Lease Obligations

Office Lease.  We maintain our corporate headquarters in Houston, Texas.  In May 2023, BDSC signed a 12-month extension to its existing operating lease.  The extended term commenced on September 1, 2023 and expires on August 31, 2024.  Under the amended agreement, the annual rent was reduced from $31.00 per square foot to $30.00 per square foot, resulting in a monthly base rental of $0.02 million.

An Affiliate, LEH, subleases a portion of the Houston office space. BDSC received sublease income from LEH totaling $0.03 million for both twelve months ended December 31, 2023 and 2022. See “Note (3)” for additional disclosures related to the Affiliate sub-lease.

Tank Lease. LE leases tanks from Ingleside under the LE Amended and Restated Master Services Agreement. Lease expense associated with the LE Amended and Restated Master Services Agreement totaled $1.2 million for the twelve months ended December 31, 2023.  Under accounting literature, the lease is being treated as short-term due to its term of one year or less.  As a result, the lease was not recorded on our balance sheet. See “Note (3)” for additional disclosures related to the LE Amended and Restated Master Services Agreement.

The following table presents the lease-related assets and liabilities recorded on the consolidated balance sheet:

The following table presents information related to lease costs incurred for operating and finance leases:

The table below presents supplemental cash flow information related to leases as follows:

As of December 31, 2023, maturities of lease liabilities for the periods indicated were as follows:

Future minimum annual lease commitments that are non-cancelable: