v2.4.0.8
Document Entity Information Document
6 Months Ended
Jun. 30, 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 Jun. 30, 2013
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q2
Amendment Flag false
Entity Common Stock, Shares Outstanding 0.00
Additional General Partnership Units Outstanding 0
v2.4.0.8
Condensed Balance Sheets (Unaudited) Statement (USD $)
Jun. 30, 2013
Dec. 31, 2012
Current assets:    
Cash and cash equivalents $ 445,394 $ 10,137
Accounts receivable 33,775 21,527
Crude oil inventory 8,791 24,499
Due from Managing General Partner-derivatives 0 180,165
Total current assets 487,960 236,328
Crude oil and natural gas properties, successful efforts method, at cost 2,213,790 3,167,657
Less: Accumulated depreciation, depletion and amortization (1,608,131) (2,270,162)
Crude oil and natural gas properties, net 605,659 897,495
Other assets 52,217 49,653
Total Assets 1,145,836 1,183,476
Current liabilities:    
Accounts payable and accrued expenses 23,660 2,522
Due to Managing General Partner-derivatives 0 81,917
Due to Managing General Partner-other, net 28,988 67,520
Total current liabilities 52,648 151,959
Asset retirement obligations 163,781 223,265
Total liabilities 216,429 375,224
Commitments and contingent liabilities      
Partners' equity:    
Managing General Partner 257,351 232,462
Limited Partners - 559.02 units issued and outstanding 672,056 575,790
Total Partners' equity 929,407 808,252
Total Liabilities and Partners' Equity $ 1,145,836 $ 1,183,476
v2.4.0.8
Balance Sheet Parentheticals (Parentheticals)
Jun. 30, 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
v2.4.0.8
Condensed Statements of Operations (Unaudited) Statement (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Revenues:        
Crude oil, natural gas and NGLs $ 37,512 $ 62,442 $ 93,755 $ 138,086
Commodity price risk management gain (loss), net 6,175 (16,833) (13,770) 44,291
Total revenues 43,687 45,609 79,985 182,377
Operating costs and expenses:        
Crude oil, natural gas and NGLs production costs 22,544 19,576 52,646 41,647
Direct costs - general and administrative 32,625 31,038 63,311 59,896
Depreciation, depletion and amortization 12,760 38,400 30,334 87,121
Accretion of asset retirement obligations 2,826 2,626 5,601 5,204
Total operating costs and expenses 70,755 91,640 151,892 193,868
Operating Income (Loss):        
Loss from operations (27,068) (46,031) (71,907) (11,491)
Interest income 22 5 27 10
Loss from continuing operations (27,046) (46,026) (71,880) (11,481)
Income (loss) from discontinued operations 202,275 17,152 208,590 (59,355)
Net income (loss) 175,229 (28,874) 136,710 (70,836)
Net income (loss) per Investor Partner Unit        
Continuing operations $ (39) $ (66) $ (103) $ (16)
Discontinued operations $ 290 $ 25 $ 299 $ (85)
Net income (loss) per Investor Partner unit $ 251 $ (41) $ 196 $ (101)
Investor Partner units outstanding 559.02 559.02 559.02 559.02
Managing General Partner
       
Operating Income (Loss):        
Loss from continuing operations (5,409) (9,205) (14,376) (2,296)
Income (loss) from discontinued operations 40,455 3,430 41,718 (11,871)
Investor Partners
       
