Leases

12 Months Ended

Dec. 31, 2012

Leases, Capital [Abstract]

Leases

Note 10.  Leases

Wood Energy leased equipment used in its operations under capital leases that expire over two to three years. Payments under these capital leases were $194,832 and $105,383 for the years ended December 31, 2012 and 2011, respectively. Depreciation of the equipment is included in the cost of goods sold section of the statement of operations. At December 31, 2012, the total future minimum rental commitments under all the above operating leases, which are subject to compromise under the laws of Chapter 7 bankruptcy, are as follows:

For the years ending December 31,
2013	$	145,629
2014		91,035
2015		70,822
2016		23,420
Net minimum lease payments		330,906
Less amount representing interest		52,509
Present value of net minimum lease payments		278,397
Amount representing current portion		(278,397	)
Capital leases payable, less current portion	$	-

The Company also has an operating lease for unimproved land where its processing facility is located, for a two year period ended January 2012, for which the Company extended the term on a month to month basis. Payments under this operating lease were $6,000 and $36,000 for the years ended December 31, 2012 and 2011, respectively.

On August 29, 2011, Wood Energy entered into a lease with a former related party for a new facility in Gibsland, La. This lease is subject to compromise under the laws of Chapter 7 bankruptcy. This facility replaced the Company’s facility in Shreveport, La. The lease took effect in January 2012 upon the completion of development of the site. The lease has a term of five years and calls for annual rental payments of $10,000 per year and an additional commitment of 1,200 railcars per year to the leased facility at a rate of $300 per car.