Annual report pursuant to section 13 and 15(d)

INCOME TAXES (Tables)

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2012

Components of current and deferred federal and state income tax for continuing operations

The components of current and deferred federal and state income tax expense (benefit) for continuing operations for the years ended December 31, consisted of the following (in thousands):

	2012			2011			2010
Federal income tax (benefit) expense - current	$	(576	)	$	2,043		$	112
Federal income tax expense (benefit) - deferred		1,527			(2,692	)		1,717
State income tax expense (benefit) - current		196			92			(85	)
State income tax expense (benefit) - deferred		103			(538	)		102
Total income tax expense (benefit)	$	1,250		$	(1,095	)	$	1,846

Schedule of deferred tax assets and liabilities

We had temporary differences and net operating loss carry forwards from both our continuing and discontinued operations, which gave rise to deferred tax assets and liabilities at December 31, as follows (in thousands):

Deferred tax assets:	2012			2011
Net operating losses	$	8,621		$	4,425
Environmental and closure reserves		4,740			5,047
Impairment of assets		505			7,679
Investment		(59	)		197
Other		3,798			2,946
Tax credit		869			―
Deferred tax liabilities:
Depreciation and amortization		(8,124	)		(9,167	)
Prepaid expenses		(16	)		(46	)
		10,334			11,081
Valuation allowance		(5,729	)		(7,360	)
Net deferred income tax asset		4,605			3,721
Reserve for uncertain tax positions		(1,949	)		―
Net total deferred income tax asset	$	2,656		$	3,721

Overall reconciliation between the expected tax benefit and the provision for income taxes

An overall reconciliation between the expected tax expense (benefit) using the federal statutory rate of 34% and the provision (benefit) for income taxes from continuing operations as reported in the accompanying consolidated statement of operations is provided below.

	2012			2011			2010
Tax (benefit) expense at statutory rate	$	(1,847	)	$	3,557		$	1,740
State tax (benefit) expense, net of federal benefit		(131	)		35			(56	)
Previously unrecorded state tax benefit		―			―			(173	)
Permanent items		110			150			61
Other		(23	)		(377	)		(1,369	)
Reserve for uncertain tax position		1,949			―			―
Write-off of deferred tax asset		1,375			―			―
(Decrease) increase in valuation allowance		(183	)		(4,460	)		1,643
Income tax expense (benefit)	$	1,250		$	(1,095	)	$	1,846

Rollforward of unrecognized tax expense

A reconciliation of the beginning and ending amount of our unrecognized tax expense is summarized as follows (in thousands):

	2012		2011		2010
Balances at beginning of year	$	―	$	―	$	―
Addition related to current year tax position		1,949		―		―
Balances at end of the year	$	1,949	$	―	$	―