Claims relating to Equilon indemnities must be asserted as early as February 2007, or no later than February 2009, and claims relating to Motiva must be asserted no later than February 2012. Under the terms of the indemnities, there is no maximum limit on the amount of potential future payments. The company has not recorded any liabilities for possible claims under these indemnities. The company posts no assets as collateral and has made no payments under the indemnities.

     The amounts payable for the indemnities described above are to be net of amounts recovered from insurance carriers

and others and net of liabilities recorded by Equilon or Motiva prior to September 30, 2001, for any applicable incident.

     In the acquisition of Unocal, the company assumed certain indemnities relating to contingent environmental liabilities associated with assets of Unocal’s 76 Products Company business that existed prior to its sale in 1997. Under the terms of these indemnities, there is no maximum limit on the amount of potential future payments by the company; however, the purchaser shares certain costs under this indemnity up to an aggregate cap of $200 million. Claims relating to these indemnities must be asserted by April 2022. Through the end of 2005, approximately $113 million had been applied to the cap, which includes payments made by either Unocal or Chevron totaling $80 million.

     Securitization The company securitizes certain retail and trade accounts receivable in its downstream business through the use of qualifying special purpose entities (SPEs). At December 31, 2005, approximately $1.2 billion, representing about 7 percent of Chevron’s total current accounts receivable balance, were securitized. Chevron’s total estimated financial exposure under these securitizations at December 31, 2005, was approximately $60 million. These arrangements have the effect of accelerating Chevron’s collection of the securitized amounts. In the event of the SPEs experiencing major defaults in the collection of receivables, Chevron believes that it would have no loss exposure connected with third-party investments in these securitizations.

     Long-Term Unconditional Purchase Obligations and Commitments, Throughput Agreements and Take-or-Pay Agreements The company and its subsidiaries have certain other contingent liabilities relating to long-term unconditional purchase obligations and commitments, throughput agreements, and take-or-pay agreements, some of which relate to supplier’s financing arrangements. The agreements typically provide goods and services, such as pipeline and storage capacity, utilities, and petroleum products, to be used or sold in the ordinary course of the company’s business. The aggregate approximate amounts of required payments under these various commitments are 2006 – $2.2 billion; 2007– $1.9 billion; 2008 – $1.8 billion; 2009 – $1.8 billion; 2010 – $0.5 billion; 2011 and after – $3.8 billion. Total payments under the agreements 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