Leases

9 Months Ended

Sep. 30, 2021

We lease certain pipeline and transportation equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term.

Our leases do not have any outstanding renewal options. Certain leases also include options to purchase the leased equipment.

Certain of our lease agreements include rates based on equipment usage and others include rate inflationary indices based increases. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.

The following table presents additional information related to our operating leases in accordance ASC 842:


	Three Months Ended September 30,					Nine Months Ended September 30,
(in thousands)	2021		2020			2021		2020
Lease Cost (1)
Operating lease cost	$	3,659	$	2,587		$	9,768	$	5,113
Short-term lease cost	484		382			1,262		1,459
Variable lease costs	276		829			235		1,101
Total lease cost	$	4,419	$	3,798		$	11,265	$	7,673

Other Information
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	(3,659)	$	(2,587)		$	(9,768)	$	(5,113)
Leased assets obtained in exchange for new operating lease liabilities	$	318	$	865		$	5,679	$	16,644
Lease assets obtained in exchange for new financing liabilities	$	2,858	$	—		$	3,071	$	—

	September 30, 2021					September 30, 2020
Weighted-average remaining lease term (years) for operating leases	4.8					3.7
Weighted-average discount rate (2) operating leases	6.4				%	5.7				%
Weighted-average remaining lease term (years) for financing lease	6.7					0.0
Weighted-average discount rate (2) financing lease	3.2				%	—				%

(1) Includes an immaterial amount of financing lease.

(2) Our discount rate is primarily based on our incremental borrowing rate in accordance with ASC 842.