Asset Impairments	12 Months Ended
Dec. 31, 2012
Asset Impairments	Note 4 Asset Impairments *During the year ended December 31, 2012* Since June 30, 2012, several of the Company's offshore and onshore assets have been negatively affected by the loss of future revenues as customers have chosen to delay or abandon natural gas production due to depressed natural gas prices. Based on those events and current natural gas market conditions, management performed an impairment review of its capitalized costs on these systems as of September 30, 2012, including their future abandonment costs and associated intangible assets, in accordance with Topic 360. To determine the fair value of these assets, the Company estimated the future cash flows from these systems based on the likelihood of various outcomes using a probability weighted approach. As a result, it was determined that impairments totaling $3,075,803 were required. These impairments were apportioned as $1,930,584 to the carrying value of the Company's property and equipment and $1,145,219 to the carrying value of the Company's intangible assets. ASC Topic 820, “Fair Value Measurements” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The impairments noted above were based on Level 3, unobservable inputs, including conversations with the Company's customers concerning future plans for the fields supporting the Company's gathering systems, the Company's estimates of the cost to abandon the systems, the Company's discounted cash flow analysis and other management estimates. Management expects that the Company's future depreciation expense will decrease by approximately $165,000, on an annual basis, as a result of the aforementioned impairment. *During the year ended December 31, 2011* During the third quarter of 2011, the Company was notified by the operator of a platform utilizing one of the Company's offshore systems of its intent to abandon its lease in 2012. As a result of this notification and continuing conversations with its customers, the Company determined that it was more likely than not that the useful lives of all of its offshore systems were one and one-half to ten years shorter than last evaluated, and that the Company had a legal obligation to pay for the abandonment of certain of its systems. As a result, the Company performed an impairment review of its capitalized costs on these systems, including their future abandonment costs and associated intangible assets, in accordance with ASC Topic 360. Furthermore, in connection with the aforementioned impairment analysis conducted with its offshore systems, the Company determined that further impairment analysis was necessary for its Madisonville pipeline system due to the lack of production from the wells connected to the system since May 2011 and no materialization of potential alternative uses for the pipeline. To determine the fair value of these assets, the Company estimated the future cash flows from these systems based on the likelihood of various outcomes using a probability weighted approach. As a result, it was determined that impairments totaling $3,365,168 were required. These impairments were apportioned as $3,236,156 to the carrying value of the Company's property and equipment and $129,012 to the carrying value of the Company's intangible assets associated with these assets. The impairments noted above were based on Level 3, unobservable inputs, including conversations with the Company's customers concerning future plans for the fields supporting the Company's gathering systems, the Company's estimates of the cost to abandon the systems, the Company's discounted cash flow analysis and management's estimates. Due to the offsetting nature of (i) the aforementioned change in useful lives of some of the Company's gas distribution, transmission and gathering systems, (ii) the increase in the Company's required asset retirement obligation discussed below and (iii) the current period impairment expense, the Company's future depreciation expense will not be materially different in future periods.

Asset Impairments

12 Months Ended

Dec. 31, 2012

Note 4 Asset Impairments

During the year ended December 31, 2012

Since June 30, 2012, several of the Company's offshore and onshore assets have been negatively affected by the loss of future revenues as customers have chosen to delay or abandon natural gas production due to depressed natural gas prices. Based on those events and current natural gas market conditions, management performed an impairment review of its capitalized costs on these systems as of September 30, 2012, including their future abandonment costs and associated intangible assets, in accordance with Topic 360.

To determine the fair value of these assets, the Company estimated the future cash flows from these systems based on the likelihood of various outcomes using a probability weighted approach. As a result, it was determined that impairments totaling $3,075,803 were required. These impairments were apportioned as $1,930,584 to the carrying value of the Company's property and equipment and $1,145,219 to the carrying value of the Company's intangible assets.

ASC Topic 820, “Fair Value Measurements” establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The impairments noted above were based on Level 3, unobservable inputs, including conversations with the Company's customers concerning future plans for the fields supporting the Company's gathering systems, the Company's estimates of the cost to abandon the systems, the Company's discounted cash flow analysis and other management estimates.

Management expects that the Company's future depreciation expense will decrease by approximately $165,000, on an annual basis, as a result of the aforementioned impairment.

During the year ended December 31, 2011

During the third quarter of 2011, the Company was notified by the operator of a platform utilizing one of the Company's offshore systems of its intent to abandon its lease in 2012. As a result of this notification and continuing conversations with its customers, the Company determined that it was more likely than not that the useful lives of all of its offshore systems were one and one-half to ten years shorter than last evaluated, and that the Company had a legal obligation to pay for the abandonment of certain of its systems. As a result, the Company performed an impairment review of its capitalized costs on these systems, including their future abandonment costs and associated intangible assets, in accordance with ASC Topic 360.

Furthermore, in connection with the aforementioned impairment analysis conducted with its offshore systems, the Company determined that further impairment analysis was necessary for its Madisonville pipeline system due to the lack of production from the wells connected to the system since May 2011 and no materialization of potential alternative uses for the pipeline.

To determine the fair value of these assets, the Company estimated the future cash flows from these systems based on the likelihood of various outcomes using a probability weighted approach. As a result, it was determined that impairments totaling $3,365,168 were required. These impairments were apportioned as $3,236,156 to the carrying value of the Company's property and equipment and $129,012 to the carrying value of the Company's intangible assets associated with these assets.

The impairments noted above were based on Level 3, unobservable inputs, including conversations with the Company's customers concerning future plans for the fields supporting the Company's gathering systems, the Company's estimates of the cost to abandon the systems, the Company's discounted cash flow analysis and management's estimates.

Due to the offsetting nature of (i) the aforementioned change in useful lives of some of the Company's gas distribution, transmission and gathering systems, (ii) the increase in the Company's required asset retirement obligation discussed below and (iii) the current period impairment expense, the Company's future depreciation expense will not be materially different in future periods.

- Definition

Disclosure of accounting policy for recognizing and measuring the impairment of long-lived assets. An entity also may disclose its accounting policy for long-lived assets to be sold. This policy excludes goodwill and intangible assets.

+ References+ Details