As a lessee, the Company leases its corporate office headquarters in Tulsa, Oklahoma. The lease expires on December 31, 2025 and has an option to renew for an additional five-year term. The option to renew the lease is generally not considered reasonably certain to be exercised. Therefore, the period covered by such optional period is not included in the determination of the term of the lease and the lease payments during these periods are similarly excluded from the calculation of right-of-use lease asset and lease liability balances.

The Company recognizes right-of use lease expense on a straight-line basis, except for certain variable expenses that are recognized when the variability is resolved, typically during the period in which they are paid. Variable right-of-use lease payments typically include charges for property taxes, insurance, and variable payments related to non-lease components, including common area maintenance.

Right of use lease expense was $34,989 for the three months ended March 31, 2021. Cash paid for right of use lease was $31,775 for the period.

Supplemental balance sheet information related to the right of use leases as of March 31, 2021:

Operating lease asset (included in Other Property and Equipment	$	563,667

Current portion of lease liability	$	96,325
Long term lease liability		505,546

Total right of use lease liabilities	$	601,871

The weighted average remaining term for the Company’s right of use leases is 4.75 years.

Maturities of lease liabilities as of March 31, 2021:


2021	$	95,325
2022		147,436
2023		150,385
2024		153,392
2025		156,460
Total lease payments		702,998
Less imputed interest		(101,127	)
Total lease obligation	$	601,871