v2.4.0.6
Document Entity Information Document
3 Months Ended
Mar. 31, 2013
Entity Information  
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 Mar. 31, 2013
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q1
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 $)
Mar. 31, 2013
Dec. 31, 2012
Current assets:    
Cash and cash equivalents $ 10,106 $ 10,137 [1]
Accounts receivable 49,477 21,527 [1]
Crude oil inventory 17,859 24,499 [1]
Due from Managing General Partner-derivatives 112,556 180,165 [1]
Total current assets 189,998 236,328 [1]
Natural gas and crude oil properties, successful efforts method, at cost 2,196,032 3,167,657 [1]
Less: Accumulated depreciation, depletion and amortization (1,595,371) (2,270,162) [1]
Natural gas and crude oil properties, net 600,661 897,495 [1]
Assets held for sale 272,904 0 [1]
Other assets 51,010 49,653 [1]
Total Assets 1,114,573 1,183,476 [1]
Current liabilities:    
Accounts payable and accrued expenses 2,930 2,522 [1]
Due to Managing General Partner-derivatives 60,403 81,917 [1]
Due to Managing General Partner-other, net 61,704 67,520 [1]
Total current liabilities 125,037 151,959 [1]
Asset retirement obligations 160,955 223,265 [1]
Liabilities held for sale 66,082 0 [1]
Total liabilities 352,074 375,224 [1]
Commitments and contingent liabilities       [1]
Partners' equity:    
Managing General Partner 224,231 232,462 [1]
Limited Partners - 559.02 units issued and outstanding 538,268 575,790 [1]
Total Partners' equity 762,499 808,252 [1]
Total Liabilities and Partners' Equity $ 1,114,573 $ 1,183,476 [1]
[1] *Derived from audited 2012 balance sheet
v2.4.0.6
Balance Sheet Parentheticals (Parentheticals)
Mar. 31, 2013
Dec. 31, 2012
Balance Sheet Parentheticals [Abstract]    
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
Mar. 31, 2013
Mar. 31, 2012
Revenues:    
Natural gas, NGLs and crude oil sales $ 56,243 $ 75,644
Commodity price risk management gain (loss), net (19,945) 61,124
Total revenues 36,298 136,768
Operating costs and expenses:    
Natural gas, NGLs and crude oil production costs 30,102 22,071
Direct costs - general and administrative 30,686 28,858
Depreciation, depletion and amortization 17,574 48,721
Accretion of asset retirement obligations 2,775 2,578
Total operating costs and expenses 81,137 102,228
Income (loss) from continuing operations (44,839) 34,540
Interest Income 5 5
Income (loss) from discontinued operations 6,315 (76,507)
Net income (loss) (38,519) (41,962)
Net income (loss) allocated to partners (38,519) (41,962)
Less: Managing General Partner interest in net income (loss) (7,704) (8,392)
Net income (loss) allocated to Investor Partners $ (30,815) $ (33,570)
Net income (loss) per Investor Partner unit (55) (60)
Investor Partner units outstanding 559.02 559.02
v2.4.0.6
Condensed Statements of Cash Flows (Unaudited) Statement (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Cash flows from operating activities:    
Net income (loss) $ (38,519) $ (41,962)
Adjustments to net income (loss) to reconcile to net cash from operating activities:    
Depreciation, depletion and amortization 23,930 59,008
Accretion of asset retirement obligations 3,772 3,516
Unrealized (gain) loss on derivative transactions 46,095 (26,736)
Changes in assets and liabilities:    
Accounts receivable (27,950) 11,668
Crude oil inventory 6,640 (6,800)
Other assets (1,357) (1,917)
Accounts payable and accrued expenses 408 15,606
Due to Managing General Partner-other, net (5,816) (2,359)
Net cash from operating activities 7,203 10,024
Cash flows from investing activities:    
Capital expenditures for natural gas and crude oil properties 0 (656)
Net cash from investing activities 0 (656)
Cash flows from financing activities:    
Distributions to Partners (7,234) (9,399)
Net cash from financing activities (7,234) (9,399)
Net change in cash and cash equivalents (31) (31)
Cash and cash equivalents, beginning of period 10,137 [1] 10,261
Cash and cash equivalents, end of period $ 10,106 $ 10,230
[1] *Derived from audited 2012 balance sheet
v2.4.0.6
General and Basis of Presentation
3 Months Ended
Mar. 31, 2013
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 (“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 March 31, 2013, there were 498 limited partners in this Partnership (the “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 March 31, 2013, the Managing General Partner had repurchased 41.1 units of Partnership interests from the Investor Partners at an average price of $3,598 per unit. As of March 31, 2013, the Managing General Partner owned 25.9% 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 $668 and $929 for the three months ended March 31, 2013 and 2012, 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 expired 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 2012 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 2012 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2012 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 months ended March 31, 2013 are not necessarily indicative of the results to be expected for the full year or any other future period.

