Decommissioning and Other Asset Retirement Obligations

6 Months Ended

Jun. 30, 2013

Notes to Financial Statements [Abstract]

Decommissioning and Other Asset Retirement Obligations

NOTE D – DECOMMISSIONING AND OTHER ASSET RETIREMENT OBLIGATIONS

The large majority of our asset retirement obligations consists of the future well abandonment and decommissioning costs for offshore oil and gas properties and platforms owned by our Maritech subsidiary, including the decommissioning and debris removal costs associated with one remaining offshore platform previously destroyed by hurricanes. The amount of decommissioning liabilities recorded by Maritech is reduced by amounts allocable to joint interest owners. We also operate facilities in various U.S. and foreign locations that are used in the manufacture, storage, and sale of our products, inventories, and equipment. These facilities are a combination of owned and leased assets. We are required to take certain actions in connection with the retirement of these assets. The value of our asset retirement obligations for non-Maritech properties was approximately $7.8 million and $7.5 million as of June 30, 2013 and December 31, 2012, respectively. The changes in consolidated asset retirement obligations during the three and six month periods ended June 30, 2013, are as follows:

	Three Months Ended   June 30,		Six Months Ended   June 30,
	2013		2013
	(In Thousands)
Beginning balance for the period, as reported	78,714		$	94,921
Activity in the period:
Accretion of liability	166		331
Revisions in estimated cash flows	23,578		32,866
Settlement of retirement obligations	(45,128	)	(70,788		)
Ending balance as of June 30	57,330		$	57,330

Revisions in estimated cash flows during the first six months of 2013 resulted primarily from additional workincurred andanticipated to be required on Maritech’s offshore oil and gas properties.