b'We are subject to numerous health, safety and environmental laws and regulations which may result inmaterial liabilities and costs.We are subject to various international, foreign, federal, state and local health, safety andenvironmental laws and regulations governing, among other things, the emission and discharge ofpollutants into the ground, air or water, the generation, storage, handling, use, transportation anddisposal of regulated materials and the health and safety of our employees, contractors andcommunities in which our assets are located. We are required to obtain environmental permits fromgovernmental authorities for our operations, including drilling permits for our wells. We have not beenor may not be at all times in complete compliance with these permits and laws and regulations towhich we are subject, and there is a risk such requirements could change in the future or become morestringent. If we violate or fail to comply with such requirements, we could be fined or otherwisesanctioned by regulators, including through the revocation of our permits or the suspension ortermination of our operations. If we fail to obtain, maintain or renew permits in a timely manner or atall (due to opposition from partners, community or environmental interest groups, governmental delaysor other reasons), or if we face additional requirements imposed as a result of changes in or enactmentof laws or regulations, such failure to obtain, maintain or renew permits or such changes in orenactment of laws or regulations could impede or affect our operations, which could have a materialadverse effect on our results of operations and financial condition.We, as an interest owner or as the designated operator of certain of our past, current and futureinterests, discoveries and prospects, could be held liable for some or all health, safety andenvironmental costs and liabilities arising out of our actions and omissions as well as those of our blockpartners, third-party contractors, predecessors or other operators. To the extent we do not addressthese costs and liabilities or if we do not otherwise satisfy our obligations, our operations could besuspended or terminated. We have contracted with and intend to continue to hire third parties toperform services related to our operations. There is a risk that we may contract with third parties withunsatisfactory health, safety and environmental records or that our contractors may be unwilling orunable to cover any losses associated with their acts and omissions. Accordingly, we could be held liablefor all costs and liabilities arising out of their acts or omissions, which could have a material adverseeffect on our results of operations and financial condition.We are not fully insured against all risks and our insurance may not cover any or all health, safetyor environmental claims that might arise from our operations or at any of our license areas. If asignificant accident or other event occurs and is not covered by insurance, such accident or event couldhave a material adverse effect on our results of operations and financial condition.Releases of regulated substances may occur and can be significant. Under certain environmentallaws, we could be held responsible for all of the costs relating to any contamination at our current orformer facilities and at any third party waste disposal sites used by us or on our behalf. In addition,offshore oil and natural gas exploration and production involves various hazards, including humanexposure to regulated substances, which include naturally occurring radioactive, and other materials. Assuch, we could be held liable for any and all consequences arising out of human exposure to suchsubstances or for other damage resulting from the release of any regulated or otherwise hazardoussubstances to the environment, property or to natural resources, or affecting endangered species.In addition, we expect continued and increasing attention to climate change issues and emissionsof GHGs, including methane (a primary component of natural gas) and carbon dioxide (a byproduct ofoil and natural gas combustion). For example, in April 2016, 195 nations, including Ghana, Mauritania,Sao Tome and Principe, Senegal, Suriname and the U.S., signed and officially entered into aninternational climate change accord (the Paris Agreement). The Paris Agreement calls for signatorycountries to set their own GHG emissions targets, make these emissions targets more stringent overtime and be transparent about the GHG emissions reporting and the measures each country will use to58'