Certain reclassifications have been made to prior period financial statements to conform to the current year presentation. The reclassifications are mainly attributable to reporting as discontinued operations the results of operations related to the planned sale of this Partnership's Piceance Basin assets. The reclassifications had no impact on previously reported cash flows, net income or Partners’ equity. See Note 8, Assets Held for Sale, Divestitures and Discontinued Operations, for additional information regarding the planned divestiture.
v2.4.0.6
Recent Accounting Standards
3 Months Ended
Mar. 31, 2013
New Accounting Pronouncement or Change in Accounting Principle, Current Period Disclosures [Abstract]  
Description of New Accounting Pronouncements Adopted [Text Block]
Summary of Significant Accounting Policies

Recently Adopted Accounting Standards

On January 1, 2013, this Partnership adopted changes issued by the Financial Accounting Standards Board regarding the disclosure of offsetting assets and liabilities. These changes require an entity to disclose both gross and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an enforceable master netting arrangement or similar agreement. The enhanced disclosures enable users of an entity’s financial statements to understand and evaluate the effect or potential effect of master netting arrangements on an entity’s financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments. This Partnership's adoption of these changes had no impact on the unaudited condensed financial statements.
v2.4.0.6
Transactions with Managing General Partner
3 Months Ended
Mar. 31, 2013
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:

    
 
March 31, 2013
 
December 31, 2012
Natural gas, NGLs and crude oil sales revenues
collected from this Partnership's third-party customers
$
17,019

 
$
20,841

Commodity price risk management, realized gain
17,239

 
14,367

Other (1)
(95,962
)
 
(102,728
)
Total Due to Managing General Partner-other, net
$
(61,704
)
 
$
(67,520
)

(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 months ended March 31, 2013 and 2012. “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 for continuing operations and in Note 8, Assets Held for Sale, Divestitures and Discontinued Operations, for discontinued operations.    
 
 Three months ended March 31,
 
2013
 
2012
 Well operations and maintenance
$
47,522

 
$
103,679

 Gathering, compression and processing fees
3,484

 
4,627

 Direct costs - general and administrative
30,686

 
28,858

 Cash distributions (1) (2)
1,017

 
1,451


(1)
Cash distributions include $490 and $501 during the three months ended March 31, 2013 and 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
(2)
Cash distributions to the Managing General Partner were reduced by $668 and $929 during the three months ended March 31, 2013 and 2012, 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
3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
Fair Value of Financial Instruments

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. In these cases, 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.

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 forward curve, 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's derivative agreements contain master netting provisions that provide for the net settlement of all contracts through a single payment in the event of early termination. The Managing General Partner has elected not to offset the fair value positions recorded on the unaudited condensed balance sheets for this Partnership.
This Partnership's fixed-price swaps and basis swaps are included in Level 2. The following table presents this Partnership's derivative assets and liabilities measured at fair value on a recurring basis:
 
Balance Sheet
 
March 31, 2013
 
December 31, 2012
 
Line Item
 
 Level 2
 
 Level 2
 
 
 
 
 
 
Assets:
 
 
 
 
 
Current
 
 
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
112,556

 
$
180,165

 Total assets
 
 
112,556

 
180,165

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Current
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
60,403

 
81,917

 Total liabilities
 
 
60,403

 
81,917

 Net asset
 
 
$
52,153

 
$
98,248


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
3 Months Ended
Mar. 31, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Disclosure [Text Block]
Derivative Financial Instruments

As of March 31, 2013, this Partnership had derivative instruments in place for all of its anticipated 2013 natural gas production totaling 37,718 MMBtu. Partnership policy prohibits the use of natural gas and crude oil derivative instruments for speculative purposes.

