LONG-TERM DEBT	6 Months Ended
Jun. 30, 2011
LONG-TERM DEBT [Abstract]
LONG-TERM DEBT	NOTE 7 – LONG-TERM DEBT Senior Secured Revolving Credit Facility On December 22, 2010, in connection with the IPO, we entered into a credit agreement along with QRE GP, OLLC as Borrower, and a syndicate of banks (the “Credit Agreement”). The Credit Agreement provides for a five-year, $750.0 million revolving credit facility maturing on December 22, 2015, with a borrowing base of $300.0 million as of June 30, 2011. The borrowing base is subject to redetermination on a semi-annual basis as of May 1 and November 1 each year based on an engineering report with respect to our estimated oil, natural gas and NGL reserves, which will take into account the prevailing oil, natural gas and NGL prices at such time, as adjusted for the impact of our commodity derivative contracts. Effective May 23, 2011, the lenders reaffirmed the borrowing base of $300.0 million. Borrowings under the Credit Agreement are collateralized by liens on at least 80% of our oil and natural gas properties and all of our equity interests in our wholly owned subsidiary, OLLC, and any future guarantor subsidiaries. Borrowings bear interest at our option of either (i) the greater of the prime rate of Wells Fargo Bank, National Association, the federal funds effective rate plus 0.50%, and the one-month adjusted LIBOR plus 1.0%, all of which would be subject to a margin that varies from 0.75% to 1.75% per annum according to the borrowing base usage (which is the ratio of outstanding borrowings and letters of credit to the borrowing base then in effect), or (ii) the applicable LIBOR plus a margin that varies from 1.75% to 2.75% per annum according to the borrowing base usage. The unused portion of the borrowing base is subject to a commitment fee of 0.50% per annum. As of June 30, 2011 and December 31, 2010, we had $266.0 million and $225.0 million of borrowings outstanding and $34.0 million of borrowing availability as of June 30, 2011. For the six months ended June 30, 2011, the weighted average interest rate on the revolver was 4.0%. The Credit Agreement requires us to maintain a ratio of total debt to EBITDAX (as such term is defined in the Credit Agreement) of not more than 4.0 to 1.0 and a current ratio (as such term is defined in the Credit Agreement) of not less than 1.0 to 1.0. Additionally, the Credit Agreement contains various covenants and restrictive provisions which limit our ability to incur additional debt, guarantees or liens; consolidate, merge or transfer all or substantially all of our assets; make certain investments, acquisitions or other restricted payments (including a prohibition on our ability to pay distributions to our unitholders if our borrowing base usage exceeds 95%); modify certain material agreements; engage in certain types of transactions with affiliates; dispose of assets; prepay certain indebtedness; and to provide audited financial statements within 90 days of year end and reviewed quarterly financial statements within 45 days of quarter end. The Credit Agreement also prohibits us from entering into commodity derivative contracts covering, in any given year, in excess of the greater of (i) 90% of our forecasted production attributable to proved developed producing reserves and (ii) 85% of our forecasted production from total proved reserves for the next two years and 75% of our forecasted production from total proved reserves thereafter, in each case, based upon production estimates in our most recent reserve report. If we fail to perform our obligations under these and other covenants, the revolving credit commitments may be terminated and any outstanding indebtedness under the Credit Agreement, together with accrued interest, could be declared immediately due and payable. As of June 30, 2011, we were not in compliance with the total debt to EBITDAX financial covenant due to the realized loss on commodity derivatives from the modification of our existing fixed price swap contracts. However, we sought and received a consent dated August 3, 2011 from our lenders to exclude this nonrecurring item from the calculation yielding a ratio in compliance with the financial covenants as of the June 30, 2011 measurement date.

NOTE 7 – LONG-TERM DEBT

Senior Secured Revolving Credit Facility

On December 22, 2010, in connection with the IPO, we entered into a credit agreement along with QRE GP, OLLC as Borrower, and a syndicate of banks (the “Credit Agreement”).

The Credit Agreement provides for a five-year, $750.0 million revolving credit facility maturing on December 22, 2015, with a borrowing base of $300.0 million as of June 30, 2011. The borrowing base is subject to redetermination on a semi-annual basis as of May 1 and November 1 each year based on an engineering report with respect to our estimated oil, natural gas and NGL reserves, which will take into account the prevailing oil, natural gas and NGL prices at such time, as adjusted for the impact of our commodity derivative contracts. Effective May 23, 2011, the lenders reaffirmed the borrowing base of $300.0 million. Borrowings under the Credit Agreement are collateralized by liens on at least 80% of our oil and natural gas properties and all of our equity interests in our wholly owned subsidiary, OLLC, and any future guarantor subsidiaries. Borrowings bear interest at our option of either (i) the greater of the prime rate of Wells Fargo Bank, National Association, the federal funds effective rate plus 0.50%, and the one-month adjusted LIBOR plus 1.0%, all of which would be subject to a margin that varies from 0.75% to 1.75% per annum according to the borrowing base usage (which is the ratio of outstanding borrowings and letters of credit to the borrowing base then in effect), or (ii) the applicable LIBOR plus a margin that varies from 1.75% to 2.75% per annum according to the borrowing base usage. The unused portion of the borrowing base is subject to a commitment fee of 0.50% per annum.

As of June 30, 2011 and December 31, 2010, we had $266.0 million and $225.0 million of borrowings outstanding and $34.0 million of borrowing availability as of June 30, 2011. For the six months ended June 30, 2011, the weighted average interest rate on the revolver was 4.0%.

The Credit Agreement requires us to maintain a ratio of total debt to EBITDAX (as such term is defined in the Credit Agreement) of not more than 4.0 to 1.0 and a current ratio (as such term is defined in the Credit Agreement) of not less than 1.0 to 1.0. Additionally, the Credit Agreement contains various covenants and restrictive provisions which limit our ability to incur additional debt, guarantees or liens; consolidate, merge or transfer all or substantially all of our assets; make certain investments, acquisitions or other restricted payments (including a prohibition on our ability to pay distributions to our unitholders if our borrowing base usage exceeds 95%); modify certain material agreements; engage in certain types of transactions with affiliates; dispose of assets; prepay certain indebtedness; and to provide audited financial statements within 90 days of year end and reviewed quarterly financial statements within 45 days of quarter end. The Credit Agreement also prohibits us from entering into commodity derivative contracts covering, in any given year, in excess of the greater of (i) 90% of our forecasted production attributable to proved developed producing reserves and (ii) 85% of our forecasted production from total proved reserves for the next two years and 75% of our forecasted production from total proved reserves thereafter, in each case, based upon production estimates in our most recent reserve report. If we fail to perform our obligations under these and other covenants, the revolving credit commitments may be terminated and any outstanding indebtedness under the Credit Agreement, together with accrued interest, could be declared immediately due and payable. As of June 30, 2011, we were not in compliance with the total debt to EBITDAX financial covenant due to the realized loss on commodity derivatives from the modification of our existing fixed price swap contracts. However, we sought and received a consent dated August 3, 2011 from our lenders to exclude this nonrecurring item from the calculation yielding a ratio in compliance with the financial covenants as of the June 30, 2011 measurement date.