NOTE J.

Major Customers and Derivative Counterparties

Sales to major customers. The Company's share of oil and gas production is sold to various purchasers who must be prequalified under the Company's credit risk policies and procedures. The Company records allowances for doubtful accounts based on the age of accounts receivables and the financial condition of its purchasers and, depending on facts and circumstances, may require purchasers to provide collateral or otherwise secure their accounts. The Company is of the opinion that the loss of any one purchaser would not have an adverse effect on the ability of the Company to sell its oil and gas production.

The following purchasers individually accounted for ten percent or more of the Company's consolidated oil, NGL and gas revenues, including the revenues from discontinued operations, in at least one of the years in the three years ended December 31, 2011. The table provides the percentages of the Company's consolidated oil, NGL and gas revenues represented by the purchasers during the periods presented:


	Year Ended December 31,
	2011			2010			2009
Plains Marketing LP		16	%		12	%		10	%
Occidental Energy Marketing Inc		14	%		8	%		7	%
Enterprise Products Partners L.P.		12	%		10	%		6	%

Derivative counterparties. The Company uses credit and other financial criteria to evaluate the credit standing of, and to select, counterparties to its derivative instruments. Although the Company does not obtain collateral or otherwise secure the fair value of its derivative instruments, associated credit risk is mitigated by the Company's credit risk policies and procedures.

The following table provides the Company's derivative assets and liabilities by counterparty as of December 31, 2011:


	Assets		Liabilities
	(in thousands)
Citibank, N.A.	$	138,267	$	6,850
JP Morgan Chase		117,335		13,070
BNP Paribas		41,879		6,391
Barclays Capital		35,413		4,278
Societe Generale		32,376		2,241
Credit Agricole		28,545		5,487
Toronto Dominion		20,856		1,369
Credit Suisse		16,076		4,779
J. Aron & Company		15,985		3,139
BMO Financial Group		13,146		12,365
Wells Fargo Bank, N.A.		12,539		46,216
Morgan Stanley		4,923		774
Den Norske Bank		4,582		—
Merrill Lynch		153		1,017

Total	$	482,075	$	107,976