Note 12 – Related Party Transactions

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 June 30, 2015 and December 31, 2014. These amounts are presented on the balance sheet as Related parties under Accounts receivable and Accounts payable. During the three months and six months ended June 30, 2015, the Company wrote-off $0 and $9,000, respectively, of related party receivables as uncollectable.

	Accounts Receivable				Accounts Payable
	June 30,		December 31,		June 30,		December 31,
	2015		2014		2015		2014

Cobra Pipeline	$	147,709	$	178,596	$	18,065	$	67,982
Orwell Trumbell Pipeline		131		-		6,021		102,231
Great Plains Exploration		432		959		9		9
Big Oats Oil Field Supply		10		4,752		-		-
John D. Oil and Gas Company		6,849		6,854		-		-
OsAir		41,095		35,329		-		97
Lake County Title		20,025		15,491		-		-
Other		4,625		8,120		-		-
Total related party balances	$	220,876	$	250,101	$	24,095	$	170,319

The tables below detail 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 three months ended June 30, 2015 and 2014.

	Three Months Ended June 30, 2015
	Natural Gas		Rent, Supplies,
	Purchases &		Consulting and				Rental Income
	Transportation		Other Purchases		Natural Gas Sales		and Other Sales

Cobra Pipeline	$	273,262	$	6,000	$	-	$	-
Orwell Trumbell Pipeline		137,156		-		166		-
Great Plains Exploration		36,801		-		-		(500)
Big Oats Oil Field Supply		-		-		332		-
John D. Oil and Gas Company		176,706		-		174		-
OsAir		-		-		1,708		250
Lake Shore Gas		-		-		-		-
Lake County Title		-		-		-		-
Other				-		1,865		250
Total	$	623,925	$	6,000	$	4,245	$	-

	Three Months Ended June 30, 2014
	Natural Gas		Pipeline		Rent, Supplies,
	Purchases &		Construction		Consulting and				Rental Income
	Transportation		Purchases		Other Purchases		Natural Gas Sales		and Other Sales

Cobra Pipeline	$	370,912	$	-	$	-	$	44,099	$	13,400
Orwell Trumbell Pipeline		221,371		-		-		307		1,575
Great Plains Exploration		272,827		-		-		2,634		1,500
Big Oats Oil Field Supply		-		447		5,068		591		-
John D. Oil and Gas Company		317,148		-		-		144		12,650
OsAir		66,636		-		-		568		16,500
Lake Shore Gas		51,150		-		-		-		-
Lake County Title		-		-		-		-		-
Other		35,115		-		9,123		5,162		375
Total	$	1,335,159	$	447	$	14,191	$	53,505	$	46,000

	Six Months Ended June 30, 2015
	Natural Gas		Rent, Supplies,
	Purchases &		Consulting and				Rental Income
	Transportation		Other Purchases		Natural Gas Sales		and Other Sales

Cobra Pipeline	$	643,024	$	14,000	$	-	$	-
Orwell Trumbell Pipeline		598,106		-		971		100
Great Plains Exploration		323,071		-		255		(500)
Big Oats Oil Field Supply		-		-		2,358		850
John D. Oil and Gas Company		176,706		-		317		-
OsAir		-		-		6,511		-
Lake Shore Gas		-		-		-		-
Lake County Title		-		-		-		7,241
Other		-		-		9,058		-
Total	$	1,740,907	$	14,000	$	19,470	$	7,691

	Six Months Ended June 30, 2014
	Natural Gas		Pipeline		Rent, Supplies,
	Purchases &		Construction		Consulting and				Rental Income
	Transportation		Purchases		Other Purchases		Natural Gas Sales		and Other Sales

Cobra Pipeline	$	709,247	$	-	$	8,000	$	104,623	$	13,400
Orwell Trumbell Pipeline		516,603		-		-		1,455		1,575
Great Plains Exploration		490,479		-		-		12,136		3,000
Big Oats Oil Field Supply		-		254,752		93,741		4,453		850
John D. Oil and Gas Company		285		-		-		287		29,150
OsAir		143,132		-		6,001		2,845		22,866
Lake Shore Gas		162,360		-		-		-		-
Lake County Title		-		-		-		-		-
Other		664,443		-		22,808		18,226		1,576
Total	$	2,686,549	$	254,752	$	130,550	$	144,025	$	72,417

In addition, the Company accrued a liability of approximately $83,000 and $21,000 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 and natural gas transportation services used through June 30, 2015 and 2014, respectively, which had not yet been invoiced. The related expenses are included in the gas purchased line item in the accompanying Condensed Consolidated Statements of Comprehensive Income.

In addition, the Company had related party natural gas imbalances of $201,000 and $98,000 at June 30, 2015 and December 31, 2014, 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.

On April 6, 2015, the Company entered into a loan agreement and promissory note with NIL Funding Corporation (“NIL Funding”). Pursuant to the note and loan agreement, NIL Funding loaned Gas Natural $5.0 million, bearing an annual interest rate of 7.5%, and a maturity date of October 3, 2015. The note and loan agreement are subject to other customary loan covenants and default provisions. See Note 8 – Credit Facilities and Long-Term Debt for further detail regarding this loan and Note 15 – Subsequent Events for detail on the repayment of the loan.

NIL Funding is an affiliate of The InterTech Group, Inc. (“InterTech”). The Chairperson and Chief Executive Officer of InterTech is Anita G. Zucker. Ms. Zucker, as trustee of the Article 6 Marital Trust, under the First Amended and Restated Jerry Zucker Revocable Trust dated April 2, 2007, beneficially owns 940,000 shares, or 8.96%, of the Company’s outstanding common stock, as of February 9, 2015. Two members of Gas Natural’s Board of Directors, Robert Johnston and Michael Bender, also currently serve as Executive Vice President and Chief Strategy Officer and Director, Corporate Secretary and Corporate Counsel, respectively, of InterTech.