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Commitments and Contingencies | 12 Months Ended
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Dec. 31, 2022
Commitments and Contingencies |
Commitments and Contingencies | 10. Commitments and Contingencies Leases As a result of the adoption of Leases (Topic 842), the Company recognized an operating lease as of December 31, 2022 summarized in the following table (in thousands):
​ | ​ | ​ | ​
​ |  | Amount
Asset | ​ | ​ | ​
Operating lease right-of-use assets | ​ | $ | 31,383
Total operating lease right-of-use assets | ​ | $ | 31,383
​ | ​ | ​ | ​
Liabilities | ​ | ​ | ​
Operating lease liabilities | ​ | $ | 35,299
Total operating lease liabilities | ​ | $ | 35,299
​ | ​ | ​ | ​
Operating lease costs | ​ | $ | 32,097
​ | ​ | ​ | ​
Cash paid for amounts included in the measurement of lease liabilities | ​ | ​ | ​
Operating cash flows from operating leases | ​ | $ | 106,798
​ | ​ | ​ | ​
Weighted average remaining lease term - operating lease | ​ | ​ | 0.33
Weighted average discount rate (annualized) - operating lease | ​ | ​ | 8.09%
​ Rent expense for operating leases for the year ended December 31, 2021 was $0.18 million as presented in other general and administrative expenses in the consolidated statements of operations and comprehensive income. The following is a maturity analysis of the annual undiscounted cash flows of the operating lease liability as of December 31, 2022:
​ | ​ | ​ | ​
​ |  | ​ | ​
Amounts due in the year ended December 31, | ​ | Operating Leases
2023 | ​ | $ | 36,013
Total minimum lease payments | ​ | ​ | 36,013
Less: effect of discounting | ​ | ​ | 714
Present value of future minimum lease payments | ​ | ​ | 35,299
Less: current obligations under leases | ​ | ​ | 35,299
Long-term lease obligations | ​ | $ | —
​ The Company’s future minimum lease commitments as of December 31, 2021 are summarized in the following table:
​ | ​ | ​ | ​
​ |  | ​ | ​
Year ended | ​ | ​ | ​
December 31, | ​ | Payments
2022 | ​ | $ | 106,797
2023 | ​ | ​ | 36,013
​ | ​ | $ | 142,810
​ The expiration date of the current lease is April 2023 and the Company has chosen not to extend that lease. As of December 31, 2022, the Company entered into a new office lease that commenced on March 1, 2023. The lease is for 70 months with future lease payments estimated to be approximately $0.85 million. There are no other pending leases, and no lease arrangements in which the Company is the lessor. Other commitments The Company also enters into commitments for capital expenditures in advance of the expenditures being made. As of December 31, 2022, we had commitments of $0.8 million for capital expenditures. Litigation On March 10, 2021, Epsilon filed a complaint against Chesapeake Appalachia, LLC (“Chesapeake”) in the United States District Court for the Middle District of Pennsylvania, Scranton, Pennsylvania (“Middle District”). Epsilon claims that Chesapeake has breached a settlement agreement and several operating agreements (“JOAs”) to which Epsilon and Chesapeake are parties. Epsilon asserts that Chesapeake has failed to cooperate with Epsilon’s efforts to develop resources in the Auburn Development, located in Northeast Pennsylvania, as required under both the settlement agreement and JOAs. Epsilon requested a preliminary injunction but was unsuccessful in obtaining that injunction. Epsilon filed a motion to amend its original Complaint. Chesapeake opposed. The Court ruled in Epsilon’s favor and allowed Epsilon’s amendment. Chesapeake moved to dismiss the amended Complaint. The Court granted the motion to dismiss without prejudice to Epsilon’s right to file a new lawsuit based on new proposals made after the Court’s decision. Epsilon filed a motion for reconsideration of that decision, but the court denied the motion for reconsideration on January 18, 2022. Epsilon filed a notice of appeal on February 15, 2022 challenging both the motion to dismiss and motion for reconsideration decisions. Chesapeake filed a cross-appeal on March 1, 2022. A briefing schedule was set and briefing closed October 14, 2022. Oral argument was held in January 2023. A decision on the appeal is not expected until mid-2023. Epsilon re-filed a complaint against Chesapeake in the Middle District on May 9, 2022. Epsilon generally asserts similar claims as in the previous suit, pursuing declaratory judgment claims regarding Chesapeake’s obligation to Epsilon to cooperate with Epsilon’s efforts in the Auburn Development and regarding Chesapeake’s obstruction of Epsilon’s efforts with the Pennsylvania Department of Environmental Protection permitting process but not based on specific well proposals. Chesapeake filed a motion to stay pending a decision on the Third Circuit appeal, which was granted. The matter is stayed pending a decision from the Third Circuit.

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