Leases

The Company leases equipment, land and various other properties under non-cancelable long-term leases, expiring at various dates. Certain leases contain options that would allow the Company to extend the lease or purchase the leased asset at the end of the base lease term. In addition, the Company enters into various non-cancelable royalty lease agreements under which future minimum payments are due.

Minimum payments due in future years under these agreements in effect at December 31, 2013 are as follows:



	Operating
	Leases		Royalties
	(In thousands)
2014	$	31,532	$	17,394
2015	24,466		19,143
2016	16,851		21,070
2017	14,509		20,806
2018	3,739		22,255
Thereafter	1,195		83,708
	$	92,292	$	184,376

Rental expense, including amounts related to these operating leases and other shorter-term arrangements, amounted to $42.2 million in 2013, $41.2 million in 2012 and $43.9 million in 2011.

Royalties are paid to lessors either as a fixed price per ton or as a percentage of the gross selling price of the mined coal. Royalties under the majority of the Company's significant leases are paid on the percentage of gross selling price basis. Royalty expense, including production royalties, was $261.1 million in 2013, $302.0 million in 2012 and $349.0 million in 2011.

As of December 31, 2013, certain of the Company's lease obligations were secured by outstanding surety bonds totaling $55.4 million.