Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

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Asset Retirement Obligations
 3 Months Ended
Mar. 31, 2012
Asset Retirement Obligations [Abstract]  
Asset Retirement Obligations

4. Asset Retirement Obligations

Our asset retirement obligations ("ARO") primarily 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 is as follows (in thousands):

 

Balance, December 31, 2011

    $ 393,880   

Liabilities settled

      (5,384 ) 

Accretion of discount

      5,483   

Liabilities incurred

      165   

Revisions of estimated liabilities due to Hurricane Ike (1)

      (30,452 ) 

Revisions of estimated liabilities – all other

      4,787   
  

 

 

  

Balance, March 31, 2012

      368,479   

Less current portion

      105,442   
  

 

 

  

Long-term

    $   263,037   
  

 

 

  

 

  (1) During the three months ended March 31, 2012, the Bureau of Safety and Environment Enforcement (the "BSEE") approved our recommended remediation plan of one of the hurricane damaged platforms and its associated wells. The approved plan includes remediating the damaged platform as a reef in place. The approved plan for this one platform and its associated wells contributed to most of the reduction of the estimated costs.