v2.4.0.6
Document Entity Information Document
9 Months Ended
Sep. 30, 2012
Entity Information [Line Items]  
Entity Registrant Name PDC 2002 B LTD PARTNERSHIP
Entity Central Index Key 0001224950
Current Fiscal Year End Date --12-31
Entity Filer Category Smaller Reporting Company
Document Type 10-Q
Document Period End Date Sep. 30, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q3
Amendment Flag false
Entity Common Stock, Shares Outstanding 0.00
Additional General Partnership Units Outstanding 0
v2.4.0.6
Condensed Balance Sheets (Unaudited) Statement (USD $)
Sep. 30, 2012
Dec. 31, 2011
Current assets:    
Cash and cash equivalents $ 10,168 $ 10,261 [1]
Accounts receivable 9,247 39,117 [1]
Crude oil inventory 10,060 11,174 [1]
Due from Managing General Partner-derivatives 174,870 201,175 [1]
Total current assets 204,345 261,727 [1]
Natural gas and crude oil properties, successful efforts method, at cost 7,777,402 7,774,445 [1]
Less: Accumulated depreciation, depletion and amortization (5,728,222) (5,592,847) [1]
Natural gas and crude oil properties, net 2,049,180 2,181,598 [1]
Due from Managing General Partner-derivatives 37,678 157,086 [1]
Other assets 47,953 42,200 [1]
Total Assets 2,339,156 2,642,611 [1]
Current liabilities:    
Accounts payable and accrued expenses 2,110 4,951 [1]
Due to Managing General Partner-derivatives 83,173 87,900 [1]
Due to Managing General Partner-other, net 46,925 98,359 [1]
Total current liabilities 132,208 191,210 [1]
Due to Managing General Partner-derivatives 19,597 77,860 [1]
Asset retirement obligations 219,559 208,823 [1]
Total liabilities 371,364 477,893 [1]
Commitments and contingent liabilities       [1]
Partners' equity:    
Managing General Partner 463,586 500,410 [1]
Limited Partners - 559.02 units issued and outstanding 1,504,206 1,664,308 [1]
Total Partners' equity 1,967,792 2,164,718 [1]
Total Liabilities and Partners' Equity $ 2,339,156 $ 2,642,611 [1]
[1] *Derived from audited 2011 balance sheet
v2.4.0.6
Balance Sheet Parenthetical (Parentheticals)
Sep. 30, 2012
Dec. 31, 2011
Limited Partners' Capital Account, Units Issued 559.02 559.02
Limited Partners' Capital Account, Units Outstanding 559.02 559.02
v2.4.0.6
Condensed Statements of Operations (Unaudited) Statement (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Revenues:        
Natural gas, NGLs and crude oil sales $ 47,511 $ 161,389 $ 251,367 $ 490,925
Commodity price risk management gain (loss), net (14,379) 57,010 29,912 71,965
Total revenues 33,132 218,399 281,279 562,890
Operating costs and expenses:        
Natural gas, NGLs and crude oil production costs 74,281 57,046 217,572 185,375
Direct costs - general and administrative 29,086 97,302 88,982 265,091
Depreciation, depletion and amortization 26,663 89,710 135,375 268,148
Accretion of asset retirement obligations 3,642 2,385 10,736 7,048
Total operating costs and expenses 133,672 246,443 452,665 725,662
Loss from operations (100,540) (28,044) (171,386) (162,772)
Interest income 5 73 15 81
Net loss (100,535) (27,971) (171,371) (162,691)
Net loss allocated to partners (100,535) (27,971) (171,371) (162,691)
Less: Managing General Partner interest in net loss (11,715) (5,594) (34,274) (32,538)
Net loss allocated to Investor Partners $ (88,820) $ (22,377) $ (137,097) $ (130,153)
Net loss per Investor Partner unit (159) (40) (245) (233)
Investor Partner units outstanding 559.02 559.02 559.02 559.02
v2.4.0.6
Condensed Statements of Cash Flows (Unaudited) Statement (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Cash flows from operating activities:    
Net loss $ (171,371) $ (162,691)
Adjustments to net loss to reconcile to net cash from operating activities:    
Depreciation, depletion and amortization 135,375 268,148
Accretion of asset retirement obligations 10,736 7,048
Unrealized (gain) loss on derivative transactions 82,723 (52,129)
Changes in operating assets and liabilities:    
Accounts receivable 29,870 (19,616)
Crude oil inventory 1,114 (2,301)
Other assets (5,753) (5,754)
Accounts payable and accrued expenses (2,841) (1,426)
Due to Managing General Partner-other, net (51,434) 24,785
Net cash from operating activities 28,419 56,064
Cash flows from investing activities:    
Capital expenditures for natural gas and crude oil properties (2,957) (18,177)
Net cash from investing activities (2,957) (18,177)
Cash flows from financing activities:    
Distributions to Partners (25,555) (37,876)
Net cash from financing activities (25,555) (37,876)
Net change in cash and cash equivalents (93) 11
Cash and cash equivalents, beginning of period 10,261 [1] 10,281
Cash and cash equivalents, end of period $ 10,168 $ 10,292
[1] *Derived from audited 2011 balance sheet
v2.4.0.6
General and Basis of Presentation
9 Months Ended
Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
General and Basis of Presentation

