NOTE 16  COMMITMENTS AND CONTINGENCIES Litigation Liabilities for loss contingencies arising from claims, assessments, litigation, fines, and penalties, and other sources are recorded when it is probable that a liability has been incurred and the amount can be reasonably estimated. Legal costs incurred in connection with loss contingencies are expensed as incurred. Sand Purchase Agreements The Company entered into agreements for the supply of proppant for use in its hydraulic fracturing operations. Under the terms of these agreements, the Company is subject to minimum purchase quantities on a monthly, quarterly, or annual basis at fixed prices or may pay penalties in the event of any shortfall. As of September 30, 2020, we estimated and accrued for a shortfall in quantities. This accrual is presented as part of accrued liabilities on the condensed consolidated balance sheets. The following is a schedule of the contracted volumes in dollars and minimum commitments under the proppant supply purchase agreements as of September 30, 2020 (in thousands) : Minimum Contracted Commitments Remainder of 2020 $ 7,758 $ 4,027 2021 11,340 960 Total $ 19,098 $ 4,987 The minimum commitments represent the aggregate amounts that we would be obligated to pay in the event we procured no additional proppant under the contracts subsequent to September 30, 2020. During the first quarter of 2019, we became involved in a contract dispute with a proppant vendor resulting in the cancellation of the contract. Accordingly, as of September 30, 2020, we have excluded $47.1 million and $48.0 million of contracted and minimum commitments, respectively, related to this contract. The litigation involving the contract in dispute is in the discovery stage, and as such no prediction can be made as to the outcome of the case at this time and we are unable to reasonably estimate the potential losses or range of losses resulting from this litigation, if any. Operating Lease Agreements The Company has various operating leases for facilities with terms ranging from 24 to 76 months. Rent expense was $0.7 million for each of the three months ended September 30, 2020 and 2019, of which $0.4 million and $0.6 million, respectively, are recorded as part of cost of services and $0.3 million, and $0.1 million, respectively, are recorded as part of selling, general and administrative expenses in the condensed consolidated statements of operations. Rent expense for the nine months ended September 30, 2020 and 2019 was $1.8 million and $2.0 million, respectively, of which $1.1 million and $1.6 million, respectively, are recorded as part of cost of services and $0.7 million and $0.4 million, respectively, are recorded as part of selling, general administrative expenses in the condensed consolidated statements of operations. The following is a schedule of minimum future payments on non-cancellable operating leases as of September 30, 2020 (in thousands) : Remainder of 2020 $ 358 2021 1,114 2022 828 2023 308 2024 258 Thereafter 67 Total minimum future rentals $ 2,933 On April 1, 2020, the Company entered into an agreement to extend the lease on one of its facilities. The extended term of the lease is for a period of 36 months commencing on April 1, 2020, with rent throughout the term totaling $0.7 million. Capital Lease Agreements The total amount of future minimum lease payments related to the capital leases as of September 30, 2020 was $6.4 million, all of which is due in the remainder of 2020. This amount includes imputed interest totaling $0.2 million. Self-insurance The Company established a self-insured plan for employees healthcare benefits except for losses in excess of varying threshold amounts. The Company charges to expense all actual claims made during each reporting period, as well as an estimate of claims incurred, but not yet reported. The amount of estimated claims incurred, but not reported was $0.3 million and $0.6 million as of September 30, 2020 and December 31, 2019, respectively, and was reported as accrued expenses in the condensed consolidated balance sheets. The Company believes that the liabilities recorded are appropriate based on the known facts and circumstances and does not expect further losses materially in excess of the amounts already accrued for existing claims.