The following tables present the impact of this Partnership's derivative instruments on this Partnership's accompanying condensed statements of operations:
 
 
 Three months ended March 31,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized 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 (losses)
 
$
26,669

 
$
(519
)
 
$
26,150

 
$
30,872

 
$
3,516

 
$
34,388

Unrealized gains (losses)
 
(26,669
)
 
(19,426
)
 
(46,095
)
 
(30,872
)
 
57,608

 
26,736

Total
$

 
$
(19,945
)
 
$
(19,945
)
 
$

 
$
61,124

 
$
61,124



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 revolving 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
3 Months Ended
Mar. 31, 2013
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 three months ended March 31, 2013, as a result of the Managing General Partner's periodic review, no new environmental remediation liabilities were identified and this Partnership's expense for environmental remediation efforts was not significant. This Partnership recorded no environmental remediation liabilities as of March 31, 2013. Environmental remediation liabilities as of December 31, 2012 were not significant.

The Managing General Partner is not currently aware of any environmental claims existing as of March 31, 2013 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
Asset Retirement Obligations (Notes)
3 Months Ended
Mar. 31, 2013
ASSET RETIREMENT OBLIGATIONS [Abstract]  
Asset Retirement Obligation Disclosure [Text Block]
Asset Retirement Obligations

The following table presents the changes in carrying amounts of the asset retirement obligations associated with this Partnership's working interest in natural gas and crude oil properties:

 
Three months ended
 
March 31, 2013
 
 
Beginning balance
$
223,265

Accretion expense
3,772

Ending balance
227,037

Liabilities held for sale (1)
(66,082
)
Long-term portion
$
160,955


(1)
Represents asset retirement obligations related to this Partnership's assets held for sale. See Note 8, Assets Held for Sale, Divestitures and Discontinued Operations, for additional information regarding the planned sale of these properties.
v2.4.0.6
Divestitures and Discontinued Operations
3 Months Ended
Mar. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Assets Held for Sale, Divestitures and Discontinued Operations

Piceance Basin. On February 4, 2013, this Partnership's Managing General Partner entered into a purchase and sale agreement ("PSA") with certain affiliates of Caerus Oil and Gas LLC (“Caerus”), pursuant to which this Partnership agreed to sell to Caerus all of its Piceance Basin assets for cash consideration of approximately $431,000, subject to post-closing adjustments. Under the same PSA, PDC has agreed to sell to Caerus PDC's and PDC sponsored partnerships' Piceance Basin assets and certain non-core Colorado oil and gas properties, leasehold mineral interests and related assets. Based on the amounts allocated to this Partnership in the PSA, PDC determined that it was in the best interest of this Partnership to sell its Piceance Basis assets under the PSA. The PSA does not include any of this Partnership's Wattenberg Field assets. These assets have been classified as held for sale in the unaudited condensed balance sheet as of March 31, 2013. The cash consideration is subject to customary adjustments, including adjustments based upon title and environmental due diligence and with respect to natural gas derivative position settlements that will be assumed by Caerus. The Managing General Partner intends to use the proceeds from the asset disposal for operational needs, for additional reserve development of natural gas, NGLs and crude oil production in the Wattenberg Field (the "Additional Development Plan") or distributions to Partners. There can be no assurance this Partnership will be successful in closing such divestiture. Following the planned sale, this Partnership will not have significant continuing involvement in the operations of, or cash flows from, the Piceance Basin oil and gas properties. Accordingly, the results of operations related to these assets have been separately reported as discontinued operations in the unaudited condensed statement of operations for all periods presented.
Selected financial information related to divested and discontinued operations. The tables below set forth selected financial information related to this Partnership's Piceance Basin net assets held for sale and operating results related to discontinued operations. Net assets held for sale represents this Partnership's Piceance Basin assets that are expected to be sold, net of liabilities that are expected to be assumed by Caerus. While the reclassification of revenues and expenses related to discontinued operations for the 2012 period had no impact upon previously reported net earnings, the statement of operations table presents the revenues and expenses that were reclassified from the specified statement of operations line items to discontinued operations.

