6.	Contracts Payable

The Company entered into a consulting contract for financing, structure, and investor services on March 2, 2010 for 800,000 shares of Common Stock valued at $500,000, or $0.625 per share. The contract is for a period of three years and is being amortized ratably over the service period. For each of the years ended December 31, 2011 and 2012, $166,667 related to this consulting contract is included in investor relations expense in the accompanying Consolidated Statements of Operations. As of December 31, 2012, the unamortized balance of $27,778 is included in prepaid expenses and other in the accompanying Consolidated Balance Sheet.

During 2010 and 2011, a director of the Company transferred 220,000 and 100,000 shares, respectively, of his common stock of the Company to an unrelated party. The unrelated party provided to the Company certain marketing, financing and operational consulting services valued at an aggregate of $230,000. The services were provided during 2010 and 2011 and were amortized ratably over the service period. During the second quarter of 2011, the Company issued 320,000 shares of Common Stock to repay the director.

The Company owed a director for services provided in 2010 and 2011 related to the operation of the Company’s pipeline business and the purchase of oil and gas properties. The board of directors agreed to issue 350,000 shares of common stock during 2011 for the services which were valued at $245,000, or $0.70 per share. The expense was amortized over the 24-month service period, which resulted in a charge of $122,500 for each of the years ended December 31, 2010 and 2011.

The Company owed its directors for services for part of 2008, 2009, 2010 and first quarter 2011. The total services provided amounted to $128,000 during fiscal 2010 and first quarter of fiscal 2011 to be paid in the future with 72,841 shares of Common Stock valued at an average of $1.76 per share. All shares were issued in May 2011.