Commitments and Contigencies

12 Months Ended

Dec. 31, 2012

Disclosure Commitments And Contingencies [Abstract]

Commitments and Contingencies [Text Block]

14. COMMITMENTS AND CONTINGENCIES

Leases

We lease land, buildings and equipment under agreements that expire in various years through 2108. Rental expense under operating leases was $4.8 million, $5.4 million and $5.1 million for the years ended December 31, 2012, 2011 and 2010, respectively. The table below reflects the future minimum lease payments due under non-cancelable leases at December 31, 2012. These commitments relate principally to the lease of our office headquarters, underground gas storage facilities, vehicles and computer equipment.

In thousands	Operating leases		Capital leases		Minimum lease payments
2013	$	5,415	$	547	$	5,962
2014	5,655		335		5,990
2015	5,498		136		5,634
2016	5,478		42		5,520
2017	5,474		1		5,475
Thereafter	33,187		—		33,187
Total	$	60,707	$	1,061	$	61,768

Gas Purchase and Pipeline Capacity Purchase and Release Commitments

We have signed agreements providing for the reservation of firm pipeline capacity under which we are required to make fixed monthly payments for contracted capacity. The pricing component of the monthly payment is established, subject to change, by U.S. or Canadian regulatory bodies. In addition, we have entered into long-term sale agreements to release firm pipeline capacity. We also enter into short-term and long-term gas purchase agreements. The aggregate amounts of these agreements were as follows at December 31, 2012:

In thousands	Gas Purchase Agreements		Pipeline Capacity Purchase Agreements		Pipeline Capacity Release Agreements
2013	$	104,443	$	90,823	$	3,464
2014	12,166		86,119		—
2015	—		72,707		—
2016	—		61,398		—
2017	—		48,503		—
Thereafter	—		240,929		—
Total	116,609		600,479		3,464
Less: Amount representing interest	129		87,263		—
Total at present value	$	116,480	$	513,216	$	3,464

Our total payments for fixed charges under capacity purchase agreements were $94.3 million in 2012, $94.2 million in 2011, and $91.4 million in 2010. Included in the amounts were reductions for capacity release sales of $4.2 million for 2012, $3.1 million for 2011, and $4.2 million for 2010. In addition, per-unit charges are required to be paid based on the actual quantities shipped under the agreements. In certain take-or-pay purchase commitments, annual deficiencies may be offset by prepayments subject to recovery over a longer term if future purchases exceed the minimum annual requirements.

Environmental Matters

See Note 15 Environmental Matters for a discussion of environmental commitments and contingencies.