v2.4.0.6
Document Entity Information Document
6 Months Ended
Jun. 30, 2012
Entity Information [Line Items]  
Entity Registrant Name PDC 2002 C LTD PARTNERSHIP
Entity Central Index Key 0001224951
Current Fiscal Year End Date --12-31
Entity Filer Category Smaller Reporting Company
Document Type 10-Q
Document Period End Date Jun. 30, 2012
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q2
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 $)
Jun. 30, 2012
Dec. 31, 2011
Current assets:    
Cash and cash equivalents $ 7,298 $ 7,363 [1]
Accounts receivable 45,120 57,318 [1]
Crude oil inventory 12,427 19,370 [1]
Due from Managing General Partner-derivatives, current 181,123 181,946 [1]
Total current assets 245,968 265,997 [1]
Natural gas and crude oil properties, successful efforts method, at cost 6,969,870 6,969,336 [1]
Less: Accumulated depreciation, depletion and amortization (4,979,958) (4,882,949) [1]
Natural gas and crude oil properties, net 1,989,912 2,086,387 [1]
Due from Managing General Partner-derivatives, non-current 77,854 144,180 [1]
Other assets 45,509 42,160 [1]
Total Assets 2,359,243 2,538,724 [1]
Current liabilities:    
Accounts payable and accrued expenses 5,682 104,137 [1]
Due to Managing General Partner-derivatives, current 77,648 79,281 [1]
Due to Managing General Partner-other, net 2,126 90,506 [1]
Total current liabilities 85,456 273,924 [1]
Due to Managing General Partner-derivatives, non-current 36,110 71,474 [1]
Asset retirement obligations 228,820 221,153 [1]
Total liabilities 350,386 566,551 [1]
Commitments and contingent liabilities       [1]
Partners' equity:    
Managing General Partner 407,094 398,287 [1]
Limited Partners - 4,497.03 units issued and outstanding 1,601,763 1,573,886 [1]
Total Partners' equity 2,008,857 1,972,173 [1]
Total Liabilities and Partners' Equity $ 2,359,243 $ 2,538,724 [1]
[1] *Derived from audited 2011 balance sheet
v2.4.0.6
Balance Sheet Parentheticals (Parentheticals)
Jun. 30, 2012
Dec. 31, 2011
Limited Partners' Capital Account, Units Issued 471.91 471.91
Limited Partners' Capital Account, Units Outstanding 471.91 471.91
v2.4.0.6
Condensed Statements of Operations (Unaudited) Statement (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Revenues:        
Natural gas, NGLs and crude oil sales $ 110,999 $ 132,920 $ 215,949 $ 268,708
Commodity price risk management gain (loss), net (15,303) 33,226 40,242 11,370
Total revenues 95,696 166,146 256,191 280,078
Operating costs and expenses:        
Natural gas, NGLs and crude oil production costs (39,457) 141,523 39,975 179,436
Direct costs - general and administrative 31,038 158,761 60,098 163,291
Depreciation, depletion and amortization 50,572 57,407 97,009 117,952
Accretion of asset retirement obligations 3,868 2,330 7,667 4,626
Total operating costs and expenses 46,021 360,021 204,749 465,305
Income from continuing operations 49,675 (193,875) 51,442 (185,227)
Interest income 3 44 7 87
Net income 49,678 (193,831) 51,449 (185,140)
Net income allocated to partners 49,678 (193,831) 51,449 (185,140)
Less: Managing General Partner interest in net income 9,936 (38,766) 10,290 (37,028)
Net income allocated to Investor Partners $ 39,742 $ (155,065) $ 41,159 $ (148,112)
Net income per Investor Partner unit 84 (329) 87 (314)
Investor Partner units outstanding 471.91 471.91 471.91 471.91
v2.4.0.6
Condensed Statements of Cash Flows (Unaudited) Statement (USD $)
6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Cash flows from operating activities:    
Net income $ 51,449 $ (185,140)
Adjustments to net income to reconcile to net cash provided by operating activities:    
Depreciation, depletion and amortization 97,009 117,952
Accretion of asset retirement obligations 7,667 4,626
Unrealized loss (gain) on derivative transactions 30,152 (8,236)
Changes in operating assets and liabilities:    
Decrease (increase) in accounts receivable 12,198 13,094
Decrease (increase) in crude oil inventory 6,943 (5,061)
Increase in other assets (3,349) (3,728)
Increase (decrease) in accounts payable and accrued expenses (98,455) 80,410
Decrease in Due to Managing General Partner - other, net (88,380) 26,464
Net cash provided by operating activities 15,234 40,381
Cash flows from investing activities:    
Capital expenditures for natural gas and crude oil properties (534) (15,553)
Net cash provided by (used in) investing activities (534) (15,553)
Cash flows from financing activities:    
Distributions to Partners (14,765) (24,741)
Net cash used in financing activities (14,765) (24,741)
Net increase (decrease) in cash and cash equivalents (65) 87
Cash and cash equivalents, beginning of period 7,363 [1] 117,209
Cash and cash equivalents, end of period $ 7,298 $ 117,296
[1] *Derived from audited 2011 balance sheet
v2.4.0.6
General and Basis of Presentation
6 Months Ended
Jun. 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-C 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, the 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 the 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 the Partnership and initiates and completes substantially all Partnership transactions.

