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6. LAND, PROPERTY AND EQUIPMENT
 12 Months Ended
Jun. 30, 2016
Property, Plant and Equipment [Abstract]  
LAND, PROPERTY AND EQUIPMENT

At June 30, 2016 and 2015, Land, Property and Equipment consist of the following:

 

    2016     2015
Office furniture and equipment $ 51,300   $ 51,300
Water disposal facility   2,220,900     2,219,200
Production equipment   514,400     514,400
    2,786,600     2,784,900
Less accumulated depreciation   (675,600)     (491,900)
Land and permit costs                   -        1,645,600
     Net book value $ 2,111,000   $ 3,938,600

 

Water disposal facility assets at June 30, 2016 consist of $1,810,900 in costs related to the construction and permitting of the evaporation ponds and $410,000 in asset retirement cost. Production equipment at June 30, 2016 of $514,400 represents the cost of equipment required to support the Deer Creek facility.

 

Related depreciation expense for the years ended June 30, 2016 and 2015 was $183,700 and $120,100, respectively.

 

During the current fiscal year, the Company implemented a plan to divest of its land and related permit costs know as Indian Mesa. As a result, the value of those assets has been reclassified to Assets Held for Sale as of June 30, 2016.