COMMITMENTS AND CONTINGENCIES
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Jun. 30, 2012
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Commitments and Contingencies Disclosure [Text Block] |
NOTE
6. COMMITMENTS AND CONTINGENCIES
The
Company, as a lessee of oil and gas properties, is subject
to various federal, state and local laws and regulations
relating to discharge of materials into, and protection of,
the environment. These laws and regulations may, among
other things, impose liability on the lessee under an oil
and gas lease for the cost of pollution clean-up resulting
from operations and subject the lessee to liability for
pollution damages. In some instances, the Company may be
directed to suspend or cease operations in the affected
area. The Company is not aware of any
environmental claims existing as of June 30, 2012, which
have not been provided for, covered by insurance or
otherwise have a material impact on its financial position
or results of operations. There can be no assurance,
however, that current regulatory requirements will not
change, or past noncompliance with environmental laws will
not be discovered on the Company’s properties.
Operating
Lease
The
Company has a non-cancelable lease for its office in
Austin, Texas. The following table summarizes the
Company’s future minimum payments as of June 30,
2012:
Rental
expense was approximately $15,092 and $0 for the three
months ended June 30, 2012 and 2011, respectively,
and $17,198 and $0 for the six months ended
June 30, 2012 and 2011,
respectively. Deferred rent was
approximately $10,880 as of June 30,
2012.
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