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	$	(2,107	)	$	2,043	$	112
Federal income tax expense - deferred		11			1,938		218
State income tax expense (benefit) - current		191			92		(85	)
State income tax (benefit) expense - deferred		(246	)		5		(10	)
Total income tax expense (benefit)	$	(2,151	)	$	4,078	$	235

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	$	4,612		$	4,425
Environmental and closure reserves		4,740			5,047
Impairment of assets		505			505
Investment		(59	)		197
Other		3,798			4,513
Deferred tax liabilities:
Depreciation and amortization		(7,875	)		(8,936	)
Prepaid expenses		(16	)		(46	)
		5,705			5,705
Valuation allowance		(5,729	)		(6,428	)
Net deferred income tax liabilities		(24	)		(723	)

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	)		53			(56	)
Previously unrecorded state tax benefit		―			―			(173	)
Permanent items		110			150			61
Other		(100	)		355			(1,325	)
(Decrease) increase in valuation allowance		(183	)		(37	)		(12	)
Income tax (benefit) expense	$	(2,151	)	$	4,078		$	235