PDC 2002-B Limited Partnership (the “Partnership” or the “Registrant”) was organized in 2002 as a limited partnership, in accordance with the laws of the State of West Virginia, for the purpose of engaging in the exploration and development of natural gas and crude oil properties. Business operations commenced upon closing of an offering for the sale of Partnership units. Upon funding, this Partnership entered into a Drilling and Operating Agreement (“D&O Agreement”) with the Managing General Partner which authorizes PDC Energy, Inc. (“PDC”) to conduct and manage this Partnership's business. In accordance with the terms of the Limited Partnership Agreement (the “Agreement”), the Managing General Partner is authorized to manage all activities of this Partnership and initiates and completes substantially all Partnership transactions.

As of September 30, 2012, there were 505 limited partners in this Partnership (“Investor Partners”). PDC is the designated Managing General Partner of this Partnership and owns a 20% Managing General Partner ownership in this Partnership. According to the terms of the Agreement, revenues, costs and cash distributions of this Partnership are allocated 80% to the Investor Partners, which are shared pro rata based upon the number of units in this Partnership, and 20% to the Managing General Partner. The Managing General Partner may repurchase Investor Partner units under certain circumstances provided by the Agreement, upon request of an individual Investor Partner. Through September 30, 2012, the Managing General Partner had repurchased 37.2 units of Partnership interests from the Investor Partners at an average price of $3,952 per unit. As of September 30, 2012, the Managing General Partner owned 25.33% of this Partnership.

Beginning in November 2009, when the Investor Partners' average annual rate of return fell below 12.8%, this Partnership modified the standard ownership-based pro-rata allocation of Partnership cash available for distribution, pursuant to the Performance Standard Obligation outlined in Section 4.02 of the Agreement. Distributions paid to the Managing General Partner were reduced and distributions to the Investor Partners were increased by $2,561 and $3,979 for the nine months ended September 30, 2012 and 2011, respectively, as a result of the Preferred Cash Distribution made under the terms in Section 4.02. The Managing General Partner's obligation under Section 4.02 expires in February 2013. For more information concerning the Performance Standard Obligation, see Note 8, Partners' Equity and Cash Distributions, to this Partnership's financial statements included in the 2011 Form 10-K.

