Note 12 - Commitments and Contingencies

9 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

Note 

12

— Commitments and Contingencies

Legal Proceedings

 

From time to time the Company

may

be subject to various claims and legal actions that arise in the ordinary course of business. As of

September 30, 2019

, management is

not

aware of any claims or legal actions that, separately or in the aggregate, are likely to have a material adverse effect on the Company’s financial position, results of operations or cash flows, although the Company cannot guarantee that a material adverse effect will

not

occur.

Engineering, Procurement and Construction Contract

 

 During the

second

quarter of

2019

, we issued a limited notice to proceed (“LNTP”) to Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) under that certain Fixed Price Turnkey Agreement for the Engineering, Procurement and Construction of Trains

1

and

2

of the Rio Grande Natural Gas Liquefaction Facility by and between Rio Grande and Bechtel, dated as of

May 24, 2019 (

the "EPC Contract").  In connection with the issuance of the LNTP, we were committed to spend approximately

$30.3

million in

2019

, of which

$5.0

million was paid as of

September 30, 2019

and an additional

$15.0

million was settled with the issuance of approximately

2.1

million shares of Company common stock subsequent to

September 30, 2019.

Permitting Costs

During the

third

quarter of 

2019

, we entered into agreements with

third

parties for wetland and habitat mitigation measures. In connection with the wetland and habitat mitigation measures, we are committed to spend approximately

$3.4

million in

2019

and

$5.5

million in

2020.