ASSET RETIREMENT OBLIGATIONS

12 Months Ended

Dec. 31, 2011

ASSET RETIREMENT OBLIGATIONS [Abstract]

ASSET RETIREMENT OBLIGATIONS

NOTE 6 - ASSET RETIREMENT OBLIGATIONS

The total undiscounted amount of future cash flows to settle our asset retirement obligations is estimated to be $222.2 million and $162.0 million at December 31, 2011 and 2010. We recorded a discounted total of approximately $43.4 million for future asset retirement obligations in connection with the conveyance of net assets from the Fund. Payments to settle asset retirement obligations occur over the lives of the oil and gas properties, estimated to be from less than one year to 61 years. Estimated cash flows have been discounted at our credit adjusted risk free rate of 5.59% and adjusted for inflation using a rate of 2.25%.

Changes in the asset retirement obligations are presented in the following table:

	Partnership						Predecessor
				December 22			January 1
	Year Ended			to			to
	December 31,			December 31,			December 21,
	2011			2010			2010
Beginning of period	$	43,414		$	38,319		$	35,244
Assumed in acquisitions		-			5,018			24,849
Revisions to previous estimates(1)		19,456			-			1,494
Liabilities incurred		377			-			-
Liabilities settled		(248	)		-			(747	)
Accretion expense		2,702			77			3,674
End of period	$	65,701		$	43,414		$	64,514
Less: Current portion of asset retirement obligations		(348	)		(4,166	)		(4,187	)
Asset retirement obligations -   non-current	$	65,353		$	39,248		$	60,327

(1) In 2011 we recorded upward revisions to previous estimates for our asset retirement obligations due to increases in future plugging and abandonment costs and changes to the remaining lives of our wells.

In 2011 we recorded upward revisions to previous estimates for our asset retirement obligations due to increases in future plugging and abandonment costs and changes to the remaining lives of our wells.