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FORM 10-K FOR FISCAL YEAR ENDED DECEMBER 31, 2006NOTES TO CONSOLIDATED FINANCIAL STATEMENTS7. 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, March 28, 2007 , at 09:39:54 AM . Copyright © 1994-2008 by Swift Energy Company. |
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