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.