Asset Retirement Obligations

3 Months Ended

Mar. 31, 2022

Asset Retirement Obligation Disclosure [Abstract]

Asset Retirement Obligations

Note 10 – Asset Retirement Obligations

The Company’s asset retirement obligations primarily relate to the Company’s portion of future plugging and abandonment costs for wells and related facilities. The following table presents the changes in the asset retirement obligations for the three months ended March 31, 2022 and 2021:

	Amount
Asset retirement obligation at December 31, 2020	$	1,716,003
Accretion expense during the period		—
Asset retirement obligation at March 31, 2021	$	1,716,003
Asset retirement obligation at December 31, 2021	$	1,730,264
Additions		—
Accretion expense during the period		279
Asset retirement obligation at March 31, 2022	$	1,730,543

The $1,716,003 asset retirement obligation existing at March 31, 2021 and in years prior to 2020 represented the remaining potential liability for wells AMGAS had owned in Texas and Wyoming prior to their sales/disposal in 2012. AMGAS was not in compliance with then existing federal, state and local laws, rules and regulations for its previously owned Texas and Wyoming domestic oil and gas properties. Regardless, that all previously owned domestic oil and gas properties held by Infinity – Wyoming and Infinity-Texas being disposed of in 2012 and prior years; the Company may remain liable for certain asset retirement costs should the new owners not complete their asset retirement obligations. Management believes the asset retirement obligations recorded relative to these Texas and Wyoming wells of $1,716,003 as of March 31, 2022 and December 31, 2021 are sufficient to cover any potential noncompliance liabilities relative to the plugging of abandoned wells, the removal of facilities and equipment, and site restoration on oil and gas properties for its former oil and gas properties.

The Company assumed a $13,425 asset retirement obligation pursuant to an acquisition on April 1, 2021 and recorded $279 of accretion expense during the three months ended March 31, 2022 related to the acquisition of the Oil and Gas Properties as further described in Note 2.