Quarterly report pursuant to Section 13 or 15(d)

RELATED PARTY TRANSACTIONS

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RELATED PARTY TRANSACTIONS
6 Months Ended
Jun. 30, 2011
RELATED PARTY TRANSACTIONS  
RELATED PARTY TRANSACTIONS
 
NOTE 6     RELATED PARTY TRANSACTIONS
 
The Company previously purchased leasehold interests from Gallatin Resources, LLC (“Gallatin”) in 2007. During the first six months of 2011, the Company paid Gallatin a total of $2,185 related to previously acquired leasehold interests.  Carter Stewart, one of the Company's directors, owns a 25% interest in Gallatin.  Legal counsel for Gallatin informed the Company that Mr. Stewart does not have the power to control Gallatin Resources because each member of Gallatin has the right to vote on matters in proportion to their respective membership interest in the company and company matters are determined by a vote of the holders of a majority of membership interests.  Further, Mr. Stewart is neither an officer nor a director of Gallatin.  As such, Mr. Stewart does not have the ability to individually control company decisions for Gallatin.
 
The Company had a securities account with Morgan Stanley Smith Barney that was managed by Kathleen Gilbertson, a financial advisor with that firm who is the sister of the Company's president and Director, Ryan Gilbertson.  The Company closed this account on August 4, 2011.
 
All transactions involving related parties were approved by the Company's board of directors or Audit Committee.