NOTE 10 ? COMMITMENTS AND CONTINGENCIES Office Lease In May 2016, the Company entered into a lease addendum to the original lease agreement signed in July 2012, as amended, which extends the term of the lease by an additional one year, now ending in July 2017, for its corporate office space located in Danville, California. The obligation under this one year lease extension for the remainder of 2016 and the first seven months of 2017 is $56,000. In September 2014, the Company entered into a lease agreement for office space located in Houston, Texas, with a term of five years ending on March 1, 2020, which location served as the Company?s operations office. Effective April 1, 2016, the Company terminated this lease agreement and issued the landlord 700,000 shares of common stock valued at $161,000, with no further obligations due thereunder. Leasehold Drilling Commitments The Company?s oil and gas leasehold acreage is subject to expiration of leases if the Company does not drill and hold such acreage by production. In the D-J Basin Asset, 223 net acres are due to expire during the six months remaining in 2016 (4,374 net acres did expire during the six months ended June 30, 2016), 584 net acres expire in 2017, 392 net acres expire in 2018, 127 net acres expire in 2019, and 1,290 net acres expire thereafter. Where the Company is not able to drill and complete a well before lease expiration, the Company may seek to extend leases where able. In March 2015, the Company fully impaired its unproved leasehold costs based on management?s revised re-leasing program, however, it continues to retain its rights to the unexpired leases. Other Commitments On December 18, 2015, a complaint was filed against Red Hawk, our wholly-owned subsidiary, in the District Court, County of Weld, State of Colorado (Case Number: 2015CV31079) (the ?Court?), pursuant to which Liberty Oilfield Services, LLC (?Liberty?) made various claims against Red Hawk in connection with certain completion services provided by Liberty to Red Hawk in November an