NOTE

–

mmitments

Right-Of-Use Leas

ing Arrangements

The Company leases facilities from Garden City, Kansas, which provides for: (a) a

-year lease term expiring

December 31, 2030,

with

one five

-year renewal period, and (b) a base rent of

$2,187

per month. In addition, the Company incurs a fuel flowage fee of

$0.06

per gallon of fuel received. The fuel flowage fee is to be reviewed annually by the Garden City Regional Airport, the City of Garden City, and the Company. Flowage fees on fuel gallons purchased aggregated approximately

$52,000

and

$49,000

for the years ended

December 31, 2019

and

2018,

respectively.

The Company leases additional facilities from Garden City, Kansas, which provides for a

year lease term expiring

December 31, 2030

with a base rent of

$565

a month.

2018,

the Company’s Kansas subsidiary entered into a purchase lease with Commerce Bank for a refueling truck. The lease commenced on

May 1, 2018

and continues for

months at an interest rate of LIBOR plus

416

basis points. At the end of the lease, the Company’s subsidiary

may

purchase the vehicle for

$1.00.

The Company’s lease right of use assets and lease liabilities as of

December 31, 2019

are summarized as follows:

	December 31,
	2019
Right of use assets	$	495,377
Current portion of debt and right of use lease liabilities	$	60,675
Long term portion of debt and right of use lease liabilities		399,733
Total right of use lease liabilities	$	460,408
Weighted average remaining lease terms (years)		12
Weighted average discount rate		5.5	%

The maturities of the Company’s right of use lease liabilities as of

December 31, 2019

are as follows:

For the year ended
December 31,	Total
2020	$	84,672
2021		84,018
2022		83,149
2023		61,688
2024		50,448
Thereafter		289,171
TOTAL	$	653,146
Less Interest		(192,738	)
Present value of lease liabilities	$	460,408

The components of right of use lease expenses included in “Selling, General and Administrative Expenses” in the Company’s consolidated statements of operations aggregated approximately

$35,000

2019.