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FAIR VALUE MEASUREMENTS (Tables)
12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Recurring Fair Value Measurements The following tables set forth our recurring fair value measurements as of the dates indicated:
 December 31, 2022
 Level 1Level 2Level 3Total - GrossNetting (a)Total - Net
 
(Thousands of dollars)
Derivative assets      
Commodity contracts
Financial contracts$14,897 $152,338 $ $167,235 $(124,566)$42,669 
Interest-rate contracts 10,918  10,918  10,918 
Total derivative assets$14,897 $163,256 $ $178,153 $(124,566)$53,587 
Derivative liabilities
Commodity contracts
Financial contracts$(38,187)$(86,379)$ $(124,566)$124,566 $ 
Total derivative liabilities$(38,187)$(86,379)$ $(124,566)$124,566 $ 
(a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2022, we held no cash and posted $8.9 million of cash with various counterparties, which is included in other current assets in our Consolidated Balance Sheets.

 December 31, 2021
 Level 1Level 2Level 3Total - GrossNetting (a)Total - Net
 
(Thousands of dollars)
Derivative assets      
Commodity contracts
Financial contracts$22,019 $172,833 $9,309 $204,161 $(204,161)$— 
Total derivative assets$22,019 $172,833 $9,309 $204,161 $(204,161)$— 
Derivative liabilities
      
Commodity contracts
Financial contracts$(67,226)$(112,922)$(123,592)$(303,740)$303,740 $— 
Interest-rate contracts— (145,524)— (145,524)— (145,524)
Total derivative liabilities$(67,226)$(258,446)$(123,592)$(449,264)$303,740 $(145,524)
(a) - Derivative assets and liabilities are presented in our Consolidated Balance Sheet on a net basis. We net derivative assets and liabilities when a legally enforceable master-netting arrangement exists between the counterparty to a derivative contract and us. At December 31, 2021, we held no cash and posted $157.0 million of cash with various counterparties, including $99.6 million of cash collateral that is offsetting derivative net liability positions under master-netting arrangements in the table above. The remaining $57.4 million of cash collateral in excess of derivative net liability positions is included in other current assets in our Consolidated Balance Sheet.
Reconciliation of Level 3 Fair Value Measurements
The following table sets forth a reconciliation of our Level 3 fair value measurements for the periods indicated:
 Years Ended
December 31,
Derivative Assets (Liabilities)20222021
 
(Thousands of dollars)
Net liabilities at beginning of period$(114,283)$(31,321)
Total changes in fair value:
Settlements included in net income (a)99,567 31,003 
Transfers out of Level 3 derivatives(48,743)(59,911)
New Level 3 derivatives included in other comprehensive income (loss) (b)56,387 (57,325)
Unrealized change included in other comprehensive income (loss) (b)7,072 3,271 
Net liabilities at end of period$ $(114,283)
(a) - Included in commodity sales revenues/cost of sales and fuel in our Consolidated Statements of Income.
(b) - Included in change in fair value of derivatives in our Consolidated Statements of Comprehensive Income.