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Wiki Wiki Summary
Balance sheet In financial accounting, a balance sheet (also known as statement of financial position or statement of financial condition) is a summary of the financial balances of an individual or organization, whether it be a sole proprietorship, a business partnership, a corporation, private limited company or other organization such as government or not-for-profit entity. Assets, liabilities and ownership equity are listed as of a specific date, such as the end of its financial year.
Financial law Financial law is the law and regulation of the insurance, derivatives, commercial banking, capital markets and investment management sectors. Understanding Financial law is crucial to appreciating the creation and formation of banking and financial regulation, as well as the legal framework for finance generally.
List of RTO districts in Kerala \n== Regional Transport Offices ==\n\n\n== Sub Regional Transport Offices ==\n\n\n== Future Sub Regional Transport Offices ==\nGovernment of Kerala has repeatedly intimated multiple legislative members that there are no plans to setup any new RTOs/SRTOs in Kerala unless the financial condition of Kerala improves.\n\n\n== References ==\n\nOfficial list of Regional Transport Offices\nOfficial list of Sub Regional Transport Offices\n\n\n== External links ==\nhttps://www.mvd.kerala.gov.in (Link to Kerala Motor Vehicles Department.
Financial analysis Financial analysis (also referred to as financial statement analysis or accounting analysis or Analysis of finance) refers to an assessment of the viability, stability, and profitability of a business, sub-business or project. \nIt is performed by professionals who prepare reports using ratios and other techniques, that make use of information taken from financial statements and other reports.
Form 10-K A Form 10-K is an annual report required by the U.S. Securities and Exchange Commission (SEC), that gives a comprehensive summary of a company's financial performance. Although similarly named, the annual report on Form 10-K is distinct from the often glossy "annual report to shareholders," which a company must send to its shareholders when it holds an annual meeting to elect directors (though some companies combine the annual report and the 10-K into one document).
Special Activities Center The Special Activities Center (SAC) is a division of the Central Intelligence Agency responsible for covert operations and paramilitary operations. The unit was named Special Activities Division (SAD) prior to 2015.
Operations management Operations management is an area of management concerned with designing and controlling the process of production and redesigning business operations in the production of goods or services. It involves the responsibility of ensuring that business operations are efficient in terms of using as few resources as needed and effective in meeting customer requirements.
Emergency operations center An emergency operations center (EOC) is a central command and control facility responsible for carrying out the principles of emergency preparedness and emergency management, or disaster management functions at a strategic level during an emergency, and ensuring the continuity of operation of a company, political subdivision or other organization.\nAn EOC is responsible for strategic direction and operational decisions and does not normally directly control field assets, instead leaving tactical decisions to lower commands.
Operations research Operations research (British English: operational research), often shortened to the initialism OR, is a discipline that deals with the development and application of advanced analytical methods to improve decision-making. It is sometimes considered to be a subfield of mathematical sciences.
Surgery Surgery is a medical or dental specialty that uses operative manual and instrumental techniques on a person to investigate or treat a pathological condition such as a disease or injury, to help improve bodily function, appearance, or to repair unwanted ruptured areas.\nThe act of performing surgery may be called a surgical procedure, operation, or simply "surgery".
Liquefied natural gas Liquefied natural gas (LNG) is natural gas (predominantly methane, CH4, with some mixture of ethane, C2H6) that has been cooled down to liquid form for ease and safety of non-pressurized storage or transport. It takes up about 1/600th the volume of natural gas in the gaseous state (at standard conditions for temperature and pressure).
Natural gas vehicle A natural gas vehicle (NGV) is an alternative fuel vehicle that uses compressed natural gas (CNG) or liquefied natural gas (LNG). Natural gas vehicles should not be confused with autogas vehicles powered by liquefied petroleum gas (LPG), mainly propane, a fuel with a fundamentally different composition.
List of countries by natural gas production This is a list of countries by natural gas production based on statistics from The World Factbook, and OECD members natural gas production by International Energy Agency (down) \n\n\n== Countries by natural gas production ==\nThe data in the following table comes from The World Factbook.
