SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

12 Months Ended

Dec. 31, 2014

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Summary of the activity of capitalized exploratory well costs for continuing operations

in millions	2014			2013			2012
Balance — Beginning of Year	$	140		$	124		$	189
Additions to capitalized exploratory well costs pending the determination of proved reserves	462			337			400
Reclassifications to property, plant and equipment based on the determination of proved reserves	(423		)	(271		)	(389		)
Spin-off of California Resources	(17		)	—			—
Capitalized exploratory well costs charged to expense	(21		)	(50		)	(76		)
Balance — End of Year	$	141		$	140		$	124

Summary of the activity of the asset retirement obligation

For the years ended December 31, (in millions)	2014			2013
Beginning balance	$	1,332		$	1,266
Liabilities incurred – capitalized to PP&E	57			101
Liabilities settled and paid	(78		)	(72		)
Accretion expense	69			68
Acquisitions, dispositions and other – changes in PP&E	(11		)	(10		)
Spin-off of California Resources	(399		)	—
Revisions to estimated cash flows – changes in PP&E	121			(21		)
Ending balance	$	1,091		$	1,332