In the Managing General Partner's opinion, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of this Partnership's results for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in the audited financial statements have been condensed or omitted. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with this Partnership's audited financial statements and notes thereto included in this Partnership's 2011 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2011 Form 10-K and updated, as necessary, in this Quarterly Report on Form 10-Q. The results of operations and cash flows for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for the full year or any other future period.
v2.4.0.6
Recent Accounting Standards
9 Months Ended
Sep. 30, 2012
New Accounting Pronouncement or Change in Accounting Principle, Current Period Disclosures [Abstract]  
Recent Accounting Standards [Text Block]
Recent Accounting Standards

Fair Value Measurement

On May 12, 2011, the Financial Accounting Standards Board ("FASB") issued changes related to fair value measurement. The changes represent the converged guidance of the FASB and the International Accounting Standards Board on fair value measurement. Many of the changes eliminate unnecessary wording differences between International Financial Reporting Standards and U.S. GAAP. The changes expand existing disclosure requirements for fair value measurements categorized in Level 3 by requiring a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, a description of the valuation processes in place and a narrative description of the sensitivity of the fair value to changes in unobservable inputs and the interrelationships between those inputs. In addition, the changes also require the categorization by level in the fair value hierarchy of items that are not measured at fair value in the statement of financial position whose fair value must be disclosed. These changes are to be applied prospectively and were effective for public entities during interim and annual periods beginning after December 15, 2011. Adoption of these changes did not have a significant impact on this Partnership's financial statements.
v2.4.0.6
Transactions with Managing General Partner
9 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
Transactions with Managing General Partner

The Managing General Partner transacts business on behalf of this Partnership under the authority of the D&O Agreement. Revenues and other cash inflows received by the Managing General Partner on behalf of this Partnership are distributed to the Partners net of corresponding operating costs and other cash outflows incurred on behalf of this Partnership. The fair value of this Partnership's portion of open derivative instruments is recorded on the condensed balance sheets under the captions “Due from Managing General Partner-derivatives” in the case of net unrealized gains and “Due to Managing General Partner-derivatives” in the case of net unrealized losses.

The following table presents transactions with the Managing General Partner reflected in the condensed balance sheet line item “Due to Managing General Partner-other, net” which remain undistributed or unsettled with this Partnership's investors as of the dates indicated:

    
 
September 30, 2012
 
December 31, 2011
Natural gas, NGLs and crude oil sales revenues
collected from this Partnership's third-party customers
$
24,871

 
$
57,606

Commodity price risk management, realized gain
22,538

 
9,620

Other (1)
(94,334
)
 
(165,585
)
Total Due to Managing General Partner-other, net
$
(46,925
)
 
$
(98,359
)

(1)
All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs which have not been deducted from distributions.

The following table presents Partnership transactions, excluding derivative transactions which are more fully detailed in Note 5, Derivative Financial Instruments, with the Managing General Partner for the three and nine months ended September 30, 2012 and 2011. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Natural gas, NGLs and crude oil production costs” line item on the condensed statements of operations.    
 
 Three months ended September 30,
 
Nine months ended September 30,
 
2012
 
2011
 
2012
 
2011
 Well operations and maintenance
$
70,130

 
$
45,460

 
$
200,518

 
$
148,171

 Gathering, compression and processing fees
2,900

 
5,103

 
13,570

 
15,855

 Direct costs - general and administrative
29,086

 
97,302

 
88,982

 
265,091

 Cash distributions (1) (2)
1,210

 
1,570

 
3,976

 
5,564


(1)
Cash distributions include $462 and $1,426 during the three and nine months ended September 30, 2012, respectively, and $549 and $1,968 during the three and nine months ended September 30, 2011, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
(2)
Cash distributions to the Managing General Partner were reduced by $790 and $2,561 during the three and nine months ended September 30, 2012, respectively, and $1,064 and $3,979 for the three and nine months ended September 30, 2011, respectively, due to Preferred Cash Distributions made by the Managing General Partner to Investor Partners under the Performance Standard Obligation provision of the Agreement. For more information concerning this obligation, see Note 1, General and Basis of Presentation.
v2.4.0.6
Fair Value Measurements and Disclosures
9 Months Ended
Sep. 30, 2012
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
Fair Value Measurements and Disclosures

Determination of fair value. This Partnership's fair value measurements are estimated pursuant to a fair value hierarchy that requires this Partnership to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. The lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The three levels of inputs that may be used to measure fair value are defined as:

Level 1 - Quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability and inputs that are derived from observable market data by correlation or other means.

