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5. Commitments and Contingencies Total rental and lease expenses were $1,923,451 in 2002, $1,322,611 in 2001, and $1,255,474 in 2000. Our remaining minimum annual obligations under non-cancelable operating lease commitments are $2,190,363 for 2003, $2,191,495 for 2004, $523,755 for 2005, $190,676 for 2006, $190,676 in 2007 and $186,834 thereafter or $5,473,799 in the aggregate. The rental and lease expenses and remaining minimum annual obligations under non-cancelable operating lease commitments primarily relate to the lease of our office space in Houston, Texas, and in New Zealand. In the ordinary course of business, we have entered into agreements with pipeline operators that require us to contribute a portion of the pipeline construction cost in the event certain transportation volumes are not met. We have $933,666 accrued in "Accounts payable and accrued liabilities" at December 31, 2002, on the accompanying balance sheet related to these commitments. As of December 31, 2002, we were the managing general partner of six limited partnerships. Because we serve as the general partner of these entities, under state partnership law we are contingently liable for the liabilities of these partnerships, which liabilities are not material for any of the periods presented in relation to the partnerships’ respective assets. In the ordinary course of business, we have been party to various legal actions, which arise primarily from our activities as operator of oil and gas wells. In management’s opinion, the outcome of any such currently pending legal actions will not have a material adverse effect on the financial position or results of operations of Swift.
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This page was last updated on Tuesday, April 01, 2003, at 08:18:23 AM. Copyright © 1994-2008 by Swift Energy Company. |
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