v2.4.0.8
Document Entity Information Document
9 Months Ended
Sep. 30, 2013
Entity Information  
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 Sep. 30, 2013
Document Fiscal Year Focus 2013
Document Fiscal Period Focus Q3
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 $)
Sep. 30, 2013
Dec. 31, 2012
Current assets:    
Cash and cash equivalents $ 276,912 $ 7,234
Accounts receivable 29,396 39,042
Crude oil inventory 26,217 14,763
Due from Managing General Partner-derivatives 0 165,345
Total current assets 332,525 226,384
Crude oil and natural gas properties, successful efforts method, at cost 6,758,048 6,969,870
Less: Accumulated depreciation, depletion and amortization (5,029,452) (5,062,654)
Crude oil and natural gas properties, net 1,728,596 1,907,216
Other assets 53,051 48,776
Total Assets 2,114,172 2,182,376
Current liabilities:    
Accounts payable and accrued expenses 2,857 4,788
Due to Managing General Partner-derivatives 0 75,194
Due to Managing General Partner-other, net 131,108 26,146
Total current liabilities 133,965 106,128
Asset retirement obligations 208,142 236,768
Total liabilities 342,107 342,896
Commitments and contingent liabilities      
Partners' equity:    
Managing General Partner 369,831 377,332
Limited Partners - 471.91 units issued and outstanding 1,402,234 1,462,148
Total Partners' equity 1,772,065 1,839,480
Total Liabilities and Partners' Equity $ 2,114,172 $ 2,182,376
v2.4.0.8
Balance Sheet Parentheticals (Parentheticals)
Sep. 30, 2013
Dec. 31, 2012
Balance Sheet Parentheticals [Abstract]    
Limited Partners' Capital Account, Units Issued 471.91 471.91
Limited Partners' Capital Account, Units Outstanding 471.91 471.91
v2.4.0.8
Condensed Statements of Operations (Unaudited) Statement (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Revenues:        
Crude oil, natural gas and NGLs $ 58,640 $ 20,377 $ 166,619 $ 208,124
Commodity price risk management gain (loss), net 0 (13,158) (13,274) 27,084
Total revenues 58,640 7,219 153,345 235,208
Operating costs and expenses:        
Crude oil, natural gas and NGLs production costs 9,140 22,245 81,037 41,175
Direct costs - general and administrative 28,993 29,087 92,456 89,185
Depreciation, depletion and amortization 39,316 20,911 113,001 112,331
Accretion of asset retirement obligations 3,614 3,356 10,644 9,885
Total operating costs and expenses 81,063 75,599 297,138 252,576
Loss from operations (22,423) (68,380) (143,793) (17,368)
Interest income 163 4 215 11
Operating income (loss):        
Loss from continuing operations (22,260) (68,376) (143,578) (17,357)
Income from discontinued operations 0 1,336 331,844 1,766
Net income (loss) (22,260) (67,040) 188,266 (15,591)
Net income (loss) per Investor Partner Unit:        
Continuing operations $ (38) $ (116) $ (243) $ (29)
Discontinued operations $ 0 $ 2 $ 562 $ 3
Net income (loss) per Investor Partner unit $ (38) $ (114) $ 319 $ (26)
Investor Partner units outstanding 471.91 471.91 471.91 471.91
Managing General Partner
       
Operating income (loss):        
Loss from continuing operations (4,452) (13,675) (28,716) (3,471)
Income from discontinued operations 0 267 66,369 353
Investor Partners
       
