COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2020

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

Rail Service Agreements

We have rail service agreements at our terminal facilities with labor service providers that expired at various dates through 2020. After the initial term of the agreements, the rail service contracts will continue to be in effect for consecutive one-year terms unless either party provides the other party written notice prior to the end of the term. Under these agreements, we incurred $10.8 million, $14.8 million and $13.8 million in service fees for the years ended December 31, 2020, 2019 and 2018, respectively, which are recorded in “Subcontracted rail services” within our consolidated statements of operations.

Operating Leases and Fleet Lease Income

We have non-cancellable operating leases for railroad tracks, land surfaces, and railcars. We incurred $6.4 million in lease expenses and other rental charges for buildings, storage tanks, offices, tracks, land and railcars for the year ended December 31, 2018, which is recorded in “Operating and maintenance” within our consolidated statements of operations.

We adopted the provisions of ASC 842 as of January 1, 2019. We applied the provisions of ASC 840 in years prior to 2019, which was applicable during the periods presented above. Refer to Note 8. Leases for lease expense for the year ended December 31, 2020 and 2019 and a further discussion on our current leases.

Contingent Liabilities

From time to time, we may be involved in legal, tax, regulatory and other proceedings in the ordinary course of business. We do not believe that we are currently a party to any such proceedings that will have a material adverse impact on our financial condition or results of operations.