7. COMMITMENTS AND CONTINGENCIES a. The Company is obligated for approximately $1.3 million under long-term leases for the use of land where five of its disposal wells are located. The two of the leases are for extended periods. The first lease expires on February 7, 2023 (with two options to renew for an additional 10 years each). The second lease expires on December 1, 2034 with no option to renew. In April 2018, the company terminated a land lease on its expiration date of May 31, 2018. The aggregate monthly lease payment for the disposal well leases is $9,000. b. From time to time, the Company is a party to various legal actions arising in the ordinary course of business. The Company accrues costs and legal costs associated with these matters when they become probable and the amount can be reasonably estimated. The Companys management does not expect any liability from the disposition of such claims and litigation individually or in the aggregate would have a material adverse impact on the Companys consolidated financial position, results of operations and cash flows.