(15)	COMMITMENTS AND CONTINGENCIES

Litigation

James A. Drummond and Chris Parrish v. Range Resources-Midcontinent, LLC et al.; pending at the District Court of Grady County, State of Oklahoma; Case No. CJ-2010-510

As we previously disclosed, the parties successfully mediated the case in May 2013 resulting in a settlement and we executed a Stipulation and Agreement of Settlement, with an effective date of May 31, 2013, providing for a cash payment to the class in the amount of $87.5 million in settlement of all claims made by the class for the period prior to May 31, 2013. Pursuant to the settlement agreement, on June 28, 2013, we paid $87.5 million into an escrow amount. On September 9, 2013, the Court approved the settlement thereby finally concluding this matter.

We are the subject of, or party to, a number of pending or threatened legal actions and claims arising in the ordinary course of our business. While many of these matters involve inherent uncertainty, we believe that the amount of the liability, if any, ultimately incurred with respect to proceedings or claims will not have a material adverse effect on our consolidated financial position as a whole or on our liquidity, capital resources or future annual results of operations. We will continue to evaluate our litigation on a quarter-by-quarter basis and will establish and adjust any litigation reserves as appropriate to reflect our assessment of the then current status of litigation.

Lease Commitments

We lease certain office space, office equipment, production facilities, compressors and transportation equipment under cancelable and non-cancelable leases. Rent expense under operating leases (including renewable monthly leases and amounts related to discontinued operations) totaled $13.1 million in 2013 compared to $13.8 million in 2012 and $18.6 million in 2011. Commitments related to these lease payments are not recorded in the accompanying consolidated balance sheets. Future minimum rental commitments under non-cancelable leases having remaining lease terms in excess of one year are as follows (in thousands):

	Operating Lease Obligations
2014	$	19,946
2015		19,170
2016		12,434
2017		6,879
2018		5,576
Thereafter		17,230
	$	81,235

Transportation and Gathering Contracts

We have entered into firm transportation and gathering contracts with various pipeline carriers for the future transportation and gathering of natural gas, NGLs and oil production primarily from our properties in Pennsylvania. Under these contracts, we are obligated to transport or gather minimum daily natural gas volumes, or pay for any deficiencies at a specified reservation fee rate. In most cases, our production committed to these pipelines is expected to exceed the minimum daily volumes provided in the contracts. As of December 31, 2013, future minimum transportation and gathering fees under our commitments are as follows (in thousands):

	Transportation and Gathering Contracts
2014	$	227,061
2015		238,148
2016		261,854
2017		258,227
2018		228,321
Thereafter		1,363,537
	$	2,577,148

In addition to the amounts included in the above table, we have contracted with several pipeline companies through 2030 to transport natural gas, ethane and propane production volumes from certain Marcellus Shale wells. These agreements and related fees, which are contingent on certain pipeline modifications and/or pipeline construction, are commitments that range between three and fifteen year terms and are expected to begin in late 2014 through late 2017. Based on these contracts, we will be obligated for a range of natural gas volumes from 40,000 mcfe per day to 200,000 mcfe per day and ethane and propane volumes from 10,000 to 20,000 bbls per day through the end of the contract terms.

Drilling Contracts

As of December 31, 2013, we have contracts with drilling contractors to use three drilling rigs with terms of up to two years and minimum future commitments of $9.0 million in 2014 and $6.7 million in 2015. Early termination of these contracts at December 31, 2013 would have required us to pay maximum penalties of $10.9 million. We do not expect to pay any early termination penalties related to these contracts.

Delivery Commitments

We have various volume delivery commitments that are primarily related to our Midcontinent and Marcellus Shale areas. We expect to be able to fulfill our contractual obligations from our own production, however; we may purchase third party volumes to satisfy our commitments or pay demand fees for commitment shortfalls, should they occur. As of December 31, 2013, our delivery commitments through 2028 were as follows:

Year Ending December 31,	Natural Gas (mcf per day)		Ethane (bbls per day)
2014		145,500	15,000
2015		140,538	15,000
2016		102,598	15,000
2017		52,055	15,000
2018¾2028		¾	15,000

In addition to the amounts included in the above table, we have contracted with several pipeline companies through 2030 to deliver ethane production volumes in Appalachia from our Marcellus Shale wells. These agreements and related fees, which are contingent upon pipeline construction and/or modification, are for 10,000 bbls per day and starting in 2015, increases to 20,000 bbls per day until the end of the contractual terms.

Other

We have agreements in place for hydraulic fracturing including related equipment, material and labor for $24.0 million in 2014 and $12.0 million in 2015. We also have agreements to purchase seismic data for $10.6 million in 2014 and $838,000 in 2015. We also have lease acreage that is generally subject to lease expiration if initial wells are not drilled within a specified period, generally between three to five years. We do not expect to lose significant lease acreage because of failure to drill due to inadequate capital, equipment or personnel. However, based on our evaluation of prospective economics, we have allowed acreage to expire and will allow additional acreage to expire in the future. To date, our expenditures to comply with environmental or safety regulations have not been a significant component of our cost structure and are not expected to be significant in the future. However, new regulations, enforcement policies, claims for damages or other events could result in significant future costs.