Income Taxes

12 Months Ended

Dec. 31, 2011

Income Taxes [Abstract]

Income Taxes

(2)  Income Taxes

The following table shows the components of the Company's income tax (provision) benefit (in thousands):

	Years ended December 31,
	2011			2010			2009
Current:
Federal	$	(4,336	)	$	350		$	(649	)
State		(1,187	)		(721	)		(631	)
		(5,523	)		(371	)		(1,280	)
Deferred:
Federal		(7,407	)		(3,688	)		(1,286	)
State		99			(11	)		214
		(7,308	)		(3,699	)		(1,072	)
	$	(12,831	)	$	(4,070	)	$	(2,352	)

Taxes computed at the corporate federal income tax rate reconcile to the reported income tax (provision) as follows (in thousands):

	Years ended December 31,
	2011			2010			2009
Statutory federal income tax (provision) benefit	$	(12,517	)	$	(4,445	)	$	(2,275	)
State income tax (provision) benefit		(707	)		(476	)		(270	)
Federal statutory depletion		393			534			186
Foreign investment write-off		-			201			-
Other		-			116			7
	$	(12,831	)	$	(4,070	)	$	(2,352	)

Deferred income taxes reflect the net difference between the financial statement carrying amounts and the underlying income tax basis in such items.  The components of the federal deferred tax asset (liability) are as follows (in thousands):

	Years Ended December 31,
	2011			2010
Current deferred tax asset (liability)
Allowance for doubtful accounts	$	772		$	372
Prepaid insurance		(793	)		(776	)
Fair value contracts		(484	)		(450	)
Net current deferred liability		(505	)		(854	)
Long-term deferred tax asset (liability)
Property		(10,579	)		(2,885	)
Uniform capitalization		471			396
Other		160			198
Net long-term deferred tax  liability		(9,948	)		(2,291	)
Net deferred tax liability	$	(10,453	)	$	(3,145	)

Financial statement recognition and measurement of positions taken, or expected to be taken, by an entity in its income tax returns must consider the uncertainty and judgment involved in the determination and filing of income taxes.  Tax positions taken in an income tax return that are recognized in the financial statements must satisfy a more-likely-than-not recognition threshold, assuming that the tax position will be examined by taxing authorities with full knowledge of all relevant information.  As of December 31, 2010, the Company had accrued approximately $27,000 including approximately $8,000 of potential interest and penalty, respectively, applicable to certain open and unfiled state tax returns.  A reconciliation of the unrecognized tax benefits is as follows (in thousands):

	2011			2010
Balance as of January 1,	$	19		$	72
Additions for tax positions of prior years		-			-
Reductions of prior positions		(19	)		(53	)
Balance as of December 31,	$	-		$	19

The Company has filed all remaining open returns and expects final resolution with all states by year-end 2011.  As the actual tax payments are made, the accrual is reduced.  The Company has no other unrecognized tax benefits.  Interest and penalties associated with income tax liabilities are classified as income tax expense.

The earliest tax years remaining open for audit for Federal and major states of operations are as follows:

	Earliest Open
	Tax Year
Federal	2008
Texas	2007
Louisiana	2008
Michigan	2008