Commitments and Contingencies

12 Months Ended

Dec. 31, 2012

Commitments and Contingencies

10. Commitments and Contingencies

Lease commitments. The Company entered into a lease for property access rights and compressor space in Wyoming related to the Company’s natural gas gathering system. The expense in 2011 and 2012 was approximately $9,600, which is included in gas gathering operating costs. The Company uses office space and conference room space provided by a director for an annual charge of $3,000 for the years ended December 31, 2011 and 2012.

Legal Proceedings. The Company is subject to the risk of litigation, claims and assessments that may arise in the ordinary course of its business activities, including contractual matters and regulatory proceedings. As of December 31, 2012, the Company was not subject to any pending litigation and management is not currently aware of any asserted or unasserted claims and assessments that may impact the Company’s future results of operations.