epl8k_123008.htm
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
————————————
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): December 24, 2008
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ENERGY
PARTNERS, LTD.
(Exact
name of registrant as specified in its charter)
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Delaware
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001-16179
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72-1409562
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(State
or other jurisdiction of
incorporation
or organization)
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(Commission
file number)
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(I.R.S.
Employer
Identification
No.)
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201
St. Charles Avenue, Suite 3400
New
Orleans, Louisiana 70170
(Address
of principal executive offices) (Zip Code)
(504) 569-1875
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
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Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act
(17 CFR 240.14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act
(17 CFR 240.13e-4(c))
Item
8.01 Other
Events.
The Company has reached an agreement
with the Minerals Management Service (MMS) with respect to the MMS' request for
supplemental bonds or other acceptable security related to the Company's
plugging and abandonment liability for federal property in the Gulf of
Mexico. The Company has provided performance bonds of approximately
$11.2 million to date. The agreement requires the Company to provide
additional cash or other security of approximately $36.1 million (the total of
$47.3 million is reduced from the $56 million total previously requested by the
MMS), with one-half ($18.0 million) to be provided as a deposit on the date of
the agreement, and the remainder to be deposited into a trust for the benefit of
the MMS in equal quarterly payments of approximately $1.2 million in cash,
commencing March 31, 2009. The Company's deposit consisted of cash in
the amount of approximately $1.3 million and a pledge of cash in the amount of
approximately $16.7 million the Company is entitled to under its trust agreement
signed at the time of the purchase of its East Bay property in 2000 to support
the plugging and abandonment liability assumed by the Company in connection with
that purchase. The Company is obligated to provide cash or additional
security acceptable to the MMS in lieu of this pledge by February 27,
2009. The Company's agreement with the MMS provides that as the
Company performs decommissioning work on the affected leases, the amount of the
quarterly deposits required will be adjusted downward as assessed by the MMS,
with reductions being applied to the last payments first.
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has
duly caused this report to be signed on its behalf by the undersigned hereunto
duly authorized.
Dated:
December 31, 2008
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ENERGY
PARTNERS, LTD.
John
H. Peper
Executive
Vice President, General
Counsel
and Corporate Secretary
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