Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Legal Proceedings   We are involved in various legal proceedings in the ordinary course of business.  These proceedings are subject to the uncertainties inherent in any litigation.  We are defending ourselves vigorously in all such matters and we believe that the ultimate disposition of such proceedings will not have a material adverse effect on our financial position, results of operations or cash flows.

CONSOL Carried Cost Obligation Based on the December 31, 2012 Henry Hub natural gas price strip, we forecast our CONSOL Carried Cost Obligation will be suspended throughout the 2013 fiscal year. Therefore, specific payment dates for funding cannot be determined at this time and are excluded from the minimum commitments table below.  See Note 3.  Acquisitions and Divestitures.

Non-Cancelable Leases and Other Commitments   Wehold leases and other commitments for drilling rigs, buildings, equipment and other property. Rental expense for office buildings and oil and gas operations equipment was $37 million in 2012, $31 million in 2011, and $27 million in 2010. 

Minimum commitments as of December 31, 2012 consist of the following:

	Drilling, Equipment, and Purchase Obligations		Transportation and Gathering		Operating Lease  Obligations		FPSO  Lease  Payments(1)		Total
(millions)
2013	$	739	$	81	$	47	$	72	$	939
2014	191		78		42		72		383
2015	175		86		52		70		383
2016	101		88		52		45		286
2017	—		87		48		45		180
2018 and Thereafter	—		311		302		109		722
Total	$	1,206	$	731	$	543	$	413	$	2,893

⁽¹⁾  Annual lease payments, net to our interest, exclude regular maintenance and operational costs. See Note 12. Long-Term Debt.