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Note 7 - Leases
12 Months Ended
Dec. 31, 2019
Notes To Financial Statements [Abstract]  
LEASES

NOTE 7—LEASES

 

Operating Leases

We lease facilities under various noncancelable operating lease agreements. Our leases have remaining lease terms of up to three years. Operating lease expense for facilities totaled $0.2 million, $0.1 million and $0.4 million in 2019, 2018 and 2017, respectively.

At December 31, 2019, operating lease ROU assets totaled $0.2 million. Operating lease liabilities at December 31, 2019 totaled $0.2 million. Of this, $0.1 million is included in other long-term liabilities within the consolidated balance sheets.

Maturities of operating lease liabilities were as follows:

 

 

 

 

(In thousands)

 

 

 

Year Ending December 31, 

    

 

 

2020

 

$

117

2021

 

 

98

2022

 

 

41

Total lease payments

 

 

256

Less imputed interest

 

 

(43)

Total

 

$

213

 

As of December 31, 2019, the weighted average remaining lease term was 1.7 years and the weighted average discount rate used in computing the lease obligations was 8.5%.

Coal Leases and Associated Royalty Commitments

Leases of mineral reserves and related land leases are exempted under U.S. GAAP from recognition within the financial statements. We lease coal reserves under agreements that require royalties to be paid as the coal is mined and sold. Many of these agreements require minimum annual royalties to be paid regardless of the amount of coal mined and sold. Total royalty expense was $15.6 million, $11.6 million and $1.8 million for the years ended December 31, 2019, 2018 and 2017, respectively. These agreements generally have terms running through exhaustion of all the mineable and merchantable coal covered by the respective lease. Royalties or throughput payments are based on a percentage of the gross selling price received for the coal we mine. Payments of minimum coal royalties and throughput payments for leases with Ramaco Coal, LLC commenced in 2017 pursuant to the terms of the agreements.

Future minimum lease and royalty payments for each of the next five years and thereafter were as follows:

 

 

 

 

(In thousands)

 

 

 

Year Ending December 31, 

    

 

 

2020

 

$

5,146

2021

 

 

5,709

2022

 

 

5,709

2023

 

 

5,720

2024

 

 

4,426

Thereafter

 

 

11,777

Total minimum payments

 

$

38,487