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7. Related-Party Transactions We were the operator of a number of properties owned by private limited partnerships and, accordingly, charge these entities operating fees. The operating supervision fees charged to the partnerships totaled approximately $0.2 million in 2006, 2005, and 2004, and are recorded as reductions of "General and administrative, net." We also have been reimbursed for administrative, and overhead costs incurred in conducting the business of the private limited partnerships, which totaled $0.1 million per year in 2006 and 2005, and $0.2 million in 2004, and are recorded as reductions in "General and administrative, net." As of December 31, 2006, the remaining two partnerships have been dissolved. We receive research, technical writing, publishing, and website-related services from Tec-Com Inc., a corporation located in Knoxville, Tennessee and controlled and majority owned by the aunt of the Company’s Chairman of the Board and Chief Executive Officer. We paid approximately $0.5 million to Tec-Com for such services pursuant to the terms of the contract between the parties in 2006, and $0.4 million per year in 2005 and 2004. The contract was renewed June 30, 2004 on substantially the same terms and expires June 30, 2007. We believe that the terms of this contract are consistent with third party arrangements that provide similar services. As a matter of corporate governance policy and practice, related party transactions are annually presented and considered by the Corporate Governance Committee of our Board of Directors in accordance with the Committee’s charter.
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This page was last updated on Wednesday, April 11, 2007, at 11:50:28 AM. Copyright © 1994-2008 by Swift Energy Company. |
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