NOTE 7. COMMITMENTS AND CONTINGENCIES
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6 Months Ended |
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Jun. 30, 2013
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Commitments and Contingencies Disclosure [Abstract] | |
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 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 June 30,
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 $27,192 and
$17,198 for the
six months ended June 30, 2013 and 2012,
respectively. Deferred rent was
approximately $8,656 as
of June 30, 2013.
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