NOTE B - NOTES PAYABLE

Notes payable at June 30, 2011 and December 31, 2010 consists of the following:

		June 30, 2011		December 31, 2010 (1)

Note payable-Forge, LLC, bearing interest at 18.00% per annum, the loan is payable at maturity in July 2011 plus accrued interest. The note is convertible to common stock and is shown net of debt discount. The note is secured by certain oil and gas rights owned by Knox Gas, LLC, a subsidiary of the Company.		150,000		122,055

Note payable – Asher Enterprises, bearing interest at 6.00% per annum, all principle and accrued interest is payable at maturity in March 2012		35,000		-

Note payable-Knox County, LLC, bearing interest at 6.00% per annum, all principle and accrued interest is payable at maturity in March 2015		600,000		600,000

Notes payable-Joel Sens and Barbara Reed, bearing interest at 6% per annum, all principle and accrued interest is payable at maturity on February 21, 2016,		500,000		-

Total notes payable		1,285,000		722,055

Less: current maturities		185,000		122,055

Long term portion	$	1,100,000	$	600,000

(1)	Notes payable at December 31, 2010 have been restated to eliminate notes payable of Dynatech, LLC, a partially owned subsidiary that was sold in March 2011.