Transactions with Affiliates

12 Months Ended

Dec. 31, 2014

Transactions with Affiliates [Abstract]

Transactions with Affiliates

(5)  Transactions with Affiliates

The late Mr. K. S. Adams, Jr., former Chairman of the Board and certain of his family partnerships and affiliates have participated as working interest owners with the Company’s subsidiary, Adams Resources Exploration Corporation (‟AREC”).  Mr. Adams and the affiliates participated on terms similar to those afforded other non-affiliated working interest owners.  While the affiliates have generally maintained their existing property interest, they have not participated in any such transactions originating after the death of Mr. Adams in October 2013.  As of December 31, 2014 and 2013, the Company owed a combined net total of $51,000 and $38,000, respectively, to these related parties.  In connection with the operation of certain oil and gas properties, the Company also charges such related parties for administrative overhead primarily as prescribed by the Council of Petroleum Accountants Society Bulletin 5. Such overhead recoveries totaled $151,000, $152,000 and $152,000 for the years ended December 31, 2014, 2013, and 2012, respectively.

The Company also enters into certain transactions in the normal course of business with other affiliated entities including direct cost reimbursement for shared phone and administrative services.  For the years ended December 31, 2014, 2013 and 2012, the affiliated entities charged the Company $65,000, $69,000 and $64,000, respectively, of expense reimbursement and the Company charged the affiliates $42,000, $99,000 and $98,000, respectively, for such expense reimbursements. The Company also leases its corporate office space in a building operated by an affiliated entity.  The lease rental rate was determined by an independent appraisal.  Rental expense paid to the related party for 2014 and 2013 totaled $607,000 and $481,000, respectively.  Additionally, in 2014, the Company engaged a professional services firm controlled by Townes Pressler, a member of the Company’s Board of Directors, to conduct a crude oil supply availability study.  Total study costs incurred were $70,420.