GBR New Concept Energy Inc

Item 8.01.  Other Events

On December 16, 2016, New Concept Energy, Inc. (the " Registrant " or the " Issuer " or " NCE ") consummated the transfer of all of the Membership Interest in its wholly owned subsidiary, Desoto Development, LLC, to an unrelated third party for the sum of $700,000, payable in cash. Desoto Development, LLC is the owner of approximately 7.4 acres of undeveloped land in Desoto, Texas, a suburb of Dallas, Texas. The property was originally acquired in February 2014 by the Registrant as an investment. The Registrant will recognize a gain of $50,000 on the transaction, and the funds received will be utilized by the Registrant to settle current obligations.

On December 26, 2016, Chief Judge, United States of Bankruptcy Court, Southern District of West Virginia, entered an order in three related bankruptcy cases, approving a Compromise between Mountaineer State Energy, Inc. (a subsidiary of the Registrant) and the Trustee of the Estates of Eddie Burl Smith and Donald Paul Smith (the " Order "). Such Order approved a joint motion filed, allowing various offsets and permitting a payment by Mountaineer of the sum of $650,000 to the Smith Estates and trust to be deemed fully released and discharged from any further obligations under prior agreements and orders. Under previous arrangements created in September 2008, when the Carl E. Smith entities were acquired, the Smith Estates were owed current and future payments, the present value and accounting value of which is $1,540,000, all of which was settled for the one-time payment now of $650,000.