This excerpt taken from the CHK 8-K filed Nov 1, 2005.
In December 2004, the Company entered into an agreement with the University of Charleston whereby the Company committed to deliver 500 dth of natural gas per day until such time as the Company has assigned and transferred to the University of Charleston a sufficient amount of gas to pay in full a term loan from United Bank, Incorporated to the University of Charleston in the principal amount of $6.0 million. In consideration for the assignment and delivery of the gas by the Company, the University of Charleston agreed to provide up to 80 four-year, full-tuition scholarships to qualified dependents of employees of the Company for undergraduate education and up to one hundred qualified full-time Company employees, one undergraduate class per semester beginning with the spring 2004-2005 academic year and ending with the fall term of the 2014-2015 academic year, among other benefits. The scholarship asset is recognized as gas deliveries are made and is amortized to employee benefits as the scholarships become available over 11 years.
Columbia Energy Resources, LLC (a wholly owned
subsidiary of Triana Energy Holdings, LLC)
Notes to Consolidated Financial Statements (continued)
2. Critical Accounting Policies and Estimates (continued)