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NOTE 6. COMMITMENTS AND CONTINGENCIES
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Dec. 31, 2013
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| Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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, 2013, 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 12 months ended December 31, 2013 totaled $54,137. In October 2013 the Company entered into an agreement with an unrelated party to sublease the office. The sublessor will be responsible for rent payments and maintenance fees from December 1, 2013 through the term of the lease. Deferred rent at December 31, 2013 was $6,987. 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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