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FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2004NOTES TO CONSOLIDATED FINANCIAL STATEMENTS7. Related-Party Transactions
We have been 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 both 2004 and 2003, and $0.3 million in
2002, 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 approximately $0.2 million, $0.4 million,
and $1.0 million in 2004, 2003, and 2002, respectively, and are recorded
as reductions in “General and administrative, net.” Included in “Accounts
receivable” and “Accounts payable and accrued liabilities” on the
accompanying balance sheets, is less than $0.1 million and $1.1 million,
respectively, in receivables from and payables to the partnerships at
December 31, 2004. We receive research, technical writing, publishing, and
website-related services from Tec-Com Inc., a corporation located in
Knoxville, Tennessee and controlled by the sister of the Company's
Chairman and Vice Chairman of the Board. The sister and brother-in-law
of Messrs. A. E. Swift and V. Swift also own a substantial majority of
Tec-Com. In 2004, 2003 and 2002, we paid approximately $0.4 million per
year to Tec-Com for such services pursuant to the terms of the contract
between the parties. 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 Friday, March 18, 2005 , at 03:12:09 PM . Copyright © 1994-2008 by Swift Energy Company. |
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