FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Financial Assets and Liabilities Accounted at Fair Value

The following table presents the Company’s financial assets and liabilities that were accounted for at fair value on a recurring basis as of June 30, 2014 and December 31, 2013 by level within the fair value hierarchy


	Level 1		Level 2		Level 3		Total
June 30, 2014
ASSETS:
Commodity contracts		—		—		—		—
LIABILITIES:
Commodity contracts		—	$	2,701,354		—	$	2,701,354

December 31, 2013
ASSETS:
Commodity contracts		—		—		—		—
LIABILITIES:
Commodity contracts		—	$	125,773		—	$	125,773

Significant Assumptions Used in Valuation of Warrant Derivative Liability

The significant assumptions used in the valuation of the warrant derivative liability as of December 31, 2012 were as follows:


Exercise price	$	1.63 per share
Stock price	$	2.89 per share
Volatility		75	%
Remaining Term of Warrants		1.41 years
Risk-free interest rate		0.20	%

Reconciliation of Changes in Fair Value of Financial Liabilities

The following table sets forth a reconciliation of changes in the fair value of financial liabilities classified as Level 3 in the fair value hierarchy:


	June 30, 2014		June 30, 2013
Balance as of beginning of period	$	—	$	(2,808,278	)
Total realized and unrealized gains (losses)
Included in earnings		—		591,439
Issuances		—		—
Settlements		—		—
Transfers in and out of Level 3		—		—

Balance as of June 30	$	—	$	(2,216,839	)

Change in unrealized gains included in earnings Relating to instruments still held as of June 30	$	—	$	591,439

- Definition

Tabular disclosure of the fair value measurement of liabilities using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets), and gains or losses recognized in other comprehensive income (loss) and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs) by class of liability.

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