Commitments and Contingencies

9 Months Ended

Sep. 30, 2016

Commitments and Contingencies Disclosure [Abstract]

Note 8. Commitments and Contingencies

Legal Proceedings We may become involved in various legal proceedings in the ordinary course of business. These proceedings would be subject to the uncertainties inherent in any litigation, and we will regularly assesses the need for accounting recognition or disclosure of these contingencies. We would expect to defend ourselves vigorously in all such matters.

For periods prior to the Offering, we were part of Noble’s integrated business. In the ordinary course of business, Noble is from time to time party to various judicial and administrative proceedings. As of September 30, 2016 and December 31, 2015, Noble did not have accrued liabilities for any legal contingencies related to us.

Based on currently available information, we believe it is unlikely that the outcome of known matters would have a material adverse impact on our combined financial condition, results of operations or cash flows.

Omnibus Agreement Our Omnibus Agreement with Noble contractually requires us to pay a fixed annual fee of $6.85 million (prorated for the first year of service) to Noble for certain administrative and operational support services being provided to us. The Omnibus Agreement generally remains in full force and effect so long as Noble controls our General Partner. See Note 3. Transactions with Affiliates.

Capital Lease During third quarter 2016, we leased a pond for use in our fresh water delivery system. We are accounting for the lease as a capital lease. The discounted present value of future minimum lease payments totals $4.9 million. Future minimum capital lease payments as of September 30, 2016 are as follows:



(in thousands)	Future Minimum Capital Lease Payments
2017	$	4,911
2018	20
Total	$	4,931