Note 6  Commitments and Contingencies Commitments The Company has entered into various agreements, which include drilling rig and completion service contracts of $34.1 million , gathering, processing, transportation throughput, and delivery commitments of $218.5 million , office leases, including maintenance, of $28.3 million , fixed price contracts to purchase electricity of $53.2 million , and other miscellaneous contracts and leases of $15.5 million . The annual minimum payments for the next five years and total minimum payments thereafter are presented below: Years Ending December 31, Amount (in thousands) 2020 $ 102,550 2021 94,494 2022 73,826 2023 41,661 2024 12,349 Thereafter 24,697 Total $ 349,577 Drilling Rig and Completion Service Contracts. The Company has several drilling rig and completion service contracts in place to facilitate its drilling and completion plans. As of December 31, 2019 , the Companys drilling rig and completion service contract commitments totaled $34.1 million , included in the table above. If all of these contracts were terminated as of December 31, 2019 , the Company would avoid a portion of the contractual service commitments; however, the Company would be required to pay $26.3 million in early termination fees. Excluded from these amounts are variable commitments and potential penalties determined by the number of completion crews the Company has in operation in a particular area under a completion service arrangement. As of December 31, 2019 , potential penalties under this completion service agreement, which expires on December 31, 2023, range from zero to a maximum of $13.4 million . Pipeline Transportation Commitments. The Company has gathering, processing, transportation throughput, and delivery commitments with various third-parties that require delivery of a minimum amount of oil, gas, and produced water. As of December 31, 2019 , the Company has commitments to deliver a minimum of 24 MMBbl of oil and 424 Bcf of gas through 2023 , and 18 MMBbl of produced water through 2027 . The Company will be required to make periodic deficiency payments for any shortfalls in delivering the minimum volume commitments under certain agreements. As of December 31, 2019 , if the Company fails to deliver any product, as applicable, the aggregate undiscounted deficiency payments total approximately $218.5 million . This amount does not include deficiency payment estimates associated with approximately 16.5 MMBbl of future oil delivery commitments where the Company cannot predict with accuracy the amount and timing of these payments, as such payments are dependent upon the price of oil in effect at the time of settlement. Under certain of the Companys commitments, if the Company is unable to deliver the minimum quantity from its production, it may deliver production acquired from third-parties to satisfy its minimum volume commitments. Office Leases. The Company leases office space under various operating leases with terms extending as far as 2026 . Rent expense for the years ended December 31, 2019 , 2018 , and 2017 , was $5.5 million , $4.5 million , and $4.8 million , respectively. Electrical Power Purchase Contracts. During the second quarter of 2019, the Company entered into a fixed price contract for the purchase of electrical power that increased the purchase commitment under an existing agreement. As of December 31, 2019 , the Company had a commitment to purchase electrical power through 2027 with a total remaining obligation of $53.2 million . Delivery and Purchase Commitments. During the second quarter of 2019, the Company executed an amendment to its existing sand sourcing agreement that created certain commitments and potential penalties that vary based on the amount of sand the Company uses in well completions occurring in a particular area. This amended sand sourcing agreement expires on December 31, 2023. As of December 31, 2019 , potential penalties under this sand sourcing agreement range from zero to a maximum of $10.0 million . Drilling and Completion Commitments. The Company has an agreement in place that includes minimum drilling and completion requirements on certain leases. If these minimum requirements are not satisfied by March 31, 2020, the Company would be required to make a liquidated damage payment based on the difference between actual development progress and the minimum development requirements. As of December 31, 2019 , the Company did not expect to meet certain minimum development requirements. In the fourth quarter of 2019, the Company recognized one-time charges associated with expected payments to lessors related to drilling and completion obligations and early termination fees for drilling rigs totaling $18.2 million . These amounts are included in the other operating expense line item on the accompanying statements of operations. Contingencies The Company is subject to litigation and claims arising in the ordinary course of business. The Company accrues for such items when a liability is both probable and the amount can be reasonably estimated. In the opinion of management, the anticipated results of any pending litigation and claims are not expected to have a material effect on the results of operations, the financial position, or the cash flows of the Company.