NOTE

11—Leases

We adopted ASU

2016

02,

Leases, on

January 1, 2019,

and we elected the transition relief package of practical expedients. We determine if an arrangement is or contains a lease at inception. Leases with an initial term of

months or less are

not

recorded on our Consolidated Balance Sheets. We lease our corporate office building in Houston, Texas. We recognize lease expense for this lease on a straight-line basis over the lease term. This operating lease is included in furniture, fixtures and equipment and other capital assets, accrued liabilities and other non-current liabilities on our Consolidated Balance Sheets. The operating lease asset and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term. As this lease did

not

provide an implicit rate, we used a collateralized incremental borrowing rate based on the information available at commencement date, including lease term, in determining the present value of future payments. The operating lease asset includes any lease payments made but excludes annual operating charges. Operating lease expense is recognized on a straight-line basis over the lease term and reported in general and administrative operating expense on our Consolidated Statements of Operations. We have also entered into leases for certain vehicles and other equipment which are immaterial to our financial statements and have therefore

not

been recorded on our Consolidated Balance Sheets.

The lease cost components for the year ended

December 31, 2020

are classified as follows:

(in thousands)		Year Ended December 31, 2020		Year Ended December 31, 2019	Consolidated Statements of Operations Classification
Building lease cost	$	1,341	$	1,540	General and administrative expense
Variable lease cost (1)		157		118	General and administrative expense
	$	1,498	$	1,658

(

) Includes building operating expenses.

The following are additional details related to our lease portfolio as of

December 31, 2020

(in thousands)	December 31, 2020			Consolidated Balance Sheets Classification
Lease asset, gross	$	5,871		Furniture, fixtures and equipment and other capital assets
Accumulated depreciation		(2,445	)	Accumulated depletion, depreciation and amortization
Lease asset, net	$	3,426

Current lease liability	$	962		Accrued liabilities
Non-current lease liability		2,810		Other non-current liabilities
Total lease liabilities	$	3,772

The following table presents operating lease liability maturities as of

December 31, 2020

(in thousands)	December 31, 2020
2021		1,238
2022		637
2023		653
2024		661
Thereafter		1,592
Total lease payments	$	4,781
Less imputed interest	$	1,009
Present value of lease liabilities	$	3,772

As of

December 31, 2020

, our office building operating lease has a weighted-average remaining lease term o

0.3

years and a weighted-average discount rate of

8.0

percent. Cash pa

id for amounts included in the measurement of operating lease liabilities for our buil

ding was

$1.5

million for the year

ended

December 31, 2020