Total rental and lease expenses were $2.2 million in 2003, $1.9 million in 2002, and $1.3 million in 2001 and are included in “General and administrative, net” on our consolidated statements of income. Our remaining minimum annual obligations under non-cancelable operating lease commitments are $2.1 million for 2004, $0.5 million for 2005, $0.2 million for 2006, $0.2 million for 2007, $0.1 million in 2008, and less than $0.1 million thereafter or $3.1 million 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 $0.1 million accrued in “Accounts payable and accrued liabilities” at December 31, 2003, on the accompanying balance sheet related to these commitments.

In the ordinary course of business, we have entered into agreements with drilling and seismic contractors for such services. The remaining commitments at December 31, 2003 for these services totaled $5.9 million and these services are expected to be provided in 2004.

As of December 31, 2003, 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 consolidated financial position or results of operations of Swift.