Commitments and Contingencies

On December 3, 2013, our wholly owned subsidiary, NGS Sub Corp., was served with a lawsuit filed in the 8th Judicial District Court of Winn Parish, Louisiana by Cecil M. Brooks and Brandon Hawkins, residents of Louisiana, alleging that in 2006 a former subsidiary of NGS Sub Corp. improperly disposed of water from an off-lease well into a well located on the plaintiffs’ land in Winn Parish. The plaintiffs requested monetary damages and other relief. The plaintiffs subsequently filed an amended petition joining the Company as defendants in its capacity as parent company of NGS Sub Corp. NGS Sub Corp. divested its ownership of the property in question along with its ownership of the subsidiary in 2008 to a third party. NGS Sub Corp. and the Company have denied the plaintiffs’ claims. The district court dismissed the claim of Brooks against NGS Sub Corp. and the Company because Brooks purchased the land where the well is located subsequent to the divestiture of the property by NGS Sub. Corp. The claim of Hawkins is still being defended. Trial is currently scheduled for March 2018. We will continue to vigorously defend the claims and after consultation with our legal counsel, we consider the likelihood of a material loss to the Company in this matter to be remote.

Lease Commitments. During the year ended June 30, 2017, our previous lease for office space ended and we moved into smaller office space and entered into a non-cancelable lease that expires on May 31, 2019. Future minimum lease commitments as of June 30, 2017 under our office lease are as follows:



For the fiscal year ended June 30,
2018	$	73,073
2019	66,984
Total	$	140,057

Rent expense for the years ended June 30, 2017, 2016, and 2015 was $80,472, $182,626, and $175,103, respectively.