Transactions with Atlas Resources, LLC and its Affiliates

9 Months Ended

Sep. 30, 2011

TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES

TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES

NOTE 7 — TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES

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. Administrative costs incurred for the three and nine months ended September 30, 2011 were $20,100 and $61,300, respectively. Administrative costs incurred for the three and nine months ended September 30, 2010 were $21,500 and $64,200 respectively.

• Monthly well supervision fees which are included in production expenses in the Partnership's statements of operations are payable at $329 per well per month for operating and maintaining the wells. Well supervision fees incurred for the three and nine months ended September 30, 2011 were $87,900 and $268,600, respectively. Well supervision fees incurred for the three and nine months ended September 30, 2010 were $94,100 and $281,400, respectively.

• Transportation fees which are included in production expenses in the Partnership's statements of operations are generally payable at 13% of the natural gas sales price. Transportation fees incurred for the three and nine months ended September 30, 2011 were $44,000 and $135,500, respectively. Transportation fees incurred for the three and nine months ended September 30, 2010 were $47,300 and $153,700, respectively.

The MGP and its affiliates perform all administrative and management functions for the Partnership including billing revenues and paying expenses. Accounts receivable-affiliate on the Partnership's balance sheets represents the net production revenues due from the MGP.