If, the season is completely lost, does it eliminate 1 yr of contract? Or would this year be carried over resulting in an extra year?

The year would not be carried over. If your contract is set to expire in 2013, it will expire whether you play or not. It may or may not count toward a year of NHL experience, depending on the CBA settlement. Last time they agreed that NHL players who played a year in the AHL during the lockout got a year's credit of NHL experience.

OK thanks for the  clarification. I wonder if Thomas contract would be done after the season, no matter what his decision would be. Play or not play. a year long lock out would mean that he would be off the books and not owe a year service.