This excerpt taken from the PBR 6-K filed Nov 12, 2008.
21.1 Provision for contingencies
Petrobras and its subsidiaries are parties to judicial proceedings involving tax, labor, civil and environmental issues, arising from the normal course of operations. Based on the advice of its legal counsel, management has recorded the provisions for legal proceedings in amounts considered sufficient to cover probable losses. At September 30, 2008, these provisions are presented as follows, in accordance with the nature of the corresponding lawsuits: