INCOME AND OTHER INCOME

12 Months Ended

Dec. 31, 2013

INTEREST AND OTHER INCOME

INTEREST AND OTHER INCOME

NOTE M—INTEREST AND OTHER INCOME

        During the third quarter of 2013, the Company reviewed its practice regarding the amounts of post-production costs that could be charged to royalty owners in the Wilmington Townlot Unit. The Company evaluated these post-production costs and the applicable amounts that could be charged to royalty owners under the terms of the lease agreements. The analysis resulted in a decision by management to charge additional amounts as compared to past practices and, additionally, to recapture amounts applicable to prior periods. This decision resulted in a non-recurring adjustment of $5.3 million during the quarter, which was recorded in Interest and Other Income.