NOTE 6. COMMITMENTS AND CONTINGENCIES
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3 Months Ended |
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Mar. 31, 2013
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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 Company for the cost of pollution clean-up resulting
from operations and subject the Company 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 March 31, 2013, which
have not been provided for, or covered by insurance or
which may 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
rental expense was approximately $10,871 and $0 for the
three months ended March 31, 2013 and 2012,
respectively. Deferred rent was approximately
$9,386 as of March 31, 2013.
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