COMMITMENTS AND CONTINGENCIES
|12 Months Ended|
Dec. 31, 2020
|Commitments and Contingencies Disclosure [Abstract]|
|COMMITMENTS AND CONTINGENCIES||
NOTE 12. COMMITMENTS AND CONTINGENCIES
Environmental Matters – The Company, as a lessee of oil and gas properties, is subject to various federal, provincial, 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. 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 – On December 31, 2020, the Company terminated its one annually renewable office lease in Houston with minimum contractual lease payments of $1,500 per month.
As mentioned in Note 6, the Company holds a lease for acreage at SUDS Field from Joel Opeenheim.
On August 1, 2017, Mr. Joel Oppenheim provided a Letter of Credit (LOC), which was posted as collateral in order for the Company to issue operating bonds with the State of New Mexico for the operation of Twin Lakes San Andres Unit wells. In exchange for the LOC, the Company issued Mr. Oppenheim 246,000 and warrants to purchase 2,000,000 shares of common stock with an exercise price of $0.14 per share.shares of common stock valued at $
The entire disclosure for commitments and contingencies.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef