Note 3. Property Transactions

Sale of Non-Core Onshore US Properties During the past three years, we closed the sales of non-core onshore US crude oil and natural gas properties, including our Piceance, Tri-State, and Powder River properties. The information regarding the assets sold is as follows:



	Year Ended December 31,
(millions)	2014			2013			2012
Cash Proceeds	$	135		$	150		$	1,044
Less
Net Book Value of Assets Sold	(150		)	(117		)	(836		)
Goodwill Allocated to Assets Sold	(7		)	(8		)	(61		)
Asset Retirement Obligations Associated with Assets Sold	48			8			20
Other Closing Adjustments	10			3			(13		)
Gain on Divestitures	$	36		$	36		$	154

We continue to market non-core onshore US properties; certain of these assets, as discussed below, met the criteria for reclassification as assets held for sale at December 31, 2014.

China In June 2014, we sold our China assets. We determined the sale of our China assets did not meet the criteria for discontinued operations presentation under ASU 2014-08. The information regarding the China assets sold is as follows:



	Year Ended December 31, 2014
(millions)	2014
Sales Proceeds	$	186
Less
Net Book Value of Assets Sold	(149		)
Other Closing Adjustments	(2		)
Gain on Divestiture	$	35

Assets Held for Sale Assets held for sale as of December 31, 2014 include non-core onshore US assets ($105 million) in the DJ Basin and two natural gas discoveries, Tanin and Karish, offshore Israel ($75 million). Regarding Tanin and Karish, we agreed to divest these assets pursuant to an agreement we and our partners reached with the Israeli Antitrust Authority in March 2014 on various antitrust matters. See also Note 5. Capitalized Exploratory Well Costs.

DJ Basin Acreage Exchange In October 2013, we closed an acreage exchange agreement with another operator related to our position in the DJ Basin. Each party exchanged approximately 50,000 net acres within the same field. The exchange consolidated our acreage into large contiguous blocks, which has provided the opportunity to optimize drilling, production, and gathering activities and add more extended-reach lateral wells to our development program. In accordance with guidance for oil and gas property conveyances, the transaction was accounted for at net book value, with no gain or loss recognized. We received $105 million in cash related to reimbursement of capital expenditures and other normal closing adjustments from the effective date of January 1, 2013 to closing date, which was recorded as a reduction in the net book value of the field.

North Sea Properties During 2012 and 2013, we sold the majority of our non-operated, North Sea properties. The 2013 sales resulted in a $65 million gain based on net sales proceeds of $56 million. In 2012, proceeds from sales totaled $117 million, the net book value of assets sold was $255 million, and associated asset retirement obligations were $55 million. We also reversed a deferred tax liability and recognized a corresponding income tax benefit of $99 million related to the sale. During 2012 and 2013, the North Sea geographical segment was presented as discontinued operations in our consolidated statements of operations.

We were unable to locate purchasers for the remaining properties. As of January 1, 2014, we no longer considered a sale probable. Therefore, the remaining assets were reclassified to assets held and used. See Note 4. Asset Impairments.

Summarized results of discontinued operations are as follows:



	Year Ended December 31,
(millions)	2013		2012
Oil and Gas Sales	$	37	$	208
Income Before Income Taxes ⁽¹⁾	12		101
Income Tax Expense	6		55
Operating Income, Net of Tax	6		46
Gain on Sale, Net of Tax	65		16
Discontinued Operations, Net of Tax	$	71	$	62

⁽¹⁾ Income before income taxes for 2012 includes exploration expense of $27 million related to the Selkirk field which was determined uneconomic for joint development.