Commitments and Contingencies

Leases

The Partnership leases certain convenience store and other properties under non-cancellable operating leases whose initial terms are typically 5 to 15 years, along with options that permit renewals for additional periods. Minimum rent is typically expensed on a straight-line basis over the term of the lease. We typically are responsible for payment of real estate taxes, maintenance expenses and insurance. These properties are primarily sublet to third parties.

The components of net rent expense are as follows:



	Year Ended
	December 31, 2011		December 31, 2012		December 31, 2013
	Predecessor
	(in thousands)
Cash rent:
Store base rent	$	3,729	$	3,074	$	819
Equipment rent	593		453		175
Total cash rent	4,322		3,527		994
Non-cash rent:
Straight-line rent	—		—		20
Net rent expense	$	4,322	$	3,527	$	1,014

Equipment rent consists primarily of store equipment and vehicles. Sublease rental income for 2011, 2012 and 2013 was $2.5 million, $2.1 million and $0.9 million, respectively, and is included in other income.

Future minimum lease payments for future fiscal years are as follows (in thousands):



2014	$	847
2015	866
2016	875
2017	886
2018	898
Thereafter	5,059
Total	$	9,431

Environmental Remediation

We are subject to various federal, state and local environmental laws and make financial expenditures in order to comply with regulations governing underground storage tanks adopted by federal, state and local regulatory agencies. In particular, at the federal level, the Resource Conservation and Recovery Act of 1976, as amended, requires the EPA to establish a comprehensive regulatory program for the detection, prevention and cleanup of leaking underground storage tanks (e.g. overfills, spills and underground storage tank releases).

Federal and state regulations require us to provide and maintain evidence that we are taking financial responsibility for corrective action and compensating third parties in the event of a release from our underground storage tank systems. In order to comply with these requirements, we, through our Predecessor, have historically obtained private insurance for Texas, New Mexico and Oklahoma. These policies provide protection from third‑party liability claims. For 2013, our coverage was $1.0 million per occurrence, with a $2.0 million aggregate and $0.5 million self-insured retention. Our sites continue to be covered by this policy.

We are not currently involved in the remediation of motor fuel storage sites. We had no accrued liabilities for remediation activities as of December 31, 2012 and 2013. SUSS has agreed to indemnify us for any environmental costs that are determined to have been in existence at the time the properties were contributed to us. This indemnity expires September 2015. Any new releases will be our responsibility.

We have additional reserves of less than $0.1 million at December 31, 2012 and 2013 that represent our estimate for future asset retirement obligations for underground storage tanks.

Deferred Branding Incentives

We receive deferred branding incentives and other incentive payments from a number of our fuel suppliers. A portion of the deferred branding incentives may be passed on to our wholesale branded dealers under the same terms as required by our fuel suppliers. Many of the agreements require repayment of all or a portion of the amount received if we (or our branded dealers) elect to discontinue selling the specified brand of fuel at certain locations. As of December 31, 2013, the estimated amount of deferred branding incentives that would have to be repaid upon de-branding at these locations was $16.8 million. Of this amount, approximately $11.4 million would be the responsibility of the Partnership's branded dealers under reimbursement agreements with the dealers. In the event a dealer were to default on this reimbursement obligation, SUSP would be required to make this payment. No liability is recorded for the amount of dealer obligations which would become payable upon de-branding as no such dealer default is considered probable at December 31, 2013. We have $2.0 million recorded for deferred branding incentives, net of accumulated amortization, on the balance sheet as of December 31, 2013, which is included in other noncurrent liabilities. The Partnership amortizes its retained portion of the incentives to income on a straight-line basis over the term of the agreements.