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 amount and type of substances released into the environment, and regulating the sourcing and disposal of water used in certain areas and lands, while also imposing liability for pollution resulting from previous operations such as plugging abandoned wells or closing wetlands.