Fair Value Measurements on a Recurring Basis

9 Months Ended

Sep. 30, 2011

Fair Value Disclosures [Abstract]

Fair Value Measurements on a Recurring Basis

Note 8 - Fair Value Measurements on a Recurring Basis

The Company accounts for its commodity derivatives and, when applicable, its interest rate derivatives at fair value (see Note 7) on a recurring basis.  The fair value of derivative instruments is determined utilizing pricing models for significantly similar instruments.  Inputs to the pricing models include publicly available prices and forward price curves generated from a compilation of data gathered from third parties.  Assumed credit risk adjustments, based on published credit ratings, public bond yield spreads and credit default swap spreads, are applied to the Company's commodity derivatives and, when applicable, its interest rate derivatives.

The following presents the fair value hierarchy for assets and liabilities measured at fair value on a recurring basis:

	September 30, 2011
	Level 2		Netting (1)			Total
	(in thousands)
Assets:
Commodity derivatives	$	980,187	$	(203,774	)	$	776,413
Liabilities:
Commodity derivatives	$	210,654	$	(203,774	)	$	6,880

(1) Represents counterparty netting under agreements governing such derivatives.