10. COMMITMENTS AND CONTINGENCIES: a. The Company is obligated for $994,630 under long-term leases for the use of land where seven of its disposal wells are located. Three of the leases are for extended periods of time. 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 and the third lease expires on May 31, 2018 with one-year renewal options. The monthly lease payment for the disposal well leases is $10,895. Rent expense for the year ended December 31, 2016 and 2015 was $129,180 and $129,480, respectively. Following is a schedule of lease payments by year: Years Ending December 31, Disposal Well 2017 $ 123,180 2018 102,450 2019 84,000 2020 84,000 2021 84,000 Thereafter 517,000 $ 994,630 b. The Company is a named defendant along with the previously named officers in certain litigation; Dynamic Technical Solutions Corp. and Ola Investments, LLC, V. Frontier Oilfield Services, Inc., Timothy Burroughs and Bernard R. Dick ODonnell; CAUSE NO. CV14-04-234 in the 271st Judicial District Wise County, Texas wherein the Plaintiffs allege they have been damaged by the failure of the Company to complete a disposal well in a joint venture between the parties. On February 29, 2016 the litigation was tentatively settled by mutual agreement of the parties. Under the terms of the proposed settlement, the plaintiffs agree to return to the Company all of their shares of restricted and unregistered stock of the Company issued to them in 2013. The Company agreed to issue 317,000 shares of restricted and unregistered shares of stock in the Company to the plaintiffs. The Company will have exclusive trading authority over the shares and will have the right of first refusal to purchase the shares upon any planned sale by the plaintiffs. The Company will also have a call option on the shares which will entitle the Company to purchase the shares at $1.25 per share at any time. The settlement agreement closed in Apri