Note 21 – Related Party Transactions

The Company is party to certain agreements and transactions with Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer, and companies owned or controlled by Richard M. Osborne.

Acquisition of 8500 Station Street

On March 5, 2013, the Company purchased the Matchworks building in Mentor, Ohio for $1.9 million from McKay Real Estate Corporation, Matchworks, LLC, and Nathan Properties, LLC (collectively, the “Sellers”) by and through Mark E. Dottore as Receiver in the United States District Court. The Sellers are entities owned or controlled by Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer. The acquisition of the Matchworks Building was approved by the independent members of the Company’s board of directors. See Note 3 - Acquisitions for details regarding this transaction.

Acquisition of John D. Oil and Gas Marketing

On June 1, 2013, the Company and its wholly-owned Ohio subsidiary, GNR, completed the acquisition of substantially all of the assets and certain liabilities of JDOG Marketing, an Ohio company engaged in the marketing of natural gas. The Osborne Trust is the majority owner of JDOG Marketing. Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer, is the sole trustee of the Osborne Trust. The acquisition of JDOG Marketing was approved by the independent members of the Company’s board of directors and the Company’s shareholders. See Note 3 – Acquisitions for details regarding this transaction.

Lease Agreements

The Company had an agreement to lease a pipeline from JDOG Marketing through December 31, 2016. This pipeline and corresponding lease were acquired by the Company in the acquisition of JDOG Marketing. Lease expense resulting from this agreement was $5,500 and $13,200 for the years ended December 31, 2013 and 2012, respectively. These amounts are included in the Natural Gas Purchased column below. There was no balance due at December 31, 2013 or 2012 to JDOG Marketing related to these lease payments. See Note 3 – Acquisitions for details regarding the JDOG Marketing acquisition.

On October 7, 2013, 8500 Station Street entered into a lease agreement with OsAir, Inc. (“OsAir”), an entity owned and controlled by Richard M. Osborne, the Company’s chairman and chief executive officer. Pursuant to the agreement, 8500 Station Street leases to OsAir approximately 6,472 square feet of office space located at 8500 Station Street, Mentor, Ohio 44060, at a rent of $5,500 per month for a period of three years starting from March 1, 2013. In September of 2014, OsAir was evicted from the office space for failure to make payment. At December 31, 2014, $29,150 of past due rent was still owed the Company.

On December 18, 2013, Orwell entered into a lease agreement with Cobra Pipeline Co., LLC (“Cobra”), an entity owned and controlled by Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer. Pursuant to the lease agreement, Cobra leases to Orwell approximately 2,400 square feet of warehouse space located at 2412 Newton Falls Rd., Newton Falls, OH 44444, at a rent of $2,000 per month for the time period commencing on December 18, 2013 and ending on February 29, 2016. Following the end of the initial term, the lease agreement will continue on a month-to-month basis until either party decides to terminate it upon 30 days’ advance written notice to the other party.

Accounts Receivable and Accounts Payable

The table below details amounts due from and due to related parties, including companies owned or controlled by Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer, at December 31, 2014 and 2013.

	Accounts Receivable				Accounts Payable
	December 31, 2014		December 31, 2013		December 31, 2014		December 31, 2013

Cobra Pipeline	$	178,596	$	131,208	$	67,982	$	76,909
Orwell Trumbell Pipeline		-		-		102,231		122,693
Great Plains Exploration		959		7,033		9		73,983
Big Oats Oil Field Supply		4,752		4,945		-		179,447
John D. Oil and Gas Company		6,854		91		-		82,188
OsAir		35,329		-		97		16,703
Other		8,120		2,948		-		8,010
Total related party balances		234,610		146,225		170,319		559,933
Less amounts included in discontinued operations		-		-		-		-
Total related party balances included in continuing operations	$	234,610	$	146,225	$	170,319	$	559,933

The table below details transactions with related parties, including companies owned or controlled by Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer, for the year ended December 31, 2014:

	Year Ended December 31, 2014
	Natural Gas Purchases		Pipeline Construction Purchases		Rent, Supplies, Consulting and Other Purchases		Natural Gas Sales		Rental Income and Other Sales

Cobra Pipeline	$	1,119,192	$	-	$	18,000	$	104,623	$	13,400
Orwell Trumbell Pipeline		788,026		-		-		1,956		37,124
Great Plains Exploration		611,187		-		-		13,073		5,200
Big Oats Oil Field Supply		-		254,752		93,741		5,181		850
John D. Oil and Gas Company		737,522		-		-		575		42,209
OsAir		176,116		-		6,317		3,788		52,045
Lake Shore Gas Storage		162,360		-		-		-		-
Other		76,282		-		22,808		22,240		1,676
Total	$	3,670,685	$	254,752	$	140,866	$	151,436	$	152,504

	Year Ended December 31, 2013
	Natural Gas Purchases		Pipeline Construction Purchases		Rent, Supplies, Consulting and Other Purchases		Natural Gas Sales		Rental Income and Other Sales

John D. Oil and Gas Marketing	$	951,120	$	-	$	16,599	$	5,470	$	-
Cobra Pipeline		842,620		263,574		20,000		157,834		381
Orwell Trumbell Pipeline		795,190		-		-		1,260		33,911
Great Plains Exploration		856,696		854		1,341		9,310		47,640
Big Oats Oil Field Supply		-		2,967,705		624,147		3,996		5,125
John D. Oil and Gas Company		911,507		5,975		-		572		29,356
OsAir		241,693		13,200		91,850		4,866		72,787
Other		86,987		853		44,334		20,054		45,299
Total	$	4,685,813	$	3,252,161	$	798,271	$	203,362	$	234,499

	Year Ended December 31, 2012
	Natural Gas Purchases		Pipeline Construction Purchases		Rent, Supplies, Consulting and Other Purchases		Natural Gas Sales		Rental Income and Other Sales

John D. Oil and Gas Marketing	$	2,405,158	$	9,870	$	58,043	$	-	$	13,128
Cobra Pipeline		389,233		5,390		5,104		-		23,210
Orwell Trumbell Pipeline		526,785		132		19,547		26,519		4,785
Great Plains Exploration		506,503		-		-		7,068		10,643
Big Oats Oil Field Supply		-		1,231,921		256,607		2,131		7,068
John D. Oil and Gas Company		502,897		-		-		575		-
Sleepy Hollow Oil & Gas		-		-		-		-		5,113
OsAir		248,588		-		196,451		2,479		306
Other		135,927		-		127,171		28,777		411
Total	$	4,715,091	$	1,247,313	$	662,923	$	67,549	$	64,664

The Company also accrued a liability of $111,133 and $0 due to companies controlled by Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer, for natural gas used and transportation charges through December 31, 2014 and 2013, respectively, which had not yet been invoiced. The related expense is included in the gas purchased line item in the accompanying statements of comprehensive income.

Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer, sold shares of common stock in which the Company incurred expenses of $309,432 and $274,213 for the years ended December 31, 2013 and 2012, respectively. These expenses are recorded in the accompanying income statement as stock sale expense.

In addition, the Company had related party natural gas imbalances of $98,081 and $151,780 at December 31, 2014 and December 31, 2013, respectively, which were included in the Company’s natural gas inventory balance. These amounts represent quantities of natural gas due to the Company from natural gas transportation companies controlled by Richard M. Osborne, father of the Company’s chief executive officer and the Company’s former chairman and chief executive officer.