No "decrypt" choice in contextual menu - need to decrypt an encrypted external hard drive

I have a Firewire 800 external hard drive that I had previously encrypted using the contextual menu. I want to change the password on this drive so I'm trying to decrypt it and re-encrypt it while assigned a new password. I have Filevault 2 enabled on my iMac but this shouldn't affect this external drive. I also have a Firmware Password enabled on this iMac, but again, this shouldn't prevent a "decrypt" option in the contextual menu.
"Encrypt" is present in the contextual menu. When I attempt to use this option it appears to allow me to assign a new password. When I click "Encrypt" I get this message: "The target Core Storage volume is already encrypted." It's true that the drive is already encrypted, that's why I'm trying to decrypt it.
I'm running the latest version of Mountain Lion on a late 2012 iMac. I've searched online for someone with a similar problem, but haven't found this problem reference. Does anyone have any idea as to why "decrypt" is not an option on this external drive, but it is on similar external drives that are also already encrypted. Thanks.

Thanks for your help, Linc. By the way, I mistakenly said I had Filevault and Firmware turned on. Actually, they are NOT enabled on the iMac. Here's what I got in my Text Edit window:
/dev/disk0
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      GUID_partition_scheme                        *121.3 GB   disk0
   1:                        EFI                         209.7 MB   disk0s1
   2:          Apple_CoreStorage                         121.0 GB   disk0s2
   3:                 Apple_Boot Boot OS X               134.2 MB   disk0s3
/dev/disk1
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      GUID_partition_scheme                        *1.0 TB     disk1
   1:                        EFI                         209.7 MB   disk1s1
   2:          Apple_CoreStorage                         999.3 GB   disk1s2
   3:                 Apple_Boot Recovery HD             650.0 MB   disk1s3
/dev/disk2
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:                  Apple_HFS Macintosh HD           *1.1 TB     disk2
/dev/disk3
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      GUID_partition_scheme                        *750.2 GB   disk3
   1:                        EFI                         209.7 MB   disk3s1
   2:          Apple_CoreStorage OWC 750 GB Archive      749.8 GB   disk3s2
   3:                 Apple_Boot Boot OS X               134.2 MB   disk3s3
/dev/disk4
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      GUID_partition_scheme                        *500.1 GB   disk4
   1:                        EFI                         209.7 MB   disk4s1
   2:          Apple_CoreStorage                         499.8 GB   disk4s2
   3:                 Apple_Boot Boot OS X               134.2 MB   disk4s3
/dev/disk5
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:                  Apple_HFS OWC 500 GB             *499.4 GB   disk5
/dev/disk6
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:      GUID_partition_scheme                        *2.0 TB     disk6
   1:                        EFI                         209.7 MB   disk6s1
   2:          Apple_CoreStorage                         2.0 TB     disk6s2
   3:                 Apple_Boot Boot OS X               134.2 MB   disk6s3
/dev/disk7
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:                  Apple_HFS LaCie Porsche 2TB T... *2.0 TB     disk7
/dev/disk8
   #:                       TYPE NAME                    SIZE       IDENTIFIER
   0:                  Apple_HFS OWC 750 GB Archive     *749.5 GB   disk8
CoreStorage logical volume groups (4 found)
|
+-- Logical Volume Group 77833580-B5D6-4969-90F2-69629D851399
|   =========================================================
|   Name:         Macintosh HD
|   Status:       Online
|   Size:         1120333979648 B (1.1 TB)
|   Free Space:   114688 B (114.7 KB)
|   |
|   +-< Physical Volume 92948041-5F99-48EE-BA6A-AC5E2D801AA1
|   |   ----------------------------------------------------
|   |   Index:    0
|   |   Disk:     disk0s2
|   |   Status:   Online
|   |   Size:     120988852224 B (121.0 GB)
|   |
|   +-< Physical Volume 2AFC48E4-8F84-4353-B5BE-80F82FCC5E60
|   |   ----------------------------------------------------
|   |   Index:    1
|   |   Disk:     disk1s2
|   |   Status:   Online
|   |   Size:     999345127424 B (999.3 GB)
|   |
|   +-> Logical Volume Family 9896E84D-A633-4439-9230-E793C140F99F
|       ----------------------------------------------------------
|       Encryption Status:       Unlocked
|       Encryption Type:         None
|       Conversion Status:       NoConversion
|       Conversion Direction:    -none-
|       Has Encrypted Extents:   No
