Commitments And Contingencies

3 Months Ended

Mar. 31, 2018

Commitments And Contingencies

Commitments And Contingencies

12. COMMITMENTS AND CONTINGENCIES

As part of the Carnero Gathering Transaction, we are required to pay Sanchez Energy an earnout based on natural gas received above a threshold volume and tariff at Carnero Gathering’s delivery points from Sanchez Energy and other producers.  This earnout has an approximate value of $6.7 million and was recorded on the balance sheet as a deferred liability as of March 31, 2018.  We did not have any other material commitments and contingencies and no earnout payments were made during the three months ended March 31, 2018.