Note 11. Commitments and Contingencies

Leases

We lease office space, equipment and vehicles that have non-cancelable lease terms. Currently, our outstanding leases have terms up to 12 years. We have subleased part of the office space included in our operating leases for which we received rental payments. The following table summarizes operating lease payments paid and received during the periods indicated:



	Year Ended December 31,
In thousands	2013		2012		2011
Operating lease payments	$	37,211	$	33,606	$	52,317
Sublease rental receipts	2,237		2,685		2,398

In addition, we expect to receive approximately $14.6 million for 2014 through 2019 under these sublease agreements.

The following table summarizes by year the remaining non-cancelable future payments under these leases as of December 31, 2013:



In thousands	Pipeline and Capital Leases
2014	$	62,929
2015	62,254
2016	60,819
2017	55,409
2018	50,750
Thereafter	280,272
Total minimum lease payments	572,433
Less: Amount representing interest	(215,748		)
Present value of minimum lease payments	$	356,685



In thousands	Operating Leases
2014	$	11,695
2015	12,542
2016	12,510
2017	12,774
2018	12,730
Thereafter	67,832
Total minimum lease payments	$	130,083

Commitments

We have entered into long-term commitments to purchase CO₂ that are either non-cancelable or cancelable only upon the occurrence of specified future events. The commitments continue for up to 20 years. The price we will pay for CO₂ generally varies depending on the amount of CO₂ delivered and the price of oil. Our annual commitment under these contracts could range from $100 million to $170 million per year, assuming a $90 per Bbl NYMEX oil price.

We are party to long-term contracts that require us to deliver CO₂ to our industrial CO₂ customers at various contracted prices, plus we have a CO₂ delivery obligation to Genesis related to three CO₂ volumetric production payments ("VPPs"). Based upon the maximum amounts deliverable as stated in the industrial contracts and the VPPs, we estimate that we may be obligated to deliver up to 367 Bcf of CO₂ to these customers over the next 15 years. The maximum volume required in any given year is approximately 119 MMcf/d, which we judge to be minor given the size of our Jackson Dome proven CO₂ reserves at December 31, 2013, our current production capabilities and our projected levels of CO₂ usage for our own tertiary flooding program.

In conjunction with the August 2011 Riley Ridge acquisition, we assumed the 20-year helium supply contract under which the original participants in Riley Ridge agreed to supply helium to a third-party purchaser. After the commencement date, the contract provides for the delivery of a minimum contracted quantity of helium, subject to adjustment after start-up of the Riley Ridge gas processing facility, which, if not supplied in accordance with the terms of the contract, may obligate us to compensate the third-party helium purchaser for the amount of the shortfall in an amount not to exceed $8.0 million per year, or $46.0 million over the term of the contract.

Delhi Field Release

In June 2013, a release of well fluids, consisting of a mixture of carbon dioxide, saltwater, natural gas and oil, was discovered and reported within an area of the Denbury-operated Delhi Field located in northern Louisiana. Denbury immediately took remedial action to stop the release and contain and recover well fluids in the affected area. We have determined that the release originated from one or more wells in the affected area of the field that we believed had been previously and properly plugged and abandoned by a prior operator of the field. We completed our remediation efforts during the fourth quarter of 2013; however, we will continue to monitor the area to ensure the remediation efforts were successful.

During the year ended December 31, 2013, we recorded $114.0 million of lease operating expenses related to this release in our Consolidated Statement of Operations, and as of December 31, 2013, we had a corresponding $22.0 million liability classified as "Accounts payable and accrued liabilities" in our Consolidated Balance Sheet. These expenses represent our current estimate of the costs related to this release, including remediation costs, based on actual costs incurred through December 31, 2013 of approximately $92.0 million, plus the Company's estimate of future costs related to the satisfaction of known claims and liabilities. Due to the possibility of new claims being asserted in the future in connection with the release, as well as variability in the estimated cost to continue to monitor the area to ensure the remediation efforts were successful, we cannot reliably estimate at this time the full extent of the costs that may ultimately be incurred by the Company related to this release. Although the Company maintains insurance policies that we believe cover certain of the costs, damages and claims related to the release, and we currently and preliminarily estimate that one-third to two-thirds of our current cost estimate may be recoverable under such insurance policies, we have not reached any agreement with our insurance carriers as to recoverable amounts, and accordingly have not recognized any insurance recoveries in our financial statements as of December 31, 2013. Insurance recoveries will be recognized in our financial statements during the period received or at the time receipt is determined to be virtually certain.

Litigation

We are involved in various lawsuits, claims and regulatory proceedings incidental to our businesses. While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on our financial position or overall trends in results of operations or cash flows, litigation is subject to inherent uncertainties. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on our net income in the period in which the ruling occurs. We provide accruals for litigation and claims if we determine that a loss is probable and the amount can be reasonably estimated.

Other Contingencies

We are subject to audits in the various states in which we operate for sales and use taxes and severance taxes, and from time to time receive assessments for potential taxes that we may owe. In the past, settlement of these matters has not had a material adverse financial impact on us, and currently we have no material assessments for potential taxes.

We are subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although we believe that we have complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, production rates, marketing and environmental matters are subject to regulation by various federal and state agencies.