Legal Proceedings
−Removed: In the ordinary course of business, the Company is from time to time involved in various legal and regulatory claims and proceedings, including those discussed below.
−Removed: While the amounts claimed may be substantial, the Company is unable to predict with certainty the ultimate outcome of such claims and proceedings.
−Removed: The Company accrues legal and other direct costs related to loss contingencies when actually incurred.
−Removed: The Company has established reserves it believes to be appropriate for pending matters and, after consultation with counsel and giving appropriate consideration to available insurance, the Company believes that the ultimate outcome of any pending matter involving the Company will not materially affect the financial condition, results of operations or liquidity of the Company.
−Removed: The Company and Equitrans Midstream, through certain of their subsidiaries, are parties to a gas gathering agreement (the Hammerhead Gathering Agreement) related to Equitrans Midstream's Hammerhead Gas Gathering System.
−Removed: Pursuant to the terms of the Hammerhead Gathering Agreement, if the "In-Service Date" did not occur on or before October 1, 2020, the Company may terminate the Hammerhead Gathering Agreement and purchase the Hammerhead Gas Gathering System from Equitrans Midstream for an amount equal to 88% of expenses actually incurred and other obligations made or to be incurred by Equitrans Midstream.
−Removed: The "In-Service Date" is defined in the Hammerhead Gathering Agreement as "the later of (i) the first Day of the Month immediately following the date on which Gatherer is first able to provide the Gathering Services to Shipper in accordance with [the Hammerhead Gathering] Agreement and (ii) the first Day of the Month immediately following the date on which the Interconnect Facilities connecting the Gathering System to the Mountain Valley Pipeline are first able to receive deliveries of the Contract MDQ." On September 24, 2020, the Company initiated arbitration proceedings against Equitrans Midstream, seeking a declaration that the Company is entitled to terminate the Hammerhead Gathering Agreement and purchase the Hammerhead Gas Gathering System.
−Removed: The deadline for the Company to provide notice of its election to terminate the Hammerhead Gathering Agreement and purchase the Hammerhead Gas Gathering System has been tolled while the contract claim is pending in arbitration.
+Added: In the ordinary course of business, various legal and regulatory claims and proceedings are pending or threatened against us.
+Added: While the amounts claimed may be substantial, we are unable to predict with certainty the ultimate outcome of such claims and proceedings.
+Added: We accrue legal and other direct costs related to loss contingencies when actually incurred.
+Added: We have established reserves in amounts that we believe to be appropriate for pending matters and, after consultation with counsel and giving appropriate consideration to available insurance, we believe that the ultimate outcome of any matter currently pending against us will not materially affect our financial condition, results of operations or liquidity.
+Added: West Virginia Air Quality Permit Violations, Wetzel County, West Virginia.
+Added: In mid-March 2021, we discovered that a small subset of nine of our well pads located in Wetzel County, West Virginia (collectively known as the Stone pads) were out of compliance with the air quality permits and/or permit determinations originally obtained for the well pads.
+Added: The Stone pads were permitted to utilize a pipeline to transport condensate generated from the associated wells on the pads.
+Added: Beginning in late 2019, we began storing condensate generated from the associated wells in production tanks located on the Stone pads and trucking the condensate off site, as opposed to utilizing a pipeline for transportation.
+Added: This change in procedure resulted in higher emissions being generated on site.
+Added: In March 2021, we self-disclosed this information to the West Virginia Department of Environmental Protection (WVDEP) and took corrective actions to ensure that the Stone pads are in compliance with their requisite permits.
+Added: On April 21, 2021, the WVDEP requested additional information from us related to this matter, and we responded to their requests on April 30, 2021.
+Added: While we believe that there is a reasonable possibility that the penalties related to this matter may exceed $300,000, we expect that the resolution of this matter will not have a material impact on our financial condition, results of operations or liquidity.
+Added: See also “Commitments and Contingencies” under Part I, Item 2.
+Added: “Management's Discussion and Analysis of Financial Condition and Results of Operations.”
+Added: There have been no material changes from the risk factors previously disclosed in Item 1A, "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2020.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.