(6) Commitments and Contingencies

The Company maintains certain operating lease arrangements with independent truck owner-operators for use of their equipment and driver services on a month-to-month basis. In addition, the Company enters into office space and certain lease and terminal access contracts in order to provide tank storage and dock access for its crude oil marketing business. All lease commitments qualify for off-balance sheet treatment. Such contracts require certain minimum monthly payments for the term of the contracts. The Company has no capital lease arrangements. Rental expense is as follows (in thousands):

	Years ended December 31,
	2016		2015		2014
Rental expense	$	11,314	$	11,168	$	9,755

At December 31, 2016, rental obligations under long-term non-cancelable operating leases and terminal arrangements for the next five years and thereafter are payable as follows (in thousands):

2017				2018				2019				2020				2021				Thereafter				Total
$	4,768			$	2,018			$	365			$	4			$	-			$	-			$	7,155

Under the Company’s automobile and workers’ compensation insurance policies, the Company can either receive a return of premium paid or be assessed for additional premiums up to pre-established limits. Additionally, in certain instances the risk of insured losses is shared with a group of similarly situated entities. The Company has appropriately recognized estimated expenses and liabilities related to these policies for losses incurred but not reported to the Company or its insurance carrier as follows (in thousands):

	As of December 31,
	2016		2015		2014
Estimated expenses and liabilities	$	2,657	$	2,086	$	2,585

The Company maintains a self-insurance program for managing employee medical claims. A liability for expected claims incurred but not reported is established on a monthly basis. As claims are paid, the liability is relieved. The Company also maintains third party insurance stop-loss coverage for aggregate medical claims exceeding $4.5 million. Medical accrual amounts are as follows (in thousands):

	As of December 31,
	2016		2015		2014
Accrued medical claims	$	1,411	$	1,107	$	1,057

AREC is named as a defendant in a number of Louisiana based suits involving alleged environmental contamination from prior drilling operations. Such suits typically allege improper disposal of oilfield wastes in earthen pits with one suit alleging subsidence contributing to the formation of a sink hole. AREC is currently involved in three such suits. The suits are styled LePetit Chateau Deluxe v. Adams Resources Exploration Corporation dated March 2004, Gustave J. LaBarre, Jr., et. al. v. Adams Resources Exploration Corporation et al dated October 2012 and Henning Management, LLC v. Adams Resources Exploration Corporation dated November 2013. Each suit involves multiple industry defendants with substantially larger proportional interest in the properties. In the LePetit Chateau Deluxe matter, all the larger defendants have settled the case. The plaintiffs in each of these matters are seeking unspecified compensatory and punitive damages. While management does not believe that a material adverse effect will result from the claims, significant attorney fees will be incurred to defend these items. As of December 31, 2016 and 2015 the Company has accrued $0.5 million of future legal and/or settlement costs for these matters.

From time to time as incidental to its operations, the Company may become involved in various lawsuits and/or disputes. Primarily as an operator of an extensive trucking fleet, the Company is a party to motor vehicle accidents, worker compensation claims and other items of general liability as would be typical for the industry. Management of the Company is presently unaware of any claims against the Company that are either outside the scope of insurance coverage, or that may exceed the level of insurance coverage and, therefore could potentially represent a material adverse effect on the Company’s financial position or results of operations.