As of June 30, 2012, there were 471 limited partners in the Partnership (“Investor Partners”). PDC is the designated Managing General Partner of the Partnership and owns a 20% Managing General Partner ownership in the Partnership. According to the terms of the Agreement, revenues, costs and cash distributions of the Partnership are allocated 80% to the Investor Partners, which are shared pro rata based upon the number of units in the 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, 2012, the Managing General Partner had repurchased 29.5 units of Partnership interests from the Investor Partners at an average price of $3,818 per unit. As of June 30, 2012, the Managing General Partner owned 25% of the Partnership.

Beginning in June 2011, when the Investor Partners' average annual rate of return fell below 12.8%, the 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 $1,470 and $1,088 for the six months ended June 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 April 2013. For more information concerning the Performance Standard Obligation, see Note 8, Partners' Equity and Cash Distributions, to the 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 the 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 the Partnership's audited financial statements and notes thereto included in the Partnership's 2011 Form 10-K. The Partnership's accounting policies are described in the Notes to Financial Statements in the 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 six months ended June 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
6 Months Ended
Jun. 30, 2012
New Accounting Pronouncement or Change in Accounting Principle, Current Period Disclosures [Abstract]  
Description of New Accounting Pronouncements Adopted [Text Block]
Recent Accounting Standards

Recently Adopted 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 the Partnership's financial statements.
v2.4.0.6
Transactions with Managing General Partner
6 Months Ended
Jun. 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 the Partnership under the authority of the D&O Agreement. Revenues and other cash inflows received by the Managing General Partner on behalf of the Partnership are distributed to the Partners net of corresponding operating costs and other cash outflows incurred on behalf of the Partnership. The fair value of the 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 the Partnership's investors as of the dates indicated:

    
 
June 30, 2012
 
December 31, 2011
Natural gas, NGLs and crude oil sales revenues
collected from the Partnership's third-party customers
$
42,317

 
$
40,289

Commodity price risk management, realized gain
25,975

 
6,118

Other (1)
(70,418
)
 
(136,913
)
Total Due to Managing General Partner-other, net
$
(2,126
)
 
$
(90,506
)

(1)
All other unsettled transactions, excluding derivative instruments, between the 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, 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 June 30,
 
