Chesapeake Energy 2015 Annual Report Download - page 105

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CHESAPEAKE ENERGY CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
101
The aggregate undiscounted commitments under our gathering, processing and transportation agreements,
excluding any reimbursement from working interest and royalty interest owners, credits for third-party volumes or future
costs under cost-of-service agreements, are presented below.
December 31,
2015
($ in millions)
2016 ............................................................................................................................................. $ 1,932
2017 ............................................................................................................................................. 1,944
2018 ............................................................................................................................................. 1,742
2019 ............................................................................................................................................. 1,443
2020 ............................................................................................................................................. 1,111
2021 – 2099 ................................................................................................................................. 5,793
Total ..................................................................................................................................... $ 13,965
In addition, we have entered into long-term agreements for certain natural gas gathering and related services
within specified acreage dedication areas in exchange for cost-of-service based fees redetermined annually or tiered
fees based on volumes delivered relative to scheduled volumes. Future gathering fees vary with the applicable
agreement. One of these agreements in the Anadarko Basin in northwestern Oklahoma and the Texas panhandle
contains cost-of-service based fees that are redetermined annually through 2019. The annual upward or downward
fee adjustment for this contract is capped at 15% of the then-current fees at the time of redetermination. To the extent
the actual rate of return on capital expended by the counterparty over the term of the agreement differs from the
applicable rate of return, a payment is due to (from) the midstream service company.
Drilling Contracts
We have contracts with various drilling contractors to utilize drilling services with terms ranging from three months
to three years at market-based pricing. These commitments are not recorded in the accompanying consolidated balance
sheets. As of December 31, 2015, the aggregate undiscounted minimum future payments under these drilling service
commitments are detailed below.
December 31,
2015
($ in millions)
2016 ............................................................................................................................................. $ 160
2017 ............................................................................................................................................. 114
2018 ............................................................................................................................................. 6
Total ..................................................................................................................................... $ 280