Pipeline transport Pipeline transport is the long-distance transportation of a liquid or gas through a system of pipes—a pipeline—typically to a market area for consumption. The latest data from 2014 gives a total of slightly less than 2,175,000 miles (3,500,000 km) of pipeline in 120 countries of the world.
Natural-gas processing Natural-gas processing is a range of industrial processes designed to purify raw natural gas by removing impurities, contaminants and higher molecular mass hydrocarbons to produce what is known as pipeline quality dry natural gas. Natural gas has to be processed in order to prepare it for final use and ensure that elimination of contaminants.Natural-gas processing starts underground or at the well-head.
Natural gas in Ukraine Ukraine has been estimated to possess natural gas reserves of over 1 trillion cubic meters and in 2018 was ranked 26th among countries with proved reserves of natural gas. Its total gas reserves have been estimated at 5.4 trillion cubic meters.
Natural gas storage Natural gas is a commodity that can be stored for an indefinite period of time in natural gas storage facilities for later consumption.\n\n\n== Usage ==\nGas storage is principally used to meet load variations.
Natural gas in the United States Natural gas was the United States' largest source of energy production in 2016, representing 33 percent of all energy produced in the country. Natural gas has been the largest source of electrical generation in the United States since July 2015.
Oil and gas industry in India The oil and gas industry in India dates back to 1889 when the first oil deposits in the country were discovered near the town of Digboi in the state of Assam. The natural gas industry in India began in the 1960s with the discovery of gas fields in Assam and Maharashtra (Mumbai High Field).
Regulation Regulation is the management of complex systems according to a set of rules and trends. In systems theory, these types of rules exist in various fields of biology and society, but the term has slightly different meanings according to context.
Significant figures Significant figures (also known as the significant digits, precision or resolution) of a number in positional notation are digits in the number that are reliable and necessary to indicate the quantity of something.\nIf a number expressing the result of a measurement (e.g., length, pressure, volume, or mass) has more digits than the number of digits allowed by the measurement resolution, then only as many digits as allowed by the measurement resolution are reliable, and so only these can be significant figures.
Significant other The term significant other (SO) has different uses in psychology and in colloquial language. Colloquially "significant other" is used as a gender-neutral term for a person's partner in an intimate relationship without disclosing or presuming anything about marital status, relationship status, gender identity, or sexual orientation.
Significant form Significant form refers to an aesthetic theory developed by English art critic Clive Bell which specified a set of criteria for what qualified as a work of art.
Significant Others The term significant other (SO) has different uses in psychology and in colloquial language. Colloquially "significant other" is used as a gender-neutral term for a person's partner in an intimate relationship without disclosing or presuming anything about marital status, relationship status, gender identity, or sexual orientation.
Statistical significance In statistical hypothesis testing, a result has statistical significance when it is very unlikely to have occurred given the null hypothesis. More precisely, a study's defined significance level, denoted by \n \n \n \n α\n \n \n {\displaystyle \alpha }\n , is the probability of the study rejecting the null hypothesis, given that the null hypothesis is true; and the p-value of a result, \n \n \n \n p\n \n \n {\displaystyle p}\n , is the probability of obtaining a result at least as extreme, given that the null hypothesis is true.
The Simpsons The Simpsons is an American animated sitcom created by Matt Groening for the Fox Broadcasting Company. The series is a satirical depiction of American life, epitomized by the Simpson family, which consists of Homer, Marge, Bart, Lisa, and Maggie.
Significant Mother Significant Mother is an American television sitcom created by Erin Cardillo and Richard Keith. Starring Josh Zuckerman, Nathaniel Buzolic and Krista Allen, it premiered on The CW network on August 3 and ended its run on October 5, 2015.
Gas-fired power plant A gas-fired power plant or gas-fired power station or natural gas power plant is a thermal power station which burns natural gas to generate electricity. Natural gas power stations generate almost a quarter of world electricity and a significant part of global greenhouse gas emissions and thus climate change.
Debt Death is the irreversible cessation of all biological functions that sustain an organism. Brain death is sometimes used as a legal definition of death.
List of mergers and acquisitions by Alphabet Google is a computer software and a web search engine company that acquired, on average, more than one company per week in 2010 and 2011. The table below is an incomplete list of acquisitions, with each acquisition listed being for the respective company in its entirety, unless otherwise specified.
