13.	Related Party Transaction

The Company leases office space and an equipment yard from HS Land & Cattle, LLC ("HSLC") in Platteville, Colorado.  HSLC is controlled by two of the Company's executive officers.    Effective July 1, 2013, the monthly rent was increased to $15,000 from $10,000 to include additional areas leased by the Company, including a field operations office.  The twelve month lease arrangement with HSLC is renewable annually on July 1.   The following table summarizes the lease payments made to directors or their affiliates for the three and six months ended February 28, 2014 and 2013 (in thousands):

		Three Months Ended								Six Months Ended
		February 28,				February 28,				February 28,				February 28,
		2014				2013				2014				2013
Lease payments		$	45			$	30			$	90			$	60

Effective January 1, 2012, the Company commenced processing revenue distribution payments to all persons that own a mineral interest in wells that it operates.  Payments to mineral interest owners included payments to entities controlled by three of the Company's directors, Ed Holloway, William Scaff Jr, and George Seward.  The following table summarizes the royalty payments made to directors or their affiliates for the three and six months ended February 28, 2014 and 2013 (in thousands):
 

		Three Months Ended								Six Months Ended
		February 28,				February 28,				February 28,				February 28,
		2014				2013				2014				2013
Total Royalty Payments		$	51			$	31			$	133			$	76