
	Millions of Dollars
	2025		2024

Asset retirement obligations	$	721	771
Accrued environmental costs	506		439
Total asset retirement obligations and accrued environmental costs	1,227		1,210
Asset retirement obligations and accrued environmental costs due within one year*	(205)		(81)
Long-term asset retirement obligations and accrued environmental costs	$	1,022	1,129

We have asset retirement obligations that we are required to perform under law or contract once an asset is permanently taken out of service. Our recognized asset retirement obligations primarily involve asbestos abatement at our current refineries, or at sites we own that were previously utilized as refineries; decommissioning, removal or dismantlement of certain assets at refineries that have ceased or will cease operations; and decommissioning, removal or dismantlement of certain midstream pipelines and processing facilities. Asset retirement obligations related to dismantlement or removal of assets at certain leased international marketing sites were derecognized as of December 31, 2025, following the partial sale of Germany and Austria Marketing. Most of our asset retirement obligations are not expected to be paid until many years in the future and are expected to be funded from general company resources at the time of removal.


	Millions of Dollars
	2025		2024

Balance at January 1	$	771	537
Accretion of discount	34		27
New obligations	42		261
Changes in estimates of existing obligations	81		33
Spending on existing obligations	(84)		(25)
Asset dispositions	(138)		(55)
Foreign currency translation	15		(7)
Balance at December 31	$	721	771

During the year ended December 31, 2025, our asset retirement obligations balance decreased $50 million. This decrease was primarily due to the derecognition of obligations as a result of the partial sale of Germany and Austria Marketing, partially offset by increased estimates in existing obligations of $81 million, primarily due to the cessation of fuel production and idling of the Los Angeles Refinery, and new obligations of $42 million, primarily from the WRB acquisition. See Note 4—Restructuring for additional information on the cessation of fuel production and idling of the Los Angeles Refinery; See Note 5—Business Combinations for additional information on the WRB acquisition; See Note 9—Investments, Loans and Long-Term Receivables for additional information regarding the partial sale of Germany and Austria Marketing.

Of our total accrued environmental costs at December 31, 2025, $373 million was primarily related to cleanup at current domestic refineries, or at sites we own that were previously utilized as domestic refineries, and underground storage tanks at U.S. service stations; $96 million was associated with non-operated sites; and $37 million was related to sites at which we have been named a potentially responsible party under federal or state laws. A large portion of our expected environmental expenditures have been discounted as these obligations were acquired in various business combinations. Expected expenditures for acquired environmental obligations were discounted using a weighted-average discount rate of approximately 5%. At December 31, 2025, the accrued balance for acquired environmental liabilities was $304 million. The expected future undiscounted payments related to the portion of the accrued environmental costs that have been discounted are: $35 million in 2026, $24 million in 2027, $28 million in 2028, $34 million in 2029, $24 million in 2030, and $230 million in the aggregate for all years after 2030.