Asset Impairments

9 Months Ended

Sep. 30, 2011

Notes to Financial Statements [Abstract]

Note 4. Asset Impairments

Pre-tax (non-cash) asset impairment charges were as follows:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
(millions)
East Texas (Onshore US)	$	-	$	-	$	116	$	-
Iron Horse (Onshore US)		-		71		15		71
New Albany Shale (Onshore US)		-		19		-		19
Other		-		10		8		10
Total	$	-	$	100	$	139	$	100

2011 Due to field performance combined with a low natural gas price environment, we determined that the carrying amounts of certain of our onshore US developments, primarily in East Texas, were not recoverable from future cash flows and, therefore, were impaired at June 30, 2011.

2010 Due to declines in natural gas prices and drilling results, we determined that the carrying amounts of our Iron Horse development and certain other US properties were not recoverable from future cash flows and, therefore, were impaired at September 30, 2010. We also recorded an impairment related to non-core, New Albany shale assets which were held-for-sale at September 30, 2010.

Assets to be held and used were written down to their estimated fair values, which were determined using discounted cash flow models. Assets held for sale were reduced to expected sales proceeds less costs to sell. See Note 7. Fair Value Measurements and Disclosures.