LEASE COMMITMENTS

12 Months Ended

Dec. 31, 2016

LEASE COMMITMENTS

LEASE COMMITMENTS

NOTE 6    LEASE COMMITMENTS

We have entered into various operating lease agreements, mainly for office space, office equipment and field equipment.  We lease assets when leasing offers greater operating flexibility.  Lease payments are generally expensed as part of production costs or general and administrative expenses.  At December 31, 2016, future net minimum lease payments for noncancelable operating leases (excluding oil and natural gas and other mineral leases, utilities, taxes, insurance and maintenance expense) totaled:

	Amount
	(in millions)
2017	$	16
2018	16
2019	14
2020	8
2021	8
Thereafter	50
Total minimum lease payments	$	112

Rental expense for operating leases was $13 million in 2016, $11 million in 2015 and $10 million in 2014.  Minimum future lease payments and rental income from subleases was immaterial in 2016, 2015 and 2014.