Direct Guarantee
| Millions of dollars |
Commitment Expiration by Period |
|
Total |
2009 |
2010-2011 |
2012-2013 |
After 2013 |
| Guarantee of nonconsolidated affiliate or joint-venture obligation |
$ 613 |
$ - |
$ - |
$ 76 |
$ 537 |
The company's guarantee of approximately $600 million is associated with certain payments under a terminal-use agreement entered into by a company affiliate. The terminal is expected to be operational by 2012. Over the approximate 16-year term of the guarantee, the maximum guarantee amount will be reduced as certain fees are paid by the affiliate.
There are numerous cross-indemnity agreements with the affiliate and the other partners to permit recovery of any amounts paid under the guarantee. Chevron has recorded no liability for its obligation under this guarantee.
Indemnifications
The company provided certain indemnities of contingent liabilities of Equilon and Motiva to Shell and Saudi Refining, Inc., in connection with the February 2002 sale of the company's interests in those investments. The company would be required to perform if the indemnified liabilities become actual losses. Were that to occur, the company could be required to make future payments up to $300 million. Through the end of 2008, the company had paid $48 million under these indemnities and continues to be obligated for possible additional indemnification payments in the future.
The company has also provided indemnities relating to contingent environmental liabilities related to assets originally contributed by Texaco to the Equilon and Motiva joint ventures and environmental conditions that existed prior to the formation of Equilon and Motiva or that occurred during the period of Texaco's ownership interest in the joint ventures. In general, the environmental conditions or events that are subject to these indemnities must have arisen prior to December 2001. Claims must be asserted no later than February 2009 for Equilon indemnities and no later than February 2012 for Motiva indemnities. Under the terms of these indemnities, there is no maximum limit on the amount of potential future payments. In February 2009, Shell delivered a letter to the company purporting to preserve unmatured claims for certain Equilon indemnities. The letter itself provides no estimate of the ultimate claim amount, and management does not believe the letter provides a basis to estimate the amount, if any, of a range of loss or potential range of loss with respect to the Equilon or the Motiva indemnities. The company posts no assets as collateral and has made no payments under the indemnities.
The amounts payable for the indemnities described above are to be net of amounts recovered from insurance carriers and others and net of liabilities recorded by Equilon or Motiva prior to September 30, 2001, for any applicable incident.
In the acquisition of Unocal, the company assumed certain indemnities relating to contingent environmental liabilities associated with assets that were sold in 1997. Under the indemnification agreement, the company's liability is unlimited until April 2022, when the indemnification expires. The acquirer shares in certain environmental remediation costs up to a maximum obligation of $200 million, which had not been reached as of December 31, 2008.
Securitization
During 2008, the company terminated the program used to securitize downstream-related trade accounts receivable. At year-end 2007, the balance of securitized receivables was $675 million. As of December 31, 2008, the company had no other securitization arrangements in place.
Minority Interests
The company has commitments of $469 million related to minority interests in subsidiary companies.
Long-Term Unconditional Purchase Obligations and Commitments, Including Throughput and Take-or-Pay Agreements
The company and its subsidiaries have certain other contingent liabilities relating to long-term unconditional purchase obligations and commitments, including throughput and take-or-pay agreements, some of which relate to suppliers' financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, drilling rigs, utilities, and petroleum products, to be used or sold in the ordinary course of the company's business. The aggregate approximate amounts of required payments under these various commitments are: 2009 — $6.4 billion; 2010 — $4.0 billion; 2011 — $3.6 billion; 2012 — $1.5 billion; 2013 — $1.3 billion; 2014 and after — $4.3 billion. A portion of these commitments may ultimately be shared with project partners. Total payments under the agreements were approximately $5.1 billion in 2008, $3.7 billion in 2007 and $3.0 billion in 2006.
The following table summarizes the company's significant contractual obligations:
Contractual Obligations1
| Millions of dollars |
Payments Due by Period |
|
Total |
2009 |
2010-2011 |
2012-2013 |
After 2013 |
| On Balance Sheet:2 |
|
|
|
|
|
| Short-Term Debt3 |
$2,818 |
$2,818 |
$- |
$- |
$- |
| Long-Term Debt3 |
5,742 |
- |
5,061 |
74 |
607 |
| Noncancelable Capital Lease Obligations |
548 |
97 |
154 |
143 |
154 |
| Interest |
2,133 |
174 |
322 |
312 |
1,325 |
| Off-Balance-Sheet: |
|
|
|
|
|
| Noncancelable Operating Lease Obligations |
2,888 |
503 |
835 |
603 |
947 |
| Throughput and Take-or-Pay Agreements |
15,726 |
5,063 |
5,383 |
1,261 |
4,019 |
| Other Unconditional Purchase Obligations4 |
5,356 |
1,342 |
2,159 |
1,541 |
314 |