Insurance Matters	12 Months Ended
Dec. 31, 2011
Insurance Matters [Abstract]
Insurance Matters	Note 4 – Insurance Matters In September 2008, we sustained damage to certain of our facilities resulting from Hurricane Ike. All of our business segments were affected by the hurricane; however, the oil and gas segment suffered the substantial majority of our damage. While we sustained damage to our own production facilities from Hurricane Ike, the larger issue in terms of our production recovery involved damage to third party pipelines and onshore processing facilities. The timing of the repairs of these facilities was not subject to our control. One significant third party pipeline was not repaired and placed back into service until January 2010. Our insurance policy, which covered all of our operated and non-operated producing and non-producing properties, was subject to an approximate $6 million aggregate deductible. We met our $6 million aggregate deductible in September 2008. We record our hurricane-related repair costs as incurred in cost of sales. We record insurance reimbursements when the realization of the claim for recovery of a loss is deemed probable. We did not have any material hurricane-related repair cost in the year ended December 31, 2011. For the years ending December 31, 2010 and 2009 we incurred $4.7 million and $25.8 million, respectively, of hurricane-related repair costs related to our oil and gas assets. In June 2009, we reached a settlement with the underwriters of our insurance policies related to damage from Hurricane Ike. Insurance proceeds received in the second quarter of 2009 totaled $102.6 million. In the second quarter of 2009, we recorded a $43.0 million net reduction in our cost of sales representing the amount by which our insurance recoveries exceeded our costs during the second quarter of 2009. The cost reduction reflected the net proceeds of $102.6 million partially offset by $8.1 million of hurricane-related expenses incurred in the second quarter of 2009 and $51.5 million of hurricane-related impairment charges, including $43.8 million of additional estimated asset retirement costs resulting from additional work performed and/or further evaluation of facilities on properties that were classified as a "total loss" following the storm. In 2011, we received $5.0 million of supplemental insurance reimbursements. Our insurance year runs from July 1 to June 30. Since 2009 our insurance renewals have not included wind storm coverage as the premium and deductibles have been relatively substantial for the coverage provided. In order to mitigate potential loss with respect to our most significant oil and gas properties from hurricanes in the Gulf of Mexico, we entered into a Catastrophic Bond instrument. The Catastrophic Bond provides for payments of negotiated amounts should an eye of a Category 2 or Category 3 or greater hurricane pass within specific pre-defined areas encompassing our more prominent oil and gas producing fields. The Catastrophic Bond is not considered a risk management instrument for accounting purposes. Accordingly, the payment associated with the Catastrophic Bond is not charged to expense on a straight line basis as is customary with insurance premiums, but rather it is charged to expense on a basis to reflect the Catastrophic Bond's intrinsic value at the end of the period. Because our Catastrophic Bond was underwritten to mitigate the risk of hurricanes in the Gulf of Mexico, substantially all of its intrinsic value is for the period associated with the "hurricane season" (typically June 1 to November 30) with a substantial majority of the intrinsic value associated with the period July 1 to September 30. The insurance expense associated with the Catastrophic Bond payment is recorded as lease operating expense a component of cost of sales for our oil and gas operations. In June 2011, 2010 and 2009 we made our hurricane catastrophic bond payment associated with each upcoming insurance period. The payments were $10.6 million in June 2011, $11.9 million in June 2010 and $13.1 million in June 2009. The insurance expense charges recorded in each of the respective third quarter periods to reduce the value of our hurricane catastrophic bond to its intrinsic value at September 30th totaled $8.4 million in 2011, $9.4 million in 2010 and $10.4 million in 2009. For each of the respective fourth quarter periods the respective insurance charges totaled $2.0 million in 2011, $2.3 million in 2010 and $2.4 million in 2009.

Note 4 – Insurance Matters

In September 2008, we sustained damage to certain of our facilities resulting from Hurricane Ike. All of our business segments were affected by the hurricane; however, the oil and gas segment suffered the substantial majority of our damage. While we sustained damage to our own production facilities from Hurricane Ike, the larger issue in terms of our production recovery involved damage to third party pipelines and onshore processing facilities. The timing of the repairs of these facilities was not subject to our control. One significant third party pipeline was not repaired and placed back into service until January 2010. Our insurance policy, which covered all of our operated and non-operated producing and non-producing properties, was subject to an approximate $6 million aggregate deductible. We met our $6 million aggregate deductible in September 2008. We record our hurricane-related repair costs as incurred in cost of sales. We record insurance reimbursements when the realization of the claim for recovery of a loss is deemed probable. We did not have any material hurricane-related repair cost in the year ended December 31, 2011. For the years ending December 31, 2010 and 2009 we incurred $4.7 million and $25.8 million, respectively, of hurricane-related repair costs related to our oil and gas assets.

In June 2009, we reached a settlement with the underwriters of our insurance policies related to damage from Hurricane Ike. Insurance proceeds received in the second quarter of 2009 totaled $102.6 million. In the second quarter of 2009, we recorded a $43.0 million net reduction in our cost of sales representing the amount by which our insurance recoveries exceeded our costs during the second quarter of 2009. The cost reduction reflected the net proceeds of $102.6 million partially offset by $8.1 million of hurricane-related expenses incurred in the second quarter of 2009 and $51.5 million of hurricane-related impairment charges, including $43.8 million of additional estimated asset retirement costs resulting from additional work performed and/or further evaluation of facilities on properties that were classified as a "total loss" following the storm. In 2011, we received $5.0 million of supplemental insurance reimbursements.

Our insurance year runs from July 1 to June 30. Since 2009 our insurance renewals have not included wind storm coverage as the premium and deductibles have been relatively substantial for the coverage provided. In order to mitigate potential loss with respect to our most significant oil and gas properties from hurricanes in the Gulf of Mexico, we entered into a Catastrophic Bond instrument. The Catastrophic Bond provides for payments of negotiated amounts should an eye of a Category 2 or Category 3 or greater hurricane pass within specific pre-defined areas encompassing our more prominent oil and gas producing fields. The Catastrophic Bond is not considered a risk management instrument for accounting purposes. Accordingly, the payment associated with the Catastrophic Bond is not charged to expense on a straight line basis as is customary with insurance premiums, but rather it is charged to expense on a basis to reflect the Catastrophic Bond's intrinsic value at the end of the period. Because our Catastrophic Bond was underwritten to mitigate the risk of hurricanes in the Gulf of Mexico, substantially all of its intrinsic value is for the period associated with the "hurricane season" (typically June 1 to November 30) with a substantial majority of the intrinsic value associated with the period July 1 to September 30. The insurance expense associated with the Catastrophic Bond payment is recorded as lease operating expense a component of cost of sales for our oil and gas operations.

In June 2011, 2010 and 2009 we made our hurricane catastrophic bond payment associated with each upcoming insurance period. The payments were $10.6 million in June 2011, $11.9 million in June 2010 and $13.1 million in June 2009. The insurance expense charges recorded in each of the respective third quarter periods to reduce the value of our hurricane catastrophic bond to its intrinsic value at September 30th totaled $8.4 million in 2011, $9.4 million in 2010 and $10.4 million in 2009. For each of the respective fourth quarter periods the respective insurance charges totaled $2.0 million in 2011, $2.3 million in 2010 and $2.4 million in 2009.