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NOTE 6. COMMITMENTS AND CONTINGENCIES
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Dec. 31, 2012
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| Commitments and Contingencies Disclosure [Text Block] |
NOTE
6. COMMITMENTS AND CONTINGENCIES
Environmental
Matters – 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 December 31, 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.
Office
Lease –
The Company has a
non-cancelable lease for its office in Austin, Texas.
Rent expense on
this lease for the eight months ended December 31, 2012
(since inception) totaled $43,520. Deferred rent at December
31, 2012 was $9,844. Future minimum payments on the
office lease are shown below:
The
following table summarizes the Company’s future minimum
payments as of December 31, 2012:
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