Transactions with Affiliates

12 Months Ended

Dec. 31, 2013

Transactions with Affiliates [Abstract]

Transactions with Affiliates

(5)  Transactions with Affiliates

The late Mr. K. S. Adams, Jr., former Chairman of the Board and certain of his family partnerships and affiliates have participated as working interest owners with the Company’s subsidiary, Adams Resources Exploration Corporation.  Mr. Adams and such affiliates participated on terms similar to those afforded other non-affiliated working interest owners. In recent years, such related party transactions generally resulted after the Company first identified oil and gas prospects of interest.  Typically the available dollar commitment to participate in such transactions was greater than the amount management was comfortable putting at risk.  In such event, the Company first determined the percentage of the transaction it wanted to obtain, which allowed a related party to participate in the investment to the extent there was excess available.  In those instances where there was no excess availability there was no related party participation.  Similarly, related parties were not required to participate, nor was the Company obligated to offer any such participation to a related or other party.  When such related party transactions occurred, they were individually reviewed and approved by the Audit Committee comprised of the independent directors on the Company’s Board of Directors.  During 2013 and 2012, the Company’s investment commitments totaled approximately $12 million and $22.7 million, respectively, in those oil and gas projects where a related party was also participating in such investments.  As of December 31, 2013 and 2012, the Company owed a combined net total of $38,000 and $42,000, respectively, to these related parties.  In connection with the operation of certain oil and gas properties, the Company also charges such related parties for administrative overhead primarily as prescribed by the Council of Petroleum Accountants Society Bulletin 5. Such overhead recoveries totaled $152,000, $152,000 and $145,000 for the years ended December 31, 2013, 2012, and 2011, respectively.

The Company also enters into certain transactions in the normal course of business with other affiliated entities including direct cost reimbursement for shared phone and secretarial services.  For the years ended December 31, 2013, 2012 and 2011, the affiliated entities charged the Company $69,000, $64,000 and $42,000, respectively, of expense reimbursement and the Company charged the affiliates $99,000, $98,000 and $118,000, respectively, for such expense reimbursements. In January 2012, the Company relocated its primary office lease space to a building operated by an affiliated entity.  The lease rental rate was determined by an independent appraisal.  Rental expense paid to the related party for 2013 and 2012 totaled $481,000 and $442,000, respectively.