|       Fully Secure:            No
|       Passphrase Required:     No
|       |
|       +-> Logical Volume 73192A6E-2FD8-48C2-9586-DF06DEAF832C
|           ---------------------------------------------------
|           Disk:               disk2
|           Status:             Online
|           Size (Total):       1111826497536 B (1.1 TB)
|           Size (Converted):   -none-
|           Revertible:         No
|           LV Name:            Macintosh HD
|           Volume Name:        Macintosh HD
|           Content Hint:       Apple_HFS
|
+-- Logical Volume Group D3A1E4E0-2FAB-4620-9E30-A52F1D8967EA
|   =========================================================
|   Name:         LaCie Porsche 2TB Time Machine
|   Status:       Online
|   Size:         2000054960128 B (2.0 TB)
|   Free Space:   16777216 B (16.8 MB)
|   |
|   +-< Physical Volume 5616866C-0E7B-4CFB-9ADF-F8B3C6D558A2
|   |   ----------------------------------------------------
|   |   Index:    0
|   |   Disk:     disk6s2
|   |   Status:   Online
|   |   Size:     2000054960128 B (2.0 TB)
|   |
|   +-> Logical Volume Family 88D4CB4E-CD4B-4DEF-87FF-2C6C0C7FFF48
|       ----------------------------------------------------------
|       Encryption Status:       Unlocked
|       Encryption Type:         AES-XTS
|       Conversion Status:       Complete
|       Conversion Direction:    -none-
|       Has Encrypted Extents:   Yes
|       Fully Secure:            Yes
|       Passphrase Required:     Yes
|       |
|       +-> Logical Volume C207E3E4-B7A5-4440-A786-34251950978C
|           ---------------------------------------------------
|           Disk:               disk7
|           Status:             Online
|           Size (Total):       1999719411712 B (2.0 TB)
|           Size (Converted):   -none-
|           Revertible:         Yes (unlock and decryption required)
|           LV Name:            LaCie Porsche 2TB Time Machine
|           Volume Name:        LaCie Porsche 2TB Time Machine
|           Content Hint:       Apple_HFS
|
+-- Logical Volume Group 1D616DCF-5201-4DF4-AF4F-4D8574ADA3AF
|   =========================================================
|   Name:         OWC 750 GB Archive
|   Status:       Online
|   Size:         749812400128 B (749.8 GB)
|   Free Space:   16777216 B (16.8 MB)
|   |
|   +-< Physical Volume 67B9DE8F-CEB9-47E7-92AD-9C0F2D02ED66
|   |   ----------------------------------------------------
|   |   Index:    0
|   |   Disk:     disk3s2
|   |   Status:   Online
|   |   Size:     749812400128 B (749.8 GB)
|   |
|   +-> Logical Volume Family 84C4B3C3-63DE-4487-A285-79733D638B14
|       ----------------------------------------------------------
|       Encryption Status:       Unlocked
|       Encryption Type:         AES-XTS
|       Conversion Status:       Complete
|       Conversion Direction:    -none-
|       Has Encrypted Extents:   Yes
|       Fully Secure:            Yes
|       Passphrase Required:     Yes
|       |
|       +-> Logical Volume 9B356069-1F11-44B5-A419-D395B9E5D9F6
|           ---------------------------------------------------
|           Disk:               disk8
|           Status:             Online
|           Size (Total):       749476851712 B (749.5 GB)
|           Size (Converted):   749476851712 B (749.5 GB)
|           Revertible:         Yes (unlock and decryption required)
|           LV Name:            OWC 750 GB Archive
|           Volume Name:        OWC 750 GB Archive
|           Content Hint:       Apple_HFS
|
+-- Logical Volume Group 9FD47542-59CC-4A5F-B2D6-4D58B15F4DEC
    =========================================================
    Name:         OWC 500 GB
    Status:       Online
    Size:         499763888128 B (499.8 GB)
    Free Space:   16777216 B (16.8 MB)
    |
    +-< Physical Volume A52C4498-4C0A-47FB-A8AD-A16F1A1FAAA5
    |   ----------------------------------------------------
    |   Index:    0
    |   Disk:     disk4s2
    |   Status:   Online
    |   Size:     499763888128 B (499.8 GB)
    |
    +-> Logical Volume Family 9C908835-59DB-4B08-AF44-E85E05135A37
        Encryption Status:       Unlocked
        Encryption Type:         None
        Conversion Status:       Converting
        Conversion Direction:    backward
        Has Encrypted Extents:   Yes
        Fully Secure:            No
        Passphrase Required:     No
        |
        +-> Logical Volume 79B8EE82-FCD9-4EDC-A7D7-C321A7CED24B
            Disk:               disk5
            Status:             Online
            Size (Total):       499428339712 B (499.4 GB)
            Size (Converted):   333646397440 B (333.6 GB)
            Revertible:         Yes (unlock and decryption required)
            LV Name:            OWC 500 GB
            Volume Name:        OWC 500 GB
            Content Hint:       Apple_HFS

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