Operating income (loss):        
Loss from continuing operations (17,808) (54,701) (114,862) (13,886)
Income from discontinued operations $ 0 $ 1,069 $ 265,475 $ 1,413
v2.4.0.8
Condensed Statements of Cash Flows (Unaudited) Statement (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Cash flows from operating activities:    
Net income (loss) $ 188,266 $ (15,591)
Adjustments to net income (loss) to reconcile to net cash from operating activities:    
Depreciation, depletion and amortization 116,381 120,626
Accretion of asset retirement obligations 11,649 11,605
Change in unrealized loss on derivative transactions 71,195 74,749
Gain on sale of crude oil and natural gas properties (347,132) 0
Changes in assets and liabilities:    
Accounts receivable 9,646 47,501
Crude oil inventory (12,698) 3,730
Other assets (4,275) (5,002)
Accounts payable and accrued expenses (1,931) (101,218)
Due to Managing General Partner-other, net 104,962 (90,506)
Due from Managing General Partner-other, net 0 (15,574)
Net cash from operating activities 136,063 30,320
Cash flows from investing activities:    
Capital expenditures for crude oil and natural gas properties 0 (534)
Proceeds from sale of crude oil and natural gas properties 389,296 0
Net cash from investing activities 389,296 (534)
Cash flows from financing activities:    
Distributions to Partners (255,681) (29,883)
Net cash from financing activities (255,681) (29,883)
Net change in cash and cash equivalents 269,678 (97)
Cash and cash equivalents, beginning of period 7,234 7,363
Cash and cash equivalents, end of period $ 276,912 $ 7,266
v2.4.0.8
General and Basis of Presentation
9 Months Ended
Sep. 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-C Limited Partnership (this “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 to conduct and manage this Partnership's business. In accordance with the terms of the Limited Partnership Agreement (the “Agreement”), the Managing General Partner is authorized to manage all activities of this Partnership and initiates and completes substantially all Partnership transactions.

As of September 30, 2013, there were 467 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 September 30, 2013, the Managing General Partner had repurchased 35.9 units of Partnership interest from the Investor Partners at an average price of $3,242 per unit. As of September 30, 2013, the Managing General Partner owned 26.1% of this Partnership.

Beginning in June 2011, 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 $5,983 and $2,447 for the nine months ended September 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 April 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 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 nine months ended September 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 had no impact on previously reported results of operations, cash flows or Partners’ equity.
v2.4.0.8
Recent Accounting Standards
9 Months Ended
Sep. 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 the 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. Adoption of these changes had no impact on the condensed financial statements.
v2.4.0.8
Transactions with Managing General Partner
9 Months Ended
Sep. 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 December 31, 2012 balance sheet under the captions “Due to 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. As of September 30, 2013, this Partnership had no outstanding derivative instruments.

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

    
 
September 30, 2013
 
December 31, 2012
Crude oil, natural gas and NGLs sales revenues
collected from this Partnership's third-party customers
$
20,286

 
$
23,794

Commodity price risk management, realized gain

 
13,174

Other (1)
(151,394
)
 
(63,114
)
Total Due to Managing General Partner-other, net
$
(131,108
)
 
$
(26,146
)

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

The following table presents Partnership transactions, excluding derivative transactions which are more fully detailed in Note 5, Derivative Financial Instruments, with the Managing General Partner for the three and nine months ended September 30, 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 September 30,
 
Nine months ended September 30,
 
2013
 
2012
 
2013
 
2012
 Well operations and maintenance
$
6,558

 
$
30,287

 
$
95,534

 
$
57,633

 Gathering, compression and processing fees
(263
)
 
2,882

 
4,447

 
10,373

 Direct costs - general and administrative
28,993

 
29,087

 
124,296

 
89,185

 Cash distributions (1) (2)
51,219

 
2,878

 
59,616

 
5,178


(1)
Cash distributions include $11,105 and $14,462 during the three and nine months ended September 30, 2013, respectively, and $831 and $1,648 during the three and nine months ended September 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. The increases for 2013 periods over the 2012 periods is attributable to PDC's proportionate share of the distribution of $220,000, which represents a portion of the consideration received from the Piceance Basin asset divestiture in 2013.
(2)
Cash distributions to the Managing General Partner were reduced by $5,983 during the nine months ended September 30, 2013, and $977 and $2,447 for the three and nine months ended September 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
9 Months Ended
Sep. 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.