Knowledge acquisition Knowledge acquisition is the process used to define the rules and ontologies required for a knowledge-based system. The phrase was first used in conjunction with expert systems to describe the initial tasks associated with developing an expert system, namely finding and interviewing domain experts and capturing their knowledge via rules, objects, and frame-based ontologies.
List of acquisitions by Oracle This is a listing of Oracle Corporation's corporate acquisitions, including acquisitions of both companies and individual products.\nOracle's version does not include value of the acquisition.See also Category:Sun Microsystems acquisitions (Sun was acquired by Oracle).
Bolt-on acquisition Bolt-on acquisition refers to the acquisition of smaller companies, usually in the same line of business, that presents strategic value. This is in contrast to primary acquisitions of other companies which are generally in different industries, require larger investments, or are of similar size to the acquiring company.
Mergers & Acquisitions In corporate finance, mergers and acquisitions (M&A) are transactions in which the ownership of companies, other business organizations, or their operating units are transferred or consolidated with other entities. As an aspect of strategic management, M&A can allow enterprises to grow or downsize, and change the nature of their business or competitive position.
Library acquisitions Library acquisitions is the department of a library responsible for the selection and purchase of materials or resources. The department may select vendors, negotiate consortium pricing, arrange for standing orders, and select individual titles or resources.Libraries, both physical and digital, usually have four common broad goals that help dictate these responsibilities.
Ben Ashkenazy Ben Ashkenazy (born 1968/69) is an American billionaire real estate developer. He is the founder, CEO, and majority owner of Ashkenazy Acquisition Corporation, which has a $12 billion property portfolio.
Risk Factors
XTO ENERGY INC Item 1A RISK FACTORS The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this report and presented elsewhere by management from time to time
Such factors, among others, may have a material adverse effect upon our business, financial condition, and results of operations
The following discussion of our risk factors should be read in conjunction with the consolidated financial statements and related notes included herein
Because of these and other factors, past financial performance should not be considered an indication of future performance
Oil, natural gas and natural gas liquids prices fluctuate due to a number of uncontrollable factors, and any decline will adversely affect our financial condition
Our results of operations depend upon the prices we receive for our oil, natural gas and natural gas liquids
We sell most of our oil, natural gas and natural gas liquids at current market prices rather than through fixed-price contracts
Historically, the markets for oil, natural gas and natural gas liquids have been volatile and are likely to remain volatile in the future
The prices we receive depend upon factors beyond our control, which include: • political instability or armed conflict in oil-producing regions, such as current conditions in the Middle East, Nigeria and Venezuela; • weather conditions; • the supply of domestic and foreign oil, natural gas and natural gas liquids; • the ability of members of the Organization of Petroleum Exporting Countries to agree upon and maintain oil prices and production levels; • the level of consumer demand; • worldwide economic conditions; • the price and availability of alternative fuels; • domestic and foreign governmental regulations and taxes; • the proximity to and capacity of transportation facilities; and • the effect of worldwide energy conservation measures
Government regulations, such as regulations of natural gas transportation and price controls, can affect product prices in the long term
These external factors and the volatile nature of the energy markets make it difficult to reliably estimate future prices of oil and natural gas
To the extent we have not hedged our production, any decline in oil and natural gas prices adversely affects our financial condition
If the oil and gas industry experiences significant price declines, we may, among other things, be unable to meet our financial obligations or make planned capital expenditures
14 ______________________________________________________________________ [40]Table of Contents Our use of hedging arrangements could result in financial losses or reduce our income
To reduce our exposure to fluctuations in oil and natural gas prices, we have entered into and expect in the future to enter into hedging arrangements for a portion of our oil and natural gas production
These hedging arrangements expose us to risk of financial loss in some circumstances, including when: • production is less than expected; • the counterparty to the hedging contract defaults on its contract obligations; or • there is a change in the expected differential between the underlying price in the hedging agreement and actual prices received
In addition, these hedging arrangements may limit the benefit we would otherwise receive from increases in oil and natural gas prices
We have substantial capital requirements, and we may be unable to obtain needed financing on satisfactory terms
We make, and will continue to make, substantial capital expenditures for the acquisition, development, exploration and abandonment of our oil and natural gas reserves
We intend to finance our capital expenditures primarily through cash flow from operations, bank borrowings and public and private equity and debt offerings
