Annual report pursuant to section 13 and 15(d)

Commitments and contingencies

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Commitments and contingencies
12 Months Ended
Dec. 31, 2011
Commitments and contingencies [Abstract]  
Commitments and contingencies
10. Commitments and contingencies

Lease commitments:

The Company entered into a lease for roads and compressor space in Wyoming for the pipeline. This commitment began in October and paid annually in April. The expense in 2010 was $9,600 and the cost in 2011 was $9,600, included in pipeline costs. Storage rent expense for the years ended December 31, 2010 and December 31, 2011 amounted to $554 and $1,079 respectively. The Company uses office space and conference room space provided by a director for $3,000 rent for the years ended December 31, 2010 and 2011.

The following is a schedule by years of minimum future rentals on non-cancelable operating leases as of December 31, 2011:

 

                         
    Compressor  
    Pad and Roads     End pad     Total  

2012

  $ 2,250     $ 600     $ 2,850  

2013

    —         600       600  

2014

    —         600       600  

2015

    —         600       600  

2016

    —         600       600  

Thereafter

    —         3,300       3,300  
   

 

 

   

 

 

   

 

 

 

Total minimum future rentals

  $ 2,250     $ 6,300     $ 8,550