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For the three months ended March 31, 2013, interest costs of $23 million were capitalized and included in property, plant and equipment (three months ended March 31, 2012 - $20 million) based on a 6.5 per cent interest capitalization rate (7.3 per cent for the three months ended March 31, 2012).
5) Accounts Payable and Accrued Liabilities
December March 31 31($ millions) 2013 2012----------------------------------------------------------------------------Trade payables $ 553 $ 498Crown royalties 202 215Current portion of asset retirement obligation 44 44Interest payable 41 29---------------------------------------------------------------------------- $ 840 $ 786Less non-current portion of Crown royalties (81) (82)----------------------------------------------------------------------------Accounts payable and accrued liabilities $ 759 $ 704----------------------------------------------------------------------------
6) Other Liabilities
December March 31 31($ millions) 2013 2012----------------------------------------------------------------------------Non-current portion of Crown royalties $ 81 $ 82Other 11 7----------------------------------------------------------------------------Other liabilities $ 92 $ 89--------------------------------------------------------------------------------------------------------------------------------------------------------
7) Asset Retirement Obligation
The Corporation and each of the other Syncrude owners are liable for their share of ongoing obligations related to the reclamation and closure of the Syncrude properties on abandonment. The Corporation estimates reclamation and closure expenditures will be made progressively over the next 70 years and has applied a risk-free interest rate of 2.50 per cent at March 31, 2013 (December 31, 2012 - 2.25 per cent) in deriving the asset retirement obligation. The risk-free rate is based on the yield for benchmark Government of Canada long-term bonds.
The following table presents the reconciliation of the beginning and ending aggregate carrying amount of the Corporation's share of the obligation associated with the reclamation and closure of the Syncrude properties:
Three Year Months Ended Ended December March 31 31($ millions) 2013 2012----------------------------------------------------------------------------Asset retirement obligation, beginning of period $ 1,102 $ 1,037Change in risk-free interest rate (62) 68Change in estimated reclamation and closure expenditures - 25Accretion expense 6 26Reclamation expenditures (33) (54)----------------------------------------------------------------------------Asset retirement obligation, end of period $ 1,013 $ 1,102Less current portion (44) (44)----------------------------------------------------------------------------Non-current portion $ 969 $ 1,058--------------------------------------------------------------------------------------------------------------------------------------------------------
