Asset Retirement Obligations

9 Months Ended

Sep. 30, 2011

Asset Retirement Obligations[Abstract]

Note 6 — Asset Retirement Obligations

The change in our asset retirement obligations during the nine months ended September 30, 2011 is set forth below:


	Nine Months
	Ended
	September 30, 2011
	(in millions)
Asset retirement obligations as of the beginning of the period, including current portion	$	373.9
Liabilities settled		(51.5	)
Divestment of properties		(0.8	)
Accretion expense		23.1

Asset retirement obligations as of the end of the period, including current portion	$	344.7

In October 2010, we received notification from the Bureau of Ocean Energy Management, Regulation and Enforcement (“BOEMRE”) indicating that certain identified wells and facilities operated by us would need to be retired on a timing schedule which was accelerated from the timing estimated in calculating liabilities for asset retirement obligations at December 31, 2009. In February 2011, we submitted an abandonment plan addressing the identified wells and facilities. The successor to the BOEMRE in this matter, the Bureau of Safety and Environmental Enforcement (“BSEE”), indicated it will issue a final order following its review of the plan. During 2010, we increased our asset retirement obligations in the amount of $54.4 million for the estimated impact of the accelerated timing of the retirement of these assets and other factors. The final order, expected to be issued by the BSEE, will ultimately determine the impact on our asset retirement obligations and could result in additional upward or downward revisions.