Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Leases

We lease office space from affiliates and nonaffiliates under noncancelable operating leases.  Rental expense pursuant to the office leases amounted to $1.6 million, $1 million and $1 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Future minimum payments under noncancelable leases at December 31, 2012, are as follows:

	Leases
	Capital(a)		Operating(b)		Total
	(In thousands)
2013	$	1,083	$	3,960	$	5,043
2014	609		3,819		4,428
2015	209		3,843		4,052
Thereafter	—		3,865		3,865
Total minimum lease payments	$	1,901	$	15,487	$	17,388

(a) Relates to vehicle leases.

(b) Includes leases for two drilling rigs.

Legal Proceedings

We are currently the defendant in a lawsuit where the plaintiffs are suing for the cost of remediating a lease on which operations were commenced in the 1930s. We were brought into the suit as the successor through a series of mergers to an earlier lessee, and never owned or operated the lease. The portion of the lease in our chain of title is 40 acres, and the lands subject to plaintiffs' claims are less than 3 acres. The plaintiffs contend that the cost to remediate the surface could be as much as $8 million. We have undertaken certain remediation operations which we believe will substantially reduce any potential exposure. We strongly deny liability and will vigorously defend the suit. We believe that it is reasonably possible that these claims will ultimately be held to be time barred. This case is scheduled for trial in June 2013.

We are also a defendant in several other lawsuits that have arisen in the ordinary course of business. While the outcome of these lawsuits cannot be predicted with certainty, management does not expect any of these to have a material adverse effect on our consolidated financial condition or results of operations.