Level 3 - Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity.

Derivative Financial Instruments. The Managing General Partner measures the fair value of this Partnership's derivative instruments based on a pricing model that utilizes market-based inputs, including but not limited to the contractual price of the underlying position, current market prices, natural gas and crude oil forward curves, discount rates such as the LIBOR curve for a similar duration of each outstanding position, volatility factors and nonperformance risk. Nonperformance risk considers the effect of the Managing General Partner's credit standing on the fair value of derivative liabilities and the effect of the Managing General Partner's counterparties' credit standings on the fair value of derivative assets. Both inputs to the model are based on published credit default swap rates and the duration of each outstanding derivative position.

The Managing General Partner validates its fair value measurement through the review of counterparty statements and other supporting documentation, the determination that the source of the inputs is valid, the corroboration of the original source of inputs through access to multiple quotes, if available, or other information and monitoring changes in valuation methods and assumptions. While the Managing General Partner uses common industry practices to develop its valuation techniques, changes in the Managing General Partner's pricing methodologies or the underlying assumptions could result in significantly different fair values. While the Managing General Partner believes its valuation method is appropriate and consistent with those used by other market participants, the use of a different methodology or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value.

The Managing General Partner has evaluated the credit risk of the counterparties holding the derivative assets, which are primarily financial institutions who are also lenders in the Managing General Partner's corporate credit facility, giving consideration to amounts outstanding for each counterparty and the duration of each outstanding derivative position. Based on the Managing General Partner's evaluation, the Managing General Partner has determined that the potential impact of nonperformance of its counterparties on the fair value of this Partnership's derivative instruments was not significant.
This Partnership's fixed-price swaps and basis swaps are included in Level 2 and its natural gas collars are included in Level 3. The following table presents, for each applicable level within the fair value hierarchy, this Partnership's derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis:
 
Balance Sheet
 
September 30, 2012
 
December 31, 2011
 
Line Item
 
 Level 2
 
 Level 3
 
 Total
 
 Level 2
 
 Level 3
 
 Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
172,789

 
$
2,081

 
$
174,870

 
$
192,906

 
$
8,269

 
$
201,175

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commodity-based derivatives
Due from Managing General Partner-derivatives
 
37,678

 

 
37,678

 
157,086

 

 
157,086

 Total assets
 
 
210,467

 
2,081

 
212,548

 
349,992

 
8,269

 
358,261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
83,173

 

 
83,173

 
87,900

 

 
87,900

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
19,597

 

 
19,597

 
77,860

 

 
77,860

 Total liabilities
 
 
102,770

 

 
102,770

 
165,760

 

 
165,760

 Net asset (1)
 
 
$
107,697

 
$
2,081

 
$
109,778

 
$
184,232

 
$
8,269

 
$
192,501

(1)As of September 30, 2012 and December 31, 2011, none of this Partnership's derivative instruments were designated as hedges.

The following table presents a reconciliation of this Partnership's Level 3 fair value measurements:
 
Nine months ended
 
September 30, 2012
 
September 30, 2011
 Fair value, net asset, beginning of period
$
8,269

 
$
12,277

 Changes in fair value included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
1,241

 
3,316

 Settlements
(7,429
)
 
(10,264
)
 Fair value, net asset, end of period
$
2,081

 
$
5,329

 
 
 
 
Change in unrealized gain (loss) relating to assets (liabilities) still held as of
 

 
 
September 30, 2012 and 2011, respectively, included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
$
166

 
$
1,829

The significant unobservable input used in the fair value measurement of this Partnership's derivative contracts is the implied volatility curve, which is provided by a third-party vendor. A significant increase or decrease in the implied volatility, in isolation, would have a directionally similar effect resulting in a significantly higher or lower fair value measurement of this Partnership's Level 3 derivative contracts.
    
