Income Taxes

9 Months Ended

Sep. 30, 2012

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

10. Income Taxes

The Company has not recognized any income tax provision (benefit) for the three and nine months ended September 30, 2012 and 2011 due to continuing losses from operations.

The U.S. statutory federal income tax rate is reconciled to the Company’s effective income tax rate as follows (in thousands):

	Three Months Ended September 30,						Nine Months Ended September 30,
	2012			2011			2012			2011
Tax benefit at 35% federal statutory rate	$	3,965		$	(892	)	$	12,192		$	5,186
State tax benefit, net of federal benefit		57			(13	)		174			74
Noncontrolling interest		(532	)		126			(1,780	)		(819	)
Valuation allowance		(3,736	)		928			(10,519	)		(3,788	)
Other		246			(149	)		(67	)		(653	)
Total	$	—		$	—		$	—		$	—

The effects of temporary differences and other items that give rise to deferred tax assets and liabilities are presented below (in thousands):

	September 30, 2012			December31, 2011
Deferred tax assets:
Capitalized start up costs	$	3,364		$	3,558
Stock-based compensation		655			665
Net operating loss carryover		80,967			68,036
Other		129			258
Deferred tax assets		85,115			72,517
Valuation allowance		(43,790	)		(33,802	)
Deferred tax liabilities:
Property, plant and equipment		(41,325	)		(38,715	)
Deferred tax liabilities		(41,325	)		(38,715	)
Net deferred tax asset	$	—		$	—

The Company assesses the recoverability of deferred tax assets and the need for a valuation allowance on an ongoing basis. In making this assessment, management considers all available positive and negative evidence to determine whether it is more likely than not that some portion or all of the deferred tax assets will be realized in future periods. This assessment requires significant judgment and estimates involving current and deferred income taxes, tax attributes relating to the interpretation of various tax laws, historical bases of tax attributes associated with certain assets and limitations surrounding the realization of deferred tax assets.

As of September 30, 2012, the net operating loss carryforward was $227.5 million, which will begin to expire if not used by December 31, 2028. The U.S. federal statute of limitations remains open for our 2006 and subsequent tax years.