Note 10 - Wastewater Discharge Liability

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Waste Water Discharge Liability [Text Block]

NOTE 10 -     WASTEWATER DISCHARGE LIABILITY

During the fourth quarter of 2014, LKA received a Notice of Violation (NOV) from the Colorado Department of Health and Environment (CDPHE) for failure to meet certain requirements of the Company’s wastewater discharge permit. During 2015, the Company undertook all corrective actions specified in the NOV, under CDPHE oversight, and believes it is in compliance with the terms of its permit. LKA believes it is probable that that there will be a financial penalty assessed, and that range will be between $75,000 and $150,000. As a result, LKA has accrued a liability of $75,000 as of December 31, 2015 since there is no better estimate of the amount of loss within this range.