ACCRUED AND OTHER LIABILITIES

12 Months Ended

Dec. 31, 2011

ACCRUED AND OTHER LIABILITIES [Abstract]

ACCRUED AND OTHER LIABILITIES

NOTE 12 – ACCRUED AND OTHER LIABILITIES

As of December 31, 2011 and December 31, 2010 we had the following accrued and other liabilities:

	December31,2011		December31,2010
Distributions payable (1)	$	20,545	$	-
Accrued capital spending		9,591		39
Accrued lease operating expenses		8,412		712
Accrued production taxes		4,460		184
Gas imbalance liability (2)		4,010		5,456
Other		3,009		1,630
	$	50,027	$	8,021

(1) Includes distributions payable to our general partner and limited partners of $17.1 million and preferred distributions payable of $3.4 million.

(2) We account for our natural gas imbalances under the sales method. We had overproduced liabilities of $4.0 million and $5.4 million included in accrued liabilities on our consolidated balance sheet as of December 31, 2011 and December 31, 2010 for overproduced positions which were beyond ultimate recoverability of remaining natural gas reserves. As of December 31, 2011, our gross underproduced natural gas position was approximately $1.1 million (1.6 MMcf) and our gross overproduced natural gas position was approximately $4.0 million (2.3 MMcf). These gross positions were valued at $3.01 per Mcf for underproduced natural gas positions and $2.96 per Mcf for overproduced natural gas positions without regard to remaining natural gas reserves. As of December 31, 2010, our gross underproduced natural gas position was approximately $1.8 million (597 MMcf) and our gross overproduced natural gas position was approximately $5.4 million (1,854 MMcf). These gross positions were valued at $4.00 per Mcf without regard to remaining natural gas reserves.