Related Party Transactions

9 Months Ended

Sep. 30, 2015

Related Party Transactions [Abstract]

Related Party Transactions

Note 8. Related Party Transactions

FASB ASC Topic 850, Related Party Disclosures (“ASC Topic 850”), requires that transactions with related parties that would make a difference in decision making be disclosed so that users of the financial statements can evaluate their significance. Pursuant to ASC Topic 850, OVR and all of its members, most notably Oak Valley Management, LLC (“OVM”) and certain other members (“Certain Other Members of OVR”) are considered related parties.  The following are significant related party transactions between the Company and members of OVM as well as between the Company and Certain Other Members of OVR as of September 30, 2015 and December 31, 2014, and for the three and nine months ended September 30, 2015 and 2014.

The Company employs members of OVM. For each of the three months ended September 30, 2015 and 2014, the Company made payments totaling $0.8 million to these members as compensation for services and reimbursement of expenses. For the nine months ended September 30, 2015 and 2014, the Company made payments totaling $3.0 million and $2.9 million, respectively, to these members as compensation for services and reimbursement of expenses.  The payments are included in “General and administrative expense” on the Condensed Consolidated Statements of Operations or have been charged out to oil and natural gas properties.

The Company has business relationships with Certain Other Members of OVR and with companies that employ Certain Other Members of OVR.  At September 30, 2015 and December 31, 2014, the Company has liabilities of $1.0 million and $2.3 million, respectively, owed to such members and companies.  These amounts are included in “Accounts payable” on the Condensed Consolidated Balance Sheets.