Note 12 – Commitments

The Company has entered into long-term firm transportation contracts to ensure the transport for certain of its natural gas production to purchasers. Firm transportation volumes and the related demand charges for the remaining term of these contracts at June 30, 2016 are summarized in the table below.

Period	Dekatherms per day		Demand Charges
Jul 2016 - Apr 2018		4,450	$	0.20 - $0.65
May 2018 - May 2020		2,150	$	0.20
Jun 2020 - May 2036		1,000	$	0.20

A liability of approximately $632,000 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 June 30, 2016. 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.