See Note for information on leases.

 

Pursuant to the Purchase and Sale Agreement with Total E&P, we fulfill security requirements related to ARO for certain properties through securing surety bonds, or through making payments to an escrow account under a formula pursuant to the agreement, or a combination thereof, until certain prescribed thresholds are met. Once the threshold is met for that year, excess funds in the escrow account are returned to us.  As of we had surety bonds related to the agreement with Total E&P totaling  million and had amounts in escrow. The threshold escalates to million for in million per year increments.

 

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

 

Pursuant to the Purchase and Sale Agreement with Exxon related to ARO for certain properties, we were required to obtain  million of surety bonds.  This amount increases on of the following years to million - million - million - million - million - and future increases in increments ranging million to million per year until the total amount reaches million in   We request a redetermination with Exxon every years by providing certain documentation as provided in the purchase agreement.  We are required to maintain this scheduled level of bonds until the properties are fully plugged, abandoned, and restored in accordance with applicable laws and regulations.

 

Pursuant to the Purchase and Sale Agreement with Conoco related to ARO for certain properties, we were required to obtain million of surety bonds and are required to maintain this level of bonds until the properties are fully plugged, abandoned, and restored in accordance with applicable laws and regulations.

 

During  and we had surety bonds primarily related to our decommissioning obligations or ARO.  Total expenses related to surety bonds, inclusive of the surety bonds in connection with the Total E&P and Shell agreements described above, were million, million and  million during  and 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   Future payment estimates are:  ty bond costs change due to a number of factors, including changes and interpretations of regulations by the BOEM.

 

As of we had million of collateral deposits for certain sureties related to certain surety bonds for appeals submitted to the Interior Board of Land Appeals (the “IBLA”).

 

In conjunction with the purchase of an interest in the Heidelberg field, we assumed contracts with certain pipeline companies that contain minimum quantities obligations that extend to   For and expense recognized for the difference between the quantities shipped and the minimum obligations was million and million, respectively.  As of the estimated future costs are:  million;  million;  million; million; -  million and  million.

 

We have drilling rig commitments as of