Lower oil and natural gas prices, however, would reduce our cash flow and could affect our access to the capital markets
Costs of exploration and development were dlra1dtta4 billion in 2005, dlra587 million in 2004 and dlra462 million in 2003
During 2005, we spent dlra1dtta7 billion on proved property acquisitions
Our exploration and development budget for 2006 is dlra1dtta7 billion
An additional dlra100 million has been budgeted for the construction of pipeline, compression and processing infrastructure in 2006
We believe that, after debt service, we will have sufficient cash from operating activities to finance our exploration and development expenses through 2006
If revenues decrease, however, and we are unable to obtain additional debt or equity financing, we may lack the capital necessary to replace our reserves or to maintain production at current levels
We have substantial indebtedness and may incur substantially more debt
Any failure to meet our debt obligations would adversely affect our business and financial condition
As a result of our indebtedness, we will need to use a portion of our cash flow to pay principal and interest, which will reduce the amount available to finance our operations and other business activities and could limit our flexibility in planning for or reacting to changes in our business and the industry in which we operate
Our bank revolving credit indebtedness is at a variable interest rate, and so a rise in interest rates will generate greater interest expense to the extent we do not have applicable interest rate protection hedges
The amount of our debt may also cause us to be more vulnerable to economic downturns and adverse developments in our business
Together with our subsidiaries, we may incur substantially more debt in the future
The indentures governing our outstanding public debt do not contain restrictions on our incurrence of additional indebtedness
To the extent new debt is added to our current debt levels, the risks resulting from indebtedness could substantially increase
Our ability to meet our debt obligations and other expenses will depend on our future performance, which will be affected by financial, business, economic, regulatory and other factors, many of which we are unable to control
If our cash flow is not sufficient to service our debt, we may be required to refinance the debt, sell assets or sell shares of common stock on terms that we do not find attractive if it can be done at all
Further, our failure to comply with the financial and other restrictive covenants relating to our indebtedness could result in a default under the indebtedness, which could adversely affect our business, financial condition and results of operations
15 ______________________________________________________________________ [41]Table of Contents Competition in the oil and natural gas industry is intense, and some of our competitors have greater financial, technological and other resources than we have
We operate in the highly competitive areas of oil and natural gas acquisition, development, exploitation, exploration and production
The oil and natural gas industry is characterized by rapid and significant technological advancements and introductions of new products and services using new technologies
We face intense competition from independent, technology-driven companies as well as from both major and other independent oil and natural gas companies in each of the following areas: • seeking to acquire desirable producing properties or new leases for future exploration; • marketing our oil and natural gas production; • integrating new technologies; and • seeking to acquire the equipment and expertise necessary to develop and operate our properties
Some of our competitors have financial, technological and other resources substantially greater than ours, and some of them are fully integrated oil companies
These companies may be able to pay more for development prospects and productive oil and natural gas properties and may be able to define, evaluate, bid for and purchase a greater number of properties and prospects than our financial or human resources permit
Further, these companies may enjoy technological advantages and may be able to implement new technologies more rapidly than we can
Our ability to develop and exploit our oil and natural gas properties and to acquire additional properties in the future will depend upon our ability to successfully conduct operations, implement advanced technologies, evaluate and select suitable properties and consummate transactions in this highly competitive environment
The failure to replace our reserves could adversely affect our financial condition
Our future success depends upon our ability to find, develop or acquire additional oil and natural gas reserves that are economically recoverable
Our proved reserves generally decline when oil and natural gas are produced unless we continue to conduct successful exploitation or development activities or acquire properties containing proved reserves, or both
We may not be able to economically find, develop or acquire additional reserves
Furthermore, while our revenues may increase if oil and natural gas prices increase significantly, our finding costs for additional reserves could also increase
Reserve estimates depend on many assumptions that may turn out to be inaccurate
Any material inaccuracies in our reserve estimates or underlying assumptions could cause the quantities and net present value of our reserves to be overstated
Estimating quantities of proved oil and natural gas reserves is a complex process
It requires interpretations of available technical data and various assumptions, including assumptions relating to economic factors