Operating Income (Loss):        
Loss from continuing operations (21,637) (36,821) (57,504) (9,185)
Income (loss) from discontinued operations $ 161,820 $ 13,722 $ 166,872 $ (47,484)
v2.4.0.8
Condensed Statements of Cash Flows (Unaudited) Statement (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net income (loss) $ 136,710 $ (70,836)
Adjustments to net income (loss) to reconcile to net cash from operating activities:    
Depreciation, depletion and amortization 36,690 108,712
Accretion of asset retirement obligations 7,271 7,094
Change in unrealized loss on derivative transactions 72,483 33,712
Gain on sale of crude oil and natural gas properties (201,633) 0
Changes in assets and liabilities:    
Accounts receivable (12,248) (5,668)
Crude oil inventory 10,629 (8,617)
Other assets (2,564) (3,835)
Accounts payable and accrued expenses 58 (178)
Due to Managing General Partner-other, net (31,875) (39,624)
Net cash from operating activities 15,521 20,760
Cash flows from investing activities:    
Capital expenditures for crude oil and natural gas properties 0 (2,957)
Proceeds from sale of crude oil and natural gas properties 435,291 0
Net cash from investing activities 435,291 (2,957)
Cash flows from financing activities:    
Distributions to Partners (15,555) (17,865)
Net cash from financing activities (15,555) (17,865)
Net change in cash and cash equivalents 435,257 (62)
Cash and cash equivalents, beginning of period 10,137 10,261
Cash and cash equivalents, end of period 445,394 10,199
Supplemental disclosure on non-cash activity:    
Change in accounts payable and accrued expenses related to disposition of properties and equipment (21,079) 0
Change in due from managing general partner-other,net related to disposition of properties and equipment $ 6,657 $ 0
v2.4.0.8
General and Basis of Presentation
6 Months Ended
Jun. 30, 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 crude oil and natural gas 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 June 30, 2013, there were 495 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 June 30, 2013, the Managing General Partner had repurchased 42.4 units of Partnership interest from the Investor Partners at an average price of $3,496 per unit. As of June 30, 2013, the Managing General Partner owned 26.1% 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 $1,771 for the six months ended June 30, 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 and six months ended June 30, 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 sale of this Partnership's Piceance Basin assets. See Note 8, Divestitures and Discontinued Operations, for additional information regarding the divestiture. The reclassifications had no impact on previously reported cash flows, net income or Partners’ equity.
v2.4.0.8
Recent Accounting Standards
6 Months Ended
Jun. 30, 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 Standard

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.
v2.4.0.8
Transactions with Managing General Partner
6 Months Ended
Jun. 30, 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 were 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:

    
 
June 30, 2013
 
December 31, 2012
Crude oil, natural gas and NGLs sales revenues
collected from this Partnership's third-party customers
$
24,247

 
$
20,841

Commodity price risk management, realized gain
11,884

 
14,367

Other (1)
(65,119
)
 
(102,728
)
Total Due to Managing General Partner-other, net
$
(28,988
)
 
$
(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 and six months ended June 30, 2013 and 2012. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Crude oil, natural gas and NGLs production costs” line item on the condensed statements of operations for continuing operations or in Note 8, Divestitures and Discontinued Operations, for discontinued operations.    
 
 Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
 Well operations and maintenance
$
42,242

 
$
26,709

 
$
89,765

 
$
130,388

 Gathering, compression and processing fees
2,991

 
6,099

 
6,475

 
10,670

 Direct costs - general and administrative
46,399

 
31,038

 
77,085

 
59,896

 Cash distributions (1) (2)
2,409

 
1,315

 
3,426

 
2,766


(1)
Cash distributions include $483 and $973 during the three and six months ended June 30, 2013, respectively, and $463 and $964 during the three and six months ended June 30, 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 during the six months ended June 30, 2013, and $842 and $1,771 for the three and six months ended June 30, 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.
v2.4.0.8
Fair Value Measurements and Disclosures
6 Months Ended
Jun. 30, 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.

This Partnership's fixed-price swaps and basis swaps as of December 31, 2012 were included in Level 2. The following table presents this Partnership's derivative assets and liabilities that had been measured at fair value on a recurring basis:
 
Balance Sheet
 
 
 
Line Item
 
 Level 2
 
 
 
 
Assets:
 
 
 
Current
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
180,165

 Total assets
 
 
180,165

 
 
 
 
Liabilities:
 
 
 
Current
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
81,917

 Total liabilities
 
 
81,917

 Net asset
 
 
$
98,248

Derivative instruments that were due to mature subsequent to June 30, 2013 were liquidated during the quarter ended June 30, 2013. Accordingly, as of June 30, 2013, this Partnership did not have any derivative instruments in place for its future production.
    
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.
v2.4.0.8
Derivative Financial Instruments
6 Months Ended
Jun. 30, 2013
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Disclosure [Text Block]
Derivative Financial Instruments

The following tables present the impact of this Partnership's derivative instruments on this Partnership's accompanying condensed statements of operations:
 
 
 Three months ended June 30,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized Gains for the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized and Unrealized Losses for the Current Period
 
Total
Commodity price risk management gain (loss), net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains (losses)
 
$
26,388

 
$
6,175

 
$
32,563

 
$
44,293

 
$
(678
)
 
$
43,615

Unrealized losses
 
(26,388
)
 

 
(26,388
)
 
(44,293
)
 
(16,155
)
 
(60,448
)
Total
$

 
$
6,175

 
$
6,175

 
$

 
$
(16,833
)
 
$
(16,833
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized 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)
 
$
72,483

 
$
(13,770
)
 
$
58,713

 
$
61,477

 
$
16,526

 
$
78,003

Unrealized gains (losses)
 
(72,483
)
 

 
(72,483
)
 
(61,477
)
 
27,765

 
(33,712
)
Total
$

 
$
(13,770
)
 
$
(13,770
)
 
$

 
$
44,291

 
$
44,291

v2.4.0.8
Commitments and Contingencies
6 Months Ended
Jun. 30, 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 six months ended June 30, 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's environmental remediation effort liabilities as of June 30, 2013 and December 31, 2012 were not significant.