See Note 5, Derivative Financial Instruments, for additional disclosure related to this Partnership's derivative financial instruments.

Non-Derivative Financial Assets and Liabilities

The carrying values of the financial instruments included in current assets and current liabilities approximate fair value due to the short-term maturities of these instruments.
v2.4.0.6
Derivative Financial Instruments
9 Months Ended
Sep. 30, 2012
Derivative Instruments Not Designated as Hedging Instruments [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
Derivative Financial Instruments

As of September 30, 2012, this Partnership had derivative instruments in place for a portion of its anticipated natural gas production through 2013 totaling 64,097 MMBtu.

The following tables present the impact of this Partnership's derivative instruments on this Partnership's accompanying condensed statements of operations:
 
 
 Three months ended September 30,
 
 
2012
 
2011
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains (Losses) For the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
Commodity price risk management gain (loss), net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
34,175

 
$
457

 
$
34,632

 
$
4,814

 
$
3,571

 
$
8,385

Unrealized gains (losses)
 
(34,175
)
 
(14,836
)
 
(49,011
)
 
(4,814
)
 
53,439

 
48,625

Total
$

 
$
(14,379
)
 
$
(14,379
)
 
$

 
$
57,010

 
$
57,010

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Nine months ended September 30,
 
 
2012
 
2011
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
Commodity price risk management gain, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
89,607

 
$
23,028

 
$
112,635

 
$
18,433

 
$
1,403

 
$
19,836

Unrealized gains (losses)
 
(89,607
)
 
6,884

 
(82,723
)
 
(18,433
)
 
70,562

 
52,129

Total
$

 
$
29,912

 
$
29,912

 
$

 
$
71,965

 
$
71,965



Derivative Counterparties. The Managing General Partner's derivative arrangements expose this Partnership to the credit risk of nonperformance by the counterparties. The Managing General Partner primarily uses financial institutions who are also lenders under the Managing General Partner's credit facility as counterparties to its derivative contracts. To date, the Managing General Partner has had no counterparty default losses. The Managing General Partner has evaluated the credit risk of this Partnership's derivative assets from counterparties using relevant credit market default rates, giving consideration to amounts outstanding for each counterparty and the duration of each outstanding derivative position. Based on this evaluation, the Managing General Partner has determined that the potential impact of nonperformance of the Managing General Partner's counterparties on the fair value of this Partnership's derivative instruments was not significant.
v2.4.0.6
Commitments and Contingencies
9 Months Ended
Sep. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
Commitments and Contingencies

Legal Proceedings

Neither this Partnership nor PDC, in its capacity as the Managing General Partner of this Partnership, are party to any pending legal proceeding that PDC believes would have a materially adverse effect on this Partnership's business, financial condition, results of operations or liquidity.

Environmental

Due to the nature of the oil and gas industry, this Partnership is exposed to environmental risks. The Managing General Partner has various policies and procedures in place to prevent environmental contamination and mitigate the risks from environmental contamination. The Managing General Partner conducts periodic reviews to identify changes in this Partnership's environmental risk profile. Liabilities are accrued when environmental remediation efforts are probable and the costs can be reasonably estimated. These liabilities are reduced as remediation efforts are completed or are adjusted as a consequence of subsequent periodic reviews. Liabilities for environmental remediation efforts are included in line item captioned “Accounts payable and accrued expenses” on the condensed balance sheet.

During the nine months ended September 30, 2012, as a result of the Managing General Partner's periodic review, there were no new environmental remediation efforts identified and this Partnership's expense for environmental remediation efforts was insignificant. As of September 30, 2012 and December 31, 2011, accrued environmental remediation liabilities were insignificant.

