Note 10 — Commitments and Contingencies

In January 2017, NextDecade LLC executed surface lease agreements with the City of Texas City and the State of Texas for an approximate 1,000‑acre site for the Shoal Point Terminal (collectively, the “Shoal Point Leases”). The term of the Shoal Point Leases is 36 months with an option to extend for an additional 12 months and NextDecade LLC has the right to terminate the Shoal Point Leases after the first 12 months at no additional cost to the Company or at any time thereafter with a $50 thousand termination payment to each lessor.

In March 2017, NextDecade LLC executed a lease agreement with the Brownsville Navigation District for a ten‑acre tract subsumed within the site for the Terminal (the “Brownsville Lease”). The Brownsville Lease has an eight‑month primary term with the option to renew such lease for six additional six-month terms and NextDecade LLC has the right to terminate such lease after the primary eight-month term or at the end of any six-month term at no additional cost to the Company.

Total remaining commitments if NextDecade LLC elects to extend the Shoal Point Leases and the Brownsville Lease through their extended terms are as follows (in thousands):


	2017		2018		2019		2020		2021
Shoal Point Leases	$	—	$	400	$	500	$	600	$	—
Brownsville Lease		29		59		59		29		—
	$	29	$	459	$	559	$	629	$	—

From time to time the Company may be subject to various claims and legal actions that arise in the ordinary course of business. Management is not aware of any claims or legal actions that, separately or in the aggregate, are likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows, although the Company cannot guarantee that a material adverse event may not occur.