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CONTINGENCIES
3 Months Ended
Dec. 31, 2019
Loss Contingency [Abstract]  
CONTINGENCIES
CONTINGENCIES
 
Legal and Regulatory Matters
 
Barnwell is routinely involved in disputes with third parties that occasionally require litigation. In addition, Barnwell is required to maintain compliance with all current governmental controls and regulations in the ordinary course of business. Barnwell’s management is not aware of any claims or litigation involving Barnwell that are likely to have a material adverse effect on its results of operations, financial position or liquidity.

During the quarter ended December 31, 2019, the Company experienced the failure of a hole opener which broke apart leaving pieces in the bottom of the well.  If the Company is unable to overcome this impediment to completing the well it may have to abandon the well and drill a new well for which the potential exposure estimated to be incurred would range from $1,400,000 to $1,600,000.  Efforts to remove the items from the well are currently ongoing. No contingent liability has been recorded at December 31, 2019 as the likelihood of the Company needing to abandon the well and drill a new well is not probable.

In the year ended September 30, 2019, two of the water wells drilled by the contract drilling segment for one customer were determined to not meet the contract specifications for plumbness. Management believes the degrees of deviation for both wells are not impactful to the performance of the submersible pumps that will be installed in those wells. Accordingly, no contingent liability has been recorded at December 31, 2019 as the likelihood of any impact is not probable. However, per the contracts, both of which are with one customer, a failure to meet the contract plumbness specification allows the customer to demand the drilling of a new well at no cost to the customer as well as potential liquidated damages. If the customer makes such a demand, the potential exposure for both wells combined is estimated to range from $2,000,000 to $3,000,000. Negotiations with the customer are currently ongoing.