The Managing General Partner is not currently aware of any environmental claims existing as of June 30, 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.
v2.4.0.8
Asset Retirement Obligations Asset Retirement Obligations (Notes)
6 Months Ended
Jun. 30, 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 crude oil and natural gas properties:

 
Amount
 
 
Balance at December 31, 2012
$
223,265

Accretion expense
7,271

Obligations discharged with disposal of properties
(66,755
)
Balance at June 30, 2013
$
163,781

 
 
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations
6 Months Ended
Jun. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Divestitures and Discontinued Operations

Piceance Basin. In February 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 and certain derivatives. Under the same PSA, PDC agreed to sell to Caerus the Piceance Basin assets of PDC and certain other PDC-sponsored partnerships and certain other non-core Colorado oil and gas properties, leasehold mineral interests and related assets. In June 2013, this divestiture was completed with total consideration for this Partnership of approximately $435,000, subject to customary post-closing adjustments. The sale resulted in a gain on divestiture of assets of approximately $202,000. The Managing General Partner distributed a portion of the proceeds from the asset divestiture for distributions to its Partners in July 2013. See Note 9, Subsequent Events, for additional information regarding the use of proceeds received from the Piceance Basin asset sale.
Following the sale, this Partnership does not have a 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.
The following table presents statement of operations data related to this Partnership's discontinued operations for the Piceance Basin divestiture:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Statement of Operations - Discontinued Operations
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Crude oil, natural gas and NGLs sales
 
$
41,326

 
$
40,246

 
$
80,126

 
$
65,770

 
 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
 
Crude oil, natural gas and NGLs production costs
 
26,237

 
10,838

 
51,369

 
101,644

Depreciation, depletion and amortization
 

 
11,304

 
6,356

 
21,591

Direct costs - general and administrative expense
 
13,774

 

 
13,774

 

Accretion of asset retirement obligations
 
673

 
952

 
1,670

 
1,890

Gain on sale of crude oil and natural gas properties
 
(201,633
)
 

 
(201,633
)
 

Total operating costs and expenses
 
(160,949
)
 
23,094

 
(128,464
)
 
125,125

 
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations
 
$
202,275

 
$
17,152

 
$
208,590

 
$
(59,355
)
 
 
 
 
 
 

 


While the reclassification of revenues and expenses related to discontinued operations for the prior 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.
v2.4.0.8
Subsequent Events (Notes)
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
Subsequent Events

In July 2013, this Partnership distributed a portion of the proceeds in the amount of $235,000 received for the Piceance Basin asset divestiture to the Partners as follows:
 
Amount
 
 
Managing General Partner
$
47,000

Investor Partners
188,000

Total
$
235,000

 
 
v2.4.0.8
Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 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 and six months ended June 30, 2013 are not necessarily indicative of the results to be expected for the full year or any other future period.
v2.4.0.8
Transactions with Managing General Partner Transactions with Managing General Partner (Tables)
6 Months Ended
Jun. 30, 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:

    
 
June 30, 2013
 
December 31, 2012
Crude oil, natural gas and NGLs sales revenues
collected from this Partnership's third-party customers
$
24,247

 
$
20,841

Commodity price risk management, realized gain
11,884

 
14,367

Other (1)
(65,119
)
 
(102,728
)
Total Due to Managing General Partner-other, net
$
(28,988
)
 
$
(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 and six months ended June 30, 2013 and 2012. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Crude oil, natural gas and NGLs production costs” line item on the condensed statements of operations for continuing operations or in Note 8, Divestitures and Discontinued Operations, for discontinued operations.    
 
