10. COMMITMENTS AND CONTINGENCIES

Pursuant to the Contribution Agreement, the Partnership entered into a Gas Gathering Agreement with TGG agreeing to provide services to TGG on a priority basis for quantities of gas designated by TGG. Azure has guaranteed TGG’s obligations under the Gas Gathering Agreement. For the three and nine months periods ended September 30, 2016, TGG paid the Partnership $0.4 million and $1.1 million.

From time to time, the Partnership may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. Management does not believe that the Partnership is a party to any litigation that will have a material impact on its financial condition or results of operations.

The Partnership and its subsidiaries are guarantors of the Credit Agreement as of September 30, 2016 (See Note 8).

The Partnership leases compression and treating equipment and these leases are accounted for as operating leases. Total rent expense for operating leases, including those with terms of less than one year, was $0.2 million and $0.6 million for the three and nine months periods ended September 30, 2016 and $0.4 million and $2.1 million for the three and nine months periods ended September 30, 2015.

The following table summarizes our future minimum lease commitments:


In thousands	2016		2017		2018		2019		2020		Thereafter		Total
Operating lease agreements (1)	$	149	$	399	$	290	$	274	$	274	$	1,017	$	2,403

(1)

The contractual obligations associated with operating lease agreements relate to various midstream property and equipment operating leases that are used in our gathering, processing and transloading operations and have terms of greater than one year.