Commitments And Contingencies

3 Months Ended

Mar. 31, 2017

Commitments And Contingencies

Commitments And Contingencies

11. COMMITMENTS AND CONTINGENCIES

As part of the Carnero Gathering Transaction, the Partnership is required to pay SN Midstream a monthly earnout based upon gas received at Carnero Gathering’s receipt points from SN Catarina and gas delivered and processed at Carnero Processing by other producers which is anticipated to begin in the second quarter of 2017. This earnout has an approximate value of $4.0 million and was recorded on the balance sheet as a deferred liability as of March 31, 2017.  We did not have any other material commitments and contingencies as of March 31, 2017.