Six months ended June 30,
 
2012
 
2011
 
2012
 
2011
 Well operations and maintenance (1)
$
(43,133
)
 
$
129,972

 
$
27,346

 
$
155,942

 Gathering, compression and processing fees
3,741

 
4,762

 
7,491

 
9,597

 Direct costs - general and administrative
31,038

 
158,761

 
60,098

 
163,291

 Cash distributions (2) (3)
1,198

 
1,770

 
2,300

 
4,711


(1)
Well operations and maintenance were reduced by approximately $89,000 in June 2012 compared to June 2011 as a result of the periodic review of environmental remediation liabilities. See Note 6, Commitments and Contingencies, for additional information.
(2)
Cash distributions include $428 and $817 during the three and six months ended June 30, 2012, respectively, and $445 and $851 during the three and six months ended June 30, 2011, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
(3)
Cash distributions to the Managing General Partner were reduced by $755 and $1,470 during the three and six months ended June 30, 2012, respectively, and $1,088 during the month ended June 30, 2011, due to Preferred Cash Distributions made by the Managing General Partner to Investor Partners under the Performance Standard Obligation provision of the Agreement. There were no Preferred Cash Distributions prior to June 2011. For more information concerning this obligation, see Note 1, General and Basis of Presentation.
v2.4.0.6
Fair Value Measurements and Disclosures
6 Months Ended
Jun. 30, 2012
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
Fair Value Measurements and Disclosures

Determination of fair value. The Partnership's fair value measurements are estimated pursuant to a fair value hierarchy that requires the 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 the 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 the Partnership's derivative instruments was not significant.

The 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, the Partnership's derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis:
 
Balance Sheet
 
June 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
 
$
177,879

 
$
3,244

 
$
181,123

 
$
176,059

 
$
5,887

 
$
181,946

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commodity based derivatives
Due from Managing General Partner-derivatives
 
77,854

 

 
77,854

 
144,180

 

 
144,180

 Total assets
 
 
255,733

 
3,244

 
258,977

 
320,239

 
5,887

 
326,126

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
77,648

 

 
77,648

 
79,281

 

 
79,281

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
36,110

 

 
36,110

 
71,474

 

 
71,474

 Total liabilities
 
 
113,758

 

 
113,758

 
150,755

 

 
150,755

 Net asset (1)
 
 
$
141,975

 
$
3,244

 
$
145,219

 
$
169,484

 
$
5,887

 
$
175,371

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

The following table presents a reconciliation of the Partnership's Level 3 fair value measurements:
 
Six months ended
 
June 30, 2012
 
June 30, 2011
 Fair value, net asset, beginning of period
$
5,887

 
$
10,169

Changes in fair value included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
1,016

 
1,597

 Settlements
(3,659
)
 
(8,992
)
 Fair value, net asset, end of period
$
3,244

 
$
2,774

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

 
 
June 30, 2012 and 2011, respectively, included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
$
479

 
$
281

The significant unobservable input used in the fair value measurement of the 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 the Partnership's Level 3 derivative contracts.
    
See Note 5, Derivative Financial Instruments, for additional disclosure related to the 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
6 Months Ended
Jun. 30, 2012
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments Disclosure [Text Block]
Derivative Financial Instruments

As of June 30, 2012, the Partnership had derivative instruments in place for a portion of its anticipated natural gas production through 2013 totaling 71,202 MMBtu.

The following tables present the impact of the Partnership's derivative instruments on the Partnership's accompanying condensed statements of operations:
 
 
 Three months ended June 30,
 
 
2012
 
2011
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)
 
$
39,970

 
$
(597
)
 
$
39,373

 
$
(936
)
 
$
843

 
$
(93
)
Unrealized gains (losses)
 
(39,970
)
 
(14,706
)
 
(54,676
)
 
936

 
32,383

 
33,319

Total
$

 
$
(15,303
)
 
$
(15,303
)
 
$

 
$
33,226

 
$
33,226

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Six months ended June 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 (Losses) For the Current Period
 
Total
Commodity price risk management gain, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains (losses)
 
$
55,504

 
$
14,890

 
$
70,394

 
$
6,574

 
$
(3,440
)
 
$
3,134

Unrealized gains (losses)
 
(55,504
)
 
25,352

 
(30,152
)
 
(6,574
)
 
14,810

 
8,236

Total
$

 
$
40,242

 
$
40,242

 
$

 
$
11,370

 
$
11,370



Derivative Counterparties. The Managing General Partner's derivative arrangements expose the 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 the 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 the Partnership's derivative instruments was not significant.
v2.4.0.6
Commitments and Contingencies
6 Months Ended
Jun. 30, 2012
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
Commitments and Contingencies

Legal Proceedings

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

Environmental

Due to the nature of the oil and gas industry, the 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 the 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.

In June 2012, as a result of the Managing General Partner's periodic review, the liability for environmental remediation efforts and environmental remediation expense was reduced by approximately $89,000 due to the determination that previously anticipated environmental remediation efforts are no longer required. This resulted in a negative environmental remediation expense of approximately $89,000 during the six months ended June 30, 2012. As of June 30, 2012 accrued environmental remediation liabilities were insignificant. As of December 31, 2011, accrued environmental remediation liabilities were approximately $99,000.

The Managing General Partner is not currently aware of any environmental claims existing as of June 30, 2012 which have not been provided for or would otherwise have a material impact on the 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 the Partnership's properties.
v2.4.0.6
General and Basis of Presentation Significant Accounting Policies (Policies)
6 Months Ended
Jun. 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 the 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 the Partnership's audited financial statements and notes thereto included in the Partnership's 2011 Form 10-K. The Partnership's accounting policies are described in the Notes to Financial Statements in the 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 six months ended June 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)
6 Months Ended
Jun. 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 the Partnership's investors as of the dates indicated:

    
 
June 30, 2012
 
December 31, 2011
Natural gas, NGLs and crude oil sales revenues
collected from the Partnership's third-party customers
$
42,317

 
$
40,289

Commodity price risk management, realized gain
25,975

 
6,118

Other (1)
(70,418
)
 
(136,913
)
Total Due to Managing General Partner-other, net
$
(2,126
)
 
$
(90,506
)

(1)
All other unsettled transactions, excluding derivative instruments, between the 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, 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 June 30,
 
Six months ended June 30,
 
2012
 
2011
 
2012
 
2011
 Well operations and maintenance (1)
$
(43,133
)
 
$
129,972

 
$
27,346

 
$
155,942

 Gathering, compression and processing fees
3,741

 
4,762

 
7,491

 
9,597

 Direct costs - general and administrative
31,038

 
158,761

 
60,098

 
163,291

 Cash distributions (2) (3)
1,198

 
1,770

 
2,300

 
4,711


(1)
Well operations and maintenance were reduced by approximately $89,000 in June 2012 compared to June 2011 as a result of the periodic review of environmental remediation liabilities. See Note 6, Commitments and Contingencies, for additional information.
(2)
Cash distributions include $428 and $817 during the three and six months ended June 30, 2012, respectively, and $445 and $851 during the three and six months ended June 30, 2011, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
(3)
Cash distributions to the Managing General Partner were reduced by $755 and $1,470 during the three and six months ended June 30, 2012, respectively, and $1,088 during the month ended June 30, 2011, due to Preferred Cash Distributions made by the Managing General Partner to Investor Partners under the Performance Standard Obligation provision of the Agreement. There were no Preferred Cash Distributions prior to June 2011. For more information concerning this obligation, see Note 1, General and Basis of Presentation.
v2.4.0.6
Fair Value Measurements and Disclosures (Tables)
6 Months Ended
Jun. 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, the Partnership's derivative assets and liabilities, including both current and non-current portions, measured at fair value on a recurring basis:
 
Balance Sheet
 
June 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
 
$
177,879

 
$
3,244

 
$
181,123

 
$
176,059

 
$
5,887

 
$
181,946

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commodity based derivatives
Due from Managing General Partner-derivatives
 
77,854

 

 
77,854

 
144,180

 

 
144,180

 Total assets
 
 
255,733

 
3,244

 
258,977

 
320,239

 
5,887

 
326,126

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
77,648

 

 
77,648

 
79,281

 

 
79,281

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
36,110

 

 
36,110

 
71,474

 

 
71,474

 Total liabilities
 
 
113,758

 

