Discontinued Operations

9 Months Ended

Sep. 30, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

(8)          DISCONTINUED OPERATIONS

As a result of the sales of our Gulf Coast oil and gas properties and the abandonment of our coalbed methane projects during 2011, all related activities are included as discontinued operations on the consolidated condensed balance sheets and consolidated condensed statements of operations for all periods presented.

The carrying amounts of the major classes of assets and liabilities for our discontinued oil and gas operations are summarized below (in thousands):

	September 30,		December 31,
	2014		2013
Current Assets:
Accounts receivable, net	$	3	$	6
Total Current Assets		3		6
Total Assets of Discontinued Operations	$	3	$	6
Current Liabilities:
Trade payables	$	64	$	29
Revenues and royalties payable		18		18
Accrued EPA contingency		3,100		—
Accrued liabilities and other		101		113
Total Current Liabilities		3,283		160
Total Liabilities of Discontinued Operations	$	3,283	$	160

Our Accrued Liabilities and Other at September 30, 2014 consist of legal fees related to the XPLOR Energy Litigation and Main Pass Environmental Investigations (see Note 12 – “Contingencies”).

Cash used by discontinued operations during the nine months ended September 30, 2014 is mainly related to legal costs resulting from the sale of the oil and gas properties net of any related insurance recoveries. Upon resolution of the XPLOR Energy litigation and regulatory matters, no significant activities are expected related to these discontinued operations.

The revenues and net loss before income tax associated with our discontinued oil and gas operations are as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2014			2013			2014			2013
Revenues and other:
Oil and gas operations	$	—		$	—		$	—		$	—
Oil and gas processing and handling income		—			—			—			—
Total revenues from discontinued operations	$	—		$	—		$	—		$	—
Loss from discontinued operations before taxes	$	(3,300	)	$	(69	)	$	(3,286	)	$	(340	)

We recognized a gain of $41 thousand on the 2011 disposal of our Gulf Coast oil and gas properties during the nine months ended September 30, 2014 due to a refund of a drilling prepayment related to retained plugging and abandonment costs. No losses were recognized on this disposal in the first nine months of 2013.

The loss from discontinued operations for the three and nine months ended September 30, 2014 is primarily due to a $3.1 million contingency recorded in the third quarter 2014 related to the Main Pass Environmental Investigations (see Note 12 – “Contingencies”).