Related Party Transactions

9 Months Ended

Sep. 30, 2013

Related Party Transactions [Abstract]

Related Party Transactions

9. Related Party Transactions

Basic had receivables from employees of approximately $48,000 and $ 52,000 as of September 30, 2013 and December 31, 2012, respectively. During 2006, Basic entered into a lease agreement with Darle Vuelta Cattle Co., LLC, an affiliate of a director, for approximately $ 69,000 per year. The term of the lease is five years and will continue on a year-to-year basis unless terminated by either party. In December 2010, Basic entered into a lease agreement with Darle Vuelta Cattle Co., LLC for the right to operate a salt water disposal well, brine well and fresh water well. The term of the lease is two years and will continue until the salt water disposal well and brine well are plugged and no fresh water is being sold. The lease payments are the greater of (i) the sum of $ 0.10 per barrel of disposed oil and gas waste and $ 0.05 per barrel of brine or fresh water sold or (ii) $ 5,000 per month. In April 2012, Basic purchased approximately 22 acres of land for approximately $ 215,000 from Darle Vuelta Cattle Co., LLC.

Basic entered into a joint venture agreement with a family member of an executive officer to form an entity in 2010. Basic holds 80% of the equity in the joint venture, and fully consolidates the financial results. For the nine months ended September 30, 2013 and 2012, Basic invested approximately $ 2.1 million and $ 2.3 million, respectively, for this joint venture. The entity had only research and development activities for the nine months ended September 30, 2013 and 2012.