Related Party Transactions

9 Months Ended

Sep. 30, 2012

Related Party Transactions

Note 6. Related Party Transactions

See Note 8 also.

Services

Through May 2009, the Company paid a monthly retainer to the law firm of Angerer & Angerer which had been litigation counsel to the Company for more than twenty-five years and also served the Company in that capacity as well as others including general counsel services, management services, public relations, shareholder relations and representing the Company before state and federal agencies for permitting. The principals of the law firm included two individuals who are collectively shareholders, officers and a director of the Company. No amounts were paid or accrued in the nine month periods ending September 30, 2012 or 2011. The Company owes $150,000 to Angerer & Angerer at September 30, 2012.

The Company expensed $0 and $7,036 for legal fees by the law firm of Igler & Dougherty, P.A., during the nine months ended September 30, 2012 and 2011, respectively. Mr. Herbert D. Haughton, a shareholder of Igler & Dougherty, P.A., was elected a director of Coastal Caribbean and of Coastal Petroleum in December 2005.

The Company has been accruing compensation and related benefits to it its president and CEO. During the nine months ended September 30, 2012 and 2011, the Company accrued compensation and retirement benefits of $114,984. At September 30, 2012, the Company owes compensation and related benefits to its president and CEO of $656,250 and $174,906, respectively.

The Company has also been accruing directors’ fees. During the nine months ended September 30, 2012, the Company accrued $18,750 of fees to directors. At September 30, 2012, the Company owes $287,500 in directors’ fees.