 Three months ended June 30,
 
Six months ended June 30,
 
2013
 
2012
 
2013
 
2012
 Well operations and maintenance
$
42,242

 
$
26,709

 
$
89,765

 
$
130,388

 Gathering, compression and processing fees
2,991

 
6,099

 
6,475

 
10,670

 Direct costs - general and administrative
46,399

 
31,038

 
77,085

 
59,896

 Cash distributions (1) (2)
2,409

 
1,315

 
3,426

 
2,766


(1)
Cash distributions include $483 and $973 during the three and six months ended June 30, 2013, respectively, and $463 and $964 during the three and six months ended June 30, 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 during the six months ended June 30, 2013, and $842 and $1,771 for the three and six months ended June 30, 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.
v2.4.0.8
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Tables)
6 Months Ended
Jun. 30, 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 that had been measured at fair value on a recurring basis:
 
Balance Sheet
 
 
 
Line Item
 
 Level 2
 
 
 
 
Assets:
 
 
 
Current
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
180,165

 Total assets
 
 
180,165

 
 
 
 
Liabilities:
 
 
 
Current
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
81,917

 Total liabilities
 
 
81,917

 Net asset
 
 
$
98,248

v2.4.0.8
Derivative Financial Instruments Derivative Financial Instruments (Tables)
6 Months Ended
Jun. 30, 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 June 30,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized Gains for the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized and Unrealized Losses for the Current Period
 
Total
Commodity price risk management gain (loss), net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains (losses)
 
$
26,388

 
$
6,175

 
$
32,563

 
$
44,293

 
$
(678
)
 
$
43,615

Unrealized losses
 
(26,388
)
 

 
(26,388
)
 
(44,293
)
 
(16,155
)
 
(60,448
)
Total
$

 
$
6,175

 
$
6,175

 
$

 
$
(16,833
)
 
$
(16,833
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Six months ended June 30,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized 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)
 
$
72,483

 
$
(13,770
)
 
$
58,713

 
$
61,477

 
$
16,526

 
$
78,003

Unrealized gains (losses)
 
(72,483
)
 

 
(72,483
)
 
(61,477
)
 
27,765

 
(33,712
)
Total
$

 
$
(13,770
)
 
$
(13,770
)
 
$

 
$
44,291

 
$
44,291

v2.4.0.8
Asset Retirement Obligations Asset Retirement Obligations (Tables)
6 Months Ended
Jun. 30, 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 crude oil and natural gas properties:

 
Amount
 
 
Balance at December 31, 2012
$
223,265

Accretion expense
7,271

Obligations discharged with disposal of properties
(66,755
)
Balance at June 30, 2013
$
163,781

 
 
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations Assets Held for Sale, Divestitures and Discontinued Operations (Tables)
6 Months Ended
Jun. 30, 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 statement of operations data related to this Partnership's discontinued operations for the Piceance Basin divestiture:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
Statement of Operations - Discontinued Operations
 
2013
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
 
 
Crude oil, natural gas and NGLs sales
 
$
41,326

 
$
40,246

 
$
80,126

 
$
65,770

 
 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
 
Crude oil, natural gas and NGLs production costs
 
26,237

 
10,838

 
51,369

 
101,644

Depreciation, depletion and amortization
 

 
11,304

 
6,356

 
21,591

Direct costs - general and administrative expense
 
13,774

 

 
13,774

 

Accretion of asset retirement obligations
 
673

 
952

 
1,670

 
1,890

Gain on sale of crude oil and natural gas properties
 
(201,633
)
 

 
(201,633
)
 

Total operating costs and expenses
 
(160,949
)
 
23,094

 
(128,464
)
 
125,125

 
 
 
 
 
 
 
 
 
Income (loss) from discontinued operations
 
$
202,275

 
$
17,152

 
$
208,590

 
$
(59,355
)
 
 
 
 
 
 

 


v2.4.0.8
Subsequent Events (Tables)
6 Months Ended
Jun. 30, 2013
Subsequent Events [Abstract]  
Schedule of Subsequent Events [Table Text Block]
In July 2013, this Partnership distributed a portion of the proceeds in the amount of $235,000 received for the Piceance Basin asset divestiture to the Partners as follows:
 
Amount
 
 
Managing General Partner
$
47,000

Investor Partners
188,000

Total
$
235,000

 
 
v2.4.0.8
General and Basis of Presentation General and Basis of Presentation (Details) (USD $)
6 Months Ended
Jun. 30, 2013
Number_of_Limited_Partners
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Number of Investor Partners 495
Managing General Partner, Ownership Interest Before Unit Repurchases 20.00%
Investor Partner Ownership Interest 80.00%
Limited Partner Units Repurchased by Managing General Partner 42.4
Average Price Paid for Units Repurchased by Managing General Partner $ 3,496
Managing General Partner Ownership Interest 26.10%
Annual Rate Of Return As Percentage Of Subscriptions 12.80%
v2.4.0.8
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Related Party Transaction    
Due from (to) Managing General Partner-other, net $ (28,988) $ (67,520)
Crude oil, natural gas and NGLs sales revenues collected from the Partnership's third-party customers
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net 24,247 20,841
Commodity price risk management, realized gain
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net 11,884 14,367
Other
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net $ (65,119) [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.
v2.4.0.8
Transactions with Managing General Partner Related Party Transactions (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Related Party Transaction        
Direct costs - general and administrative $ 32,625 $ 31,038 $ 63,311 $ 59,896
Transactions with Managing General Partner
       
