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Property, Plant, and Equipment
 12 Months Ended
Dec. 31, 2017
Property, Plant and Equipment [Abstract]  
Property, Plant, and Equipment [Text Block]
Note 10 – Property, Plant, and Equipment
The following table presents nonregulated and regulated Property, plant, and equipment – net as presented on the Consolidated Balance Sheet for the years ended:
 
 
 
 
 
 
 
 
 
Estimated
Useful Life  (1)
(Years)
 
Depreciation
Rates (1)
(%)
 
December 31,
2017

2016
 
 
 
 
 
(Millions)
Nonregulated:
 
 
 
 
 
 
 
Natural gas gathering and processing facilities (2)
5 - 40
 
 
 
$
18,440

 
$
19,523

Construction in progress
Not applicable
 
 
 
566

 
412

Other (2)
2 - 45
 
 
 
2,776

 
3,092

Regulated:
 
 
 
 
 
 
 
Natural gas transmission facilities
 
 
1.20 - 6.97
 
14,460

 
12,692

Construction in progress
Not applicable
 
Not applicable
 
1,637

 
1,603

Other
5 - 45
 
1.35 - 33.33
 
1,634

 
1,590

Total property, plant, and equipment, at cost
 
 
 
 
39,513

 
38,912

Accumulated depreciation and amortization
 
 
 
 
(11,302
)
 
(10,484
)
Property, plant, and equipment — net
 
 
 
 
$
28,211

 
$
28,428

__________
(1)
Estimated useful life and depreciation rates are presented as of December 31, 2017. Depreciation rates and estimated useful lives for regulated assets are prescribed by the FERC.
(2)
The 2016 presentation has been changed to reflect $890 million of right-of-way assets previously presented in Natural gas gathering and processing facilities, now in Other.
Depreciation and amortization expense for Property, plant, and equipment – net was $1.389 billion, $1.407 billion, and $1.382 billion in 2017, 2016, and 2015, respectively.
Regulated Property, plant, and equipment – net includes approximately $626 million and $665 million at December 31, 2017 and 2016, respectively, related to amounts in excess of the original cost of the regulated facilities within our gas pipeline businesses as a result of our prior acquisitions. This amount is being amortized over 40 years using the straight-line amortization method. Current FERC policy does not permit recovery through rates for amounts in excess of original cost of construction.
Asset Retirement Obligations
Our accrued obligations relate to underground storage caverns, offshore platforms and pipelines, fractionation and compression facilities, gas gathering well connections and pipelines, and gas transmission pipelines and facilities. At the end of the useful life of each respective asset, we are legally obligated to plug storage caverns and remove any related surface equipment, to restore land and remove surface equipment at gas processing, fractionation, and compression facilities, to dismantle offshore platforms and appropriately abandon offshore pipelines, to cap certain gathering pipelines at the wellhead connection and remove any related surface equipment, and to remove certain components of gas transmission facilities from the ground.
The following table presents the significant changes to our ARO, of which $946 million and $801 million are included in Regulatory liabilities, deferred income, and other with the remaining current portion in Accrued liabilities at December 31, 2017 and 2016, respectively.
 
December 31,
 
2017
 
2016
 
(Millions)
Beginning balance
$
862

 
$
915

Liabilities incurred
33

 
24

Liabilities settled
(16
)
 
(8
)
Accretion expense (1)
141

 
69

Revisions (2)
(22
)
 
(138
)
Ending balance
$
998

 
$
862

___________
(1)
The increase in accretion expense for 2017 includes an adjustment associated with obligations identified from certain Transco land agreements.
(2)
Several factors are considered in the annual review process, including inflation rates, current estimates for removal cost, market risk premiums, discount rates, and the estimated remaining useful life of the assets. The 2017 revisions reflect changes in removal cost estimates and decreases in the estimated remaining useful life of certain assets and discount rates used in the annual review process. The 2016 revisions reflect changes in removal cost estimates, increases in the estimated remaining useful life of certain assets, and decreases in the inflation rate and discount rates used in the annual review process.
The funds Transco collects through a portion of its rates to fund its ARO are deposited into an external trust account dedicated to funding its ARO (ARO Trust). (See Note 16 – Fair Value Measurements, Guarantees, and Concentration of Credit Risk.) Under its current rate settlement, Transco’s annual funding obligation is approximately $36 million, with installments to be deposited monthly.