Commitments and Contingencies

12 Months Ended

Dec. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

Note 15 - Commitments and Contingencies

We have entered into firm transportation contracts to ensure the transport for certain of our gas production to purchasers. Firm transportation volumes and the related demand charges for the remaining term of these contracts as of December 31, 2019 are summarized in the table below.

Period	Dekatherms per day		Demand Charges
Jan 2020 – Mar 2020		58,871	$	0.20 - 0.62
Apr 2020 – May 2020		57,791	$	0.20 - 0.56
Jun 2020 – Oct 2020		56,641	$	0.20 - 0.56
Nov 2020 – Aug 2022		50,341	$	0.20 - 0.56
Sep 2022 – May 2027		30,990	$	0.20 - 0.21
Jun 2027 – May 2036		1,000	$	0.20

As of December 31, 2019, the remaining commitment related to the firm transportation contracts assumed in the EXCO Acquisition in October 2016 and the OIE Membership Acquisition is $14.6 million and reflected in the Company’s consolidated balance sheet. These contractual obligations are reduced monthly as the Company pays these firm transportation obligations.

Natural gas processing agreement

We have entered into an initial five-year gas processing agreement expiring in 2022. We have an option to extend the term of the agreement by another five years. The related demand charges for volume commitments over the remaining term of the agreement are approximately $1.8 million per year. We will pay a processing fee of $2.50 per Mcf for the term of the agreement, with a minimum annual volume commitment of 720,000 Mcf.

Capital Commitments

As of December 31, 2019, we had no capital commitments.