Any significant inaccuracies in these interpretations or assumptions or changes of conditions could cause the quantities and net present value of our reserves to be overstated
To prepare estimates of economically recoverable oil and natural gas reserves and future net cash flows, we analyze many variable factors, such as historical production from the area compared with production rates from other producing areas
We also analyze available geological, geophysical, production and engineering data, and the extent, quality and reliability of this data can vary
The process also involves economic assumptions relating to commodity prices, production costs, severance and excise taxes, capital expenditures and workover and remedial costs
Actual results most likely will vary from our estimates
Any significant variance could reduce the estimated quantities and present value of reserves shown in this annual report
16 ______________________________________________________________________ [42]Table of Contents You should not assume that the present value of future net cash flows from our proved reserves shown in this annual report is the current market value of our estimated oil and natural gas reserves
In accordance with Securities and Exchange Commission requirements, we base the estimated discounted future net cash flows from our proved reserves on prices and costs on the date of the estimate
Actual current and future prices and costs may differ materially from those used in the earlier net present value estimate, and as a result, net present value estimates using current prices and costs may be significantly less than the earlier estimate which is provided in this annual report
Property acquisitions are a component of our growth strategy, and our failure to complete future acquisitions successfully could reduce our earnings and slow our growth
Our business strategy has emphasized growth through acquisitions, but we may not be able to continue to identify properties for acquisition or we may not be able to make acquisitions on terms that we consider economically acceptable
There is intense competition for acquisition opportunities in our industry
Competition for acquisitions may increase the cost of, or cause us to refrain from, completing acquisitions
Our strategy of completing acquisitions is dependent upon, among other things, our ability to obtain debt and equity financing and, in some cases, regulatory approvals
Our ability to pursue our growth strategy may be hindered if we are not able to obtain financing or regulatory approvals
Our ability to grow through acquisitions and manage growth will require us to continue to invest in operational, financial and management information systems and to attract, retain, motivate and effectively manage our employees
The inability to effectively manage the integration of acquisitions could reduce our focus on subsequent acquisitions and current operations, which, in turn, could negatively impact our earnings and growth
Our financial position and results of operations may fluctuate significantly from period to period, based on whether significant acquisitions are completed in particular periods
Acquisitions are subject to the uncertainties of evaluating recoverable reserves and potential liabilities
Our recent growth is due in part to acquisitions of producing properties, and we expect acquisitions will continue to contribute to our future growth
Successful acquisitions require an assessment of a number of factors, many of which are beyond our control
These factors include recoverable reserves, exploration potential, future oil and natural gas prices, operating costs and potential environmental and other liabilities
Such assessments are inexact and their accuracy is inherently uncertain
In connection with our assessments, we perform a review of the acquired properties, which we believe is generally consistent with industry practices
However, such a review will not reveal all existing or potential problems
In addition, our review may not allow us to become sufficiently familiar with the properties, and we do not always discover structural, subsurface and environmental problems that may exist or arise
Our review prior to signing a definitive purchase agreement may be even more limited
We generally are not entitled to contractual indemnification for preclosing liabilities, including environmental liabilities, on acquisitions
Normally, we acquire interests in properties on an “as is” basis with limited remedies for breaches of representations and warranties
If material breaches are discovered by us prior to closing, we could require adjustments to the purchase price, or, if the claims are significant, we or the seller may have a right to terminate the agreement
We could also fail to discover breaches or defects prior to closing and incur significant unknown liabilities, including environmental liabilities, or experience losses due to title defects, for which we would have limited or no contractual remedies or insurance coverage
There are risks in acquiring producing properties, including difficulties in integrating acquired properties into our business, additional liabilities and expenses associated with acquired properties, diversion of management attention, and costs of increased scope, geographic diversity and complexity of our operations
Increasing our reserve base through acquisitions is an important part of our business strategy
Our failure to integrate acquired businesses successfully into our existing business, or the expense incurred in consummating future acquisitions, could result in our incurring unanticipated expenses and losses
