In August 2020, we sold our North Louisiana assets and retained certain gathering, transportation and processing obligations which extend into 2030. These are contracts where we will not realize any future benefit. The estimated obligations are included in current and long-term divestiture contract obligation in our consolidated balance sheet. The present value of our estimated obligations was recorded as an exit cost which totaled $479.8 million. Also associated with this sale, we agreed to pay a midstream company $28.5 million to reduce our financial obligation related to the minimum volume commitments associated with this asset which was also recorded as an exit cost in third quarter 2020.

In second quarter 2020, we negotiated capacity releases on certain transportation pipelines in Pennsylvania effective May 31, 2020 and extending through the remainder of the contract. As a result of these releases, we recorded exit costs of $10.4 million which represents the discounted present value of our remaining obligations to the third party.

In third quarter 2020, we completed the sale of our North Louisiana assets. We recorded $2.5 million of severance costs and stock-based compensation expense associated with this sale. In third quarter 2020, we also announced an additional reduction in our work force as we continue to focus on lowering administrative expenses and recorded $3.7 million of severance costs and stock-based compensation expense related to this reduction in force. In first quarter 2020, we completed the sale of our shallow legacy assets in Northwest Pennsylvania and we recorded $1.6 million of severance costs in first quarter 2020 which is primarily related to the sale of these assets. In third quarter 2019, we sold various non-core assets in Pennsylvania and accrued $819,000 of severance costs related to this sale. In second quarter 2019, we announced another reduction in our work force and recorded $2.2 million of severance costs related to this work force reduction. The following summarizes our exit and termination costs for the three and nine months ended September 30, 2020 and 2019 (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Severance costs	$	4,191	$	819	$	5,638	$	3,000
Transportation contract capacity releases (including accretion of discount)		233		—		10,678		—
Divestiture contract obligation (including accretion of discount)		486,689		—		486,689		—
One-time minimum volume commitment contract payment		28,500		—		28,500		—
Stock-based compensation		2,020		—		2,020		25
	$	521,633	$	819	$	533,525	$	3,025

The following details the accrued exit and termination cost liability activity for the nine months ended September 30, 2020 (in thousands):


	Exit Costs			Termination Costs
Balance at December 31, 2019	$	—		$	4,692
Accrued severance costs		—			5,638
Accrued contract obligations		490,115			—
Accretion of discount		7,252			—
Payments		(959	)		(6,170	)
Balance at September 30, 2020	$	496,408		$	4,160