Derivative instruments that were due to mature subsequent to June 30, 2013 were either liquidated or sold to Caerus Oil and Gas LLC (“Caerus”) during the quarter ended June 30, 2013. See Note 8, Divestitures and Discontinued Operations, for additional information regarding transactions with Caerus. Accordingly, as of September 30, 2013, this Partnership did not have any derivative instruments in place for its future production. When applicable, the Managing General Partner measured the fair value of this Partnership's derivative instruments based on a pricing model that utilized 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 validated 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 used common industry practices to develop its valuation techniques, and believed this Partnership's valuation method was appropriate and consistent with those used by other market participants, changes in the Managing General Partner's pricing methodologies or the underlying assumptions could have resulted in significantly different fair values.

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
 
December 31, 2012
 
Line Item
 
 Level 2
 
 
 
 
Assets:
 
 
 
Current
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
165,345

 Total assets
 
 
165,345

 
 
 
 
Liabilities:
 
 
 
Current
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
75,194

 Total liabilities
 
 
75,194

 Net asset
 
 
$
90,151

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
9 Months Ended
Sep. 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 September 30,
 
 
2013
 
2012
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized Gains (Losses) for the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) included in Prior Periods Unrealized
 
Realized and Unrealized Gains and (Losses) for the Current Period
 
Total
Commodity price risk management loss, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$

 
$

 
$

 
$
31,011

 
$
428

 
$
31,439

Unrealized losses
 

 

 

 
(31,011
)
 
(13,586
)
 
(44,597
)
Total
$

 
$

 
$

 
$

 
$
(13,158
)
 
$
(13,158
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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)
 
$
71,195

 
$
(13,274
)
 
$
57,921

 
$
81,052

 
$
20,781

 
$
101,833

Unrealized gains (losses)
 
(71,195
)
 

 
(71,195
)
 
(81,052
)
 
6,303

 
(74,749
)
Total
$

 
$
(13,274
)
 
$
(13,274
)
 
$

 
$
27,084

 
$
27,084

v2.4.0.8
Commitments and Contingencies
9 Months Ended
Sep. 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 sheets.

During the nine months ended September 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 September 30, 2013 and December 31, 2012 were not significant.

The Managing General Partner is not currently aware of any environmental claims existing as of September 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.

Royalty Matters

During the three months ended June 30, 2013, this Partnership recognized charges totaling approximately $32,000 related to royalty payment disputes with interest owners in the Piceance Basin. These charges were included in Direct costs - general and administrative expenses within discontinued operations. The settlement charges were allocated to this Partnership based upon historical revenue amounts and were paid during the three months ended September 30, 2013, thereby settling all current and future obligations related to this matter.
v2.4.0.8
Asset Retirement Obligations Asset Retirement Obligations (Notes)
9 Months Ended
Sep. 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
$
236,768

Accretion expense
11,649

Obligations discharged with divestiture of properties
(40,275
)
Balance at September 30, 2013
$
208,142

 
 
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations
9 Months Ended
Sep. 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 with certain affiliates of Caerus, pursuant to which this Partnership agreed to sell to Caerus all of its Piceance Basin assets and certain derivatives. In June 2013, this divestiture was completed with total consideration for this Partnership of approximately $389,000, subject to customary post-closing adjustments. The divestiture of this Partnership's Piceance Basin assets resulted in a decrease of crude oil and natural gas properties of $212,000 and a decrease of accumulated depreciation, depletion and amortization of $150,000. The sale resulted in a gain on divestiture of assets of approximately $347,000.
In July 2013, this Partnership distributed a portion of the proceeds received for the Piceance Basin asset divestiture to the Managing General Partner and Investor Partners as follows:
 
 
 
Distributed to:
 
Amount
 
 
 
Managing General Partner
 
$
44,000

Investor Partners
 
176,000

Total
 
$
220,000

 
 
 

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 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 September 30,
 
Nine Months Ended September 30,
Statement of Operations - Discontinued Operations
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
Crude oil, natural gas and NGLs sales
 
$
16,568

 
$
49,478

 
$
44,770

 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
Crude oil, natural gas and NGLs production costs
 
11,944

 
28,541

 
32,989

Depreciation, depletion and amortization
 
2,706

 
3,380

 
8,295

Direct costs - general and administrative expense
 

 
31,840

 

