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, 2019	1 Year		2 Years		3 Years		4 Years		5 Years		Thereafter		Total
Transportation and Storage ⁽¹⁾		1,005		959		1,026		1,456		1,381		15,672		21,499
Real Estate ⁽²⁾⁽³⁾		35		36		38		39		42		662		852
Other Long-Term Commitments		104		44		36		34		28		108		354
Total Payments ⁽⁴⁾		1,144		1,039		1,100		1,529		1,451		16,442		22,705

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
Real Estate ⁽²⁾⁽³⁾		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 ⁽⁴⁾		1,313		1,260		1,459		1,602		1,671		18,381		25,686

(1)	Includes transportation commitments of $13 billion (2018 – $14 billion) that are subject to regulatory approval or have been approved, but are not yet in service.

(2)	Relates to the non-lease components of lease liabilities consisting of operating costs and unreserved parking for office space in 2019. Includes both the lease and non-lease component of the Company’s real estate contracts for 2018.

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

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

On January 1, 2019, the Company adopted IFRS 16 which resulted in the recognition of lease liabilities related to operating leases on the balance sheet. These liabilities were previously reported as commitments. For a reconciliation of the Company’s commitments as at December 31, 2018 to its lease liabilities as at January 1, 2019, see Note 4.

Transportation and storage commitments include future commitments relating to railcar and storage tank leases of $31 million and $11 million, respectively, that have not yet commenced. The railcar leases are expected to commence in 2020 with lease terms of between six years and eight years and the storage tank leases are expected to commence in 2020 with lease terms of five years.

As at December 31, 2019, there were outstanding letters of credit aggregating $364 million issued as security for performance under certain contracts (2018 – $336 million).

In addition to the above, Cenovus’s commitments related to its risk management program are disclosed in Note 36.

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 $1,235 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, 2019, the estimated fair value of the contingent payment was $143 million (see Note 25).