Asset Retirement Obligation

6 Months Ended

Jun. 30, 2012

Asset Retirement Obligation [Abstract]

ASSET RETIREMENT OBLIGATION

NOTE 3 - ASSET RETIREMENT OBLIGATION

The Partnership recognizes an estimated liability for the plugging and abandonment of its oil and gas wells and related facilities. The Partnership also recognizes a liability for future asset retirement obligations if a reasonable estimate of the fair value of that liability can be made. The estimated liability is based on the MGP's historical experience in plugging and abandoning wells, estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted risk-free interest rate. Revisions to the liability could occur due to changes in cost estimates or remaining lives of the wells or if federal or state regulators enact new plugging and abandonment requirements. The associated asset retirement costs from revisions are capitalized as part of the carrying amount of the long-lived asset. The Partnership has no assets legally restricted for purposes of settling asset retirement obligations. Except for its oil and gas properties, the Partnership has determined that there are no other material retirement obligations associated with tangible long-lived assets.

A reconciliation of the Partnership's liability for plugging and abandonment costs for the periods indicated is as follows:

	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2012	2011	2012	2011
Asset retirement obligation at beginning of period	$   4,878,100	$   4,511,600	$                         4,836,500	$                         4,444,900
Liabilities settled	(800)	—	(20,800)	—
Accretion expense	61,600	66,600	123,200	133,300
Asset retirement obligation at end of period	$   4,938,900	$   4,578,200	$                         4,938,900	$                         4,578,200