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Income Taxes
9 Months Ended
Sep. 30, 2011
Income Taxes [Abstract] 
INCOME TAXES
6. INCOME TAXES
     The Company estimates its annual effective income tax rate in recording its quarterly provision for income taxes in the various jurisdictions in which Apache operates. Statutory tax rate changes and other significant or unusual items are recognized as discrete items in the quarter in which they occur.
     In March 2011 the U.K. government proposed an increase in the corporate income tax rate on North Sea oil and gas profits from 50 percent to 62 percent. The legislation received Royal Assent and was enacted on July 19, 2011. As a result of the enacted legislation, the Company recorded a tax charge of $305 million in the third quarter of 2011. Of this amount, $274 million is related to periods prior to the third quarter. Specifically, $218 million resulted from the remeasurement of our U.K. deferred tax liability as of December 31, 2010, and $56 million is related to operating results through the second quarter of 2011.
     Apache and its subsidiaries are subject to U.S. federal income tax as well as income or capital taxes in various state and foreign jurisdictions. The Company’s tax reserves are related to tax years that may be subject to examination by the relevant taxing authority. The Company is in Administrative Appeals with the United States Internal Revenue Service (IRS) regarding the 2004 through 2008 tax years. The Company is also under audit in various states and in most of the Company’s foreign jurisdictions as part of its normal course of business.