NOTE F — LEASES

Capital Lease Obligations

The Company leases vehicles and certain specialized seismic equipment under leases classified as capital leases. The following is a schedule showing the future minimum lease payments under capital leases by years and the present value of the minimum lease payments as of December 31, 2011.

Year Ending
December 31,
2012	$	1,505,146
2013	1,173,060
2014	508,768
2015	32,606
Total minimum lease payments required	3,219,580
Less: Amount representing interest	(256,931		)
Present value of minimum lease payments	2,962,649
Less current maturities	(1,336,037		)
	$	1,626,612

The net book value of the capital assets leased was approximately $3,604,000 and $2,942,000 as of December 31, 2011 and 2010, respectively. Total accumulated depreciation for fixed assets under capital lease with remaining obligations was approximately $3,743,000 and $1,918,000 as of December 31, 2011, and 2010, respectively. Interest rates on these leases range from 5.57% to 10.51%.

Operating Lease Obligations

The Company leases six offices and two warehouse facilities under operating leases that expire at various dates between January 2011 and May 2017 with two leases on a month-to-month basis. One of the office facilities, used by the Company as its corporate headquarters, is located in Plano, Texas. One of the office facilities, used by Eagle Canada, is located in Calgary, Alberta. The warehouse facilities, used as warehouse and equipment repair facilities, are located in Denison, Texas, and Calgary, Alberta. Three office facilities are used as sales offices and are located in Houston, Texas, Midland, Texas, and Oklahoma City, Oklahoma. The remaining office facility, located in Pratt, Kansas, is used as a permitting office. Rent expense for these facilities for the years ended December 31, 2011, 2010, and 2009 were approximately $605,000, $580,000, and $450,000, respectively.

The following is a schedule by years of future minimum rental payments required under the operating leases as of December 31, 2011:

2012	$	532,584
2013	591,032
2014	406,021
2015	279,743
2016 and thereafter	281,513
Total minimum payments required	$	2,090,893