Commitments	12 Months Ended
Dec. 31, 2011
Commitments	Note Q – Commitments The Company has entered into forward sales contracts to mitigate the price risk for a portion of its 2012 natural gas sales volumes from the Tupper and Tupper West areas in Western Canada. The contract calls for natural gas deliveries of approximately 50 million cubic feet per day during 2012 at an average price of Cdn$4.43 per thousand cubic feet at the AECO “C” sales point. These contracts have been accounted for as a normal sale for accounting purposes. The Company leases land, gasoline stations, and production and other facilities under operating leases. The most significant operating leases are associated with floating, production, storage and offloading facilities at the Kikeh and Azurite oil fields, production facilities at the Thunder Hawk and West Patricia fields, certain motor fuel stations in the U.K. and land under a portion of gasoline stations in the U.S. During the next five years, expected future rental payments under all operating leases are approximately $161,752,000 in 2012, $138,121,000 in 2013, $127,044,000 in 2014, $115,708,000 in 2015 and $34,525,000 in 2016. Rental expense for noncancellable operating leases, including contingent payments when applicable, was $185,016,000 in 2011, $178,410,000 in 2010 and $124,693,000 in 2009. The Company has entered into contracts to hire various drilling rigs and associated equipment for periods beyond December 31, 2011. These rigs will primarily be utilized for drilling operations in the Gulf of Mexico, onshore U.S. and Canada, offshore Malaysia, Kurdistan, Australia and Republic of the Congo. Future commitments under these contracts, all of which expire by 2015, total approximately $515,292,000. A significant portion of these costs are expected to be borne by other working interest owners as partners of the Company when the wells are drilled. These drilling costs are generally expected to be accounted for as capital expenditures as incurred during the contract periods. The Company has operating, production handling and transportation agreements providing for processing, production handling and transportation services for natural gas in Western Canada. These agreements require minimum monthly or annual payments for processing and/or transportation charges through 2018. Future required minimum monthly payments for the next five years are $23,823,000 in 2012, $18,146,000 in 2013, $18,452,000 in 2014, $16,676,000 in 2015 and $11,800,000 in 2016. Under certain circumstances, the Company is required to pay additional amounts depending on the actual hydrocarbon quantities processed under the agreement. Costs incurred under these arrangements were $24,791,000 in 2011, $10,337,000 in 2010 and $11,860,000 in 2009. Additionally, the Company has a Reserved Capacity Service Agreement providing for the availability of needed crude oil storage capacity for certain oil fields through 2020. Under the agreement, the Company must make specified minimum payments monthly. Future required minimum annual payments are approximately $1,000,000 in 2012 through 2016. In addition, the Company is required to pay additional amounts depending on actual crude oil quantities stored under the agreement. Total payments under the agreement were $918,000 in 2011, $3,202,000 in 2010 and $2,743,000 in 2009. In 2006, the Company committed to fund an educational assistance program known as the “El Dorado Promise.” Under this commitment, the Company will pay $5,000,000 per year from 2007 to 2016 to provide scholarships for a specified amount of college expenses for eligible graduates of El Dorado High School in Arkansas. The first six payments have been made through January 2012. The Company recorded a discounted liability of $38,700,000 in 2006 for this unconditional commitment. The liability was discounted at the Company’s 10-year borrowing rate and the discounted liability increases for accretion monthly with a corresponding charge to Selling and General Expenses in the Consolidated Statement of Income. Total accretion cost included in Selling and General Expense was $1,317,000 in 2011, $1,534,000 in 2010 and $1,739,000 in 2009. Commitments for capital expenditures were approximately $1,849,100,000 at December 31, 2011, including $839,500,000 for field development and future work commitments in Malaysia, $149,700,000 for costs to develop deepwater Gulf of Mexico fields, $124,500,000 for work in the Eagle Ford Shale and $127,500,000 for future work commitments offshore Brunei.

Note Q – Commitments

The Company has entered into forward sales contracts to mitigate the price risk for a portion of its 2012 natural gas sales volumes from the Tupper and Tupper West areas in Western Canada. The contract calls for natural gas deliveries of approximately 50 million cubic feet per day during 2012 at an average price of Cdn$4.43 per thousand cubic feet at the AECO “C” sales point. These contracts have been accounted for as a normal sale for accounting purposes.

The Company leases land, gasoline stations, and production and other facilities under operating leases. The most significant operating leases are associated with floating, production, storage and offloading facilities at the Kikeh and Azurite oil fields, production facilities at the Thunder Hawk and West Patricia fields, certain motor fuel stations in the U.K. and land under a portion of gasoline stations in the U.S. During the next five years, expected future rental payments under all operating leases are approximately $161,752,000 in 2012, $138,121,000 in 2013, $127,044,000 in 2014, $115,708,000 in 2015 and $34,525,000 in 2016. Rental expense for noncancellable operating leases, including contingent payments when applicable, was $185,016,000 in 2011, $178,410,000 in 2010 and $124,693,000 in 2009.

The Company has entered into contracts to hire various drilling rigs and associated equipment for periods beyond December 31, 2011. These rigs will primarily be utilized for drilling operations in the Gulf of Mexico, onshore U.S. and Canada, offshore Malaysia, Kurdistan, Australia and Republic of the Congo. Future commitments under these contracts, all of which expire by 2015, total approximately $515,292,000. A significant portion of these costs are expected to be borne by other working interest owners as partners of the Company when the wells are drilled. These drilling costs are generally expected to be accounted for as capital expenditures as incurred during the contract periods.

The Company has operating, production handling and transportation agreements providing for processing, production handling and transportation services for natural gas in Western Canada. These agreements require minimum monthly or annual payments for processing and/or transportation charges through 2018. Future required minimum monthly payments for the next five years are $23,823,000 in 2012, $18,146,000 in 2013, $18,452,000 in 2014, $16,676,000 in 2015 and $11,800,000 in 2016. Under certain circumstances, the Company is required to pay additional amounts depending on the actual hydrocarbon quantities processed under the agreement. Costs incurred under these arrangements were $24,791,000 in 2011, $10,337,000 in 2010 and $11,860,000 in 2009.

Additionally, the Company has a Reserved Capacity Service Agreement providing for the availability of needed crude oil storage capacity for certain oil fields through 2020. Under the agreement, the Company must make specified minimum payments monthly. Future required minimum annual payments are approximately $1,000,000 in 2012 through 2016. In addition, the Company is required to pay additional amounts depending on actual crude oil quantities stored under the agreement. Total payments under the agreement were $918,000 in 2011, $3,202,000 in 2010 and $2,743,000 in 2009.

In 2006, the Company committed to fund an educational assistance program known as the “El Dorado Promise.” Under this commitment, the Company will pay $5,000,000 per year from 2007 to 2016 to provide scholarships for a specified amount of college expenses for eligible graduates of El Dorado High School in Arkansas. The first six payments have been made through January 2012. The Company recorded a discounted liability of $38,700,000 in 2006 for this unconditional commitment. The liability was discounted at the Company’s 10-year borrowing rate and the discounted liability increases for accretion monthly with a corresponding charge to Selling and General Expenses in the Consolidated Statement of Income. Total accretion cost included in Selling and General Expense was $1,317,000 in 2011, $1,534,000 in 2010 and $1,739,000 in 2009.

Commitments for capital expenditures were approximately $1,849,100,000 at December 31, 2011, including $839,500,000 for field development and future work commitments in Malaysia, $149,700,000 for costs to develop deepwater Gulf of Mexico fields, $124,500,000 for work in the Eagle Ford Shale and $127,500,000 for future work commitments offshore Brunei.