This process has been successfully carried out in gulf states like, Louisiana, Texas, and Mississippi for example but has been more controversial in California and in the North Sea. One of the issues under debate is the quality of the habitat that is created and for how many species the artificial reef is a good habitat.
If you google 'Rigs to Reefs' you will find a lot of information. I thought this article from a Scuba Diving website was quite well balanced and there's an article from the Daily Nexus in 2001.
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