All of Yale E. Key's operating facilities are metal one story combination office
and shop buildings and are considered to be in good condition. All of these
properties are encumbered by security interests in favor of certain lenders. See
Note 5 of Notes to Consolidated Financial Statements of Key.
Odessa Exploration leases approximately 3,300 square feet of office space
in Odessa, Texas.
As of December 31, 1995, Key employed approximately 827 persons (737 at
Yale E. Key, five at Odessa Exploration, 83 at Clint Hurt and three at Key).
None of Key's employees are represented by a labor union or collective
bargaining agent. Key has experienced no work stoppages associated with labor
disputes or grievances and considers its relations with its employees to be
The oil field service operations, the oil and gas production activities
and the oil and natural gas drilling of Key are subject to various local, state
and federal laws and regulations intended to protect the environment. Management
of Key believes that it is in substantial compliance with all material known
existing federal, state and local regulations as they relate to the environment.
Although Key has incurred certain costs relating to compliance with
environmental laws and regulations, such amounts were not material during the
past three fiscal years.
Management believes that Key is in substantial compliance with all known
material local, state and federal safety guidelines and regulations. In order to
comply with such safety guidelines and regulations and increase employee
awareness of on-the-job safety, Yale E. Key employs four safety officers. Yale
E. Key also has a safety training and education center which is used by it for
continued safety training and awareness.
There are no material pending legal proceedings against Key. Key is
subject to legal proceedings and claims which arise in the ordinary course of
business, none of which, in the opinion of management, have a material impact on
Key's financial condition or results of operations.