ASU uary  and we adopted the new standard using a modified retrospective approach.  Consequently, upon transition, we recognized an ROU asset and a lease liability with retained earnings impact.

 

As provided for in subsequent accounting standards updates related to ASU - we are applying the following practical expedients which provide elections to:

 

 

 

 

 

 

Based on the results of our implementation process, we identified  operating lease in existence at subject to ASU - which is our real estate lease for office space in Houston, Texas that terminates in We identified finance leases.  The implementation  of ASU - resulted in establishing an ROU asset and lease liability of million during the quarter of   The adoption of the new standard did impact our Condensed Consolidated Statements of Operations, Condensed Consolidated Statements of Cash Flows or Condensed Consolidated Statements of Changes in Shareholders’ Deficit.  

 

During the  months ended various pipeline rights-of-way contracts and a land lease were acquired, assumed, renewed or otherwise entered into, primarily in conjunction with the Mobile Bay Acquisition.  For these contracts, an ROU asset and a corresponding lease liability was calculated based on our assumptions of the term, inflation rates and incremental borrowing rates.  The term of eac

 

Minimum future lease payments were estimated assuming expected terms of the leases and estimated inflation escalations of payments for certain leases.  Undiscounted future minimum payments as as follows: -  million; -  million; -  million;  -  million; - million; and and beyond -  million.  xpense recognized related to these leases was million for each period.    

 

As of , we recorded ROU assets and lease liabilities using a discount rate of for the Houston office lease and for the other leases.  The discount rate (or incremental borrowing rate) was determined using the interest rate of recently issued debt instruments that were issued at par and for a similar term as the term of our Houston office lease.  For the other lease contracts, a higher discount rate was used as the incremental borrowing rate due to longer expected termination dates.  The expected terms of the leases ranged between and years, with early terminations assumed.

 

Amounts related to leases recorded within our Condensed Consolidated Balance Sheet are as follows (in thousands):

 

		September 30, 2019
ROU (net):
Other assets		$	10,239
Lease liability:
Accrued liabilities		$	1,877
Other liabilities			7,883
Total lease liability		$	9,760
Lease incentives:
Other assets (contra-asset)		$	(907	)

 

 to our interest, of which the majority of such costs were recorded within , on the Condensed Consolidated Balance Sheet.  In exercising the practical expedient, we did separate non-lease and lease components for these short-term leases.