COMMITMENTS AND CONTINGENCIES The Company could be subject to various possible loss contingencies which arise primarily from interpretation of federal and state laws and regulations affecting the natural gas and crude oil industry. Such contingencies include differing interpretations as to the prices at which natural gas and crude oil sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Management believes it has complied with the various laws and regulations, administrative rulings and interpretations. Lease Commitments The following is a schedule of minimum future lease payments with commitments that have initial or remaining noncancelable lease terms in excess of one year as of December 31, 2012 . Year Ending December 31, Office and Equipment Leases 2013 $ 485,000 2014 491,000 2015 501,000 2016 412,000 2017 281,000 Thereafter 25,000 Total $ 2,195,000 In March 2011, the Company began leasing field office space in Midland, Texas from an unrelated party. The lease term is 84 months with equal monthly installments that escalate 3% annually on March 1st of each year. In May 2011, the Company began leasing corporate office space in Midland, Texas from an entity controlled by an affiliate of Wexford. The lease term is 5 years with monthly rent under the lease set to increase approximately 4% annually on June 1st of each year. Effective January 1, 2012, the Company occupied corporate office space in Oklahoma City, Oklahoma under a lease with a 67 month term. The office space is owned by an entity controlled by an affiliate of Wexford. The monthly rent under the lease increased 9% on August 1, 2012 with no further escalations for the remaining term of the lease. The related party leases are also disclosed in Note 9 Related Party Transactions. The following table presents rent expense for the years ended December 31, 2012 , 2011 and 2010 . For the years ended December 31, 2012 2011 2010 Rent Expense $ 547,000 $ 74,000 $   Fracturing a