were approximately $2.1 billion in 2005, $1.6 billion in 2004, and $1.4 billion in 2003. The most significant take-or-pay agreement calls for the company to purchase approximately 55,000 barrels per day of refined products from an equity affiliate refiner in Thailand. This purchase agreement is in conjunction with the financing of a refinery owned by the affiliate and expires in 2009. The future estimated commitments under this contract are: 2006 – $1.3 billion; 2007 – $1.3 billion; 2008 – $1.3 billion; and 2009 – $1.3 billion. In 2005, under the terms of an agreement entered in 2004, the company exercised its option to acquire additional regasification capacity at the Sabine Pass Liquefied Natural Gas Terminal. Payments of $2.5 billion over the 20-year period are expected to commence in 2009.

     Minority Interests The company has commitments of approximately $200 million related to minority interests in subsidiary companies.

     The following table summarizes the company’s significant contractual obligations:

FINANCIAL AND DERIVATIVE INSTRUMENTS

Commodity Derivative Instruments Chevron is exposed to market risks related to the price volatility of crude oil, refined products, natural gas, natural gas liquids and refinery feed-stock. The company uses derivative commodity instruments to manage these exposures on a portion of its activity, including firm commitments and anticipated transactions for the purchase or sale of crude oil; feedstock purchases for company refineries; crude oil and refined products inventories; and fixed-price contracts to sell natural gas and natural gas liquids. 

     Chevron also uses derivative commodity instruments for trading purposes. The results of this activity were not material to the company’s financial position, net income or cash flows in 2005.

     The company’s positions are monitored and managed on a daily basis by an internal risk control group to ensure compliance with the company’s risk management policy that has been approved by the Audit Committee of the company’s Board of Directors.

     The derivative instruments used in the company’s risk management and trading activities consist mainly of futures, options, and swap contracts traded on the New York Mercantile Exchange and the International Petroleum Exchange. In addition, crude oil, natural gas and refined product swap contracts and option contracts are entered into principally with major financial institutions and other oil and gas companies in the “over-the-counter” markets.

     Virtually all derivatives beyond those designated as normal purchase and normal sale contracts are recorded at fair value on the Consolidated Balance Sheet with resulting gains and losses reflected in income. Fair values are derived principally from market quotes and other independent third-party quotes.

     Each hypothetical 10 percent increase in the price of natural gas and crude oil would increase the fair value of the natural gas purchase derivative contracts by approximately $33 million and reduce the fair value of the crude oil sale derivative contracts by about $11 million. The same hypothetical decrease in the prices of these commodities would