OTHER LIABILITIES

9 Months Ended

Sep. 30, 2013

OTHER LIABILITIES

OTHER LIABILITIES

NOTE 6        OTHER LIABILITIES

(unaudited)
(millions of dollars)	September 30, 2013	December 31, 2012(a)
Regulatory liabilities	23	20
Fair value of derivative contracts (Note 13)	1	-
Other liabilities	1	1
	25	21

(a) Recast as discussed in Note 2 and Note 4.

The Partnership collects estimated future removal costs related to its transmission and gathering facilities in its current rates and recognizes regulatory liabilities in this respect in the balance sheet. Estimated costs associated with the future removal of transmission and gathering facilities are collected through depreciation as allowed by FERC. These amounts do not represent asset retirement obligations as defined by FASB ASC 410, Accounting for Asset Retirement Obligations.