|
NOTE 6. COMMITMENTS AND CONTINGENCIES
|
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|
Jun. 30, 2012
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||