Commitments and Contingencies

Transportation and Gathering Agreements

The Company has entered into certain natural gas, oil and NGL transportation and gathering agreements with various pipeline carriers. Under certain of these agreements, the Company is obligated to transport minimum daily quantities, or pay for any deficiencies at a specified rate. The Company is also obligated under certain of these arrangements to pay a demand charge for firm capacity rights on pipeline systems regardless of the amount of pipeline capacity utilized by the Company. In most cases, the Company's production commitment to these pipelines is expected to exceed minimum daily quantities provided in the agreements. If the Company does not utilize the capacity, it can release it to others, thus reducing its potential liability.

As of December 31, 2014, the Company's future minimum obligations under transportation and gathering agreements are as follows:



(In thousands)
2015	$	130,411
2016	161,675
2017	163,573
2018	138,917
2019	129,245
Thereafter	1,226,791
	$	1,950,612

In January 2015, the Company entered into a natural gas transportation agreement associated with the Company's production in Pennsylvania. This agreement increased the Company's future aggregate obligations under its transportation commitments by approximately $105.9 million over the next 10 years.

Drilling Rig Commitments

As of December 31, 2014, the Company entered into certain drilling rig commitments for three drilling rigs for its capital program in the Marcellus Shale and Eagle Ford Shale with initial terms ranging from two to three years. As of December 31, 2014, the future minimum commitments under these agreements are $14.4 million in 2015 and $7.0 million in 2016.

Lease Commitments

The Company leases certain office space, warehouse facilities, vehicles, machinery and equipment under cancelable and non-cancelable leases. Rent expense under these arrangements totaled $10.8 million, $12.3 million and $11.6 million for the years ended December 31, 2014, 2013 and 2012, respectively.

Future minimum rental commitments under non-cancelable leases in effect at December 31, 2014 are as follows:



(In thousands)
2015	$	5,818
2016	3,469
2017	2,873
2018	2,312
2019	1,877
Thereafter	9,464
	$	25,813

Legal Matters

Enexco Litigation

In October 2010, the Company was sued in the Texas District Court in Shelby County, Texas by a group of plaintiffs led by Enexco, Inc. The parties are conducting discovery. No trial date has been set. The plaintiffs allege that the Company was negligent and grossly negligent in conducting drilling operations on a natural gas well in Shelby County, Texas in which the plaintiffs were drilling participants in 2009. The plaintiffs allege that negligence in the Company’s drilling operations damaged not only that well, but also two nearby natural gas wells in which the plaintiffs owned interests. The plaintiffs seek damages for lost reserves of all three wells, costs of operations and associated facilities and attorneys’ fees, as well as exemplary damages based upon claims of gross negligence.

The Company has denied that its drilling operations were negligent and is vigorously disputing both the merits of plaintiffs’ claims and their allegations of damages. The plaintiffs seek actual damages of $10.0 million and exemplary damages of up to two and one half times of actual damages. The Company has established a reserve to provide for this potential liability based upon management’s best estimate of the potential loss; such reserve was not material.

Other

The Company is a defendant in various other legal proceedings arising in the normal course of business. All known liabilities are accrued when management determines they are probable based on its best estimate of the potential loss. While the outcome and impact of these legal proceedings on the Company cannot be predicted with certainty, management believes that the resolution of these proceedings will not have a material effect on the Company's financial position, results of operations or cash flows.

Contingency Reserves

When deemed necessary, the Company establishes reserves for certain legal proceedings. The establishment of a reserve is based on an estimation process that includes the advice of legal counsel and subjective judgment of management. While management believes these reserves to be adequate, it is reasonably possible that the Company could incur additional losses with respect to those matters in which reserves have been established. The Company believes that any such amount above the amounts accrued is not material to the Consolidated Financial Statements. Future changes in facts and circumstances not currently foreseeable could result in the actual liability exceeding the estimated ranges of loss and amounts accrued.