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Bureau of Ocean Energy Management, Regulation and Enforcement (“BOEM”) Royalty Recoupment
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12 Months Ended |
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Dec. 31, 2011
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| Bureau of Ocean Energy Management, Regulation and Enforcement Royalty Recoupment [Abstract] | |
| Bureau of Ocean Energy Management, Regulation and Enforcement (“BOEM”) Royalty Recoupment |
Bureau of Ocean Energy Management, Regulation and Enforcement (“BOEM”) Royalty Recoupment
During 2009, the Company recorded a receivable attributable to a recoupment of royalty payments previously made to the BOEMRE on our deepwater property, Medusa. Following the decisions resulting from several court cases brought by another oil and gas company, the court ruled that the BOEMRE was not entitled to receive these royalty payments. Accordingly, in November 2009 the Company filed for a recoupment of royalties paid to the BOEMRE in the amount of $44,787 from inception-to-date production at the Company’s Medusa field. At December 31, 2009, Callon accrued the royalty recoupment of $44,787 and estimated interest of $7,681. The Company received the recoupment of principal in January 2010, and received $7,927 of interest during the second quarter of 2010, which included additional accrued interest through the repayment date. In addition, the Company is no longer required to make any future royalty payments to the BOEMRE related to its Medusa production.
Royalty recoupment of $2,967 related to 2009 production was recorded as oil and gas sales during the fourth quarter of 2009. For years prior to 2009, royalty recoupment of $40,886 was included in operating revenues as BOEMRE royalty recoupment. Interest income related to the recoupment was recorded as a component of other income and expense.
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