18. Asset Retirement Obligations

12 Months Ended

Dec. 31, 2012

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

(18) Asset Retirement Obligations

Refinery and Facilities

Management has concluded that there is no legal or contractual obligation to dismantle or remove our refinery and facilities assets. Management believes that our refinery and facilities assets have indeterminate lives under FASB ASC guidance for estimating AROs because dates or ranges of dates upon which we would retire these assets cannot reasonably be estimated at this time. When a date or range of dates can reasonably be estimated for the retirement of these assets, we will estimate the cost of performing the retirement activities and record a liability for the fair value of that cost using present value techniques.

Oil and Gas Properties and Pipelines and Facilities Assets

We have AROs associated with the future abandonment, dismantlement and removal of our oil and gas properties, as well as our pipelines and facilities assets, as follows:

	December 31,			December 31,
	2012			2011
Fair value of asset retirement obligations at February 15, 2012	$	1,294,139		$	-
Liabilities extinguished		(361,680	)		-
Liabilities settled		(141,099	)		-
Accretion expense from continuing operations		105,032			-
Accretion from discontinued operations		24,868			-
Asset retirement obligations as of December 31, 2012		921,260			-
Less: current portion of asset retirement obligations		-			-
Asset retirement obligations, long-term balance
at December 31, 2012	$	921,260		$	-

During the twelve months ended December 31, 2012, plugging and abandonment costs related to our High Island A-7 oil and gas property exceeded the amount reserved for the ARO liability. Accordingly, the excess amount, which was $1,184,549, was recognized as a loss during the period. We will record additional plugging and abandonment costs as information becomes available to substantiate actual and/or probable costs.