Income Taxes

The provision for income taxes consists of the following (in thousands):



	2012		2011		2010
Current provision:
Federal	$	332	$	—	$	—
State	222		75		24
	554		75		24
Deferred provision:
Federal	6,972		5,166		4,009
State	—		628		239
	6,972		5,794		4,248
	$	7,526	$	5,869	$	4,272

The income tax effects of temporary differences that give rise to significant portions of deferred income tax assets and (liabilities) are as follows (in thousands):



	2012			2011
Deferred income tax assets:
Net operating loss carryover	$	1,117		$	6,828
Other	1,459			1,218
Total deferred income tax assets	$	2,576		$	8,046
Deferred income tax liabilities:
Property and equipment	(45,242		)	(43,716		)
Goodwill and other intangible assets	(1,075		)	(1,099		)
Other	—			—
Total deferred income tax liabilities	(46,317		)	(44,815		)
Net deferred income tax liabilities	$	(43,741	)	$	(36,769	)

The effective tax rate differs from the statutory rate as follows:



	2012		2011		2010
Statutory rate	34	%	34	%	34	%
State and local taxes	1	%	3	%	2	%
Other	2	%	1	%	2	%
Effective rate	37	%	38	%	38	%

Our policy regarding income tax interest and penalties is to expense those items as general and administrative expense. During the years ended December 31, 2012, 2011 and 2010, there were no significant income tax interest or penalty items in the income statement.

We had a regular income tax net operating loss carry forward of $3.2 million for federal income taxes as of December 31, 2012. This net operating loss will begin to expire in 2031. We file income tax returns in the U.S. federal jurisdiction and various state jurisdictions. With few exceptions, we are no longer subject to U.S. federal or state income tax examination by tax authorities for years before 2007. During the year ended December 31, 2012, we utilized $16.8 million of gross federal net operating loss carryforwards which reduced our current income tax expense by approximately $5.7 million

We are subject to extensive tax laws and regulations, including federal, state and local income taxes. As new tax laws and regulations are enacted and changes are made to existing tax laws and regulations we may be subject to increased future tax expenditures. Our tax positions and the resulting liabilities are subject to audits by the respective taxing authority. These audits may result in additional taxes as well as interest and penalties. We are not aware of any tax positions for which the outcome is uncertain or which is subject to a current review by any tax authority associated with our filings. We have also not established a reserve for any potential obligation related to uncertain tax position.