CONCENTRATIONS OF RISK

6 Months Ended

Jun. 30, 2014

Financial instruments that potentially subject us to concentrations of credit risk consist of cash and accounts receivable. We maintain our cash in bank deposit accounts that frequently exceed federally insured limits. We have not experienced any losses in such accounts and do not believe we are exposed to any significant risk.

Accounts receivable primarily comprise natural gas gathering, treating and processing services we provide to our customers. This industry concentration has the potential to impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, industry or other conditions. We monitor the creditworthiness of our counterparties and can require letters of credit for receivables from counterparties that are judged to have sub-standard credit, unless the credit risk can otherwise be mitigated.

Counterparties accounting for more than 10% of total revenues were as follows:



	Three months ended June 30,				Six months ended June 30,
	2014		2013		2014		2013
Revenue:
Counterparty A	13	%	13	%	13	%	15	%
Counterparty B	10	%	14	%	10	%	17	%

__________

* Less than 10%

Counterparties accounting for more than 10% of total accounts receivable were as follows:



	June 30,		December 31,
	2014		2013
Accounts receivable:
Counterparty A	16	%	37	%
Counterparty B	10	%	11	%

__________

* Less than 10%

- Definition

The entire disclosure for any concentrations existing at the date of the financial statements that make an entity vulnerable to a reasonably possible, near-term, severe impact. This disclosure informs financial statement users about the general nature of the risk associated with the concentration, and may indicate the percentage of concentration risk as of the balance sheet date.

+ References+ Details