Commitments And Contingencies

3 Months Ended

Mar. 31, 2019

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 $5.8 million and is recorded as other liabilities on our condensed consolidated balance sheet.  For the three months ended March 31, 2019, we paid Sanchez Energy $18.9 thousand related to the earnout. For the three months ended March 31, 2018, the natural gas the Carnero JV received did not exceed the aforementioned threshold, which resulted in no payment to Sanchez Energy related to the earnout.