Note 12 – Commitments

The Company has entered into employment agreements with certain executives and officers of the Company. The term of the agreements generally range from one to two years and provide for renewal provisions in one year increments thereafter. The agreements provide for, among other items, severance and continuation of benefit payments upon termination of employment or certain change of control events.

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 June 30, 2017 are summarized in the table below.

Period	Dekatherms per day		Demand Charges
Jul 2017 - Apr 2018		5,530		$0.20 - $0.65
May 2018 - May 2020		3,230		$0.20 - $0.62
Apr 2020 – May 2020		2,150	$	0.20
Jun 2020 – May 2036		1,000	$	0.20

A liability of approximately $541,000 related to firm transportation contracts assumed in asset acquisitions, which represents the remaining commitment, is reflected on the Company’s unaudited Consolidated Balance Sheet as of June 30, 2017. The fair value of these firm transportation obligations was 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 its participation as a member of Carbon Appalachia, the Company has made a capital commitment of $2.0 million, of which it has contributed $240,000 as of June 30, 2017.