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FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2005NOTES TO CONSOLIDATED FINANCIAL STATEMENTS5. Commitments and Contingencies
Total rental and lease expenses were $3.0 million in 2005, $2.4
million in 2004, and $2.2 million in 2003 and are included in “General
and administrative, net” on our accompanying consolidated statements of
income. Our remaining minimum annual obligations under non-cancelable
operating lease commitments are $3.4 million for 2006, $3.4 million for
2007, $3.0 million for 2008, $2.7 million for 2009, $2.8 million for
2010, and $13.4 million thereafter or $28.6 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 drilling and seismic contractors for such services and tubing and
pipe inventory commitments. The remaining commitments at December 31,
2005 for these services and materials totaled $28.1 million for 2006 and
$1.8 million for 2007. As of December 31, 2005, we were the managing general partner of two
private 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 our financial position or results of operations.
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This page was last updated on Monday, March 13, 2006 , at 09:34:15 AM . Copyright © 1994-2008 by Swift Energy Company. |
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