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Commitments and Contingencies
 12 Months Ended
Dec. 31, 2012
Commitments and Contingencies

14. Commitments and Contingencies

Lease obligations. The Company has operating leases for office space and other property and equipment. The Company incurred rental expense of $1.5 million, $0.8 million and $0.6 million for the years ended December 31, 2012, 2011 and 2010, respectively.

Future minimum annual rental commitments under non-cancelable leases at December 31, 2012 are as follows:

 

     (In thousands)  

2013

    $ 2,824   

2014

      2,848   

2015

      2,864   

2016

      2,900   

2017

      2,170   

Thereafter

      —     
  

 

 

  
   $ 13,606   
  

 

 

  

Drilling contracts. As of December 31, 2012, the Company had certain drilling rig contracts with initial terms greater than one year. In the event of early contract termination under these contracts, the Company would be obligated to pay approximately $43.7 million as of December 31, 2012 for the days remaining through the end of the primary terms of the contracts.

Volume commitment agreements. As of December 31, 2012, the Company had certain agreements with an aggregate requirement to deliver a minimum quantity of approximately 22.4 MMBbl and 14.8 Bcf from its Williston Basin project areas within a specified timeframe. Future obligations under these agreements are approximately $70.5 million as of December 31, 2012.

Litigation. The Company is party to various legal and/or regulatory proceedings from time to time arising in the ordinary course of business. The Company believes all such matters are without merit or involve amounts which, if resolved unfavorably, either individually or in the aggregate, will not have a material adverse effect on its financial condition, results of operations or cash flows.