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TGC > SEC Filings for TGC > Form 8-K on 29-Jun-2012All Recent SEC Filings

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Form 8-K for TENGASCO INC


29-Jun-2012

Other Events


Item 8.01 Other Events.

The United States Department of the Treasury granted an application filed by the Company on April 24, 2012 for a cash payment in lieu of investment tax credits relating to the facility operated by the Company's wholly-owned subsidiary, Manufactured Methane Corporation, at the Carter Valley Landfill located in Church Hill, Tennessee. The payment to the Company was authorized under Section 1603 of Division B of the American Recovery and Reinvestment Act of 2009. The application was granted on June 20, 2012 and payment was received on June 25, 2012 in the amount of $999,530.00, the amount the Company had requested in its application. The grant amount was calculated pursuant to provisions applicable to a "landfill gas project," defined in this statute as a project generating electricity from landfill gas. The Company may not take investment tax credits for this facility as a result of accepting the cash payment, and is subject to annual reporting of the status of the project and recapture of all or a portion of the payment in the event the project were to be assigned to an ineligible nonprofit or governmental entity, during the five year period following the date of the award. The Company does not anticipate that the payment will be subject to recapture. Pursuant to the terms of the implementing federal regulations, the cash payment awarded is not treated as taxable income, but does reduce the taxable basis of the project by half of the grant amount.

The information in this Form 8-K shall not be deemed "filed" for purposes of
Section 18 of the Securities Exchange Act of 1934 (the "Exchange Act") or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933 or the Exchange Act, except as expressly set forth by specific reference in such a filing.

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