The following table presents balance sheet data related to assets held for sale:
 
As of
 
March 31, 2013
 
 
 
 Net Assets
Balance Sheet
 Held for Sale
 
 
Assets
 
Properties, successful efforts method, at cost
$
971,625

Accumulated depreciation, depletion and amortization
(698,721
)
Total assets
272,904

 
 
Liabilities
 
Asset retirement obligations
66,082

 
 
Net Assets
$
206,822



The following table presents statements of operations data related to this Partnership's discontinued operations:

 
 
 Three Months Ended March 31,
Statement of Operations - Discontinued Operations
 
2013
 
2012
 
 
 
 
 
Revenues:
 
 
 
 
Natural gas, NGLs and crude oil sales
 
$
38,800

 
$
25,524

Total revenues
 
38,800

 
25,524

 
 
 
 
 
Operating costs and expenses:
 
 
 
 
Natural gas, NGLs and crude oil production costs
 
25,132

 
90,806

Depreciation, depletion and amortization
 
6,356

 
10,287

Accretion of asset retirement obligations
 
997

 
938

Total operating costs and expenses
 
32,485

 
102,031

 
 
 
 
 
Income (loss) from discontinued operations
 
$
6,315

 
$
(76,507
)
v2.4.0.6
General and Basis of Presentation Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2013
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 2012 Form 10-K. This Partnership's accounting policies are described in the Notes to Financial Statements in this Partnership's 2012 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 months ended March 31, 2013 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)
3 Months Ended
Mar. 31, 2013
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:

    
 
March 31, 2013
 
December 31, 2012
Natural gas, NGLs and crude oil sales revenues
collected from this Partnership's third-party customers
$
17,019

 
$
20,841

Commodity price risk management, realized gain
17,239

 
14,367

Other (1)
(95,962
)
 
(102,728
)
Total Due to Managing General Partner-other, net
$
(61,704
)
 
$
(67,520
)

(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 months ended March 31, 2013 and 2012. “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 for continuing operations and in Note 8, Assets Held for Sale, Divestitures and Discontinued Operations, for discontinued operations.    
 
 Three months ended March 31,
 
2013
 
2012
 Well operations and maintenance
$
47,522

 
$
103,679

 Gathering, compression and processing fees
3,484

 
4,627

 Direct costs - general and administrative
30,686

 
28,858

 Cash distributions (1) (2)
1,017

 
1,451


(1)
Cash distributions include $490 and $501 during the three months ended March 31, 2013 and 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
(2)
Cash distributions to the Managing General Partner were reduced by $668 and $929 during the three months ended March 31, 2013 and 2012, 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)
3 Months Ended
Mar. 31, 2013
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table presents this Partnership's derivative assets and liabilities measured at fair value on a recurring basis:
 
Balance Sheet
 
March 31, 2013
 
December 31, 2012
 
Line Item
 
 Level 2
 
 Level 2
 
 
 
 
 
 
Assets:
 
 
 
 
 
Current
 
 
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
112,556

 
$
180,165

 Total assets
 
 
112,556

 
180,165

 
 
 
 
 
 
Liabilities:
 
 
 
 
 
Current
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
60,403

 
81,917

 Total liabilities
 
 
60,403

 
81,917

 Net asset
 
 
$
52,153

 
$
98,248


v2.4.0.6
Derivative Financial Instruments (Tables)
3 Months Ended
Mar. 31, 2013
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 March 31,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized 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 (losses)
 
