The Oriskany was the first warship slated to become an artificial reef, under authority granted by the fiscal 2004 National Defense Authorization Act (Public Law 108-136). Based on EPA's approval, after a public comment period, the ship was towed to Pensacola, FL in March 2006 for final preparations for sinking under a Navy contract.

A team of Navy personnel accomplished the sinking of the ship on May 17, 2006, supported by the Florida Fish and Wildlife Conservation Commission, Escambia County Department of Natural Resources, the U.S. Coast Guard, the Pensacola Police Department, and several sheriff departments of Escambia County and surrounding counties. Navy Explosive Ordnance Disposal team from Panama City, FL detonated C-4 explosive charges of approximately 500 total pounds net explosive weight, strategically placed on 22 sea connection pipes in various machinery spaces. Thirty seven minutes after detonation, the ship settled in 210 feet (65 m) of water in the Gulf of Mexico.