In addition, we may have to assume cleanup or reclamation obligations or other unanticipated liabilities in connection with these acquisitions
The scope and cost of these obligations may ultimately be materially greater than estimated at the time of the acquisition
In connection with future acquisitions, the process of integrating acquired operations into our existing operations may result in unforeseen operating difficulties and may require significant management attention and financial resources that would otherwise be available for the ongoing development or expansion of existing operations
17 ______________________________________________________________________ [43]Table of Contents Possible future acquisitions could result in our incurring additional debt, contingent liabilities and expenses, all of which could have a material adverse effect on our financial condition and operating results
Drilling oil and natural gas wells is a high-risk activity and subjects us to a variety of factors that we cannot control
Drilling oil and natural gas wells, including development wells, involves numerous risks, including the risk that we may not encounter commercially productive oil and natural gas reservoirs
We may not recover all or any portion of our investment in new wells
The presence of unanticipated pressures or irregularities in formations, miscalculations or accidents may cause our drilling activities to be unsuccessful and result in a total loss of our investment
In addition, we often are uncertain as to the future cost or timing of drilling, completing and operating wells
Further, our drilling operations may be curtailed, delayed or canceled as a result of a variety of factors, including: • unexpected drilling conditions; • title problems; • restricted access to land for drilling or laying pipeline; • pressure or irregularities in formations; • equipment failures or accidents; • adverse weather conditions; and • costs of, or shortages or delays in the availability of, drilling rigs, tubular materials and equipment
The marketability of our production is dependent upon transportation and processing facilities over which we may have no control
The marketability of our production depends in part upon the availability, proximity and capacity of pipelines, natural gas gathering systems and processing facilities
Any significant change in market factors affecting these infrastructure facilities could harm our business
We deliver oil and natural gas through gathering systems and pipelines that we do not own
These facilities may be temporarily unavailable due to market conditions or mechanical reasons, or may not be available to us in the future
For example, during 2004, we experienced temporary curtailments of our natural gas production in the San Juan Basin and in East Texas due to infrastructure limitations and plant closings for maintenance reasons
We are subject to complex federal, state and local laws and regulations that could adversely affect our business
Extensive federal, state and local regulation of the oil and gas industry significantly affects our operations
In particular, our oil and natural gas exploration, development and production, and our storage and transportation of liquid hydrocarbons, are subject to stringent environmental regulations
These regulations have increased the costs of planning, designing, drilling, installing, operating and abandoning oil and natural gas wells and other related facilities
These regulations may become more demanding in the future
Matters subject to regulation include: • discharge permits for drilling operations; • drilling bonds; • spacing of wells; • unitization and pooling of properties; • environmental protection; • reports concerning operations; and • taxation
Under these laws and regulations, we could be liable for: • personal injuries; • property damage; • oil spills; • discharge of hazardous materials; • reclamation costs; • remediation and clean-up costs; and • other environmental damages
18 ______________________________________________________________________ [44]Table of Contents Although we believe that our operations generally comply with applicable laws and regulations, failure to comply could result in the suspension or termination of our operations and subject us to administrative, civil and criminal penalties
Further, these laws and regulations could change in ways that substantially increase our costs
Any of these liabilities, penalties, suspensions, terminations or regulatory changes could make it more expensive for us to conduct our business or cause us to limit or curtail some of our operations
We currently own, lease or expect to acquire, and have in the past owned or leased, numerous properties that have been used for the exploration and production of oil and natural gas for many years
Although we have used operating and disposal practices that were standard in the industry at the time, petroleum hydrocarbons or wastes may have been disposed or released on or under the properties owned or leased by us or on or under other locations where such wastes were taken for disposal
In addition, petroleum hydrocarbons or wastes may have been disposed or released by prior operators of properties that we are acquiring as well as by current third party operators of properties in which we have an ownership interest
Properties impacted by any such disposal or release could be subject to costly and stringent investigatory or remedial requirements under environmental laws, some of which impose strict joint and several liability without regard to fault or the legality of the original conduct
These laws include the federal Comprehensive Environmental Response, Compensation, and Liability Act, also known as “CERCLA” or the “Superfund” law, the federal Resource Conservation and Recovery Act and analogous state laws
