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FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2005NOTES TO CONSOLIDATED FINANCIAL STATEMENTS7. Related-Party Transactions
We are 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 2005, 2004 and 2003, 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 less
than $0.1 million, $0.2 million, and $0.4 million in 2005, 2004, and
2003, 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
approximately $0.4 million and $0.5 million, respectively, in
receivables from and payables to the partnerships at December 31, 2005. 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 sister of
the Company's Chairman of the Board and aunt of the Company’s Chief
Executive Officer. In 2005, 2004 and 2003, 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 Monday, March 13, 2006 , at 10:07:07 AM . Copyright © 1994-2008 by Swift Energy Company. |
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