MARATHON OIL CORPORATION Notes to Consolidated Financial Statements Operating lease rental expense was:
## Table 0 ##
(a) Excludes $5 million, $8 million and $9 million paid by United States Steel in 2008, 2007 and 2006 on assumed leases.27.
Contingencies and Commitments We are the subject of, or party to, a number of pending or threatened legal actions, contingencies and commitments involving a variety of matters, including laws and regulations relating to the environment.
Certain of these matters are discussed below.
The ultimate resolution of these contingencies could, individually or in the aggregate, be material to our consolidated financial statements.
However, management believes that we will remain a viable and competitive enterprise even though it is possible that these contingencies could be resolved unfavorably.
Environmental matters – We are subject to federal, state, local and foreign laws and regulations relating to the environment.
These laws generally provide for control of pollutants released into the environment and require responsible parties to undertake remediation of hazardous waste disposal sites.
Penalties may be imposed for noncompliance.
At December 31, 2008 and 2007, accrued liabilities for remediation totaled $111 million and $108 million.
It is not presently possible to estimate the ultimate amount of all remediation costs that might be incurred or the penalties that may be imposed.
Receivables for recoverable costs from certain states, under programs to assist companies in clean-up efforts related to underground storage tanks at retail marketing outlets, were $60 and $66 million at December 31, 2008 and 2007.
We are a defendant, along with other refining companies, in 20 cases arising in three states alleging damages for methyl tertiary-butyl ether (“MTBE”) contamination.
We have also received seven Toxic Substances Control Act notice letters involving potential claims in two states.
Such notice letters are often followed by litigation.
Like the cases that were settled in 2008, the remaining MTBE cases are consolidated in a multidistrict litigation in the Southern District of New York for pretrial proceedings.
Nineteen of the remaining cases allege damages to water supply wells, similar to the damages claimed in the settled cases.
In the other remaining case, the State of New Jersey is seeking natural resources damages allegedly resulting from contamination of groundwater by MTBE.
This is the only MTBE contamination case in which we are a defendant and natural resources damages are sought.
We are vigorously defending these cases.
We, along with a number of other defendants, have engaged in settlement discussions related to the majority of the cases in which we are a defendant.
We do not expect our share of liability, if any, for the remaining cases to significantly impact our consolidated results of operations, financial position or cash flows.
A lawsuit filed in the United States District Court for the Southern District of West Virginia alleges that our Catlettsburg, Kentucky, refinery distributed contaminated gasoline to wholesalers and retailers for a period prior to August, 2003, causing permanent damage to storage tanks, dispensers and related equipment, resulting in lost profits, business disruption and personal and real property damages.
Following the incident, we conducted remediation operations at affected facilities, and we deny that any permanent damages resulted from the incident.
Class action certification was granted in August 2007.
We have entered into a tentative settlement agreement in this case.
Notice of the proposed settlement has been sent to the class members.
Approval by the court after a fairness hearing is required before the settlement can be finalized.
The fairness hearing is scheduled in the first quarter of 2009.
The proposed settlement will not significantly impact our consolidated results of operations, financial position or cash flows.
Guarantees – We have provided certain guarantees, direct and indirect, of the indebtedness of other companies.
Under the terms of most of these guarantee arrangements, we would be required to perform should the guaranteed party fail to fulfill its obligations under the specified arrangements.
In addition to these financial guarantees, we also have various performance guarantees related to specific agreements.
Supplementary Information on Oil and Gas Producing Activities (Unaudited) CONTINUED Results of Operations for Oil and Gas Producing Activities
## Table 1 ##
(a) Excludes noncash effects of changes in the fair value of certain natural gas sales contracts in the United Kingdom.
(b) Includes net gain on disposal of assets.
(c) Includes revenues, net of associated costs, from activities that are an integral part of our production operations which may include processing or transportation of third-party production, the purchase and subsequent resale of natural gas utilized for reservoir management and providing storage capacity.
Supplementary Information on Oil and Gas Producing Activities (Unaudited) CONTINUED Summary of Changes in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
## Table 2 ##
our refineries processed 944 mbpd of crude oil and 207 mbpd of other charge and blend stocks.
