96,603
Platform		64,500			3,800			5,380		73,680
Decommissioning liability		160,671			(1,806	)		11,418		170,283
Note receivable		(69,679	)		(3,935	)		4,609		(69,005	)
Decommissioning liability, net of note receivable	$	90,992		$	(5,741	)	$	16,027	$	101,278

(1) Activity during 2023 includes $9.7 million in accretion expense associated with the decommissioning liability, net of $11.5 million in decommissioning costs incurred and $3.9 million in interest income recognized on the note receivable.

The following table presents accretion expense as of the periods indicated (in millions):

	For the Year Ended December 31, 2023		For the Year Ended December 31, 2022		For the Period February 3, 2021 through December 31, 2021		For the Period January 1, 2021 through February 2, 2021
Accretion expense	$	9.7	$	9.5	$	9.3	$	0.5

During the second quarter of 2022, we undertook an initiative to alter our decommissioning program, whereby we intend to convert the platform into an artificial reef (“reef-in-place”). The reduction in cost estimates under a reef-in-place program resulted in a reduction in the carrying value of our decommissioning liability and related note receivable (see “Note 6 - Note Receivable”), as well as impacted the carrying value of our oil and gas producing assets, such that as of June 30, 2022, our decommissioning liability was reduced by $53.0 million, and the related note receivable was increased by $2.6 million. In accordance with ASC 410, the carrying value of our oil and gas producing assets was reduced by $38.2 million, which represented the net book value of our oil and gas assets as of June 30, 2022. In connection with these changes, we recognized a gain of approximately $17.4 million, which is included in other (gains) and losses, net in our statement of operations.