The Company adopted ASU 842, leases, on January 1, 2019 using the modified retrospective approach with a cumulative impact to retained earnings. The adoption of this standard has resulted in an increase in the assets and liabilities on the Company’s Condensed Consolidated Balance Sheet. The Company has completed the review and evaluation of current and potential leases which resulted primarily in our corporate office lease and some minor equipment and vehicle leases qualifying under the new guidance. Based upon this analysis, the impact of the new guidance established a liability and the corresponding asset of $5.4 million at January 1, 2019.

For the year ended December 31, 2020, our leases qualify as operating leases and we did not have any existing or new leases qualifying as financing leases. We have leases for office space and equipment in our corporate office and operating regions as well as vehicles, compressors and surface rentals related to our business operations. In addition, we have offshore Southern California pipeline right-of-way use agreements. Most of our leases, other than our corporate office lease, have an initial term and may be extended on a month-to-month basis after expiration of the initial term. Most of our leases can be terminated with 30-day prior written notice. The majority of our month-to-month leases are not included as a lease liability in our balance sheet under ASC 842 because continuation of the lease is not reasonably certain. Additionally, the Company elected the short-term practical expedient to exclude leases with a term of twelve months or less.

Our corporate office lease does not provide an implicit rate. To determine the present value of the lease payments, we use our incremental borrowing rate based on the information available at the inception date. To determine the incremental borrowing rate, we apply a portfolio approach based on the applicable lease terms and the current economic environment. We use a reasonable market interest rate for our office equipment and vehicle leases.

For the year ended December 31, 2020 and 2019, we recognized approximately $2.4 million and $2.1 million, respectively, of costs relating to the operating leases in the Statements of Consolidated Operations.

The following table presents the Company’s right-of-use assets and lease liabilities for the period presented:

	December 31,		December 31,
	2020		2019
	(In thousands)
Right-of-use asset	$	2,500	$	4,406

Lease liabilities:
Current lease liability		2,258		1,712
Long-term lease liability		266		2,720
Total lease liability	$	2,524	$	4,432

The following table reflects the Company’s maturity analysis of the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year (in thousands):

	Office leases		Leased vehicles and office equipment		Total
2021	$	1,631	$	634	$	2,265
2022		140		157		297
2023		—		35		35
2024 and thereafter		—		—		—
Total lease payments		1,771		826		2,597
Less: interest		51		22		73
Present value of lease liabilities	$	1,720	$	804	$	2,524

The weighted average remaining lease terms and discount rate for all of our operating leases for the period presented:

	December 31,
	2020			2019
Weighted average remaining lease term (years):
Office leases		0.74			1.50
Vehicles		0.34			0.44
Office equipment		0.04			0.08
Weighted average discount rate:
Office leases		3.41	%		3.63	%
Vehicles		0.96	%		0.84	%
Office equipment		0.17	%		0.18	%

During the year ended December 31, 2019, the Company recorded a $4.2 million loss on lease, which relates to the Midstates corporate office lease. The office was vacated in mid-November 2019. Due to excess sublease inventory in the local market, a liability has been accrued for rent and other operating expenses based upon the term and provisions of the lease.