The table below sets forth the location and daily crude oil refining capacity of each of our refineries as of December 31, 2008.
## Table 3 ##
Our refineries include crude oil atmospheric and vacuum distillation, fluid catalytic cracking, catalytic reforming, desulfurization and sulfur recovery units.
The refineries process a wide variety of crude oils and produce numerous refined products, ranging from transportation fuels, such as reformulated gasolines, blendgrade gasolines intended for blending with fuel ethanol and ultra-low sulfur diesel fuel, to heavy fuel oil and asphalt.
Additionally, we manufacture aromatics, cumene, propane, propylene, sulfur and maleic anhydride.
Our refineries are integrated with each other via pipelines, terminals and barges to maximize operating efficiency.
The transportation links that connect our refineries allow the movement of intermediate products between refineries to optimize operations, produce higher margin products and utilize our processing capacity efficiently.
Our Garyville, Louisiana, refinery is located along the Mississippi River in southeastern Louisiana.
The Garyville refinery processes heavy sour crude oil into products such as gasoline, distillates, sulfur, asphalt, propane, polymer grade propylene, isobutane and coke.
In 2006, we approved an expansion of our Garyville refinery by 180 mbpd to 436 mbpd, with a currently projected cost of $3.35 billion (excluding capitalized interest).
Construction commenced in early 2007 and is continuing on schedule.
We estimate that, as of December 31, 2008, this project is approximately 75 percent complete.
We expect to complete the expansion in late 2009.
Our Catlettsburg, Kentucky, refinery is located in northeastern Kentucky on the western bank of the Big Sandy River, near the confluence with the Ohio River.
The Catlettsburg refinery processes sweet and sour crude oils into products such as gasoline, asphalt, diesel, jet fuel, petrochemicals, propane, propylene and sulfur.
Our Robinson, Illinois, refinery is located in the southeastern Illinois town of Robinson.
The Robinson refinery processes sweet and sour crude oils into products such as multiple grades of gasoline, jet fuel, kerosene, diesel fuel, propane, propylene, sulfur and anode-grade coke.
Our Detroit, Michigan, refinery is located near Interstate 75 in southwest Detroit.
The Detroit refinery processes light sweet and heavy sour crude oils, including Canadian crude oils, into products such as gasoline, diesel, asphalt, slurry, propane, chemical grade propylene and sulfur.
In 2007, we approved a heavy oil upgrading and expansion project at our Detroit, Michigan, refinery, with a current projected cost of $2.2 billion (excluding capitalized interest).
This project will enable the refinery to process additional heavy sour crude oils, including Canadian bitumen blends, and will increase its crude oil refining capacity by about 15 percent.
Construction began in the first half of 2008 and is presently expected to be complete in mid-2012.
Our Canton, Ohio, refinery is located approximately 60 miles southeast of Cleveland, Ohio.
The Canton refinery processes sweet and sour crude oils into products such as gasoline, diesel fuels, kerosene, propane, sulfur, asphalt, roofing flux, home heating oil and No.6 industrial fuel oil.
Our Texas City, Texas, refinery is located on the Texas gulf coast approximately 30 miles south of Houston, Texas.
The refinery processes sweet crude oil into products such as gasoline, propane, chemical grade propylene, slurry, sulfur and aromatics.
Our St.  Paul Park, Minnesota, refinery is located in St.  Paul Park, a suburb of Minneapolis-St.  Paul.
The St.  Paul Park refinery processes predominantly Canadian crude oils into products such as gasoline, diesel, jet fuel, kerosene, asphalt, propane, propylene and sulfur.
a more complete explanation of our strategies to manage market risk related to commodity prices, see Quantitative and Qualitative Disclosures about Market Risk.
We averaged 944 mbpd of crude oil throughput in 2008 and 1,010 mbpd in 2007.
Total refinery throughputs averaged 1,151 mbpd in 2008 compared to 1,224 mbpd in 2007.
Crude and total throughputs were lower in 2008 than in 2007 in part due to the effect Hurricane Gustav and Ike had on U. S.  Gulf Coast operations in 2008.
The following table includes certain key operating statistics for the RM&T segment for 2008 and 2007.
## Table 4 ##
(a) Sales revenue less cost of refinery inputs (including transportation), purchased products and manufacturing expenses, including depreciation.
IG segment income increased $170 million, or 129 percent in 2008 from 2007.
The increase in income was primarily related to a full year of operation of the LNG production facility in Equatorial Guinea, which commenced operations in May 2007.
We hold a 60 percent interest in the facility.
Segment expenses increased slightly in 2008 as we continue to develop new technologies.
In 2008, we spent $92 million on gas commercialization technologies, including completing construction of a gas-to-fuels demonstration plant.
Such expense in 2007 was $42 million.
Consolidated Results of Operations: 2007 compared to 2006 Revenues are summarized in the following table

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(In millions)	2008	2007	2006
Minimum rental(a)	$245	$209	$172
Contingent rental	22	33	28
Sublease rentals	–	–	-7
Net rental expense	$267	$242	$193

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(In millions)	United States	Europe	Africa	Other Int’l	Total
2008	Revenues and other income:
Sales(a)	$2,619	$1,283	$1,930	$–	$5,832
Transfers	547	1,062	1,170	–	2,779
Other income(b)	1	254	–	–	255
Total revenues	3,167	2,599	3,100	–	8,866
Expenses:
Production costs	-692	-319	-145	–	-1,156
Transportation costs	-153	-59	-36	–	-248
Exploration expenses	-238	-88	-47	-117	-490
Depreciation, depletion and amortization	-671	-512	-144	-1	-1,328
Administrative expenses	-49	-15	-5	-37	-106
Total expenses	-1,803	-993	-377	-155	-3,328
Other production-related income (loss)(c)	-1	35	1	–	35
Results before income taxes	1,363	1,641	2,724	-155	5,573
Income tax (provision) benefit	-516	-598	-1,892	58	-2,948
Results of continuing operations	$847	$1,043	$832	$-97	$2,625
2007	Revenues and other income:
Sales(a)	$2,110	$1,198	$1,380	$–	$4,688
Transfers	299	60	1,031	–	1,390
Other income(b)	3	–	2	7	12
Total revenues	2,412	1,258	2,413	7	6,090
Expenses:
Production costs	-550	-234	-164	–	-948
Transportation costs	-122	-39	-28	–	-189
Exploration expenses	-274	-23	-118	-37	-452
Depreciation, depletion and amortization	-486	-278	-130	–	-894
Administrative expenses	-56	-11	-6	-34	-107
Total expenses	-1,488	-585	-446	-71	-2,590
Other production-related income(c)	–	103	6	–	109
Results before income taxes	924	776	1,973	-64	3,609
Income tax (provision) benefit	-343	-377	-1,368	24	-2,064
Results of continuing operations	$581	$399	$605	$-40	$1,545
Results of discontinued operations	$–	$–	$–	$8	$8
2006	Revenues and other income:
Sales(a)	$2,329	$1,240	$1,300	$–	$4,869
Transfers	307	58	1,168	–	1,533
Other income(b)	3	–	–	46	49
Total revenues	2,639	1,298	2,468	46	6,451
Expenses:
Production costs	-512	-207	-126	–	-845
Transportation costs	-124	-44	-33	–	-201
Exploration expenses	-169	-29	-91	-73	-362
Depreciation, depletion and amortization	-458	-281	-127	–	-866
Administrative expenses	-41	-10	-6	-36	-93
Total expenses	-1,304	-571	-383	-109	-2,367
Other production-related income(c)	–	73	1	–	74
Results before income taxes	1,335	800	2,086	-63	4,158
Income tax (provision) benefit	-489	-358	-1,457	4	-2,300
Results of continuing operations	$846	$442	$629	$-59	$1,858
Results of discontinued operations	$–	$–	$–	$273	$273

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(In millions)	2008	2007	2006
Sales and transfers of oil and gas produced, net of production, transportation and administrative costs	$-7,141	$-4,887	$-5,312
Net changes in prices and production, transportation and administrative costs related to future production	-18,290	12,845	-1,342
Extensions, discoveries and improved recovery, less related costs	663	1,816	1,290
Development costs incurred during the period	1,916	1,654	1,251
Changes in estimated future development costs	-1,584	-1,727	-527
Revisions of previous quantity estimates	53	290	1,319
Net changes in purchases and sales of minerals in place	-13	23	30
Accretion of discount	2,796	1,726	1,882
Net change in income taxes	12,805	-6,751	-660
Timing and other	-96	-12	-14
Net change for the year	-8,891	4,977	-2,083
Beginning of the year	13,495	8,518	10,601
End of year	$4,604	$13,495	$8,518
Net change for the year from discontinued operations	$–	$–	$-216

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(Thousands of barrels per day)	2008
Garyville, Louisiana	256
Catlettsburg, Kentucky	226
Robinson, Illinois	204
Detroit, Michigan	102
Canton, Ohio	78
Texas City, Texas	76
St. Paul Park, Minnesota	74
TOTAL	1,016

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RM&T Operating Statistics	2008	2007
Refining and wholesale marketing gross margin(Dollars per gallon)(a)	$0.1166	$0.1848
Refined products sales volumes(Thousands of barrels per day)	1,352	1,410

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Question: Which Revenues and other income occupies the greatest proportion in total amount in 2007?
Answer: Sales