DIVERSIFIED ROYALTY CORP .  Notes toConsolidatedFinancial Statements  (Unaudited)  (Expressed in Canadian dollars)  Year ended December 31, 2014  8. Provisions and contingencies (continued):  (b) Liability to insurance underwriter:  (c) Additional claims involving Mr.Bennett:  (d) Environmental Protection Agency: 20  During the first quarter of 2012, the United States Environmental Protection Agency (“EPA”)  provided the Company with a Notice of Propos ed Debarment for a period of five years resulting  from documentary and procedural compliance deficiencies in connection with a prior  agreement with the EPA. On October 3, 2012, the Company announced the resolution to all  outstanding issues with the EPA. Pursuant to the terms of the negotiated Administrative  Agreement (the “Agreement”) executed by the parties, the Company agreed to undertake  certain reporting, certification, and monitoring requirements for a period of two years which  expired on October 2, 2014. Management believes that the Company has complied with its  obligations under the Agreement and that the Company will not be subject to any further  obligations under its terms. Bennett has also served a claim against Second City Capital Partners I, Limited Partnership  (“Second City”), Samuel Belzberg (“Belzberg”) and the Company in 2011. The claim alleges  that in September 2009,the Company was in possession of materia l undisclosed information  and that, while in possession of such information, the Company and Belzberg directed Second  City to purchase the Company’s common shares from Bennett. Management believes there is  no basis for making this allegation against the C ompany. Accordingly the Company has made  no provision in respect of this matter.  The Company expects to receive reimbursement from its insurance underwriter for Bennett’s  legal expenses incurred in connection with hiscriminal defense through 2014,as described in  section (a) of this note. The amount outstanding as of December 31, 2014 related to this  reimbursement was $434,236 (December 31, 2013  - $380,342) This expected reimbursement  has been recorded as amounts receivable as described in note  5. Under its funding agreement  with the underwriter,as noted above in note 8(a), the Company expects to be requi red to repay  all legal costs it recovers from the underwriter in the event that Bennett is found guilty.   The  Company hascash resources available to settle  the estimated liability that may result from this  requirement. 