 
113,758

 
150,755

 

 
150,755

 Net asset (1)
 
 
$
141,975

 
$
3,244

 
$
145,219

 
$
169,484

 
$
5,887

 
$
175,371

(1)As of June 30, 2012 and December 31, 2011, none of the 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 the Partnership's Level 3 fair value measurements:
 
Six months ended
 
June 30, 2012
 
June 30, 2011
 Fair value, net asset, beginning of period
$
5,887

 
$
10,169

Changes in fair value included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
1,016

 
1,597

 Settlements
(3,659
)
 
(8,992
)
 Fair value, net asset, end of period
$
3,244

 
$
2,774

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

 
 
June 30, 2012 and 2011, respectively, included in condensed statement of operations line item:
 
 
 
 Commodity price risk management gain (loss), net
$
479

 
$
281

v2.4.0.6
Derivative Financial Instruments (Tables)
6 Months Ended
Jun. 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 the Partnership's derivative instruments on the Partnership's accompanying condensed statements of operations:
 
 
 Three months ended June 30,
 
 
2012
 
2011
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)
 
$
39,970

 
$
(597
)
 
$
39,373

 
$
(936
)
 
$
843

 
$
(93
)
Unrealized gains (losses)
 
(39,970
)
 
(14,706
)
 
(54,676
)
 
936

 
32,383

 
33,319

Total
$

 
$
(15,303
)
 
$
(15,303
)
 
$

 
$
33,226

 
$
33,226

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Six months ended June 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 (Losses) For the Current Period
 
Total
Commodity price risk management gain, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains (losses)
 
$
55,504

 
$
14,890

 
$
70,394

 
$
6,574

 
$
(3,440
)
 
$
3,134

Unrealized gains (losses)
 
(55,504
)
 
25,352

 
(30,152
)
 
(6,574
)
 
14,810

 
8,236

Total
$

 
$
40,242

 
$
40,242

 
$

 
$
11,370

 
$
11,370

v2.4.0.6
General and Basis of Presentation (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Number_of_Limited_Partners
Jun. 30, 2012
Number_of_Limited_Partners
Jun. 30, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Number of Limited Partners 471 471  
Managing General Partner, Ownership Interest Before Unit Repurchases 20.00% 20.00%  
Investor Partner Ownership Interest 80.00%    
Limited Partner Units Repurchased by Managing General Partner 29.5 29.5  
Average Price Paid for Units Repurchased by Managing General Partner $ 3,818 $ 3,818  
Managing General Partner Ownership Interest   25.00%  
Minimum Investor Partner Return   12.80%  
Reduction In Distribution to Managing General Partner   $ 1,470 $ 1,088
v2.4.0.6
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other $ (2,126) $ (90,506)
Oil and Gas Sales Revenue Collected [Member]
   
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other 42,317 40,289
Gain (Loss) on Settlement of Derivative Instrument [Member]
   
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other 25,975 6,118
Other Unsettled Transactions [Member]
   
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other $ (70,418) [1] $ (136,913) [1]
[1] All other unsettled transactions, excluding derivative instruments, between the 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 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Related Party Transaction [Line Items]        
Direct costs - general and administrative $ 31,038 $ 158,761 $ 60,098 $ 163,291
Reduction In Distribution to Managing General Partner     1,470 1,088
Managing General Partner [Member]
       
