Stock Based Compensation

9 Months Ended

Jun. 30, 2013

Stock Based Compensation

Stock Based Compensation

Note 7 – Stock Based Compensation

The board of directors’ quarterly compensation was adjusted to 375 restricted shares in April 2011 due to the one for two stock dividend distributed by the Company (see Note 12 for further information). The shares awarded become unrestricted upon a director leaving the board.  Directors who also serve as officers of the Company are not compensated for their service as directors.  Since these shares are restricted, in recording compensation expense, the expense accrued is 25% less than the closing price of the stock on the day the stock was awarded. Management of the Company believes this discount is reasonable for thinly traded stock such as that of the Company. On May 21, 2013, shares were issued for the quarter ended March 31, 2013. Information regarding shares of stock awarded to directors in the current quarter of 2013 is summarized below.

	Fees Earned or Paid	5/21/2013
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $15.49/Share)	($)	($)
6 Directors	—	2,250	34,853	34,853

In addition, the Board of Directors authorized the sale of 75 shares of the Company’s common stock to Leatherstocking Gas Company, LLC. Leatherstocking Gas Company, LLC has assigned these shares to Carl T. Hayden in compensation for service as a director of the Company’s joint venture affiliate, Leatherstocking Gas Company, LLC for the quarter ended March 31, 2013. These shares were issued in June 2013 and recognized this quarter. Information regarding this sale is summarized below:

	Fees Earned or Paid	6/21/2013
	in Cash	Stock Awards	Stock Awards	Total
	($)	(@ $15.95/Share)	($)	($)
Leatherstocking Gas Company LLC	—	75	1,196	1,196