Related Party Transaction        
Well operations and maintenance 42,242 26,709 89,765 130,388
Gathering, compression and processing fees 2,991 6,099 6,475 10,670
Direct costs - general and administrative 46,399 31,038 77,085 59,896
Cash distributions 2,409 [1] 1,315 [1] 3,426 2,766
Distribution Made to Limited Partner, Cash Distributions Paid 483 463 973 964
Reduction In Distribution To Managing General Partner   $ 842 $ 668 $ 1,771
[1] Cash distributions include $483 and $973 during the three and six months ended June 30, 2013, respectively, and $463 and $964 during the three and six months ended June 30, 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 during the six months ended June 30, 2013, and $842 and $1,771 for the three and six months ended June 30, 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.
v2.4.0.8
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Details) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives $ 0 $ 180,165
Due to Managing General Partner-derivatives 0 81,917
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   180,165
Liabilities, Fair Value Disclosure   81,917
Net Asset Fair Value   98,248
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   180,165
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   $ 81,917
v2.4.0.8
Derivative Financial Instruments Derivative Financial Instruments (Details) (Commodity Price Risk Management, net [Member], USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Derivative Financial Instruments        
Realized Gains (Losses) $ 32,563 $ 43,615 $ 58,713 $ 78,003
Unrealized gains (losses) (26,388) (60,448) (72,483) (33,712)
Total 6,175 (16,833) (13,770) 44,291
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized [Member]
       
Derivative Financial Instruments        
Realized Gains (Losses) 26,388 44,293 72,483 61,477
Unrealized gains (losses) (26,388) (44,293) (72,483) (61,477)
Total 0 0 0 0
Realized and Unrealized Gains (Losses) for the Current Period [Member]
       
Derivative Financial Instruments        
Realized Gains (Losses) 6,175 (678) (13,770) 16,526
Unrealized gains (losses) 0 (16,155) 0 27,765
Total $ 6,175 $ (16,833) $ (13,770) $ 44,291
v2.4.0.8
Asset Retirement Obligations Asset Retirement Obligations (Details) (USD $)
6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Changes in asset retirement obligations    
Balance at December 31, 2012 $ 223,265  
Accretion expense 7,271 7,094
Obligations discharged with disposal of properties (66,755)  
Balance at June 30, 2013 $ 163,781  
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations Assets Held for Sale, Divestitures and Discontinued Operations (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Statement of Operations - Discontinued Operations        
Income (loss) from discontinued operations $ 202,275 $ 17,152 $ 208,590 $ (59,355)
Segment, Discontinued Operations [Member]
       
Statement of Operations - Discontinued Operations        
Crude oil, natural gas and NGLs sales 41,326 40,246 80,126 65,770
Crude oil, natural gas and NGLs production costs 26,237 10,838 51,369 101,644
Depreciation, depletion and amortization 0 11,304 6,356 21,591
Direct costs - general and administrative expense 13,774 0 13,774 0
Accretion of asset retirement obligations 673 952 1,670 1,890
Gain on sale of crude oil and natural gas properties (201,633) 0 (201,633) 0
Disposal Group Total Operating Expense (160,949) 23,094 (128,464) 125,125
Income (loss) from discontinued operations $ 202,275 $ 17,152 $ 208,590 $ (59,355)
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations Additional Information (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Jun. 30, 2012
Discontinued Operations and Disposal Groups [Abstract]      
Proceeds from the sale of Piceance Basin assets $ 435,000 $ 435,291 $ 0
Gain on sale of Piceance Basin assets $ (202,000)    
v2.4.0.8
Subsequent Events (Details) (USD $)
3 Months Ended
Jun. 30, 2013
Subsequent Event:  
Distribution of proceeds received from sale of Piceance Basin assets $ 235,000
Managing General Partner
 
Subsequent Event:  
Distribution of proceeds received from sale of Piceance Basin assets 47,000
Investor Partners
 
Subsequent Event:  
Distribution of proceeds received from sale of Piceance Basin assets $ 188,000