REPXa's oil and gas development operations are subject to a range of strict federal, regional, and local statutes and regulations that impose significant administrative and criminal penalties for violations. These regulations include obtaining a permit before any regulated activity begins, limiting the types of substances that can be released into the environment, and controlling the sourcing and disposal of water used in certain areas and on certain lands, as well as addressing the pollution issues that arise from previous operations, including plugging abandoned wells or closing wetlands.