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Certain Relationships and Related Party Transactions
9 Months Ended
Sep. 30, 2013
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

NOTE 6—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 expenses in the Partnership’s statements of operations are payable at $296 per well per month for operating and maintaining the wells. 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.

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

 

 

 

Three Months Ended

September 30,

  

  

Nine Months Ended

September 30,

  

 

 

2013

 

 

 

2012

 

 

 

2013

 

 

 

2012

 

Administrative             

$

  29,000

 

 

$

  30,300

  

  

$

  92,300

 

 

$

  95,400

 

Supervision             

 

  114,700

 

 

 

  119,900

  

  

 

  364,700

 

 

 

  377,100

 

Transportation             

 

  54,800

 

 

 

  40,000

  

  

 

  164,100

 

 

 

  126,500

 

Total             

$

  198,500

 

 

$

  190,200

  

  

$

  621,100

 

 

$

  599,000

 

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