Note 2 - Income Taxes. At September 30, 2015, the Company had a depletion carryforward of $860,000 and a net operating loss carryforward ("NOL") of $1,973,000, which will expire in the years 2027 through 2035.. The approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax assets at September 30, 2015, computed in accordance with the Income Tax Topic (Topic 740) of the Codification, is as follows:

Deferred Tax Assets		2015	2014
Depletion carryforward	$	301,000	$ 302,000
Net operating loss carryforward		691,000	648,000
Accrued shareholder salary		281,000	205,000
Other		3,000	-
Total Net Deferred Tax Assets		1,276,000	1,155,000
Less valuation allowance		(1,276,000)	(1,155,000)
Net Deferred Tax Asset	$	-	$ -

A valuation allowance has been provided because of the uncertainty of future realization. Income tax expense is different from amounts computed by applying the statutory Federal income tax rate for the following reasons:

		2015	2014
Tax benefit at 35% of net earnings	$	(121,000)	(106,000)
State income tax, net of Federal benefit		-	-
Change in valuation allowance for net deferred tax assets		121,000	106,000
Income tax expense	$	-	-

As of September 30, 2015, the Company has no unrecognized tax benefit as a result of uncertain tax positions. As of September 30, 2015, the Company’s tax years that remain subject to examination are 2012 - 2015 (Federal jurisdiction) and 2011 - 2015 (state jurisdictions).