$
26,669

 
$
(519
)
 
$
26,150

 
$
30,872

 
$
3,516

 
$
34,388

Unrealized gains (losses)
 
(26,669
)
 
(19,426
)
 
(46,095
)
 
(30,872
)
 
57,608

 
26,736

Total
$

 
$
(19,945
)
 
$
(19,945
)
 
$

 
$
61,124

 
$
61,124

v2.4.0.6
Asset Retirement Obligations (Tables)
3 Months Ended
Mar. 31, 2013
ASSET RETIREMENT OBLIGATIONS [Abstract]  
Schedule of Change in Asset Retirement Obligation [Table Text Block]
The following table presents the changes in carrying amounts of the asset retirement obligations associated with this Partnership's working interest in natural gas and crude oil properties:

 
Three months ended
 
March 31, 2013
 
 
Beginning balance
$
223,265

Accretion expense
3,772

Ending balance
227,037

Liabilities held for sale (1)
(66,082
)
Long-term portion
$
160,955


(1)
Represents asset retirement obligations related to this Partnership's assets held for sale. See Note 8, Assets Held for Sale, Divestitures and Discontinued Operations, for additional information regarding the planned sale of these properties.
v2.4.0.6
Divestitures and Discontinued Operations (Tables)
3 Months Ended
Mar. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Schedule of Disposal Groups, Including Discontinued Operations, Income Statement, Balance Sheet and Additional Disclosures [Table Text Block]
The following table presents balance sheet data related to assets held for sale:
 
As of
 
March 31, 2013
 
 
 
 Net Assets
Balance Sheet
 Held for Sale
 
 
Assets
 
Properties, successful efforts method, at cost
$
971,625

Accumulated depreciation, depletion and amortization
(698,721
)
Total assets
272,904

 
 
Liabilities
 
Asset retirement obligations
66,082

 
 
Net Assets
$
206,822



The following table presents statements of operations data related to this Partnership's discontinued operations:

 
 
 Three Months Ended March 31,
Statement of Operations - Discontinued Operations
 
2013
 
2012
 
 
 
 
 
Revenues:
 
 
 
 
Natural gas, NGLs and crude oil sales
 
$
38,800

 
$
25,524

Total revenues
 
38,800

 
25,524

 
 
 
 
 
Operating costs and expenses:
 
 
 
 
Natural gas, NGLs and crude oil production costs
 
25,132

 
90,806

Depreciation, depletion and amortization
 
6,356

 
10,287

Accretion of asset retirement obligations
 
997

 
938

Total operating costs and expenses
 
32,485

 
102,031

 
 
 
 
 
Income (loss) from discontinued operations
 
$
6,315

 
$
(76,507
)
v2.4.0.6
General and Basis of Presentation (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Rate
Number_of_Limited_Partners
Mar. 31, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Number of Limited Partners 498  
Managing General Partner, Ownership Interest Before Unit Repurchases 20.00%  
Investor Partner Ownership Interest 80.00%  
Limited Partner Units Repurchased by Managing General Partner 41.1  
Average Price Paid for Units Repurchased by Managing General Partner $ 3,598  
Managing General Partner Ownership Interest 25.90%  
Minimum investor partners' required annual rate of return 12.80%  
Reduction In Distribution to Managing General Partner $ 668 $ 929
v2.4.0.6
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Related Party Transaction    
Due from (to) Managing General Partner-other, net $ (61,704) $ (67,520)
Natural gas, NGLs and crude oil sales revenues collected from the Partnership's third-party customers
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net 17,019 20,841
Commodity price risk management, realized gain
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net 17,239 14,367
Other
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net $ (95,962) [1] $ (102,728) [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 Related Party Transactions (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Related Party Transaction    
Direct costs - general and administrative $ 30,686 $ 28,858
Reduction In Distribution to Managing General Partner 668 929
Transactions with Managing General Partner
   
