Operating Leases

3 Months Ended

Mar. 31, 2017


6.	OPERATING LEASES

We have long-term operating lease commitments for pipelines and land used in the terminaling and transportation of crude oil and refined petroleum products. Certain leases contain escalation clauses and renewal options that allow for the same rental payment over the lease term or a revised rental payment based on fair rental value or negotiated value. Currently, one of our leases with Valero does not contain a renewal option. We expect our leases will be renewed or replaced by other leases in the normal course of business.

As of March 31, 2017, our future minimum rentals for leases having initial or remaining noncancelable lease terms in excess of one year were as follows (in thousands):



	Agreements With
	Related Party		Others		Total
Remainder of 2017	$	7,307	$	666	$	7,973
2018	9,744		1,068		10,812
2019	9,744		1,052		10,796
2020	9,745		1,052		10,797
2021	9,745		1,047		10,792
Thereafter	220,674		25,362		246,036
Total minimum rental payments	$	266,959	$	30,247	$	297,206

Minimum rental expenses for all operating leases are shown in the following table (in thousands). Contingent rental expense for all operating leases was immaterial.



	Three Months Ended March 31,
	2017		2016
Minimum rental expenses – related party	$	2,437	$	2,044
Minimum rental expenses – others	305		241
Total minimum rental expenses	$	2,742	$	2,285