NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Mandatory retirements resulting from maturities and sinking fund obligations of the long-term debt of the Company approximate: 2002 – $483 million; 2003 – $550 million; 2004 – $370 million; 2005 – $358 million and 2006 – $503 million. The Company has established a medium-term note program in the United States. At December 31, 2001, the Company can issue medium- term notes of up to US$750 million under this program. Debentures amounting to $225 million have retraction provisions which entitle the holders to require redemption of up to 8 per cent of the prin- cipal plus accrued and unpaid interest on repayment dates. No redemptions have been made to December 31, 2001. The Deed of Trust and Mortgage securing the Company’s First Mortgage Pipe Line Bonds limits the specific and floating charges to those assets comprising the present and future Canadian Mainline and the Company’s present and future gas transportation contracts. Medium-term notes amounting to $148 million have retraction provisions which entitle the holders to require redemption of the principal plus accrued and unpaid interest on repayment dates in 2002 and 2003. Medium-term notes amounting to $150 million and US$145 million have retraction provisions which entitle the holders to require redemp- tion of the principal plus accrued and unpaid interest in 2005 and 2004, respectively. The Company also has the option to redeem the US$145 million medium-term notes in 2004. If the U.S. dollar medium-term notes remain outstanding, the interest rate will change in 2004 from  6.4 per cent to a rate based on the then U.S. Treasury 30 year bond yield plus a market-based corporate credit spread. MANDATORY RETIREMENTS MEDIUM-TERM NOTES ALBERTA SYSTEM Debentures First Mortgage Pipe Line Bonds CANADIAN MAINLINE Medium-Term Notes OTHER Medium-Term Notes FINANCIAL CHARGES Year ended December 31  (millions of dollars) 2001 2000 1999 Interest on long-term debt 890 974 1,026 Regulatory deferrals and amortizations (24) (13) 6 Short-term interest and other financial charges 38 47 58 904 1,008 1,090 Financial charges – discontinued operations (9) (57) (81) 895 951 1,009 The Company made interest payments of $936 million, $1,024 million and $1,062 million for the years ended December 31, 2001, 2000 and 1999, respectively. TRANSCANADA 52