Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

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Asset Retirement Obligations
9 Months Ended
Sep. 30, 2012
Asset Retirement Obligations

4. Asset Retirement Obligations

Our ARO represent the estimated present value of the amount we will incur to plug, abandon and remediate our producing properties at the end of their productive lives in accordance with applicable laws. A summary of the changes to our ARO since December 31, 2011 is as follows (in thousands):

 

Balance, December 31, 2011

   $ 393,880   

Liabilities settled

     (63,150

Accretion of discount

     15,043   

Disposition of properties

     (3,993

Liabilities incurred

     486   

Revisions of estimated liabilities due to Hurricane Ike (1)

     (29,571

Revisions of estimated liabilities – all other (2)

     21,554   
  

 

 

 

Balance, September 30, 2012

     334,249   

Less current portion

     83,545   
  

 

 

 

Long-term

   $ 250,704   
  

 

 

 

 

(1) During the nine months ended September 30, 2012, our recommended remediation plan for one of the hurricane damaged platforms and its associated wells was approved by all required parties. The approved plan, which included remediating the damaged platform as a reef in place, was responsible for most of the reduction of the estimated costs.
(2) The majority of the increase is attributable to properties that we do not operate.