FEDERAL INCOME TAXES

12 Months Ended

Dec. 31, 2012

FEDERAL INCOME TAXES

FEDERAL INCOME TAXES

10. FEDERAL INCOME TAXES

        The deferred federal income tax asset (liability) consists of the following:

	December 31,
	2012			2011			2010
Property development costs—net of amortization	$	13,500,000		$	10,399,000		$	11,583,000
Accelerated depreciation		(294,000	)		(105,000	)		(151,000	)
Restoration reserves		(2,681,000	)		(2,080,000	)		(1,560,000	)
Net operating loss carryforwards utilized		996,000			143,000			—
Net operating loss and percentage depletion carryforwards		57,724,000			39,496,000			34,766,000
Valuation allowance and other—net		(69,245,000	)		(47,853,000	)		(44,638,000	)
Total deferred income tax asset (liability)	$	—		$	—		$	—

        Major items causing the Company's tax provision to differ from the federal statutory rate of 34% were:

	For the Twelve Months Ended December 31,
	2012						2011						2010
	Amount			% of Pretax Income			Amount			% of Pretax Income			Amount			% of Pretax Income
Pretax income (loss)	$	(15,624,373	)		—		$	(11,199,397	)		—		$	(10,354,567	)		—
Pretax income (loss) times statutory tax rate		(5,312,000	)		34	%		(3,808,000	)		34	%		(3,521,000	)		34	%
Increases (decreases) in taxes resulting from:
Change in valuation allowance		5,312,000			(34	)%		3,808,000			(34	)%		3,521,000			(34	)%
Income tax benefit	$	0			0	%	$	0			0	%	$	0			0	%

        The Company also has available for regular federal income tax purposes at December 31, 2012 estimated net operating loss ("NOL") carryforwards of approximately $167 million, before limitations which expire primarily in 2013 through 2032, if not previously utilized. This includes approximately $29.6 million in NOL's associated with the Neutron acquisition. Following the issuance of the Company's Common Stock in 2001 and the Neutron acquisition in 2012, the ability to utilize the NOL's will be severely limited on an annual and aggregate basis. For this reason, and due to no expectation of profitable operations in the near future, the NOL has a full valuation allowance and is not shown as a deferred tax asset in the table above.

        The Company's tax years ended 2006 to 2011 remain open to examination for Federal tax purposes.