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<SEC-DOCUMENT>0000950123-10-003825.txt : 20110104
<SEC-HEADER>0000950123-10-003825.hdr.sgml : 20110104
<ACCEPTANCE-DATETIME>20100120171805
<PRIVATE-TO-PUBLIC>
ACCESSION NUMBER:		0000950123-10-003825
CONFORMED SUBMISSION TYPE:	CORRESP
PUBLIC DOCUMENT COUNT:		1
FILED AS OF DATE:		20100120

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			New Concept Energy, Inc.
		CENTRAL INDEX KEY:			0000105744
		STANDARD INDUSTRIAL CLASSIFICATION:	CRUDE PETROLEUM & NATURAL GAS [1311]
		IRS NUMBER:				752399477
		STATE OF INCORPORATION:			NV
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		CORRESP

	BUSINESS ADDRESS:	
		STREET 1:		1755 WITTINGTON PLACE
		STREET 2:		SUITE 340
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234
		BUSINESS PHONE:		9724078400

	MAIL ADDRESS:	
		STREET 1:		1755 WITTINGTON PLACE
		STREET 2:		SUITE 340
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75234

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CabelTel International Corp
		DATE OF NAME CHANGE:	20050211

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GREENBRIAR CORP
		DATE OF NAME CHANGE:	19960514

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	MEDICAL RESOURCE COMPANIES OF AMERICA
		DATE OF NAME CHANGE:	19920703
</SEC-HEADER>
<DOCUMENT>
<TYPE>CORRESP
<SEQUENCE>1
<FILENAME>filename1.htm
<TEXT>
<HTML>
<HEAD>
<TITLE>corresp</TITLE>
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><FONT STYLE="FONT-SIZE: 12PT">METZGER &#038; McDONALD PLLC</FONT><BR>
A PROFESSIONAL LIMITED LIABILITY COMPANY<BR>
ATTORNEYS, MEDIATORS &#038; COUNSELORS
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="32%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-variant: SMALL-CAPS">Steven C. Metzger</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-variant: SMALL-CAPS">3626 N. Hall Street, Suite&nbsp;800</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-variant: SMALL-CAPS">Direct Dial 214-740-5030</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-variant: SMALL-CAPS">Dallas, Texas 75219-5133</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><FONT style="font-variant: SMALL-CAPS">Facsimile 214-224-7555</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><FONT style="font-variant: SMALL-CAPS">smetzger@pmklaw.com</FONT>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-variant: SMALL-CAPS">214-969-7600</FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><FONT style="font-variant: SMALL-CAPS">214-523-3838</FONT></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><FONT style="font-variant: SMALL-CAPS"><U>www.pmklaw.com</U></FONT>
</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top"><FONT style="font-variant: SMALL-CAPS">214-969-7635</FONT></TD>
</TR>
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</TABLE>
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">January&nbsp;19, 2010
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B><I>Via EDGAR</I></B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Securities and Exchange Commission<BR>
100 F Street, N.E., Mail Stop 3010<BR>
Washington, D.C. 20549<BR>
Attn: Karl Hiller, Branch Chief<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Joanna Lam, Staff Accountant

</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">Re:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD> New Concept Energy, Inc. (Commission File No.&nbsp;000-08187; CIK
No.&nbsp;0000105744) &#151; Form&nbsp;10-K for the fiscal year ended December&nbsp;31, 2008,
Forms 10-Q for the fiscal quarters ended March&nbsp;31, 2009, June&nbsp;30, 2009 and
September&nbsp;30, 2009</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Ladies and Gentlemen:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On behalf of New Concept Energy, Inc., a Nevada corporation (&#147;GBR&#148;) this letter
is being filed as correspondence uploaded on the EDGAR system on behalf of GBR in
response to a letter of comment from the Staff of the Securities and Exchange
Commission dated December&nbsp;15, 2009. Schedule&nbsp;1 annexed to this letter contains the
response to the comments of the Staff. In each instance on such Schedule, for
convenience, each comment of the Staff is repeated, followed in each instance by the
applicable response to such comment or explanation. Also included in such response,
where appropriate, is a letter/page reference to the text to the applicable document
or instrument referred to in the comment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This letter is being filed under the EDGAR system in direct response to the
comments of the Staff. If you would like to discuss any item concerning the
referenced matter included in this letter or Schedule&nbsp;1, please do not hesitate to
contact the undersigned at any time at 214-740-5030 direct or Gene S. Bertcher,
President of GBR at 469-522-4238 direct.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Steven C. Metzger
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Steven C. Metzger&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">cc:</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Gene S. Bertcher, President<BR>
New Concept Energy, Inc.<BR>
1755 Wittington Place, Suite&nbsp;340<BR>
Dallas, Texas 75234</TD>
</TR>

