Commitments And Contingencies

6 Months Ended

Jun. 30, 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 designated delivery points from Sanchez Energy and other producers. This earnout has an approximate value of $7.9 million and was recorded on the balance sheet as other liabilities as of June 30, 2018. Refer to Note 13 “Related Party Transactions” for further discussion of the earnings and payments made during 2018 related to the earnout.