CAPITAL AND OPERATING LEASES

Lessee — The Company leases various assets under capital and operating leases, including coal railcars, office buildings, a warehouse, computers, vehicles and other equipment. The lease arrangements expire at various dates through 2031. Future minimum lease payments under non-cancelable leases at December 31, 2011 were:



	Capital Leases		Operating Leases
	(In millions)
2012	$	9	$	37
2013	7		29
2014	9		24
2015	7		20
2016	3		18
Thereafter	—		67
Total minimum lease payments	$	35	$	195
Less imputed interest	5
Present value of net minimum lease payments	30
Less current portion	7
Non-current portion	$	23

Rental expense for operating leases was $71 million in 2011, $54 million in 2010, and $58 million in 2009.

Lessor — The Company leases a portion of its pipeline system to the Vector Pipeline through a capital lease contract that expires in 2020, with renewal options extending for five years. The Company owns a 40% interest in the Vector Pipeline. In addition, the Company has an energy services agreement, a portion of which is accounted for as a capital lease. The agreement expires in 2019, with a three or five year renewal option. The components of the net investment in the capital leases at December 31, 2011, were as follows:



	(In millions)
2012	$	12
2013	12
2014	12
2015	12
2016	12
Thereafter	43
Total minimum future lease receipts	103
Residual value of leased pipeline	40
Less unearned income	(56		)
Net investment in capital lease	87
Less current portion	(4		)
	$	83