Note 4. Deepwater Horizon Settlement
In the fourth quarter of 2012, the Company prepared and filed a Business Economic Loss claim under the Deepwater Horizon Settlement claim framework which generally requires a Company to meet certain revenue patterns and if the required revenue patterns are met, then calculate a compensation amount based on a court approved Economic and Property Damages Settlement Agreement (See www.deepwaterhorizonsettlements.com for agreements and details). The total claim, including claimant accounting supporting reimbursement of $11,250, was $808,865. Under separate contingent fee arrangements with an attorney and an accountant for the filing and preparation of the claim, fees of $80,887 and $40,443, respectively, were paid and the net claim amount received by the Company was $687,535.
The attorney is the spouse of the accountant and the accountant is the Company’s President and Treasurer. The Board of Directors was advised by the President of the employment of the attorney and accountant for the filing and preparation of the claim.