16. Commitments

We have operating lease agreements for office space and office equipment.  The lease for the majority of our office space terminates in December 2022.  Minimum future lease payments due under noncancelable operating leases with terms in excess of one year as of December 31, 2015 are as follows: 2016–$1.6 million; 2017–$1.6 million; 2018–$1.7 million; 2019–$1.8 million thereafter–$5.7 million.  Total rent expense was approximately $3.3 million, $3.2 million and $2.6 million during 2015, 2014 and 2013, respectively.

Pursuant to the Purchase and Sale Agreement with Total E&P, we are required to fulfill security requirements related to ARO for certain properties through bonds or making payments to an escrow account or a combination.  As of December 31, 2015, we were in compliance with the security amount requirement of $73.0 million.  Additional security requirements are $6.0 million in 2016, $4.0 million in 2017, $5.0 million in 2018, $3.0 million in 2019 and $12.0 million in the 2020 to 2023 time period to a total security requirement of $103.0 million by 2023.

Pursuant to the Purchase and Sale agreement with Shell Offshore Inc. (“Shell”) related to ARO for certain properties, we have bonds that are subject to re-appraisal by either party after November 2015.  As of December 31, 2015, neither party had requested a re-appraisal to be made.  The current security requirement of $64.0 million could be increased up to $94.0 million depending on certain conditions and circumstances.

During 2015, 2014 and 2013, we had surety bonds related to our decommissioning obligations or ARO, with the BOEM named as beneficiary.  See Note 20 for information concerning a demands received by the BOEM in February and March 2016.    

Total expenses related to surety bonds, inclusive of the surety bonds in connection with Total E&P, Shell and the BOEM described above, were $5.5 million, $4.1 million and $5.0 million during 2015, 2014 and 2013, respectively.  The amount of future commitments is dependent on rates charged in the market place and when asset retirements are completed.  Estimated future expenses related to surety bonds were based on current market prices and estimates of the timing of asset retirements, of which some wells and structures are estimated to extend to 2030.  Future costs are estimated as follows: 2016–$5.8 million; 2017–$5.9 million; 2018–$5.3 million; 2019–$5.0 million; thereafter–$30.4 million.  See Note 20 for information concerning a demand received by the BOEM in February and March 2016, which will impact future cost estimates related to surety bonds.

Pursuant to an agreement with the Helix Well Containment Group, we are required to make payments to have access to certain equipment to respond to a subsea spill should a spill occur at a property we operate.  As of December 31, 2015, future payments due are $2.1 million in 2016 and $2.1 million in 2017.  These payments may increase or decrease depending on whether the number of companies participating in the consortium changes.

We have no drilling rig commitments with a term that exceeded one year as of December 31, 2015 and our drilling rig commitments meet the criteria of an operating lease.  Future payments of all drilling rig commitments as of December 31, 2015 were $7.0 million.