</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio --><!-- /Folio -->
</DIV>



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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SCHEDULE 1</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>Response to Comments of the Staff of<BR>
The Securities and Exchange Commission<BR>
by letter dated December&nbsp;15, 2009 with respect to<BR>
Form 10-K for the fiscal year ended December&nbsp;31, 2008 and<BR>
Forms 10-Q for the fiscal quarters ended March&nbsp;31, 2009,<BR>
June&nbsp;30, 2009 and September&nbsp;30, 2009 of<BR>
New Concept Energy, Inc.<BR>
Commission File No.&nbsp;000-08187</B>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><DIV align="center"><DIV style="font-size: 3pt; margin-top: 16pt; width: 26%; border-top: 1px solid #000000">&nbsp;</DIV></DIV>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following information is to provide a response to comments of the Staff of the Securities
and Exchange Commission rendered by letter dated December&nbsp;15, 2009 with respect to Form 10-K Annual
Report to the Securities and Exchange Commission for the fiscal year ended December&nbsp;31, 2008 of New
Concept Energy, Inc. (the &#147;Company&#148; or &#147;GBR&#148;) as well as Forms 10-Q for the quarters ended March
31, 2009, June&nbsp;30, 2009 and September&nbsp;30, 2009 of the Company. For convenience, each comment of
the Staff is restated below, with our response noted immediately following the comment. Also
included in such response is a letter/page reference to the text of each instrument where
applicable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U><B>Form&nbsp;10-K for the Fiscal Year Ended December&nbsp;31, 2008</B></U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Properties, page 8</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;1. </B>Please disclose the information about your oil and gas
properties located in Ohio and West Virginia that is required by Item&nbsp;102 of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;1. </B>The information required was included under Item&nbsp;1
Business subcaption &#147;Oil and Gas Operations&#148; on Page 3 of the Company&#146;s Form 10-K for the fiscal
year ended December&nbsp;31, 2008 (the &#147;2008 Form&nbsp;10-K&#148;), but the Company did not cross reference the
information under Item&nbsp;2. The Company will do so in all future filings. Other required
information relating to oil and gas production, reserves and development and information regarding
estimates prepared by independent petroleum engineers will also be provided in all future filings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Controls and Procedures, page 17</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Evaluation of Disclosures Controls and Procedures, page 17</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;2. </B>We note your disclosure under this heading stating that as a
result of your evaluation of disclosure controls and procedures there were no significant changes
in your internal control over financial reporting. Please revise your disclosure to clarify
whether you intended to indicate that you had determined in the course of your evaluation that no
such changes occurred, or explain your rationale in asserting that no such changes occurred <I>because</I>
you conducted an evaluation.
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->1<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;2. </B>Under the supervision of the Principal Executive
Officer and Chief Financial Officer, we evaluated our disclosure controls and procedures and
internal control over financial reporting and concluded that our disclosure controls and procedures
were effective as of December&nbsp;31, 2008. No changes in our internal control over financial
reporting occurred during the period covered by the report that was materially affected or is
reasonably likely to materially affect our internal control over financial reporting. We will
clarify in future filings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Management Report on Internal Control Over Financial Reporting, page 18</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;3. </B>We note your statement that management assessed the
effectiveness of your internal control over financial reporting as of December&nbsp;31, 2008. Please
disclose whether or not management concluded that your internal control over financial reporting is
effective, to comply with Item&nbsp;308(a)(3) of Regulation&nbsp;S-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;3. </B>Management concluded that our disclosure controls and
procedures and internal control procedures over financial reporting were effective as of December
31, 2008. We will clarify in future filings.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Financial Statements</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Statements of Cash Flows, page 38</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;4. </B>We note that the reconciliation you present in computing
operating cash flows begins with &#147;net earnings (loss)&nbsp;from continuing operations.&#148; Please comply
with paragraph 28 of SFAS 95 which requires that the reconciliation begin with &#147;net income&#148; in
presenting operating cash flows under the indirect method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;4. </B>In future filings we will begin the reconciliation
with &#147;net income&#148; in presenting operating cash flows under the indirect method.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note A &#151; Business Description and Presentation, page 41</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;5. </B>We understand from your disclosure under this heading and in the
Form 8-K that you filed on September&nbsp;25, 2008 that you completed acquisitions of entities and
various assets including producing and non-producing properties previously owned by Carl E. Smith,
Inc. or its affiliates on September&nbsp;19, 2008.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">As you may know, the acquisition of producing oil and gas properties is deemed to be the
acquisition of a business for purposes of reporting under Rule&nbsp;8-04 of Regulation&nbsp;S-X and Items
2.01 and 9.01 of Form 8-K. Given the significance of the transaction that you describe, it appears
you may need to have filed financial statements for the producing properties, along with the
related pro forma financial statements by December&nbsp;11, 2008.
</DIV>







