Halliburton 2013 Annual Report Download - page 78

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to the DOJ's information requests. We understand there have been others in our industry who have received similar
correspondence from the DOJ, and we do not believe that we are being singled out for any particular scrutiny.
We intend to continue to cooperate with the DOJ's and the SEC's inquiries and requests in these investigations.
Because these investigations are ongoing, we cannot predict their outcome or the consequences thereof.
Environmental
We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide. In
the United States, these laws and regulations include, among others:
- the Comprehensive Environmental Response, Compensation, and Liability Act;
- the Resource Conservation and Recovery Act;
- the Clean Air Act;
- the Federal Water Pollution Control Act;
- the Toxic Substances Control Act; and
- the Oil Pollution Act.
In addition to the federal laws and regulations, states and other countries where we do business often have numerous
environmental, legal, and regulatory requirements by which we must abide. We evaluate and address the environmental impact
of our operations by assessing and remediating contaminated properties in order to avoid future liabilities and comply with
environmental, legal, and regulatory requirements. Our Health, Safety, and Environment group has several programs in place to
maintain environmental leadership and to help prevent the occurrence of environmental contamination. On occasion, in addition
to the matters relating to the Macondo well incident described above, we are involved in other environmental litigation and
claims, including the remediation of properties we own or have operated, as well as efforts to meet or correct compliance-
related matters. We do not expect costs related to those claims and remediation requirements to have a material adverse effect
on our liquidity, consolidated results of operations, or consolidated financial position. Excluding our loss contingency for the
Macondo well incident, our accrued liabilities for environmental matters were $66 million as of December 31, 2013 and $72
million as of December 31, 2012. Because our estimated liability is typically within a range and our accrued liability may be the
amount on the low end of that range, our actual liability could eventually be well in excess of the amount accrued. Our total
liability related to environmental matters covers numerous properties.
In November 2012, we received an Enforcement Notice from the Pennsylvania Department of Environmental
Protection (PADEP) regarding an alleged improper disposal of oil field acid in or around Homer City, Pennsylvania between
1999 and 2011. In February 2014, we agreed to resolve this matter for $2 million to settle the PADEP's claim for civil penalties.
Additionally, we have subsidiaries that have been named as potentially responsible parties along with other third
parties for nine federal and state Superfund sites for which we have established reserves. As of December 31, 2013, those nine
sites accounted for approximately $5 million of our $66 million total environmental reserve. Despite attempts to resolve these
Superfund matters, the relevant regulatory agency may at any time bring suit against us for amounts in excess of the amount
accrued. With respect to some Superfund sites, we have been named a potentially responsible party by a regulatory agency;
however, in each of those cases, we do not believe we have any material liability. We also could be subject to third-party claims
with respect to environmental matters for which we have been named as a potentially responsible party.
Guarantee arrangements
In the normal course of business, we have agreements with financial institutions under which approximately $2.1
billion of letters of credit, bank guarantees, or surety bonds were outstanding as of December 31, 2013, including $192 million
of surety bond guarantees related to our Venezuelan operations. Some of the outstanding letters of credit have triggering events
that would entitle a bank to require cash collateralization.
Leases
We are party to numerous operating leases, principally for the use of land, offices, equipment, manufacturing and field
facilities, and warehouses. Total rentals on our operating leases, net of sublease rentals, were $958 million in 2013, $850
million in 2012, and $735 million in 2011.
Future total rentals on our noncancellable operating leases are $946 million in the aggregate, which includes the
following: $282 million in 2014; $215 million in 2015; $156 million in 2016; $83 million in 2017; $56 million in 2018; and
$154 million thereafter.