Note 8 - Contingencies

9 Months Ended

Sep. 30, 2012

Commitments and Contingencies Disclosure [Text Block]

NOTE 8 - CONTINGENCIES

In California, third parties have the ability to file litigation challenging the approval of a project.  As a result, the Company is and expects to continue to be party to various legal proceedings arising in the general course of its business, including, in particular, the development of the Water Project. 

Following certification of the Water Project’s Environmental Impact Report in July 2012, the Company was named as a real party in interest in five lawsuits challenging the adequacy of the EIR, including four cases in California State Court and one in Federal Court.  The State Court cases have since been consolidated and will be heard by one State Court judge.  The Federal Court proceeding was dismissed in October 2012.

The Company cannot predict the outcome of any such proceedings, however, at present the Company does not believe that the ultimate resolution of these proceedings will have a material adverse effect on its business.