Accretion of asset retirement obligations
 
582

 
1,005

 
1,720

Gain on sale of crude oil and natural gas properties
 

 
(347,132
)
 

Total operating costs and expenses
 
15,232

 
(282,366
)
 
43,004

 
 
 
 
 
 
 
Income from discontinued operations
 
$
1,336

 
$
331,844

 
$
1,766

 
 
 
 

 

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
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 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 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 nine months ended September 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)
9 Months Ended
Sep. 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 sheets line item “Due to Managing General Partner-other, net” which remain undistributed or unsettled with this Partnership's investors as of the dates indicated:

    
 
September 30, 2013
 
December 31, 2012
Crude oil, natural gas and NGLs sales revenues
collected from this Partnership's third-party customers
$
20,286

 
$
23,794

Commodity price risk management, realized gain

 
13,174

Other (1)
(151,394
)
 
(63,114
)
Total Due to Managing General Partner-other, net
$
(131,108
)
 
$
(26,146
)

(1)
All other unsettled transactions, excluding derivative instruments, between this Partnership and the Managing General Partner. The majority of these are operating costs and general and administrative costs, which have not been deducted from distributions.
Schedule of Related Party Transactions [Table Text Block]
The following table presents Partnership transactions, excluding derivative transactions which are more fully detailed in Note 5, Derivative Financial Instruments, with the Managing General Partner for the three and nine months ended September 30, 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 September 30,
 
Nine months ended September 30,
 
2013
 
2012
 
2013
 
2012
 Well operations and maintenance
$
6,558

 
$
30,287

 
$
95,534

 
$
57,633

 Gathering, compression and processing fees
(263
)
 
2,882

 
4,447

 
10,373

 Direct costs - general and administrative
28,993

 
29,087

 
124,296

 
89,185

 Cash distributions (1) (2)
51,219

 
2,878

 
59,616

 
5,178


(1)
Cash distributions include $11,105 and $14,462 during the three and nine months ended September 30, 2013, respectively, and $831 and $1,648 during the three and nine months ended September 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. The increases for 2013 periods over the 2012 periods is attributable to PDC's proportionate share of the distribution of $220,000, which represents a portion of the consideration received from the Piceance Basin asset divestiture in 2013.
(2)
Cash distributions to the Managing General Partner were reduced by $5,983 during the nine months ended September 30, 2013, and $977 and $2,447 for the three and nine months ended September 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)
9 Months Ended
Sep. 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
 
December 31, 2012
 
Line Item
 
 Level 2
 
 
 
 
Assets:
 
 
 
Current
 
 
 
Commodity-based derivatives
Due from Managing General Partner-derivatives
 
$
165,345

 Total assets
 
 
165,345

 
 
 
 
Liabilities:
 
 
 
Current
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
75,194

 Total liabilities
 
 
75,194

 Net asset
 
 
$
90,151

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

 
$

 
$

 
$
31,011

 
$
428

 
$
31,439

Unrealized losses
 

 

 

 
(31,011
)
 
(13,586
)
 
(44,597
)
Total
$

 
$

 
$

 
$

 
$
(13,158
)
 
$
(13,158
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 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)
 
$
71,195

 
$
(13,274
)
 
$
57,921

 
$
81,052

 
$
20,781

 
$
101,833

Unrealized gains (losses)
 
(71,195
)
 

 
(71,195
)
 
(81,052
)
 
6,303

 
(74,749
)
Total
$

 
$
(13,274
)
 
$
(13,274
)
 
$

 
$
27,084

 
$
27,084

v2.4.0.8
Asset Retirement Obligations Asset Retirement Obligations (Tables)
9 Months Ended
Sep. 30, 2013
ASSET RETIREMENT OBLIGATIONS [Abstract]  
Schedule of Change in Asset Retirement Obligation [Table 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
$
236,768

Accretion expense
11,649

Obligations discharged with divestiture of properties
(40,275
)
Balance at September 30, 2013
$
208,142

 
 
