Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2011

Derivative Instruments

Derivatives designated and not designated as hedging instruments

	Three Months EndedSeptember 30,						Nine Months EndedSeptember 30,
	2011			2010			2011			2010
	(Thousands)
Derivatives designated as cash flow hedges
Amount of gain (loss) recognized in other comprehensive income (OCI) (effective portion), net of tax	$	64,530		$	59,120		$	101,982		$	120,346
Amount of gain reclassified from accumulated OCI into income (effective portion), net of tax (a)	15,255			17,331			42,078			45,549
Amount of gain (loss) recognized in income (ineffective portion) (b)	(352		)	2,980			(613		)	2,367
Derivatives designated as fair value hedges (c)
Amount of gain (loss) recognized in income for fair value commodity contracts	$	4,261		$		–	$	3,728		$		–
Fair value gain (loss) recognized in income for inventory designated as hedged item	$	(3,781	)	$		–	$	(2,088	)	$		–
Derivatives not designated as hedging instruments:
Amount of gain (loss) recognized in income	$	2,663		$	(1,323	)	$	1,840		$	(1,234	)

(a) Includes $2.1 million for the three and nine month periods ended September 30, 2011, of unrealized hedge gains reclassified into earnings to offset lower of cost or market adjustments on hedged items. Includes $7.9 million and $10.5 million for the three and nine month periods ended September 30, 2010, respectively, of unrealized hedge gains reclassified into earnings to offset lower of cost or market adjustments on hedged items.  The Company also had an immaterial amount of OCI reclassified to interest expense related to an interest rate swap on long-term debt.

(b) No amounts have been excluded from effectiveness testing of cash flow hedges.

(c) For the three months ended September 30, 2011, the net impact on operating revenues consisted of a $0.8 million gain due to the exclusion of the spot/forward differential from the assessment of effectiveness and a $0.3 million loss due to changes in basis.  For nine months ended September 30, 2011, the net impact on operating revenues consisted of a $2.3 million gain due to the exclusion of the spot/forward differential from the assessment of effectiveness and a $0.7 million loss due to changes in basis.

Asset and liability derivatives

	September 30, 2011		December 31, 2010
	(Thousands)
Asset derivatives
Derivatives designated as hedging instruments	$	231,946	$	141,834
Derivatives not designated as hedging instruments	81,591		83,505
Total asset derivatives	$	313,537	$	225,339
Liability derivatives
Derivatives designated as hedging instruments	$	11,933	$	12,097
Derivatives not designated as hedging instruments	96,993		94,624
Total liability derivatives	$	108,926	$	106,721