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			&lt;font style="display: inline;font-weight:bold;font-size:10pt;"&gt; (8) Commitments and Contingencies&lt;/font&gt;
		&lt;/p&gt;
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			&lt;font style="display: inline;font-size:10pt;"&gt;On March 20, 2013, we were the high bidder on &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;five&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; leases at the Central Gulf of Mexico Lease Sale 227. The five high bid lease blocks cover a total of &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;13,892&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; acres on a gross and net basis and are all located in the shallow Gulf of Mexico within our core area of operations. Our share of the high bids totaled approximately $&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;2.1&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million. As of June 30, 2013, we had been awarded &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;four&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; (4) of the leases totaling &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;$1.8&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million, of which &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;$1.&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;5&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million was paid in July 2013. In July, we were awarded the &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;final&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; lease for &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;$0.3&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million, which amount is due in August.&lt;/font&gt;
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			&lt;font style="display: inline;font-size:10pt;"&gt;We maintain restricted escrow funds in a trust for future abandonment costs at our East Bay field. The trust was originally funded over time with $&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;15&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million and, with accumulated interest, increased to $&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;16.7&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million at December&amp;nbsp;31, 2008. We may draw from the trust upon completion of qualifying abandonment activities at our East Bay field. At June 30, 2013, we had $&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;6.0&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million remaining in restricted escrow funds for decommissioning work in our East Bay field, which will remain restricted until substantially all required decommissioning in the East Bay field is complete. Amounts on deposit in the trust account are reflected in Restricted cash on our condensed consolidated balance sheets. &lt;/font&gt;
		&lt;/p&gt;
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			&lt;font style="display: inline;font-size:10pt;"&gt;We record liabilities when we deliver production that is in excess of our interest in certain properties. In addition to these imbalances, we may, from time to time, be allocated cash sales proceeds in excess of amounts that we estimate are due to us for our interest in production. These allocations may be subject to further review, may require more information to resolve or may be in dispute. In July 2010, we were notified by a purchaser of oil production from one of our non-operated fields that we were allocated, and received sales proceeds from, more oil production than we actually sold to that purchaser. These third party misallocations may have dated back to 2006. The oil purchaser&amp;#x2019;s initial estimate of the oil volumes misallocated to us was approximately &lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;74,000&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; barrels, which may have been valued at up to $&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt;6.9&lt;/font&gt;&lt;font style="display: inline;font-size:10pt;"&gt; million based on information provided by the oil purchaser. We had previously recorded as a liability an amount that we believed may have been payable related to a potential reallocation, which amount was reflected in the accompanying condensed consolidated balance sheets in Accrued expenses as of December&amp;nbsp;31, 2012.&amp;nbsp;&amp;nbsp;As part of the consideration for its purchase of the BM Interests, the buyer assumed any amounts due related to this matter, as a result of which we have removed the liability from our balance sheet.&amp;nbsp;&amp;nbsp;See Note 2, &amp;#x201C;Acquisitions and Dispositions-Sale of Non-Operated Bay Marchand Asset&amp;#x201D; for more information.&lt;/font&gt;
		&lt;/p&gt;
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			&lt;font style="display: inline;font-size:10pt;"&gt;We and our oil and gas joint interest owners are subject to periodic audits of the joint interest accounts for leases in which we participate and/or operate. As a result of these joint interest audits, amounts payable or receivable by us for costs incurred or revenue distributed by the operator or by us on a lease may be adjusted, resulting in adjustments, increases or decreases, to our net costs or revenues and the related cash flows. Such adjustments may be material. When they occur, these adjustments are recorded in the current period, which generally is one or more years after the related cost or revenue was incurred or recognized by the joint account. &lt;/font&gt;
		&lt;/p&gt;
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			&lt;font style="display: inline;font-size:10pt;"&gt;In the ordinary course of business, we are a defendant in various other legal proceedings. We do not expect our exposure in these other proceedings, individually or in the aggregate, to have a material adverse effect on our financial position, results of operations or liquidity. &lt;/font&gt;
		&lt;/p&gt;
		&lt;p&gt;&lt;font size="1"&gt; &lt;/font&gt;&lt;/p&gt;
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