Altex Industries Inc
Altex Industries, Inc. is a holding company with one full-time employee and
one part-time employee that was incorporated in Delaware in 1985. Through its
operating subsidiary, AOC, the Company currently owns interests, including working
interests, in productive onshore oil and gas properties, has bought and sold
producing oil and gas properties, and, to a lesser extent, has participated
in the drilling of exploratory and development wells, and in recompletions of
existing wells.
All of AOCs interests are in properties operated by others. An interest owner
in a property not operated by that interest owner must rely on information regarding
the property provided by the operator, even though there can be no assurance
that such information is complete, accurate, or current. In addition, an owner
of a working interest in a property is potentially responsible for 100% of all
liabilities associated with that property, regardless of the size of the working
interest actually owned.
The operators of producing properties in which AOC has an interest sell produced
oil and gas to refiners, pipeline operators, and processing plants. If a refinery,
pipeline, or processing plant that purchases such production were taken out
of service, the operator could be forced to halt the production that is purchased
by such refinery, pipeline, or plant.
Although many entities produce oil and gas, competitive factors play a material
role in AOCs production operations only to the extent that such factors affect
demand for and prices of oil and gas and demand for, supply of, and prices of
oilfield services. The sale of oil and gas is regulated by Federal, state, and
local agencies, and AOC is also subject to Federal, state, and local laws and
regulations relating to the environment. These laws and regulations generally
provide for control of pollutants released into the environment and require
responsible parties to undertake remediation. AOC regularly assesses its exposure
to environmental liability and to reclamation, restoration, and dismantlement
expense ("RR&D"), which activities are covered by Federal, state,
and local regulation. AOC does not believe that it currently has any material
exposure to environmental liability or to RR&D, net of salvage value, although
this cannot be assured.