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations Assets Held for Sale, Divestitures and Discontinued Operations (Tables)
9 Months Ended
Sep. 30, 2013
Discontinued Operations and Disposal Groups [Abstract]  
Distributions Made to Managing General Partner and Investor Partners [Table Text Block]
In July 2013, this Partnership distributed a portion of the proceeds received for the Piceance Basin asset divestiture to the Managing General Partner and Investor Partners as follows:
 
 
 
Distributed to:
 
Amount
 
 
 
Managing General Partner
 
$
44,000

Investor Partners
 
176,000

Total
 
$
220,000

 
 
 
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 September 30,
 
Nine Months Ended September 30,
Statement of Operations - Discontinued Operations
 
2012
 
2013
 
2012
 
 
 
 
 
 
 
Revenues:
 
 
 
 
 
 
Crude oil, natural gas and NGLs sales
 
$
16,568

 
$
49,478

 
$
44,770

 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
Crude oil, natural gas and NGLs production costs
 
11,944

 
28,541

 
32,989

Depreciation, depletion and amortization
 
2,706

 
3,380

 
8,295

Direct costs - general and administrative expense
 

 
31,840

 

Accretion of asset retirement obligations
 
582

 
1,005

 
1,720

Gain on sale of crude oil and natural gas properties
 

 
(347,132
)
 

Total operating costs and expenses
 
15,232

 
(282,366
)
 
43,004

 
 
 
 
 
 
 
Income from discontinued operations
 
$
1,336

 
$
331,844

 
$
1,766

 
 
 
 

 

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
General and Basis of Presentation General and Basis of Presentation (Details) (USD $)
9 Months Ended
Sep. 30, 2013
Number_of_Limited_Partners
Sep. 30, 2012
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Number of Investor Partners 467  
Managing General Partner, Ownership Interest Before Unit Repurchases 20.00%  
Investor Partner Ownership Interest 80.00%  
Limited Partner Units Repurchased by Managing General Partner 35.9  
Average Price Paid for Units Repurchased by Managing General Partner $ 3,242  
Managing General Partner Ownership Interest 26.10%  
Annual Rate Of Return As Percentage Of Subscriptions 12.80%  
Reduction In Distribution To Managing General Partner $ 5,983 $ 2,447
v2.4.0.8
Transactions with Managing General Partner Undistributed or Unsettled Transactions With Investor Partners (Details) (USD $)
Sep. 30, 2013
Dec. 31, 2012
Related Party Transaction    
Due from (to) Managing General Partner-other, net $ (131,108) $ (26,146)
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 20,286 23,794
Commodity price risk management, realized gain
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net 0 13,174
Other
   
Related Party Transaction    
Due from (to) Managing General Partner-other, net $ (151,394) [1] $ (63,114) [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 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Related Party Transaction        
Direct costs - general and administrative $ 28,993 $ 29,087 $ 92,456 $ 89,185
PDC's proportionate share of distributions received from Piceance Basin asset divestiture 220,000      
Reduction In Distribution To Managing General Partner     5,983 2,447
Transactions with Managing General Partner
       
Related Party Transaction        
Well operations and maintenance 6,558 30,287 95,534 57,633
Gathering, compression and processing fees (263) 2,882 4,447 10,373
Direct costs - general and administrative 28,993 29,087 124,296 89,185
Cash distributions 51,219 [1],[2] 2,878 [1],[2] 59,616 [1],[2] 5,178 [1],[2]
Cash payments made to investor partners for repurchased partner units 11,105 831 14,462 1,648
Reduction In Distribution To Managing General Partner   $ 977 $ 5,983 $ 2,447
[1] Cash distributions to the Managing General Partner were reduced by $5,983 during the nine months ended September 30, 2013, and $977 and $2,447 for the three and nine months ended September 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.
[2] Cash distributions include $11,105 and $14,462 during the three and nine months ended September 30, 2013, respectively, and $831 and $1,648 during the three and nine months ended September 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. The increases for 2013 periods over the 2012 periods is attributable to PDC's proportionate share of the distribution of $220,000, which represents a portion of the consideration received from the Piceance Basin asset divestiture in 2013.(2
v2.4.0.8
Transactions with Managing General Partner Additional Information (Details) (USD $)
Sep. 30, 2013
Additional Information [Abstract]  
Derivative Instruments Outstanding as of September 31, 2013 $ 0
v2.4.0.8
Fair Value Measurements and Disclosures Fair Value Measurements and Disclosures (Details) (USD $)
Sep. 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 $ 165,345
Due to Managing General Partner-derivatives 0 75,194
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   165,345
Liabilities, Fair Value Disclosure   75,194
Net Asset Fair Value   90,151
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   165,345
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   $ 75,194
v2.4.0.8
Derivative Financial Instruments Derivative Financial Instruments (Details) (Commodity Price Risk Management, net [Member], USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Derivative Financial Instruments        
Realized Gains (Losses) $ 0 $ 31,439 $ 57,921 $ 101,833
Unrealized gains (losses) 0 (44,597) (71,195) (74,749)
Total 0 (13,158) (13,274) 27,084
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized [Member]
       