Under these laws and any implementing regulations, we could be required to remediate contaminated properties and take actions to compensate for damages to natural resources
In addition, it is not uncommon for neighboring landowners and other third parties to file claims for personal injury or property damages allegedly caused by the release of petroleum hydrocarbons or wastes into the environment
We currently do not expect any remedial obligations imposed under environmental laws to have a significant effect on our operations
Our operations in the coastal waters of Cook Inlet of Alaska are subject to the federal Oil Pollution Act, which imposes a variety of requirements related to the prevention of oil spills and liability for damages resulting from such spills in United States waters
The Oil Pollution Act imposes strict joint and several liability on responsible parties for oil removal costs and a variety of public and private damages, including natural resource damages
Liability limits for offshore facilities require a responsible party to pay all removal costs, plus up to dlra75 million in other damages
These liability limits do not apply, however, if the spill was caused by gross negligence or willful misconduct of the party, if the spill resulted from violation of a federal safety, construction or operation regulation, or if the party failed to report the spill or cooperate fully in any resulting cleanup
The Oil Pollution Act also requires a responsible party at an offshore facility to submit proof of its financial ability to cover environmental cleanup and restoration costs that could be incurred in connection with an oil spill
We believe that our operations are in substantial compliance with Oil Pollution Act requirements
The Department of Transportation, through the Office of Pipeline Safety and Research and Special Programs Administration, has implemented a series of rules requiring operators of natural gas and hazardous liquid pipelines to develop integrity management plans for pipelines that, in the event of a failure, could impact certain high consequence areas
These rules also require operators to conduct baseline integrity assessments of all applicable pipeline segments located in the high consequence areas
We are currently in the process of identifying all of our pipeline segments that may be subject to these rules and are developing integrity management plans for all covered pipeline segments
We do not expect to incur significant costs in achieving compliance with these rules
19 ______________________________________________________________________ [45]Table of Contents Our business involves many operating risks that may result in substantial losses, and insurance may be unavailable or inadequate to protect us against these risks
Our operations are subject to hazards and risks inherent in drilling for, producing and transporting oil and natural gas, such as: • fires; • natural disasters; • explosions; • pressure forcing oil or natural gas out of the wellbore at a dangerous velocity coupled with the potential for fire or explosion; • weather; • failure of oilfield drilling and service tools; • changes in underground pressure in a formation that causes the surface to collapse or crater; • pipeline ruptures or cement failures; and • environmental hazards such as natural gas leaks, oil spills and discharges of toxic gases
Any of these risks can cause substantial losses resulting from: • injury or loss of life; • damage to and destruction of property, natural resources and equipment; • pollution and other environmental damage; • regulatory investigations and penalties; • suspension of our operations; and • repair and remediation costs
We do not insure against the loss of oil or natural gas reserves as a result of operating hazards or insure against business interruption
Losses could occur from uninsurable or uninsured risks, or in amounts in excess of existing insurance coverage
The occurrence of an event that is not fully covered by insurance could harm our financial condition and results of operations
Terrorist activities and military and other actions could adversely affect our business
On September 11, 2001, the United States was the target of terrorist attacks of unprecedented scope, and the United States and others instituted military action in response
These conditions caused instability in world financial markets and generated global economic instability
The continued threat of terrorism and the impact of military and other action, including US military operations in Afghanistan and Iraq, will likely lead to continued volatility in crude oil and natural gas prices and could affect the markets for our operations
In addition, future acts of terrorism could be directed against companies operating in the United States
The US government has issued public warnings that indicate that energy assets might be specific targets of terrorist organizations
These developments have subjected our operations to increased risks and, depending on their ultimate magnitude, could have a material adverse effect on our business
We have limited control over the activities on properties we do not operate
We have limited ability to influence or control the operation or future development of these non-operated properties or the amount of capital expenditures that we are required to fund for their operation
Our dependence on the operator and other working interest owners for these projects and our limited ability to influence or control the operation and future development of these properties could materially adversely affect the realization of our targeted returns or lead to unexpected future costs