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FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2006NOTES TO CONSOLIDATED FINANCIAL STATEMENTS5. Commitments and Contingencies
Total rental and lease expenses which were included
in “General and administrative, net” on our accompanying consolidated
statements of income were $3.2 million in 2006, $3.0 million in 2005,
and $2.4 million in 2004. Rental and lease expenses which were included
in “Lease operating cost” on our accompanying consolidated statements of
income were $3.6 million in 2006, $1.9 million in 2005, and $2.2 million
in 2004. Our remaining minimum annual obligations under non-cancelable
operating lease commitments are $5.3 million for both 2007 and 2008,
$3.3 million for both 2009 and 2010, $3.2 million for 2011, and $10.1
million thereafter or $30.6 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 which is a ten year lease and
expires in 2015. In the ordinary course of business, we have entered
into agreements with drilling contractors for such services and tubing
and pipe inventory commitments. The remaining commitments at December
31, 2006 for these services and materials totaled $28.9 million for
2007. Through December 2006, we were the managing general
partner of two private limited partnerships. Because we served as the
general partner of these entities, under state partnership law we were
contingently liable for the liabilities of these partnerships. These
liabilities are not material for any of the periods presented in
relation to the partnerships’ respective assets. As of December 31,
2006, these partnerships were dissolved. 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 natural 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 Tuesday, March 27, 2007 , at 03:16:12 PM . Copyright © 1994-2008 by Swift Energy Company. |
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