The Managing General Partner is not currently aware of any environmental claims existing as of September 30, 2012 which have not been provided for or would otherwise have a material impact on this Partnership's condensed financial statements; however, there can be no assurance that current regulatory requirements will not change or unknown past non-compliance with environmental laws will not be discovered on this Partnership's properties.
v2.4.0.6
General and Basis of Presentation Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
In the Managing General Partner's opinion, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair presentation of this Partnership's results for interim periods in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") and with the instructions to Form 10-Q and Article 8 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in the audited financial statements have been condensed or omitted. The information presented in this Quarterly Report on Form 10-Q should be read in conjunction with this Partnership's audited financial statements and notes thereto included in this Partnership's 2011 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2011 Form 10-K and updated, as necessary, in this Quarterly Report on Form 10-Q. The results of operations and cash flows for the three and nine months ended September 30, 2012 are not necessarily indicative of the results to be expected for the full year or any other future period.
v2.4.0.6
Transactions with Managing General Partner (Tables)
9 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
Due from (to) Managing General Partner-other, net [Table Text Block]
The following table presents transactions with the Managing General Partner reflected in the condensed balance sheet line item “Due to Managing General Partner-other, net” which remain undistributed or unsettled with this Partnership's investors as of the dates indicated:

    
 
September 30, 2012
 
December 31, 2011
Natural gas, NGLs and crude oil sales revenues
collected from this Partnership's third-party customers
$
24,871

 
$
57,606

Commodity price risk management, realized gain
22,538

 
9,620

Other (1)
(94,334
)
 
(165,585
)
Total Due to Managing General Partner-other, net
$
(46,925
)
 
$
(98,359
)

(1)
All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs which have not been deducted from distributions.
Schedule of Related Party Transactions [Table Text Block]
The following table presents Partnership transactions, excluding derivative transactions which are more fully detailed in Note 5, Derivative Financial Instruments, with the Managing General Partner for the three and nine months ended September 30, 2012 and 2011. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Natural gas, NGLs and crude oil production costs” line item on the condensed statements of operations.    
 
 Three months ended September 30,
 
Nine months ended September 30,
 
2012
 
2011
 
2012
 
2011
 Well operations and maintenance
$
70,130

 
$
45,460

 
$
200,518

 
$
148,171

 Gathering, compression and processing fees
2,900

 
5,103

 
13,570

 
15,855

 Direct costs - general and administrative
29,086

 
97,302

 
88,982

 
265,091

 Cash distributions (1) (2)
1,210

 
1,570

 
3,976

 
5,564


(1)
Cash distributions include $462 and $1,426 during the three and nine months ended September 30, 2012, respectively, and $549 and $1,968 during the three and nine months ended September 30, 2011, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
(2)
Cash distributions to the Managing General Partner were reduced by $790 and $2,561 during the three and nine months ended September 30, 2012, respectively, and $1,064 and $3,979 for the three and nine months ended September 30, 2011, respectively, due to Preferred Cash Distributions made by the Managing General Partner to Investor Partners under the Performance Standard Obligation provision of the Agreement. For more information concerning this obligation, see Note 1, General and Basis of Presentation.
v2.4.0.6
Fair Value Measurements and Disclosures (Tables)
9 Months Ended
Sep. 30, 2012
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table presents, for each applicable level within the fair value hierarchy, this Partnership's derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis:
 
Balance Sheet
 
September 30, 2012
 
December 31, 2011
 
Line Item
 
 Level 2
 
 Level 3
 
 Total
 
 Level 2
 
 Level 3
 
 Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
172,789

 
$
2,081

 
$
174,870

 
$
192,906

 
$
8,269

 
$
201,175

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commodity-based derivatives
Due from Managing General Partner-derivatives
 
37,678

 

 
37,678

 
157,086

 

 
157,086

 Total assets
 
 
210,467

 
2,081

 
212,548

 
349,992

 
8,269

 
358,261

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
83,173

 

 
83,173

 
87,900

 

 
87,900

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
19,597

 

 
19,597

 
77,860

 

 
77,860

 Total liabilities
 
 
102,770

 

 
102,770

 
165,760

 

 
165,760

 Net asset (1)
 
