Commitments and Contingencies

3 Months Ended

Mar. 31, 2021

9. Commitments and Contingencies

The Company’s future minimum lease commitments as of March 31, 2021 are summarized in the following table:


Year ended
December 31,	Payments
2021	$	77,925
2022		106,797
2023		36,013
	$	220,735

The Company enters into commitments for capital expenditures in advance of the expenditures being made. As of March 31, 2021, the Company had commitments of $1.49 million for capital expenditures.

Litigation

On March 10, 2021, Epsilon filed a complaint against Chesapeake Appalachia, LLC (“Chesapeake”) in the United States District Court for the Middle District of Pennsylvania, Scranton, Pennsylvania. Epsilon claims that Chesapeake has breached a settlement agreement and several operating agreements (“JOAs”) to which Epsilon and Chesapeake are parties. Epsilon asserts that Chesapeake has failed to cooperate with Epsilon’s efforts to develop resources in the Auburn Development, located in North-Central Pennsylvania, as required under both the settlement agreement and JOAs.

Epsilon has requested a preliminary injunction, among other requests for relief. Accordingly, a hearing on that request is expected to be heard during the summer of 2021.