Annual report pursuant to Section 13 and 15(d)

Hurricane Remediation and Insurance Claims

Hurricane Remediation and Insurance Claims
12 Months Ended
Dec. 31, 2014
Insurance [Abstract]  
Hurricane Remediation and Insurance Claims

3. Hurricane Remediation and Insurance Claims

During the third quarter of 2008, Hurricane Ike caused substantial damage to certain of our properties.  Our insurance policies in effect on the occurrence date of Hurricane Ike had a retention requirement of $10.0 million per occurrence, which has been satisfied, and coverage policy limits of $150.0 million for property damage due to named windstorms (excluding damage at certain facilities) and $250.0 million for, among other things, removal of wreckage if mandated by any governmental authority.

For 2014, 2013 and 2012, we have received insurance proceeds of $12.2 million, $6.7 million and $2.9 million, respectively.  These amounts are included within Net cash provided by operating activities in the Consolidated Statement of Cash Flows and are primarily recorded as reductions in Oil and natural gas properties and equipment on the Consolidated Balance Sheets, with minor amounts recorded as reductions in Lease operating expense in the Consolidated Statements of Operations.  From the third quarter of 2008 through December 31, 2014, we have received $161.2 million cumulative from our insurance underwriters related to Hurricane Ike.  See Note 18 for information regarding legal actions involving certain insurers and the Company concerning claims related to Hurricane Ike damages.