 
$
107,697

 
$
2,081

 
$
109,778

 
$
184,232

 
$
8,269

 
$
192,501

(1)As of September 30, 2012 and December 31, 2011, none of this Partnership's derivative instruments were designated as hedges.
Fair Value Assets and Liabilities Unobservable Input Reconciliation [Table Text Block]
The following table presents a reconciliation of this Partnership's Level 3 fair value measurements:
 
Nine months ended
 
September 30, 2012
 
September 30, 2011
 Fair value, net asset, beginning of period
$
8,269

 
$
12,277

 Changes in fair value included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
1,241

 
3,316

 Settlements
(7,429
)
 
(10,264
)
 Fair value, net asset, end of period
$
2,081

 
$
5,329

 
 
 
 
Change in unrealized gain (loss) relating to assets (liabilities) still held as of
 

 
 
September 30, 2012 and 2011, respectively, included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
$
166

 
$
1,829

v2.4.0.6
Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Other Derivatives Not Designated as Hedging Instruments, Statements of Financial Performance and Financial Position, Location [Table Text Block]
The following tables present the impact of this Partnership's derivative instruments on this Partnership's accompanying condensed statements of operations:
 
 
 Three months ended September 30,
 
 
2012
 
2011
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains (Losses) For the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
Commodity price risk management gain (loss), net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
34,175

 
$
457

 
$
34,632

 
$
4,814

 
$
3,571

 
$
8,385

Unrealized gains (losses)
 
(34,175
)
 
(14,836
)
 
(49,011
)
 
(4,814
)
 
53,439

 
48,625

Total
$

 
$
(14,379
)
 
$
(14,379
)
 
$

 
$
57,010

 
$
57,010

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Nine months ended September 30,
 
 
2012
 
2011
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
Commodity price risk management gain, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
89,607

 
$
23,028

 
$
112,635

 
$
18,433

 
$
1,403

 
$
19,836

Unrealized gains (losses)
 
(89,607
)
 
6,884

 
(82,723
)
 
(18,433
)
 
70,562

 
52,129

Total
$

 
$
29,912

 
$
29,912

 
$

 
$
71,965

 
$
71,965

v2.4.0.6
General and Basis of Presentation (Details) (USD $)
9 Months Ended
Sep. 30, 2012
Number_of_Limited_Partners
Sep. 30, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Number of Limited Partners 505  
Managing General Partner, Ownership Interest Before Unit Repurchases 20.00%  
Investor Partner Ownership Interest 80.00%  
Limited Partner Units Repurchased by Managing General Partner 37.2  
Average Price Paid for Units Repurchased by Managing General Partner $ 3,952  
Managing General Partner Ownership Interest 25.33%  
Minimum Investor Partner Return 12.80%  
Reduction In Distribution to Managing General Partner $ 2,561 $ 3,979
v2.4.0.6
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Related Party Transaction [Line Items]    
Due to Managing General Partner-other $ (46,925) $ (98,359)
Oil and Gas Sales Revenue Collected [Member]
   
Related Party Transaction [Line Items]    
Due to Managing General Partner-other 24,871 57,606
Gain (Loss) on Settlement of Derivative Instrument [Member]
   
Related Party Transaction [Line Items]    
Due to Managing General Partner-other 22,538 9,620
Other Unsettled Transactions [Member]
   
Related Party Transaction [Line Items]    
Due to Managing General Partner-other $ (94,334) [1] $ (165,585) [1]
[1] All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs which have not been deducted from distributions.
v2.4.0.6
Transactions with Managing General Partner (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Related Party Transaction [Line Items]        
Direct costs - general and administrative $ 29,086 $ 97,302 $ 88,982 $ 265,091
Reduction In Distribution to Managing General Partner     2,561 3,979
Managing General Partner [Member]
       
