Unit-Based Compensation

6 Months Ended

Jun. 30, 2012

Unit-Based Compensation [Abstract]

Unit-Based Compensation

NOTE 13 – UNIT-BASED COMPENSATION

The QRE GP, LLC Long-Term Incentive Plan (the “Plan”) was established for employees, officers, consultants and directors and consultants of QRE GP and its affiliates, including QRM, who perform services for us. The Plan consists of unit options, restricted units, phantom units, unit appreciation rights, distribution equivalent rights, other unit-based awards and unit awards. The purpose of awards under the long-term incentive plan is to provide additional incentive compensation to employees providing services to us and to align the economic interests of such employees with the interests of our unitholders. The Plan limits the number of common units that may be delivered pursuant to awards under the plan to 1.8 million units. Common units cancelled, forfeited or withheld to satisfy exercise prices or tax withholding obligations will be available for delivery pursuant to other awards.

We recognize the expense related to unvested restricted units using a straight-line amortization method over the vesting period of the award. For the three and six months ended June 30, 2012 we recognized compensation expense related to these awards of $0.4million and $0.8 million. For the three and six months ended June 30, 2011, we recognized compensation expense related to these awards of $0.3 million and $0.6 million. As of June 30, 2012, we had 239,281 restricted unit awards outstanding with $4.8 million grant date fair value, which we expect will be recognized in expense over a weighted average period of approximately three years.

The following table summarizes our unit-based awards for the six months ended June 30, 2012 (in units and dollars):

	Number of
	Unvested		Weighted
	Restricted		Average
	Units		Grant-Date
	(in thousands)		Fair Value
Unvested units, December 31, 2011	271	$	20.26
Granted	1		20.90
Forfeited	(27)		20.23
Vested	(6)		22.26
Unvested units, June 30, 2012	239	$	20.29