Quarterly report pursuant to Section 13 or 15(d)

Asset Retirement Obligations

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Asset Retirement Obligations
6 Months Ended
Jun. 30, 2013
Asset Retirement Obligations

4.  Asset Retirement Obligations

Our ARO primarily represents 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, 2012

$

  384,053

 

Liabilities settled

 

(32,886

)

Accretion of discount

 

  10,924

 

Liabilities incurred

 

  372

 

Revisions of estimated liabilities due to Hurricane Ike

 

  4,160

 

Revisions of estimated liabilities – all other (1)

 

  17,982

 

Balance, June 30, 2013

 

  384,605

 

Less current portion

 

  74,687

 

Long-term

$

  309,918

 

 

 

(1) Revisions are primarily due to increases in the scope of work at several offshore locations required by the Bureau of Safety and Environmental Enforcement.