9. COMMITMENTS AND CONTINGENCIES

Commitments

The Company leases corporate office space in Houston, Texas and Denver, Colorado. Rent expense was approximately $2.8 million and $3.0 million for the nine months ended September 30, 2018 and 2017, respectively. Future obligations associated with the Company’s operating leases are presented in the table below (in thousands):


Remaining period in 2018	$	846
2019		2,990
2020		1,811
2021		1,497
2022		835
Thereafter		1,345
Total	$	9,324

As of September 30, 2018, the Company has the following active drilling rig commitments (in thousands):


Remaining period in 2018	$	4,419
2019		4,726
2020		—
2021		—
2022		—
Thereafter		—
Total	$	9,145

As of September 30, 2018, termination of the Company’s active drilling rig commitments would require early termination penalties of $8.2 million, which would be in lieu of paying the remaining active commitments of $9.1 million.

In past years, with the sustained decline in crude oil prices, the Company stacked certain drilling rigs and amended previously entered into drilling rig contracts. In connection with the early termination of a drilling contract from 2015, if certain requirements are not met by January 12, 2020, the Company may incur an additional $3.0 million. Rig stacking fees are expensed as incurred within “Gathering and other” on the unaudited condensed consolidated statements of operations and are not included in the table above.

In September 2018, the Company entered into a purchase agreement for certain natural gas treating equipment totaling approximately $13.3 million. As of September 30, 2018, the Company's remaining commitment is approximately $9.8 million and is expected to be incurred by March 31, 2019.

The Company has entered into various long-term gathering, transportation and sales contracts with respect to its oil and natural gas production from the Delaware Basin in West Texas. As of September 30, 2018, the Company had in place three long‑term crude oil contracts and eleven long‑term natural gas contracts in this area and the sales price under these contracts are based on posted market rates. Under the terms of these contracts, the Company has committed a substantial portion of its production from this area for periods ranging from one to twenty years from the date of first production.

Contingencies

From time to time, the Company may be a plaintiff or defendant in a pending or threatened legal proceeding arising in the normal course of its business. While the outcome and impact of currently pending legal proceedings cannot be determined, the Company’s management and legal counsel believe that the resolution of these proceedings through settlement or adverse judgment will not have a material effect on the Company’s unaudited condensed consolidated operating results, financial position or cash flows.