Future payments for the Company’s commitments are below. A commitment is an enforceable and legally binding agreement to make a payment in the future for the purchase of goods and services. These items exclude amounts recorded in the Consolidated Balance Sheets.

As at December 31, 2018	1 Year		2 Years		3 Years		4 Years		5 Years		Thereafter		Total
Transportation and Storage ⁽¹⁾		1,040		1,104		1,335		1,491		1,562		16,809		23,341
Operating Leases (Building Leases) ⁽²⁾		104		73		78		74		77		1,425		1,831
Capital Commitments		21		2		1		-		-		-		24
Other Long-Term Commitments		148		81		45		37		32		147		490
Total Payments ⁽³⁾		1,313		1,260		1,459		1,602		1,671		18,381		25,686

As at December 31, 2017	1 Year		2 Years		3 Years		4 Years		5 Years		Thereafter		Total
Transportation and Storage ⁽¹⁾		899		886		919		1,123		1,223		13,260		18,310
Operating Leases (Building Leases) ⁽²⁾		155		146		142		141		140		2,305		3,029
Capital Commitments		16		2		-		-		-		-		18
Other Long-Term Commitments		109		39		32		28		25		122		355
Total Payments ⁽³⁾		1,179		1,073		1,093		1,292		1,388		15,687		21,712

(1)	Includes transportation commitments of $14 billion (2017 – $9 billion) that are subject to regulatory approval or have been approved, but are not yet in service.

(2)	Excludes committed payments for which a provision has been provided.

(3)	Contracts undertaken on behalf of WRB are reflected at Cenovus’s 50 percent interest.

Commitments for various transportation arrangements increased $5 billion from 2017 primarily due to new contracts related to the Keystone XL pipeline, expanded freight and rail terminal and tank contracts, partially offset by a decrease in operating leases due to the provision recorded for onerous leases in 2018. Terms are up to 20 years subsequent to the date of commencement.

As at December 31, 2018, there were outstanding letters of credit aggregating $336 million issued as security for performance under certain contracts (2017 – $376 million).

In addition to the above, Cenovus’s commitments related to its risk management program are disclosed in Note 34.

Cenovus is involved in a limited number of legal claims associated with the normal course of operations. Cenovus believes that any liabilities that might arise from such matters, to the extent not provided for, are not likely to have a material effect on its Consolidated Financial Statements.

Cenovus is responsible for the retirement of long-lived assets at the end of their useful lives. Cenovus has recorded a liability of $875 million, based on current legislation and estimated costs, related to its upstream properties, refining facilities and midstream facilities. Actual costs may differ from those estimated due to changes in legislation and changes in costs.

The tax regulations and legislation and interpretations thereof in the various jurisdictions in which Cenovus operates are continually changing. As a result, there are usually a number of tax matters under review. Management believes that the provision for taxes is adequate.

In connection with the Acquisition, Cenovus agreed to make quarterly payments to ConocoPhillips during the five years subsequent to May 17, 2017 for quarters in which the average WCS crude oil price exceeds $52.00 per barrel during the quarter. As at December 31, 2018, the estimated fair value of the contingent payment was $132 million (see Note 23).