<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Additional disclosure requirements are explained in Section&nbsp;III.C of Division of Corporation
Finance: Frequently Requested Accounting and Financial Reporting Interpretations and Guidance,
located on our website at the following address.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Http://www.sec.gov/divisions/corpfin/guidance/cfactfaq.htm#P483 117161</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please advise us of your intentions to comply with this guidance. Please also submit your
computation of the purchase price and details of your purchase price allocation, identifying the
assets acquired and liabilities assumed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;5. </B>We understand that the acquisition of oil and gas
producing properties may be deemed to be the acquisition of a business for the purposes of Rule
3-05 of Regulation&nbsp;S-X. However, as the entities involved had been in a bankruptcy proceeding for
almost five years, it was not possible to obtain audited financial statements for the required
periods due to the unavailability of historical financial records. The majority of the assets were
purchased from an entity that had been in bankruptcy since 2003 and financial records were poorly
maintained. Certain other assets were received from former shareholders of the transferor and were
transferred without historical records. In addition, some historical operational and financial
records were destroyed in a fire prior to our involvement. Finally, we believe the historical
financial information of the acquired assets in bankruptcy, which were not productively managed,
would not be comparable to future operations of those assets under the management of an entity
actively engaged in the oil and gas business. For these reasons, providing the required audited
financial information simply was not attainable, would have involved unreasonable effort and
expense and would have been of limited value to investors. We respectfully request the SEC staff
to consider the information included in the 2008 Form 10-K and the to be filed December&nbsp;31, 2009
Form 10-K, which includes the operations of the acquired assets, as satisfactory compliance with
the requirement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The computation of the purchase price is:
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash paid to all sellers</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">7,300,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash paid to creditors</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">5,000,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash paid in fees and
bankruptcy related costs</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,550,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total cash cost</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">13,850,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The details of the purchase price allocation are as follows:
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>Carl E. Smith etal<BR>
Opening Balance Sheet<BR>
September&nbsp;1, 2008</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="88%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>Assets</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Cash</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">1,586,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">A/R Receivable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">482,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Oil &#038; Gas Properties</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">10,795,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Property &#038; Equipment</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,363,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Other Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">812,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Assets</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,038,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center"><DIV style="margin-left:15px; text-indent:-15px"><B>Liabilities &#038; Shareholders Equity</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Accounts Payable</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">162,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Long Term Debt</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,026,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">13,850,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD nowrap colspan="2" align="right" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD><DIV style="margin-left:15px; text-indent:-15px">Total Liabilities &#038; Shareholders Equity</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left">$</TD>
    <TD align="right">15,038,000</TD>
    <TD>&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD><DIV style="margin-left:15px; text-indent:-15px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
        <TD nowrap colspan="2" align="right" style="border-top: 3px double #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;6. </B>Please disclose the information related to our oil and gas
activities specified in paragraphs 10 through 34 of SFAS 69.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;6. </B>The Company does not believe that paragraphs
12-14, 16, 17, 19-23, 25-29 and 31-34 of SFAS 69 are applicable to the Company&#146;s oil and gas
activities which have a commencement date of September&nbsp;1, 2008 and encompass only four months of
the year ended December&nbsp;31, 2008. In order to fully comply with the provisions of SFAS 69, the
Company in future filings will disclose information required by SFAS 69 paragraphs 10 and 11
regarding net quantities of proved reserves and proved developed reserves and changes in proved
reserves which shall be stated in the appropriate units of measure specified by paragraph 15.
Capitalized costs and accumulated depreciation, depletion and amortization and valuation allowances
required by SFAS 69 paragraph 18 will also be disclosed, as well as the results of oil and gas
operations as required by SFAS 69 paragraph 24, as will the standardized measure of discounted
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">future net cash flows relating to proved oil and gas reserve quantities required by SFAS 69
paragraph 30. The remaining paragraphs of SFAS 69 do not apply to the Company for the four month
period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note B &#151; Summary of Significant Accounting Policies, page 43</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>Oil and Natural Gas Properties, page 44</U>

