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MINERAL PROPERTY TRANSACTIONS | 12 Months Ended
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Dec. 31, 2011
MINERAL PROPERTY TRANSACTIONS [Abstract] |
MINERAL PROPERTY TRANSACTIONS | E. MINERAL PROPERTY TRANSACTIONS Oil and Gas Exploration USE participates in oil and gas projects as a non-operating working interest owner and has active agreements with several oil and gas exploration and production companies. Our working interest varies by project, but typically ranges from approximately 5% to 65%. These projects may result in numerous wells being drilled over the next three to five years. Eagle Ford Shale Acquisitions During 2011 we entered into two participation agreements with Crimson Exploration Inc. (“Crimson”) to acquire a 30% working interest in oil prospects and associated leases located in Zavala and Dimmit Counties, Texas. Under the terms of the agreements, the Company has earned a 30% working interest (22.5% net revenue interest) through a combination of a cash payment and commitment well carry. During the year, the Company participated in the drilling of two wells in the prospects and expects to continue exploration and development in 2012. One well was completed in 2011 and the remaining well was in progress at December 31, 2011. Bakken/Three Forks Shale Sale On December 15, 2011, the Company sold an undivided 75% of its undeveloped acres in the Rough Rider prospect to Brigham for $13.7 million. Under the terms of the agreement, the Company retained the remaining 25% of its interest in the undeveloped acreage and its original working interest in its 20 developed wells in the Rough Rider prospect. After the sale, our working interest in the undeveloped acreage in the Rough Rider Prospect ranges from 3.41% to 9.90%. In addition, Brigham also agreed to commence drilling operations for at least three gross wells in the Rough Rider acreage for each calendar year of 2012 and 2013. Gulf Coast Sale On October 27, 2011, the Company entered into an agreement with Yuma Exploration and Production Company, Inc. to sell its interest in the Livingston prospect in Louisiana for $1.0 million. The Company owned a 4.79% working interest in the prospect which included one gross producing well (approximately 5 BOE/day net) and one additional gross development well that was being completed at the time of the sale. Our total investment in the prospect was approximately $2.0 million including seismic, drilling, leasehold acquisition and other development costs. Mount Emmons Molybdenum Properties Mineral properties at December 31, 2011 and December 31, 2010 reflect capitalized costs associated with our Mt. Emmons molybdenum property near Crested Butte, Colorado. On April 21, 2011, Thompson Creek Metals Company USA (“TCM”) terminated its option agreement with the Company to develop the Mount Emmons molybdenum deposit. In notifying the Company, TCM cited more immediate development priorities in its portfolio of assets including the expansion of its Endako Project, its newly acquired Mt. Milligan Project and the Berg Project. When TCM terminated the option agreement with the Company, TCM forfeited $354,000 in funds held in escrow for future development expenditures. Costs to operate the water treatment plant and maintain the property are being paid solely by USE.

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