Commitments And Contingencies

9 Months Ended

Sep. 30, 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 the condensed consolidated balance sheet.  For the nine months ended September 30, 2019, we paid Sanchez Energy $32.1 thousand related to the earnout. For the nine months ended September 30, 2018, the natural gas received at Carnero JV did not exceed the aforementioned threshold, which resulted in no payment to Sanchez Energy related to the earnout.