Commitments

9 Months Ended

Sep. 30, 2014

Commitments [Abstract]

Commitments

Note 12 – Commitments

The Company has entered into long-term firm transportation contracts to ensure the transport for certain of its gas production to purchasers. Firm transportation volumes and the related demand charges for the remaining term of these contracts at September 30, 2014 are summarized in the table below. 

Period	Dekatherms per day		Demand Charges
Oct 2014		6,450	$0.20 - $0.67
Nov 2014 - May 2015		4,450	$0.20 - $0.67
Jun 2015 - Dec 2017		3,300	$0.22 - $0.67
Jan 2018 - May 2036		1,000	$0.22

A liability of approximately $1.5 million related to firm transportation contracts assumed in a 2011 asset acquisition, which represents the remaining commitment, is reflected on the Company’s Consolidated Balance Sheet as of September 30, 2014. The fair value of these firm transportation obligations were determined based upon the contractual obligations assumed by the Company and discounted based upon the Company’s effective borrowing rate. These contractual obligations are being amortized on a monthly basis as the Company pays these firm transportation obligations in the future.