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Summary of Significant Accounting Policies (Policy)
12 Months Ended
Dec. 31, 2012
Summary Of Significant Accounting Policies [Abstract]  
Use of Estimates [Policy Text Block]

Use of Estimates

 

The preparation of the Partnership's financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of the Partnership's financial statements, as well as the reported amounts of revenue and costs and expenses during the reporting periods. The Partnership's financial statements are based on a number of significant estimates, including revenue and expense accruals, depletion and amortization, asset impairments, fair value of derivative instruments, and the probability of forecasted transactions. Actual results could differ from those estimates. Certain amounts in the prior year's financial statements have been reclassified to conform to the current year presentation.

Cash Equivalents [Policy Text Block]

 

Cash Equivalents

 

The carrying amounts of the Partnership's cash and receivables approximate fair values because of the short maturities of these instruments. The Partnership considers all highly liquid investments with a remaining maturity of three months or less at the time of purchase to be cash equivalents.

Receivables [Policy Text Block]

Receivables

 

Accounts receivable affiliate on the balance sheets consist solely of the trade accounts receivable associated with the Partnership's operations. In evaluating the realizability of its accounts receivable, the MGP performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer's current creditworthiness, as determined by management's review of the credit information. The Partnership extends credit on sales on an unsecured basis to many of their customers. At December 31, 2012 and 2011, the Partnership had recorded no allowance for uncollectible accounts receivable on its balance sheets.

Natural Oil and Gas Properties [Policy Text Block]
 

 

 

Natural gas and oil Properties

 

 

 

 

Natural gas and oil properties are stated at cost. Maintenance and repairs which generally do not extend the useful life of an asset for two years or more through the replacement of critical components are expensed as incurred. Major renewals and improvements which generally extend the useful life of an asset for two years or more through the replacement of critical components are capitalized.

 

The Partnership follows the successful efforts method of accounting for oil and gas producing activities. Developments costs, whether successful or not, are capitalized Oil and NGLs are converted to gas equivalent basis ("Mcfe") at the rate of one barrel to 6 Mcf of natural gas.

 

The Partnership's depletion expense is determined on a field-by-field basis using the units-of-production method. Depletion rates for leasehold and related equipment costs are based on proved developed reserves associated with each field. Depletion rates are determined based on reserve quantity estimates and the capitalized costs of developed producing properties.

 

Upon the sale or retirement of a complete field of a proved property, the cost is eliminated from the property accounts, and the resultant gain or loss is reclassified to the Partnership's statements of operations. Upon the sale of an individual well, the Partnership credits the proceeds to accumulated depletion within its balance sheets.

 

Impairment of Long-Lived Assets [Policy Text Block]
Derivative Instruments [Policy Text Block]

Derivative Instruments

 

The MGP enters into certain financial contracts to manage the Partnerships's exposure to movement in commodity prices (see Note 6). The derivative instruments recorded in the balance sheets were measured as either an asset or liability at fair value. Changes in a derivative instrument's fair value are recognized currently in the Partnership's statements of operations unless specific hedge accounting criteria are met.

Asset Retirement Obligations [Policy Text Block]

Asset Retirement Obligations

 

The Partnership recognizes an estimated liability for the plugging and abandonment of its gas and oil wells and related facilities (see Note 5). The Partnership recognizes a liability for its future asset retirement obligations in the current period if a reasonable estimate of the fair value of that liability can be made. The associated asset retirement costs are capitalized as part of the carrying amount of the long-lived asset.

Income Taxes [Policy Text Block]
Environmental Matters [Policy Text Block]

Environmental Matters

 

The Partnership is subject to various federal, state and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Partnership's operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. The Partnership maintains insurance which may cover in whole or in part certain environmental expenditures. The Partnership had no environmental matters requiring specific disclosure or requiring the recognition of a liability for the year ended December 31, 2012.

Concentration of Credit Risk [Policy Text Block]

Conentration of Credit Risk

 

The Partnership sells natural gas, crude oil and NGLs under contracts to various purchasers in the normal course of business. For the year ended December 31, 2012, the Partnership had one customer that individually accounted for approximately 82% of the Partnership's natural gas, oil, and NGL combined revenues, excluding the impact of all financial derivative activity. For the year ended December 31, 2011, the Partnership had four customers that individually accounted for approximately 24%, 18%, 16%, and 11%  of the Partnership natural gas, oil an NGL combined revenues, excluding the impact of all financial derivative activity.

Revenue Recognition [Policy Text Block]

 

Revenue Recognition

 

The Partnership generally sells natural gas, crude oil and NGLs at prevailing market prices. Generally, the Partnership's sales contracts are based on pricing provisions that are tied to a market index, with certain fixed adjustments based on proximity to gathering and transmission lines and the quality of its natural gas. Generally, the market index is fixed 2 business days prior to the commencement of the production month. Revenue and the related accounts receivable are recognized when produced quantities are delivered to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured and the sales price is fixed or determinable. Revenues from the production of natural gas, crude oil and NGLs, in which the Partnership has an interest with other producers, are recognized on the basis of its percentage ownership of the working interest and/or overriding royalty.

 

The Partnership accrues unbilled revenue due to timing differences between the delivery of natural gas, NGLs, and crude oil and the receipt of a delivery statement. These revenues are recorded based upon volumetric data from the Partnership's records and management estimates of the related commodity sales and transportation and compression fees which are, in turn, based upon applicable product prices (see "Use of Estimates" accounting policy for further description). The Partnership had unbilled revenues at December 31, 2012 and 2011 of $1,169,800 and $2,161,400, respectively, which were included in accounts receivable within the Partnership's balance sheets.