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Income Taxes | 12 Months Ended
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Dec. 31, 2012
Income Taxes [Abstract] |
Income Taxes | 14. Income Taxes The Company had taxable income for the years ended December 31, 2012 and 2010, but had no taxable income for the year ended December 31, 2011. A reconciliation of the statutory U.S. Federal income tax and the income tax provision included in the accompanying consolidated statements of operations is as follows (in thousands):
Year Ended December 31, 2012 |  | Continuing |  |  | Discontinued |  |  | Total |
|  | Operations |  |  | Operations |  |  |  |
Statutory rate |  | 34 | % |  | 34 | % |  | 34 | %
Tax (benefit) expense at statutory rate | $ | 2,229 |  | $ | (1,955 | ) | $ | 274 |
State income tax (benefit) expense |  | 43 |  |  | - |  |  | 43 |
Permanent difference |  | 35 |  |  | (84 | ) |  | (49 | )
Other |  | 6 |  |  |  |  |  | 6 |
Net change in deferred tax asset valuation allowance |  | - |  |  | 600 |  |  | 600 |
Total income tax provision (benefit) | $ | 2,313 |  | $ | (1,439 | ) | $ | 874 |
Year Ended December 31, 2011 |  | Continuing |  |  | Discontinued |  |  | Total |
|  | Operations |  |  | Operations |  |  |  |
Statutory rate |  | 34 | % |  | 34 | % |  | 34 | %
Tax (benefit) expense at statutory rate | $ | 1,787 |  | $ | (141 | ) | $ | 1,646 |
State income tax (benefit) expense |  | 215 |  |  | - |  |  | 215 |
Permanent difference |  | 28 |  |  | 14 |  |  | 42 |
Net change in deferred tax asset valuation allowance |  | (1,741 | ) |  | - |  |  | (1,741 | )
Total income tax provision (benefit) | $ | 289 |  | $ | (127 | ) | $ | 162 |
Year Ended December 31, 2010 |  | Continuing |  |  | Discontinued |  |  | Total |
|  | Operations |  |  | Operations |  |  |  |
Statutory rate |  | 34 | % |  | 34 | % |  | 34 | %
Tax (benefit) expense at statutory rate | $ | 920 |  | $ | (1,884 | ) | $ | (964 | )
State income tax (benefit) expense |  | (125 | ) |  | - |  |  | (125 | )
Total income tax provision (benefit) | $ | 795 |  | $ | (1,884 | ) | $ | (1,089 | )
Management has evaluated the positions taken in connection with the tax provisions and tax compliance for the years included in these financial statements. The Company does not believe that any of its positions it has taken will not prevail on a more likely than not basis. As such no disclosure of such positions was deemed necessary. Management continuously estimates its ability to recognize a deferred tax asset related to prior period net operating loss carry forwards based on its anticipation of the likely timing and adequacy of future net income. As of December 31, 2012, the Company had available approximately $21.8 million of federal net operating loss carryforwards to offset future taxable income. As of December 31, 2012, management using the "more likely that not" criteria for recognition determined that, upon sale of the Pipeline asset, the Company would not be able to utilize the state net operating loss carryforwards associated with TPC, and therefore has established an allowance for these state net operating loss carryforwards. As of December 31, 2011, management using the "more likely than not" criteria for recognition determined that increases in current projections of taxable income were sufficient that the valuation allowance was no longer necessary, therefore, the $1.7 million valuation allowance was removed. During the year ended December 31, 2010, management, using the "more likely than not" criteria for recognition, elected to recognize a deferred tax asset of $1.1 million. The recognition of the deferred tax asset in 2010 relates to net operating loss carryforwards, impairment of pipeline in 2010, and will provide a better matching of income tax expense with taxable income in future periods. As of December 31, 2012, the Company had net operating loss carry forwards of approximately $21.8 million which will expire between 2019 and 2031 if not utilized. Our open tax years include all returns filed for 2008 and later. In addition, any of the Company's NOLs for tax reporting purposes are still subject to review and adjustment by both the Company and the IRS to the extent such NOLs should be carried forward into an open tax year. The Company's deferred tax assets and liabilities are as follows: (in thousands)
| Year Ended December 31,
|  | 2012 |  |  | 2011
Net deferred tax assets (liabilities) - current: |  |  |  |  |
Unrealized derivative loss - current | $ | - |  | $ | 164
Total deferred tax assets (liabilities) – current |  | - |  | $ | 164
Net deferred tax assets (liabilities) – noncurrent: |  |  |  |  |
Net operating loss carryforwards | $ | 8,550 |  | $ | 6,233
Oil and gas properties |  | (154 | ) |  | 3,341
Property, Plant and Equipment |  | 963 |  |  | 430
Asset retirement obligation |  | 517 |  |  | 37
Tax credits |  | 158 |  |  | 36
Valuation allowance |  | (600 | ) |  |
Total deferred tax assets (liabilities) – noncurrent | $ | 9,434 |  | $ | 10,077
Net deferred tax asset (liability) | $ | 9,434 |  | $ | 10,241

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 136, 172 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Section 08 -Paragraph h -Article 4 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 109 -Paragraph 43, 44, 45, 46, 47, 48, 49 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 + Details
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