COMMITMENTS AND CONTINGENCIES
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Sep. 30, 2012
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Commitments and Contingencies Disclosure [Text Block] |
NOTE
7. 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 September 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 September 30,
2012:
Rental
expense was approximately $22,841
and
$0 for the three months ended September 30,
2012 and 2011, respectively, and $40,039
and
$0 for the nine
months
ended September
30,
2012 and 2011, respectively. Deferred rent
was approximately $10,382
as
of September 30,
2012.
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