</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;7. </B>We note your disclosure in the first paragraph under this
heading, indicating that you follow the full cost method of accounting for your oil and gas
properties. However, in the second paragraph, you indicate that producing oil and gas properties
are subject to impairment testing under SFAS 144 and you have disclosure on page 45 under the
heading &#147;Full Cost Ceiling Test&#148; indicating that although the carrying costs of your proved oil and
natural gas properties exceeded the December&nbsp;31, 2008 present value of future net revenues by
approximately $1.1&nbsp;million, you did not recognize a ceiling test write-down because, after
considering the requirements of SFAS 144, assumptions required by the SEC, volatility of the market
price of oil and natural gas, and your limited operating history, you believed the condition to be
temporary.
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Given that you selected the full cost methodology, you must comply with all of the requirements set
forth in Rule&nbsp;4-10(c) of Regulation&nbsp;S-X, including the ceiling test described in paragraph (c)(4).
The circumstances under which the result of your ceiling test would not need to be recognized as a
ceiling test write-down are described in SAB Topic 12.D.3(a) and (c), and do not correspond to any
of the reasons set forth in your disclosure. The guidance in SFAS 144 does not apply to oil and
gas properties that are accounted for under the full cost methodology, and there is no general
provision that allows non-recognition of the ceiling test result based on expectations that the
decline in the ceiling is temporary.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Therefore, it appears you will need to revise your accounting and disclosure to recognize the
ceiling test write-down and to clarify your handling of impairment testing for oil and gas
properties under the full cost ceiling test.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please ensure that your policy disclosures accurately address the annual assessment of unproved
properties for impairment required pursuant to Rule&nbsp;4-10(c)(3)(ii)(A), the implications of any
impairment determined to exist as a result of those assessments, particularly as these relate to
your ceiling test; and your handling in the ceiling test of not only future net revenues from
proved reserves, but also the costs of unproved properties that are subject to amortization, and
the costs of unproved properties that are not subject to amortization.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Please submit the accounting and disclosure revisions that you propose to comply with Rule
4-10(c)(4) of Regulation&nbsp;S-X.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;7. </B>The major purchase of oil and gas properties
in September&nbsp;2008 consisted of proved oil and gas reserves in place and we believed that the value
of these purchased reserves exceed the cost. For this reason we request a waiver of the full-cost
ceiling limitation under SAB Topic 12.D.3(a). If the difference between the carrying cost of the
proved oil and gas properties and the present value of future net revenues of $1.1&nbsp;million
(non-cash) was recorded, the effect to our December&nbsp;31, 2008 financial statements would have been a
4.6%
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt"> decrease in total assets, a 7.1% decrease in net income and a decrease in earnings per share from $8.92
to $8.32.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note C &#151; Short Term Notes Receivable &#151; Related Party, page 50</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;8. </B>We note your receivable balances from various related parties
amounts to $10.6&nbsp;million as at December&nbsp;31, 2008. Please disclose the reasons for providing these
loans and your view on being able to recover these funds, given that you have extended the maturity
dates and made additional advances since 2006. Please include a description of your relationship
with each of the related parties and details sufficient to understand your motivation in extending
these funds and rationale in reporting the balance as a current, short-term receivable.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;8. </B>The Company, on an ongoing basis, seeks
opportunities to make additional investments in the oil and gas industry and intends to utilize its
available working capital to do so. In the interim the Company, in order to maximize its return,
has invested in excess cash in a short term note. The note is renewed annually but, by its terms,
requires payment within 30&nbsp;days after demand. The interest on this note is 2% over the prime rate
of interest which, we believe, represents a high return for this type of investment and a better
return than could be realized through an investment in other short term instruments.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The outstanding balance on this note fluctuates based upon the Company&#146;s need for cash. In
May, 2008 following the sale of the Company&#146;s mineral assets in Arkansas the note balance was
approximately $21.2&nbsp;million. Later in the 2008 the Company completed the acquisition of the Carl
E. Smith group in West Virginia and required that the note be reduced by $13.9&nbsp;million.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The original maker of the note was deemed to be a related party as such maker shared offices
and some personnel with the Company. Subsequent to its original issuance, the note was assumed by
Prime Income Asset Management, Inc. (&#147;Prime&#148;) which the Company deems to be a related party because
the Company and Prime share certain administrative services and personnel.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><U>Note J &#151; Gain (Loss) on Sale of Assets, page 55</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Comment/Observation No.&nbsp;9. </B>We note your disclosures indicating you have recorded gains on
sales of interests in oil and gas properties in 2006 and 2008. The guidance in Rule&nbsp;4-10(c)(6)(i)
of Regulation&nbsp;S-X requires sales of interests in oil and gas properties to be accounted for as
adjustments to the full cost pool, unless the adjustment would significantly alter the relationship
between capitalized costs and proved reserves. Tell us how you determined that gain recognition in
each instance was consistent with this requirement of the full cost methodology, if this is your
view.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>Response to Comment/Observation No.&nbsp;9. </B>Effective June&nbsp;30, 2006, the Company sold all of its
then existing oil and gas interests which were located in East Texas for cash. The cash proceeds
of $1,737,000 were received on July&nbsp;5, 2006. At that point in time, the Company held no interests
of any kind in any oil and gas properties and a gain was recorded and the full cost pool was
reflected at zero.
</DIV>

