Leases

6 Months Ended

Jun. 30, 2021

We lease certain pipeline and transportation equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Our leases do not have any outstanding renewal options. Certain leases also include options to purchase the leased equipment.

Certain of our lease agreements include rates based on equipment usage and others include rate inflationary indices based increases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table presents additional information related to our operating leases in accordance ASC 842:


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2021		2020		2021			2020
Lease Cost (1)
Operating lease cost	$	3,365	$	1,926	$	6,109		$	2,526
Short-term lease cost (2)	631		817		778			1,349

Total lease cost	$	3,996	$	2,743	$	6,887		$	3,875

Other Information (1)
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(3,365)	$	(1,926)	$	(6,109)		$	(2,526)
Leased assets obtained in exchange for new operating lease liabilities (1)	$	2,736	$	15,779	$	5,572		$	15,779


					June 30, 2021			June 30, 2020
Weighted-average remaining lease term (years) for operating leases					3.5			3.8
Weighted-average discount rate (3) operating leases					5.9		%	7.3		%

(1) Includes an immaterial amount of financing lease.

(2) Includes an immaterial amount of variable lease cost.

(3) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.