Commitments	12 Months Ended
Dec. 31, 2012
Commitments	Note P – Commitments 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 Company operated retail fueling stations in the U.S. During the next five years, expected future rental payments under all operating leases are approximately $225,758,000 in 2013, $233,786,000 in 2014, $191,312,000 in 2015, $140,655,000 in 2016 and $123,401,000 in 2017. Rental expense for noncancellable operating leases, including contingent payments when applicable, was $178,292,000 in 2012, $185,016,000 in 2011 and $178,410,000 in 2010. The Company has entered into contracts to hire various drilling rigs and associated equipment for periods beyond December 31, 2012. These rigs will primarily be utilized for drilling operations in the Gulf of Mexico, onshore U.S. and Canada and offshore Malaysia, Cameroon and Australia. Future commitments under these contracts, all of which expire by 2016, total $1,251,777,000. 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 oil and/or natural gas in the U.S. and Western Canada. These agreements require minimum monthly or annual payments for processing and/or transportation charges through 2023. Future required minimum monthly payments for the next five years are $36,394,000 in 2013, $35,224,000 in 2014, $30,226,000 in 2015, $19,427,000 in 2016 and $13,864,000 in 2017. 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 $19,733,000 in 2012, $24,791,000 in 2011 and $10,337,000 in 2010. 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 seven payments have been made through January 2013. 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 was $1,063,000 in 2012, $1,317,000 in 2011 and $1,534,000 in 2010. Commitments for capital expenditures were approximately $2,424,400,000 at December 31, 2012, including $977,800,000 for field development and future work commitments in Malaysia, $242,000,000 for costs to develop deepwater Gulf of Mexico fields, $474,100,000 for work in the Eagle Ford Shale, $146,800,000 for future work commitments offshore Brunei, $124,100,000 for future work commitments offshore Cameroon and $91,500,000 for future work commitments offshore Vietnam.

Note P – Commitments

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 Company operated retail fueling stations in the U.S. During the next five years, expected future rental payments under all operating leases are approximately $225,758,000 in 2013, $233,786,000 in 2014, $191,312,000 in 2015, $140,655,000 in 2016 and $123,401,000 in 2017. Rental expense for noncancellable operating leases, including contingent payments when applicable, was $178,292,000 in 2012, $185,016,000 in 2011 and $178,410,000 in 2010.

The Company has entered into contracts to hire various drilling rigs and associated equipment for periods beyond December 31, 2012. These rigs will primarily be utilized for drilling operations in the Gulf of Mexico, onshore U.S. and Canada and offshore Malaysia, Cameroon and Australia. Future commitments under these contracts, all of which expire by 2016, total $1,251,777,000. 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 oil and/or natural gas in the U.S. and Western Canada. These agreements require minimum monthly or annual payments for processing and/or transportation charges through 2023. Future required minimum monthly payments for the next five years are $36,394,000 in 2013, $35,224,000 in 2014, $30,226,000 in 2015, $19,427,000 in 2016 and $13,864,000 in 2017. 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 $19,733,000 in 2012, $24,791,000 in 2011 and $10,337,000 in 2010.

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 seven payments have been made through January 2013. 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 was $1,063,000 in 2012, $1,317,000 in 2011 and $1,534,000 in 2010.

Commitments for capital expenditures were approximately $2,424,400,000 at December 31, 2012, including $977,800,000 for field development and future work commitments in Malaysia, $242,000,000 for costs to develop deepwater Gulf of Mexico fields, $474,100,000 for work in the Eagle Ford Shale, $146,800,000 for future work commitments offshore Brunei, $124,100,000 for future work commitments offshore Cameroon and $91,500,000 for future work commitments offshore Vietnam.