Commitments and Contingencies

Lease Financing Obligation. As of December 31, 2018, the Company had a Lease Financing Obligation with Bank of America Leasing & Capital, LLC as the lead bank as discussed in Note 5. The aggregate undiscounted minimum future lease payments, including both principal and interest components, are presented below. The Company elected to purchase the equipment under the early buyout option for $1.8 million on February 10, 2019.



	As of December 31, 2018
	(in thousands)
2019	$	1,869
Thereafter	—
Total	$	1,869

Firm Transportation Agreements. The Company is party to two firm transportation contracts, through July 2021, to provide capacity on natural gas pipeline systems. The contracts require the Company to pay transportation charges regardless of the amount of pipeline capacity utilized by the Company. These monthly transportation payments are included in unused commitments expense in the Consolidated Statements of Operations. As a result of previous divestitures in 2013 and 2014, the Company will likely not utilize the firm capacity on the natural gas pipelines.

The amounts in the table below represent the Company's future minimum transportation charges:



	As of December 31, 2018
	(in thousands)
2019	$	18,485
2020	18,691
2021	10,903
Thereafter	—
Total	$	48,079

Gas Gathering and Processing Agreements. The Company is party to two minimum volume commitments and one reimbursement obligation. The minimum volume commitments require the Company to deliver a minimum volume of natural gas to midstream entities for gathering and processing. The contracts require the Company to pay a fee associated with the contracted volumes regardless of the amount delivered. The reimbursement obligation requires the Company to pay a monthly gathering and processing fee per Mcf of production over a one year period to reimburse a midstream entity for its costs to construct gas gathering and processing facilities. If the costs are not reimbursed by the Company via the monthly gathering and processing fees through August 2019, the Company must pay the difference. The amounts in the table below represent the Company's future minimum charges under both agreements:



	As of December 31, 2018
	(in thousands)
2019 ⁽¹⁾	$	10,049
2020	2,167
2021	1,996
Thereafter	—
Total	$	14,212


(1)	Includes $6.8 million associated with the reimbursement obligation discussed above.

Lease and Other Commitments. The Company leases office space, vehicles and certain equipment under non-cancelable operating leases. The Company incurred rent expense related to these operating leases of $4.0 million, $3.6 million and $3.1 million for the years ended December 31, 2018, 2017 and 2016, respectively. The Company also has non-cancelable agreements for telecommunication and geological and geophysical services. Future minimum annual payments under lease and other agreements are as follows:



	As of December 31, 2018
	(in thousands)
2019	$	4,597
2020	3,032
2021	3,331
2022	3,263
2023	3,036
Thereafter	13,112
Total	$	30,371

Litigation. The Company is subject to litigation, claims and governmental and regulatory proceedings arising in the course of ordinary business. It is the opinion of the Company's management that current claims and litigation involving the Company are not likely to have a material adverse effect on its consolidated balance sheets, cash flows or statements of operations.