Throughout its oil and gas development operations, REPXa is 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 amount and type of substances released into the environment, and controlling the sourcing and disposal of water used in certain areas and on certain lands, as well as implementing remedial actions to prevent or mitigate pollution from previous operations, including plugging abandoned wells or other.