(8) Long-Term Debt

Long-term debt to unrelated entities consisted of the following (in thousands):


		September 30, 2012		December 31, 2011
Note payable to a financial institution, with interest only
payment until maturity.	$	11,388	$	11,531
Installment notes bearing interest at the rate of 5.5% to
8.25% per annum collateralized by vehicles with monthly
payments including interest, insurance and maintenance of
approximately $20,000		232		266
Total long-term debt		11,620		11,797
Less current maturities		(107		(103
Long-term debt, less current maturities	$	11,513	$	11,694

At September 30, 2012, the Company had a revolving credit facility with F&M Bank & Trust Company N.A. of Dallas, Texas ("F&M Bank"). Under the credit facility, loans and letters of credit are available to the Company on a revolving basis in an amount outstanding not to exceed the lesser of $40 million or the Company's borrowing base in effect from time to time. The credit facility is secured by substantially all of the Company's producing and non-producing oil and gas properties and pipeline and the Company's Methane Project assets. The credit facility includes certain covenants with which the Company is required to comply. These covenants include leverage, interest coverage, minimum liquidity, and general and administrative coverage ratios. At September 30, 2012 and December 31, 2011, the Company was in compliance with all covenants.

On September 12, 2012, the Company's senior credit facility with F&M Bank after F&M Bank's semiannual review of the Company's then owned producing properties was amended to decrease the Company's borrowing base from $23 million to $21.5 million. The term of the facility and interest rate remained unchanged (rate at September 30, 2012 was 5.25%).

On March 14, 2012, the Company's senior credit facility with F&M Bank after F&M Bank's semiannual review of the Company's then owned producing properties was amended to increase the Company's borrowing base from $20 million to $23 million and extend the term of the facility to January 27, 2014. The interest rate remained the greater of prime plus 0.25% or 5.25% per annum. The total borrowing by the Company under the F&M Bank credit facility at September 30, 2012 and December 31, 2011 was $ 11.4 million and $11.5 million, respectively. The next borrowing base review will occur in March 2013.