3. INCOME TAXES

The Company’s provision (benefit) for income taxes is detailed as follows:



	2015		2014		2013
Current:
Federal	$	2,053,000	$	4,996,000	$	1,813,000
State		111,000		214,000		150,000
		2,164,000		5,210,000		1,963,000
Deferred:
Federal		2,033,000		5,702,000		4,003,000
State		639,000		908,000		764,000
		2,672,000		6,610,000		4,767,000
	$	4,836,000	$	11,820,000	$	6,730,000

The difference between the provision (benefit) for income taxes and the amount which would result from the application of the federal statutory rate to income before provision (benefit) for income taxes is analyzed below for the years ended September 30:



	2015		2014		2013

Provision (benefit) for income taxes at statutory rate	$	4,955,069	$	12,887,512	$	7,241,517
Percentage depletion		(530,783)		(1,466,456)		(1,059,303)
State income taxes, net of federal provision (benefit)		487,500		1,018,550		572,650
Other		(75,786)		(619,606)		(24,864)
	$	4,836,000	$	11,820,000	$	6,730,000

Deferred tax assets and liabilities, resulting from differences between the financial statement carrying amounts and the tax basis of assets and liabilities, consist of the following at September 30:



	2015		2014
Deferred tax liabilities:
Financial basis in excess of tax basis, principally
intangible drilling costs capitalized for financial
purposes and expensed for tax purposes	$	41,880,691	$	40,052,983
Derivative contracts		1,637,987		739,817
		43,518,678		40,792,800
Deferred tax assets:
State net operating loss carry forwards		323,536		498,539
AMT credit carry forwards		164,478		-
Deferred directors' compensation		1,149,217		1,159,355
Restricted stock expense		457,934		475,561
Other		787,506		695,338
		2,882,671		2,828,793
Net deferred tax liabilities	$	40,636,007	$	37,964,007

At September 30, 2015, the Company had an income tax benefit of $323,536 related to Oklahoma state income tax net operating loss (OK NOL) carry forwards expiring from 2028 to 2031. There is no valuation allowance for the OK NOL’s as management believes they will be utilized before they expire. The AMT carry forwards do not have an expiration date.