CAPITAL AND OPERATING LEASES

Lessee - Operating Lease — The Company leases various assets under operating leases, including coal railcars, office buildings, a warehouse, computers, vehicles and other equipment. The lease arrangements expire at various dates through 2046.

Future minimum lease payments under non-cancelable leases at December 31, 2014 were:



	Operating Leases
	(In millions)
2015	$	42
2016	34
2017	28
2018	23
2019	14
Thereafter	78
Total minimum lease payments	$	219

Rental expense for operating leases was $38 million in 2014, $34 million in 2013 and $36 million in 2012.

Lessor - Capital Lease — The Company leases a portion of its pipeline system to the Vector Pipeline through a capital lease contract that expires in 2020, with renewal options extending for five years. The Company owns a 40% interest in the Vector Pipeline. In addition, the Company has two energy services agreements, a portion of which are accounted for as capital leases. One agreement expires in 2021. The other agreement expires in 2019, with a three or five year renewal option. The components of the net investment in the capital leases at December 31, 2014, were as follows:



	Capital Leases
	(In millions)
2015	$	12
2016	13
2017	13
2018	13
2019	10
Thereafter	9
Total minimum future lease receipts	70
Residual value of leased pipeline	40
Less unearned income	(34		)
Net investment in capital lease	76
Less current portion	(5		)
	$	71