Related Party Transaction [Line Items]        
Well operations and maintenance (43,133) [1] 129,972 [1] 27,346 [1] 155,942 [1]
Gathering, compression and processing fees 3,741 4,762 7,491 9,597
Direct costs - general and administrative 31,038 158,761 60,098 163,291
Cash distributions 1,198 [2],[3] 1,770 [2],[3] 2,300 [2],[3] 4,711 [2],[3]
Reduction in Environmental Expense     89,000  
Payments for repurchases of Partner units 428 445 817 851
Reduction In Distribution to Managing General Partner $ 755 $ 1,088 $ 1,470 $ 1,088
[1] Well operations and maintenance were reduced by approximately $89,000 in June 2012 compared to June 2011 as a result of the periodic review of environmental remediation liabilities. See Note 6, Commitments and Contingencies, for additional information.
[2] Cash distributions include $428 and $817 during the three and six months ended June 30, 2012, respectively, and $445 and $851 during the three and six months ended June 30, 2011, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC.
[3] Cash distributions to the Managing General Partner were reduced by $755 and $1,470 during the three and six months ended June 30, 2012, respectively, and $1,088 during the month ended June 30, 2011, due to Preferred Cash Distributions made by the Managing General Partner to Investor Partners under the Performance Standard Obligation provision of the Agreement. There were no Preferred Cash Distributions prior to June 2011. For more information concerning this obligation, see Note 1, General and Basis of Presentation.
v2.4.0.6
Fair Value Measurements and Disclosures (Details) (Fair Value by Asset Class [Member], USD $)
6 Months Ended
Jun. 30, 2012
Jun. 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 $ 5,887 $ 10,169
Commodity price risk management gain (loss), net 1,016 1,597
Settlements (3,659) (8,992)
Fair value, net asset, end of period 3,244 2,774
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 $ 479 $ 281
v2.4.0.6
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Due from Managing General Partner-derivatives, current $ 181,123 $ 181,946 [1]
Due from Managing General Partner-derivatives, non-current 77,854 144,180 [1]
Due to Managing General Partner-derivatives, current 77,648 79,281 [1]
Due to Managing General Partner-derivatives, non-current 36,110 71,474 [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 255,733 320,239
Liabilities, Fair Value Disclosure 113,758 150,755
Net Asset Fair Value 141,975 [2] 169,484 [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 3,244 5,887
Liabilities, Fair Value Disclosure 0 0
Net Asset Fair Value 3,244 [2] 5,887 [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 258,977 326,126
Liabilities, Fair Value Disclosure 113,758 150,755
Net Asset Fair Value 145,219 [2] 175,371 [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, current 177,879 176,059
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, current 3,244 5,887
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, current 181,123 181,946
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, non-current 77,854 144,180
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, non-current 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, non-current 77,854 144,180
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, current 77,648 79,281
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, current 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, current 77,648 79,281
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, non-current 36,110 71,474
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, non-current 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, non-current $ 36,110 $ 71,474
[1] *Derived from audited 2011 balance sheet
[2] As of June 30, 2012 and December 31, 2011, none of the Partnership's derivative instruments were designated as hedges.
v2.4.0.6
Derivative Financial Instruments (Details) (USD $)
3 Months Ended 6 Months Ended
Jun. 30, 2012
Jun. 30, 2011
Jun. 30, 2012
Jun. 30, 2011
Derivative [Line Items]        
Realized Gains (Losses) on Derivative Instruments not Designated as Hedging Instruments $ 39,373 $ (93) $ 70,394 $ 3,134
Unrealized Gain (Loss) on Derivatives (54,676) 33,319 (30,152) 8,236
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net (15,303) 33,226 40,242 11,370
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized [Member]
       
Derivative [Line Items]        
Realized Gains (Losses) on Derivative Instruments not Designated as Hedging Instruments 39,970 (936) 55,504 6,574
Unrealized Gain (Loss) on Derivatives (39,970) 936 (55,504) (6,574)
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net 0 0 0 0
Realized and Unrealized Gains (Losses) for the Current Period [Member]
       
Derivative [Line Items]        
Realized Gains (Losses) on Derivative Instruments not Designated as Hedging Instruments (597) 843 14,890 (3,440)
Unrealized Gain (Loss) on Derivatives (14,706) 32,383 25,352 14,810
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net $ (15,303) $ 33,226 $ 40,242 $ 11,370
v2.4.0.6
Derivative Financial Instruments Additional Information (Details)
Jun. 30, 2012
MMcf
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative instruments in place for future natural gas production 71,202
v2.4.0.6
Commitments and Contingencies (Details) (USD $)
Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]  
Accrued environmental remediation liabilities $ 99,000