Derivative Financial Instruments        
Realized Gains (Losses) 0 31,011 71,195 81,052
Unrealized gains (losses) 0 (31,011) (71,195) (81,052)
Total 0 0 0 0
Realized and Unrealized Gains (Losses) for the Current Period [Member]
       
Derivative Financial Instruments        
Realized Gains (Losses) 0 428 (13,274) 20,781
Unrealized gains (losses) 0 (13,586) 0 6,303
Total $ 0 $ (13,158) $ (13,274) $ 27,084
v2.4.0.8
Commitments and Contingencies Commitments and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
9 Months Ended
Sep. 30, 2013
Commitments and Contingencies Disclosure [Abstract]  
Royalty Expense $ 32
v2.4.0.8
Asset Retirement Obligations Asset Retirement Obligations (Details) (USD $)
9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Changes in asset retirement obligations    
Balance at December 31, 2012 $ 236,768  
Accretion expense 11,649 11,605
Obligations discharged with disposal of properties (40,275)  
Balance at September 30, 2013 $ 208,142  
v2.4.0.8
Assets Held for Sales, Divestitures and Discontinued Operations Additional Information (Details) (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2013
Sep. 30, 2013
Sep. 30, 2012
Dec. 31, 2012
Piceance Basin Assets Divested        
Total proceeds from sale of Piceance Basin asset divestiture   $ 389,296 $ 0  
Crude oil and natural gas properties 6,758,048 6,758,048   6,969,870
Accumulated depreciation, depletion and amortization 5,029,452 5,029,452   5,062,654
Poriton of proceeds distributed from sale of Piceance Basin assets 220,000      
Piceance and NECO Asset Group
       
Piceance Basin Assets Divested        
Crude oil and natural gas properties 212,000 212,000    
Accumulated depreciation, depletion and amortization 150,000 150,000    
Gain on disposal of Piceance Basin oil and gas properties   (347,000)    
Managing General Partner
       
Piceance Basin Assets Divested        
Poriton of proceeds distributed from sale of Piceance Basin assets 44,000      
Investor Partners
       
Piceance Basin Assets Divested        
Poriton of proceeds distributed from sale of Piceance Basin assets 176,000      
Managing General Partner
       
Piceance Basin Assets Divested        
Total proceeds from sale of Piceance Basin asset divestiture $ 389,000      
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 9 Months Ended
Sep. 30, 2013
Sep. 30, 2012
Sep. 30, 2013
Sep. 30, 2012
Statement of Operations - Discontinued Operations        
Income from discontinued operations $ 0 $ 1,336 $ 331,844 $ 1,766
Segment, Discontinued Operations
       
Statement of Operations - Discontinued Operations        
Crude oil, natural gas and NGL sales   16,568 49,478 44,770
Crude oil, natural gas and NGL production costs   11,944 28,541 32,989
Depreciation, depletion and amortization   2,706 3,380 8,295
Direct costs - general and administrative   0 31,840 0
Accretion of asset retirement obligations   582 1,005 1,720
Gain on sale of crude oil and natural gas properties   0 (347,132) 0
Total operating costs and expenses   15,232 (282,366) 43,004
Income from discontinued operations   $ 1,336 $ 331,844 $ 1,766