Related Party Transaction [Line Items]        
Well operations and maintenance 70,130 45,460 200,518 148,171
Gathering, compression and processing fees 2,900 5,103 13,570 15,855
Direct costs - general and administrative 29,086 97,302 88,982 265,091
Cash distributions 1,210 [1],[2] 1,570 [1],[2] 3,976 [1],[2] 5,564 [1],[2]
Payments made to Managing General Partner on repurchased investor units 462 549 1,426 1,968
Reduction In Distribution to Managing General Partner $ 790 $ 1,064 $ 2,561 $ 3,979
[1] Cash distributions to the Managing General Partner were reduced by $790 and $2,561 during the three and nine months ended September 30, 2012, respectively, and $1,064 and $3,979 for the three and nine months ended September 30, 2011, respectively, due to Preferred Cash Distributions made by the Managing General Partner to Investor Partners under the Performance Standard Obligation provision of the Agreement. For more information concerning this obligation, see Note 1, General and Basis of Presentation.
[2] Cash distributions include $462 and $1,426 during the three and nine months ended September 30, 2012, respectively, and $549 and $1,968 during the three and nine months ended September 30, 2011, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
v2.4.0.6
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives $ 174,870 $ 201,175 [1]
Due from Managing General Partner-derivatives 37,678 157,086 [1]
Due to Managing General Partner-derivatives 83,173 87,900 [1]
Due to Managing General Partner-derivatives 19,597 77,860 [1]
Partnership Derivative Instruments Designated as Hedges ($) 0 0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 210,467 349,992
Liabilities, Fair Value Disclosure 102,770 165,760
Net Asset Fair Value 107,697 [2] 184,232 [2]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 2,081 8,269
Liabilities, Fair Value Disclosure 0 0
Net Asset Fair Value 2,081 [2] 8,269 [2]
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Assets, Fair Value Disclosure 212,548 358,261
Liabilities, Fair Value Disclosure 102,770 165,760
Net Asset Fair Value 109,778 [2] 192,501 [2]
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 172,789 192,906
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 2,081 8,269
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 174,870 201,175
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Non Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 37,678 157,086
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Non Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 0 0
Commodity Contracts Related to Natural Gas and Crude Oil Sales [Member] | Non Current Assets [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 37,678 157,086
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives 83,173 87,900
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives 0 0
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives 83,173 87,900
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Non Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives 19,597 77,860
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Non Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives 0 0
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales [Member] | Non Current Liabilities [Member] | Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value, Fair Value Disclosure [Member]
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives $ 19,597 $ 77,860
[1] *Derived from audited 2011 balance sheet
[2] As of September 30, 2012 and December 31, 2011, none of this Partnership's derivative instruments were designated as hedges.
v2.4.0.6
Fair Value Measurements and Disclosures (Details) (Fair Value by Asset Class [Member], USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Fair Value by Asset Class [Member]
   
Fair Value, Net Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]    
Fair value, net asset, beginning of period $ 8,269 $ 12,277
Commodity price risk management gain (loss), net 1,241 3,316
Settlements (7,429) (10,264)
Fair value, net asset, end of period 2,081 5,329
Changes in unrealized gains (losses) relating to assets (liabilities) still held as of period end, included in statement of operations line item: Commodity price risk management gain (loss), net $ 166 $ 1,829
v2.4.0.6
Derivative Financial Instruments (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Derivative [Line Items]        
Realized gains $ 34,632 $ 8,385 $ 112,635 $ 19,836
Unrealized gain (losses) (49,011) 48,625 (82,723) 52,129
Total (14,379) 57,010 29,912 71,965
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized [Member]
       
Derivative [Line Items]        
Realized gains 34,175 4,814 89,607 18,433
Unrealized gain (losses) (34,175) (4,814) (89,607) (18,433)
Total 0 0 0 0
Realized and Unrealized Gains (Losses) for the Current Period [Member]
       
Derivative [Line Items]        
Realized gains 457 3,571 23,028 1,403
Unrealized gain (losses) (14,836) 53,439 6,884 70,562
Total $ (14,379) $ 57,010 $ 29,912 $ 71,965
v2.4.0.6
Derivative Financial Instruments Additional Information (Details)
Sep. 30, 2012
Btu
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments in place for future natural gas production 64,097,000,000