As part of our normal business activities, we may be named as defendants in litigation and legal proceedings, including those arising from regulatory and environmental matters.

Other than the Chapter 11 proceedings discussed herein, based on facts currently available, we are not aware of any litigation, pending or threatened, that we believe will have a material adverse effect on our financial position, results of operations or cash flows; however, cash flow could be significantly impacted in the reporting periods in which such matters are resolved.

Although we are insured against various risks to the extent we believe it is prudent, there is no assurance that the nature and amount of such insurance will be adequate, in every case, to indemnify us against liabilities arising from future legal proceedings.

Environmental costs for remediation are accrued based on estimates of known remediation requirements. Such accruals are based on management’s best estimate of the ultimate cost to remediate a site and are adjusted as further information and circumstances develop. Those estimates may change substantially depending on information about the nature and extent of contamination, appropriate remediation technologies and regulatory approvals. Expenditures to mitigate or prevent future environmental contamination are capitalized. Ongoing environmental compliance costs are charged to expense as incurred. In accruing for environmental remediation liabilities, costs of future expenditures for environmental remediation are not discounted to their present value, unless the amount and timing of the expenditures are fixed or reliably determinable.

In October 2017, Legacy Amplify recognized an approximately $17.0 million gain in connection with the sale of a third-party midstream entity with whom our natural gas gathering and processing agreements entitled us to a percentage of the proceeds in the event of a sale.

On April 30, 2018, the Legacy Amplify Debtors filed with the Bankruptcy Court a motion for a final decree and entry of an order closing the Chapter 11 cases with respect to each of the Legacy Amplify Debtors other than (i) San Pedro Bay Pipeline Company, Ch. 11 Case No. 17-30249, (ii) Rise Energy Beta, LLC, Ch. 11 Case No. 17-30250, and (iii) Beta Operating Company, LLC, Ch. 11 Case No. 17-30253, (collectively, the “Closing Debtors”). On May 30, 2018, the Bankruptcy Court entered the final decree closing the Chapter 11 cases of the Closing Debtors.

Beta Operating Company, LLC (“Beta”) assumed an obligation with a third party to make payments into a sinking fund in connection with its 2009 acquisition of our properties in federal waters offshore Southern California, the purpose of which is to provide funds adequate to decommission the portion of the San Pedro Bay Pipeline that lies within state waters and the surface facilities. Under the terms of the agreement, the operator of the properties is obligated to make monthly deposits into the sinking fund account in an amount equal to $0.25 per barrel of oil and other liquid hydrocarbon produced from the acquired working interest. Interest earned in the account stays in the account. The obligation to fund ceases when the aggregate value of the account reaches $4.3 million. As of December 31, 2019, the account balance included in restricted investments was approximately $4.6 million.

Beta has an obligation with the BOEM in connection with the 2009 acquisition of the Beta properties. On October 5, 2018, the Company received approximately $61.5 million from the trust account (the “Beta Decommissioning Trust Account”). On November 20, 2018, the Company received an additional $1.0 million from the Beta Decommissioning Trust Account that had been withheld from the initial payment on October 5, 2018. The cash released to the Company’s balance sheet was made pursuant to an order of the Bankruptcy Court dated February 9, 2018, which allowed for the release of Beta cash subject to certain conditions that have since been satisfied.

The Company had previously supported this obligation with $71.3 million of A-rated surety bonds and $90.2 million in cash, but $90.0 million of cash was released to the Company on June 24, 2019. Following the release, Beta’s decommissioning obligations remain fully supported by $161.3 million in A-rated surety bonds and $0.3 million in cash.

We have leases for offshore Southern California pipeline right-of-way use as well as office space in our operating regions. We also lease equipment, compressors and incur surface rentals related to our business operations.

For the years ended December 31, 2019 and 2018, the period from May 5, 2017 through December 31, 2017, and the period from January 1, 2017 through May 4, 2017, we recognized $7.5 million, $8.6 million, $6.3 million and $3.1 million of rent expense, respectively.

See Note 15 for the minimum lease payment obligations under non-cancelable operating leases with a remaining term in excess of one year.

At December 31, 2019, we had a CO₂ purchase commitment with a third party associated with our Wyoming Bairoil properties. The price we will pay for CO₂ generally varies depending on the amount of CO₂ delivered and the price of oil. The table below outlines our purchase commitments under these contracts based on pricing at December 31, 2019 (in thousands):

			Payment or Settlement Due by Period
Purchase commitment	Total		2020		2021		2022		2023		2024		Thereafter
CO₂ minimum purchase commitment	$	4,365	$	4,365	$	—	$	—	$	—	$	—	$	—

At December 31, 2019, we had a long-term minimum volume commitment with a third party associated with a certain portion of our properties located in Oklahoma and East Texas. The table below outlines the payment commitments associated with this minimum volume commitment (in thousands):

			Payment or Settlement Due by Period
Minimum volume commitment	Total		2020		2021		2022		2023		2024		Thereafter
Midstream services	$	11,781	$	3,967	$	3,788	$	3,746	$	280	$	—	$	—

The Company is party to a gas purchase, gathering and processing contract in Oklahoma, which includes certain minimum NGL commitments. To the extent the Company does not deliver natural gas volumes in sufficient quantities to generate, when processed, the minimum levels of recovered NGLS, it would be required to reimburse the counterparty an amount equal to sum of the monthly shortfall, if any, multiplied by a fee. Beginning in June 2019, the Company is not meeting the minimum volume required under these contractual provisions. The commitment fee/expense for June through December 2019 was $0.7 million and the average estimated fee for 2020 is expected to be $0.1 million per month.