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Certain Relationships and Related Party Transactions
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

NOTE 5 - CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

 

The Partnership has entered into the following significant transactions with the MGP and its affiliates as provided under its Partnership Agreement. Administrative costs, which are included in general and administrative expenses in the Partnership’s statements of operations, are payable at $75 per well per month. Monthly well supervision fees, which are included in production expense in the Partnership’s statements of operations, are payable at $337 per well per month for operating and maintaining the wells. Well supervision fees are proportionately reduced to the extent the Partnership does not acquire 100% of the working interest in a well. Transportation fees are included in production expenses in the Partnership’s statements of operations and are generally payable at 13% of the natural gas sales price. Direct costs, which are included in production and general administrative expenses in the Partnership’s statements of operations, are payable to the MGP and its affiliates as reimbursement for all costs expended on the Partnership’s behalf.

The following table provides information with respect to these costs and the periods incurred:

 

 

  

Three Months Ended

March 31,

 

 

  

2016

 

  

2015

 

Administrative fees

  

$

11,600

  

  

$

14,300

  

Supervision fees

  

 

52,200

  

  

 

64,500

  

Transportation fees

  

 

5,700

  

  

 

11,500

  

Direct costs

 

 

31,200

 

 

 

37,200

 

Total

  

$

100,700

  

  

$

127,500

  

The MGP and its affiliates perform all administrative and management functions for the Partnership, including billing revenues and paying expenses. Accounts payable trade-affiliate on the Partnership’s balance sheets includes the net production expenses due to the MGP.