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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In November&nbsp;2007, the Company acquired mineral rights in Fayetteville, Arkansas. It was the
Company&#146;s intention to develop the property through drilling however, before the Company could
begin a drilling program, an offer to buy the mineral rights was received from XTO Energy, Inc. In
May&nbsp;2008, the Company concluded a cash sale of all of its mineral interests. The Company recorded
a gain in the second quarter of 2008 of $16.4&nbsp;million and beginning in the June&nbsp;30, 2008 Form 10-Q,
the full cost pool was reflected at zero.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subsequent to the sale of 100% of its oil and gas interests in May&nbsp;2008, the Company began
seeking out new investments in oil and gas. In September&nbsp;2008, the Company invested in oil and gas
operations in Ohio and West Virginia.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company believes that the gain on the sales that occurred in 2006 and 2008 were
appropriately recorded.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>General &#151; </B>The responses to the nine comments above are provided to the Staff for clarification
of the items raised by the Staff in the December&nbsp;15, 2009 letter to the Company. The Company,
which is a smaller Reporting Company, believes these item are not, in the aggregate, significant
enough to warrant a revision of the existing filings; the Company would prefer to cover these
items/clarifications/corrections in its future filings, including the Form 10-K for the fiscal year
ended December&nbsp;31, 2009 (including any revision to reserve estimates based on a December&nbsp;2009
reserve report and calculations in the December&nbsp;31, 2009 financial statements) rather than filing
any amendments to the 2008 Form 10-K or any interim report. The Company requests the Staff approve
such concept.
</DIV>






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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>NEW CONCEPT ENERGY, INC.</B>
</DIV>


<DIV align="Center" style="font-size: 10pt; margin-top: 6pt"><B>ACKNOWLEDGMENT</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The undersigned, on behalf of New Concept Energy, Inc., a Nevada corporation (the
&#147;Company&#148;),
in connection with a response to a comment letter from the Staff of the Securities and Exchange
Commission dated December&nbsp;15, 2009, do hereby acknowledge on behalf of the Company that:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Company is responsible for the adequacy and accuracy of the
disclosure in
filings with the Securities and Exchange Commission (the &#147;Commission&#148;).
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Staff comments or changes to disclosure in response to Staff
comments do not
foreclose the Commission from taking any action with respect to the filings.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 2%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The Company may not assert Staff comments as a defense in any
proceeding
initiated by the Commission or any person under the federal securities laws of the United
States.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the undersigned have executed this Acknowledgment on and as of the
19<SUP style="font-size: 85%; vertical-align: text-top">th</SUP> day of January, 2010.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
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    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">NEW CONCEPT ENERGY, INC.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Gene S. Bertcher
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Gene S. Bertcher, President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
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