Derivative Instruments (Tables)

9 Months Ended

Sep. 30, 2013

Effects of Derivative Instruments on Statements of Operations

Effects of Derivative Instruments on Statements of Operations:

The following table summarizes the gain or loss recognized in the statements of operations for effective derivative instruments for the three and nine months ended September30, 2013 and 2012:

	ThreeMonthsEnded September30,				NineMonthsEnded September30,
	2013		2012		2013		2012
Gains from cash flow hedges reclassified from accumulated other comprehensive loss into natural gas and oil revenues	$	13,400	$	13,000	$	36,700	$	90,100

Offsetting Derivative Assets

The following table summarizes the gross and net fair values of the Partnership’s affiliate balances on the Partnership’s balance sheets for the periods indicated:

Offsetting Assets	GrossAmounts of Recognized Assets		GrossAmounts Offset in the Balance Sheets			NetAmountofAssets PresentedintheBalance Sheets
As of September30, 2013
Accounts receivable monetized gains-affiliate	$	27,600	$	(6,100	)	$	21,500
Long-term receivable monetized gains-affiliate		3,200		(3,200	)		-
Total	$	30,800	$	(9,300	)	$	21,500
As of December31, 2012
Accounts receivable monetized gains-affiliate	$	75,500	$	(6,000	)	$	69,500
Long-term receivable monetized gains-affiliate		15,100		(15,100	)		-
Total	$	90,600	$	(21,100	)	$	69,500

Offsetting Derivative Liabilities

Offsetting Liabilities	GrossAmounts ofRecognized Liabilities			GrossAmounts Offsetinthe BalanceSheets		NetAmountofLiabilities PresentedintheBalance Sheets
As of September30, 2013
Put premiums payable-affiliate	$	(6,100	)	$	6,100	$	-
Long-term put premiums payable-affiliate		(13,600	)		3,200		(10,400	)
Total	$	(19,700	)	$	9,300	$	(10,400	)
As of December31, 2012
Put premiums payable-affiliate	$	(6,000	)	$	6,000	$	-
Long-term put premiums payable-affiliate		(18,100	)		15,100		(3,000	)
Total	$	(24,100	)	$	21,100	$	(3,000	)

Natural Gas Put Options

Commodity Derivatives

The Partnership enters into commodity future option and collar contracts to achieve more predictable cash flows by hedging its exposure to changes in commodity prices. At any point in time, such contracts may include regulated NYMEX futures and options contracts and non-regulated over-the-counter futures contracts with qualified counterparties. NYMEX contracts are generally settled with offsetting positions, but may be settled by the physical delivery of the commodity. Crude oil contracts are based on a West Texas Intermediate (“WTI”) index. NGL fixed price swaps are priced based on a WTI crude oil index. These contracts have qualified and been designated as cash flow hedges and recorded at their fair values.

At September30, 2013, the Partnership had the following commodity derivatives:

Natural Gas Put Options

ProductionPeriodEnding December31,	Volumes (MMBtu) (1)	Average FixedPrice (perMMBtu)(1)		FairValue Asset (2)
2013	3,200	$	3.45	$	100
2014	10,500		3.80		3,200
2015	8,400		4.00		3,500
2016	8,400		4.15		4,500
				$	11,300

(1)“MMBtu” represents million British Thermal Units.

(2)Fair value based on forward New York Mercantile Exchange (“NYMEX”) natural gas prices, as applicable.