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Commitments and Contingencies
6 Months Ended
Jun. 30, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Lonestar has two drilling rigs under contract that are currently operating, which provide for drilling rates of $22.5 thousand and $20.5 thousand per day, respectively. As of August 2019, both contracts are evergreen contracts that require a 30-days cancellation notice with no early termination fees. The Company plans to release both of these rigs prior to September 2019.
In July 2019, the Company signed another drilling rig contract that will commence on September 1, 2019. The new contract provides for a drilling rate of $22.5 thousand per day, and expires 183 days subsequent to the initial mobilization of the rig. Should the Company terminate the contract early, the early termination fee totals $15.0 thousand per day times the remaining number of days left on the contract after the termination date.
In November 2018, the Company signed a dedicated fleet contract that provides for hydraulic fracturing and wireline services at variable rates depending on the work performed. The contract provides for services to cover fourteen wells planned to be drilled during 2019 and expires on December 31, 2019 with no further provisions for early termination. The Company has the ability to further extend the contract on any additional wells added to the 2019 drilling schedule through the expiration date of the contract.
From time to time, Lonestar is subject to legal proceedings and claims that arise in the ordinary course of business. Like other crude oil and gas producers and marketers, the Company's operations are subject to extensive and rapidly changing federal and state environmental, health and safety, and other laws and regulations governing air emissions, wastewater discharges and solid and hazardous waste management activities. The Company is not aware of any pending or overtly threatened legal action against it that could have a material impact on its business.