This excerpt taken from the MWE 8-K filed Oct 11, 2005.
Assets Retirement Obligations
Effective January 1, 2003, Starfish adopted SFAS No 143, Accounting for Asset Retirement Obligations. SFAS 143, issued in June 2001, requires the recording of liabilities equal to the fair value of asset retirement obligations and corresponding additional asset costs. The obligations included are those for which there is a legal obligation as a result of existing or enacted law, statute or contract. Over time, the liability would be accreted to its present value, and the capitalized costs would be depreciated over the useful life of the related asset. Upon settlement of the liability, an entity would either settle the obligation for its recorded amount or recognize a gain or loss. Starfishs assets fall under the jurisdiction for its recorded amount or recognize a gain or loss. Starfishs assets fall under the jurisdiction of the Department of Transportation and the Minerals Management service (MMS). The MMS requires the ultimate abandonment of offshore facilities when they are no longer in use or when suspension for future utilization cannot be justified.