Note 14 - Subsequent Events

3 Months Ended

Mar. 31, 2020

Notes to Financial Statements

Subsequent Events [Text Block]

Note 

14

— Subsequent Events

Extension of Contract Price Validity of Engineering, Procurement and Construction Contracts

On

May 24, 2019,

Rio Grande entered into

two

lump-sum separated turnkey engineering, procurement and construction agreements with Bechtel Oil, Gas and Chemicals, Inc. (“Bechtel”) for the construction of (i)

two

LNG trains with expected aggregate production capacity up to approximately

11.74

million tonnes per annum (“mtpa”),

two

180,000m

3

 full containment LNG tanks,

one

marine loading berth, related utilities and facilities, and all related appurtenances thereto, together with certain additional work options (the “Trains

1

and

2

EPC Agreement”) and (ii) a LNG train with expected production capacity of up to approximately

5.87

mtpa, related utilities and facilities, and all related appurtenances  thereto (the “Train

3

EPC Agreement”).

By amendment dated

April 22, 2020,

Rio Grande and Bechtel amended the Trains

1

and

2

EPC Agreement to extend the contract price validity to

July 31, 2020. 

By amendment dated

April 22, 2020,

Rio Grande and Bechtel amended the Train

3

EPC Agreement to extend the contract price validity to

July 31, 2020.

Rio Grande Site Lease

On

March

6,

2019,

Rio Grande entered into a lease agreement (the “Rio Grande Site Lease”) with the Brownsville Navigation District of Cameron County, Texas (“BND”) for the lease by Rio Grande of approximately

984

acres of land situated in Brownsville, Cameron County, Texas for the purposes of constructing, operating, and maintaining (i) a liquefied natural gas facility and export terminal and (ii) gas treatment and gas pipeline facilities.

On

April 30, 2020,

Rio Grande and the BND amended the Rio Grande Site Lease (the “Rio Grande Site Lease Amendment”) to extend the effective date for commencing the Rio Grande Site Lease to

May 6, 2021 (

the “Effective Date”).  The Rio Grande Site Lease Amendment further provides that Rio Grande has the right, exercisable in its sole discretion, to extend the Effective Date to

May 6, 2022

by providing the BND with written notice of its election

no

later than the close of business on the Effective Date.

In connection with the Rio Grande Site Lease Amendment, Rio Grande is committed to pay approximately

$1.5

million per quarter to the BND through the earlier of the Effective Date and lease commencement.

We have evaluated subsequent events through

May 18, 

2020,

the date the financial statements were issued.  Any material subsequent events that occurred during this time have been properly recognized and/or disclosed in these financial statements