Note 11. Commitments and Contingencies

Leases

We lease office space, equipment and vehicles that have non-cancelable lease terms. Currently, our outstanding leases have terms up to 11 years. We have subleased part of the office space included in our operating leases for which we received rental payments. The following table summarizes operating lease payments paid and sublease rentals received during the periods indicated:



	Year Ended December 31,
In thousands	2014		2013		2012
Operating lease payments	$	43,333	$	37,211	$	33,606
Sublease rental receipts	2,347		2,237		2,685

The following tables summarize by year the remaining non-cancelable future payments under our leases as of December 31, 2014:



In thousands	Pipeline and Capital Leases
2015	$	61,225
2016	61,906
2017	56,072
2018	53,083
2019	44,960
Thereafter	237,473
Total minimum lease payments	514,719
Less: Amount representing interest	(191,095		)
Present value of minimum lease payments	$	323,624



In thousands	Operating Leases
2015	$	12,556
2016	12,532
2017	12,774
2018	12,730
2019	11,203
Thereafter	56,630
Total minimum lease payments	$	118,425

In addition, we expect to receive approximately $12.4 million for 2015 through 2019 under our sublease agreements.

Commitments

We have entered into long-term commitments to purchase CO₂ that are either non-cancelable or cancelable only upon the occurrence of specified future events. The commitments continue for up to 17 years. The price we will pay for CO₂ generally varies depending on the amount of CO₂ delivered and the price of oil. Once all commitments have commenced (currently expected in 2016), our annual commitment under these contracts could range from $47 million to $67 million per year, assuming a $60 per Bbl NYMEX oil price.

We are party to long-term contracts that require us to deliver CO₂ to our industrial CO₂ customers at various contracted prices, plus we have a CO₂ delivery obligation to Genesis related to two CO₂ volumetric production payments ("VPPs"). Based upon the maximum amounts deliverable as stated in the industrial contracts and the VPPs, we estimate that we may be obligated to deliver up to 273 Bcf of CO₂ to these customers over the next 14 years. The maximum volume required in any given year is approximately 74 MMcf/d, which we judge to be minor given the size of our Jackson Dome proven CO₂ reserves at December 31, 2014, our current production capabilities and our projected levels of CO₂ usage for our own tertiary flooding program.

In conjunction with the August 2011 Riley Ridge acquisition, we assumed the 20-year helium supply contract under which the original participants in Riley Ridge agreed to supply helium to a third-party purchaser. After the commencement date, the contract provides for the delivery of a minimum contracted quantity of helium, subject to adjustment after startup of the Riley Ridge gas processing facility, which, if not supplied in accordance with the terms of the contract, may obligate us to compensate the third-party helium purchaser for the amount of the shortfall in an amount not to exceed $8.0 million per year, or $46.0 million over the term of the contract.

Delhi Field Release

In June 2013, a release of well fluids, consisting of a mixture of carbon dioxide, saltwater, natural gas and oil, was discovered (and reported) within an area of the Denbury-operated Delhi Field located in northern Louisiana. We completed our remediation efforts with respect to such release during the fourth quarter of 2013; however, we continue to monitor the impacted area to confirm the effectiveness of the remediation efforts. During the years ended December 31, 2014 and 2013, we recorded $16.8 million and $114.0 million, respectively, of lease operating expenses related to this release and its remediation in our Consolidated Statements of Operations, which brings our total cost estimate to date with respect to these expenses to $130.8 million, of which we have paid $112.6 million. The $16.8 million of additional charges in 2014 primarily consist of our actual or estimated expenses related to third-party property and commercial damage claims that have been settled or asserted in connection with the release, which are expected to be recoverable under our insurance policies.

We maintain insurance policies to cover certain costs, damages and claims related to releases of well fluids and remediation. We received a $25.0 million cost reimbursement ($23.9 million net to Denbury) in October 2014 related to the Delhi Field release and remediation from our insurance carrier providing the first layer of our excess insurance coverage, representing approximately 20% of our total incident costs through year-end 2014. The insurance reimbursement was recognized as a reduction to lease operating expenses in our Consolidated Statement of Operations for the year ended December 31, 2014. We have not reached any agreement with our remaining carriers as to further reimbursements, but given our belief that under our policies we are entitled to reimbursement of between approximately one-third and two-thirds of our total costs, we have filed suit to pursue further reimbursements, the ultimate outcome of which cannot be predicted.

Litigation

We are involved in various lawsuits, claims and regulatory proceedings incidental to our businesses. While we currently believe that the ultimate outcome of these proceedings, individually and in the aggregate, will not have a material adverse effect on our financial position, results of operations or cash flows, litigation is subject to inherent uncertainties. If an unfavorable ruling were to occur, there exists the possibility of a material adverse impact on our net income in the period in which the ruling occurs. We provide accruals of probable losses for litigation and claims if we determine that a loss is probable and the amount can be reasonably estimated.

Other Contingencies

We are subject to audits for various taxes (income, sales and use, and severance) in the various states in which we operate, and from time to time receive assessments for potential taxes that we may owe. In the past, settlement of these matters has not had a material adverse financial impact on us, and currently we have no material assessments for potential taxes.

We are subject to various possible contingencies that arise primarily from interpretation of federal and state laws and regulations affecting the oil and natural gas industry. Such contingencies include differing interpretations as to the prices at which oil and natural gas sales may be made, the prices at which royalty owners may be paid for production from their leases, environmental issues and other matters. Although we believe that we have complied with the various laws and regulations, administrative rulings and interpretations thereof, adjustments could be required as new interpretations and regulations are issued. In addition, production rates, marketing and environmental matters are subject to regulation by various federal and state agencies.