Leases

The Company leases certain property and equipment used in its operations under agreements that are classified as both capital and operating leases. Such agreements generally include provisions for inflation-based rate adjustments and, in the case of leases for buildings and office space, payments of certain operating expenses and property taxes.

Future minimum rental payments required under capital leases and operating leases that have initial or remaining non-cancelable lease terms in excess of one year are as follows:



	Operating		Capital
	(in thousands)
For the year ended December 31,
2015	$	1,092	$	437
2016	1,043		178
2017	664		—
2018	347		—
2019	254		—
Thereafter	782		—
Total minimum lease payments	$	4,182	615
Less amount representing interest			(26		)
Present value of net minimum lease payments			589
Less current portion			(412		)
Capital lease obligations, net of current portion			$	177

Assets recorded under capital leases are included in property and equipment (see Note 7) as follows:



	December 31,
	2014			2013
	(in thousands)
Rigs and other equipment	$	1,871		$	1,871
Accumulated depreciation	(559		)	(343		)
Net	$	1,312		$	1,528

Total rental expense under operating leases was $7.7 million, $3.3 million, and $4.3 million for the years ended December 31, 2014, 2013, and 2012, respectively.