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Decommissioning Liabilities
3 Months Ended
Mar. 31, 2022
Asset Retirement Obligation Disclosure [Abstract]  
Decommissioning Liabilities

(7) Decommissioning Liabilities

 

We had decommissioning liabilities of $193.0 million and $190.4 million as of March 31, 2022 and December 31, 2021, respectively. We account for our decommissioning liabilities under ASC 410 – Asset Retirement Obligations. Our decommissioning liabilities are associated with our oil and gas property and include liabilities related to the plugging of wells, removal of the related platform and equipment and site restoration. We review the adequacy of our decommissioning liabilities whenever indicators suggest that the estimated cash flows and/or relating timing needed to satisfy the liability have changed materially.

 

Accretion expense associated with our decommissioning liabilities for the three months ended March 31, 2022 was $2.7 million. During the Successor Period and Predecessor Period, we recognized accretion expense of $1.0 million and $0.5 million, respectively.