Related Party Transaction    
Well operations and maintenance 47,522 103,679
Gathering, compression and processing fees 3,484 4,627
Direct costs - general and administrative 30,686 28,858
Cash distributions 1,017 [1],[2] 1,451 [1],[2]
Cash distributions to Managing General Partner on repurchased investor units $ 490 $ 501
[1] Cash distributions include $490 and $501 during the three months ended March 31, 2013 and 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
[2] Cash distributions to the Managing General Partner were reduced by $668 and $929 during the three months ended March 31, 2013 and 2012, 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 (Details) (USD $)
Mar. 31, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives $ 112,556 $ 180,165 [1]
Due to Managing General Partner-derivatives 60,403 81,917 [1]
Partnership Derivative Instruments Designated as Hedges ($) 0 0
Fair Value Measurements on a Recurring Basis | Level 2 Inputs
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Total assets 112,556 180,165
Total liabilities 60,403 81,917
Net Asset 52,153 98,248
Commodity Contracts Related to Natural Gas and Crude Oil Sales | Current Assets | Fair Value Measurements on a Recurring Basis | Level 2 Inputs
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives 112,556 180,165
Basis Protection Contracts Related to Natural Gas and Crude Oil Sales | Current Liabilities | Fair Value Measurements on a Recurring Basis | Level 2 Inputs
   
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due to Managing General Partner-derivatives $ 60,403 $ 81,917
[1] *Derived from audited 2012 balance sheet
v2.4.0.6
Derivative Financial Instruments (Details) (Commodity Price Risk Management, net, USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Derivative [Line Items]    
Realized Gains (Losses) $ 26,150 $ 34,388
Unrealized gains (losses) (46,095) 26,736
Total (19,945) 61,124
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
   
Derivative [Line Items]    
Realized Gains (Losses) 26,669 30,872
Unrealized gains (losses) (26,669) (30,872)
Total 0 0
Realized and Unrealized Gains (Losses) for the Current Period
   
Derivative [Line Items]    
Realized Gains (Losses) (519) 3,516
Unrealized gains (losses) (19,426) 57,608
Total $ (19,945) $ 61,124
v2.4.0.6
Derivative Financial Instruments Additional Information (Details)
3 Months Ended
Mar. 31, 2013
Btu
Derivative [Line Items]  
Portion of Anticipated Natural Gas Production Hedged 37,718,000,000
v2.4.0.6
Asset Retirement Obligations (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Dec. 31, 2012
Changes in asset retirement obligations      
Beginning balance $ 223,265    
Accretion expense 3,772 3,516  
Ending balance 227,037    
Liabilities held for sale (66,082) [1]    
Long-term portion $ 160,955   $ 223,265 [2]
[1] Represents asset retirement obligations related to this Partnership's assets held for sale. See Note 8, Assets Held for Sale, Divestitures and Discontinued Operations, for additional information regarding the planned sale of these properties.
[2] *Derived from audited 2012 balance sheet
v2.4.0.6
Divestitures and Discontinued Operations (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Mar. 31, 2012
Statement of Operations - Discontinued Operations    
Income (loss) from discontinued operations $ 6,315 $ (76,507)
Segment, Discontinued Operations [Member]
   
Statement of Operations - Discontinued Operations    
Natural gas, NGLs and crude oil sales 38,800 25,524
Total revenue 38,800 25,524
Natural gas, NGLs and crude oil production costs 25,132 90,806
Depreciation, depletion and amortization 6,356 10,287
Accretion of asset retirement obligations 997 938
Total operating costs and expenses 32,485 102,031
Income (loss) from discontinued operations 6,315 (76,507)
Assets Held-for-sale [Member]
   
Balance Sheet - Discontinued Operations    
Properties, succesful efforts method, at cost 971,625  
Accumulated depreciation, depletion and amortization (698,721)  
Total assets 272,904  
Asset retirement obligations 66,082  
Net assets $ 206,822  
v2.4.0.6
Additional Information (Details) (USD $)
3 Months Ended
Mar. 31, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Piceance Basin assets sale price before adjustments $ 431,000