9. Income Taxes

The components of the provision (benefit) for income taxes for the years ended December 31, 2015 and 2014 are as follows:


	Year Ended December 31,
(Thousands of dollars)	2015			2014
Current:
Federal	$	27		$	345
State		(237	)		262

Total current		(210	)		607
Deferred:
Federal		(6,330	)		13,134
State		(108	)		103

Total deferred		(6,438	)		13,237

Total income tax (benefit) provision	$	(6,648	)	$	13,844


	At December 31,
(Thousands of dollars)	2015			2014
Current Assets:
Accrued liabilities	$	593		$	610
Allowance for doubtful accounts		188			124
Derivative contracts		3			52

Total current assets		784			786
Current Liabilities:
Derivative contracts		250			6,333

Total current liabilities		250			6,333

Net current deferred income tax liabilities (assets)	$	(534	)	$	5,547

Non-Current Assets:
Alternative minimum tax credits	$	5,319		$	5,722
Net operating loss carry-forwards		575			620
Percentage depletion carry-forwards		3,751			3,959

Total non-current assets		9,645			10,301
Non-Current Liabilities:
Basis differences relating to managed partnerships		6,238			4,300
Depletion and depreciation		41,290			44,192

Total non-current liabilities		47,528			48,492

Net non-current deferred income tax liabilities	$	37,884		$	38,191

The total provision for income taxes for the years ended December 31, 2015 and 2014 varies from the federal statutory tax rate as a result of the following:


	Year Ended December 31,
(Thousands of dollars)	2015			2014
Expected tax expense	$	(6,607	)	$	13,902
State income tax, net of federal benefit		(228	)		254
Percentage depletion		(200	)		(312	)
Other, net		387			—

Total income tax provision	$	(6,648	)	$	13,844

Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes. The Company is entitled to percentage depletion on certain of its wells, which is calculated without reference to the basis of the property. To the extent that such depletion exceeds a property’s basis, it creates a permanent difference, which lowers the Company’s effective rate.

The Company has $5.319 million in alternative minimum tax (“AMT”) credits which can be used to lower the regular

tax liability to the tentative AMT amount in years where the tentative AMT amount is less. These credits do not expire.

The Company is allowed a credit against the Texas Franchise Tax based on net operating losses incurred in prior periods. The credits allowed are $26 thousand in the years 2015 and 2016, and $89 thousand in the years 2017 through 2026. Any credits not utilized in a given year due to the allowable credit exceeding the tax liability may be carried forward. No credit may be carried forward past 2026. The value of the credit is shown net of the federal income tax effect.

The Company has not recorded any provision for uncertain tax positions. The Company files income tax returns in the U.S. federal jurisdiction and various state and local jurisdictions. The 2004, 2005, 2006, and 2009 federal income tax returns have been audited by the Internal Revenue Service, while the 2012, 2013 and 2014 returns remain open for examination. Returns for unexamined earlier years may be examined and adjustments made to the amount of percentage depletion and AMT credit carryforwards flowing from those years into an open tax year, although in general, no assessment of income tax may be made for those years on which the statute has closed. State returns for the years 2012, 2013 and 2014 remain open for examination by the relevant taxing authorities.