v2.3.0.11
Document and Entity Information
9 Months Ended
Sep. 30, 2011
Entity Information [Line Items]  
Entity Registrant Name ROCKIES REGION 2007 LP
Entity Central Index Key 0001407805
Current Fiscal Year End Date --12-31
Entity Filer Category Smaller Reporting Company
Document Type 10-Q
Document Period End Date Sep. 30, 2011
Document Fiscal Year Focus 2011
Document Fiscal Period Focus Q3
Amendement Flag false
Units of Limited Partnership Interest Outstanding 0
v2.3.0.11
Condensed Balance Sheets (Unaudited) Statement (USD $)
Sep. 30, 2011
Dec. 31, 2010
Current assets:    
Cash and cash equivalents $ 2,040,377 $ 690,377 [1]
Accounts receivable 798,451 1,175,972 [1]
Crude oil inventory 49,335 59,031 [1]
Due from Managing General Partner-derivatives 4,011,550 3,178,313 [1]
Due from Managing General Partner-other, net 451,178 534,115 [1]
Total current assets 7,350,891 5,637,808 [1]
Natural gas and crude oil properties, successful efforts method, at cost 79,998,602 79,934,322 [1]
Less: Accumulated depreciation, depletion and amortization (33,765,859) (29,699,641) [1]
Natural gas and crude oil properties, net 46,232,743 50,234,681 [1]
Due from Managing General Partner-derivatives 3,590,378 4,689,041 [1]
Total noncurrent assets 49,823,121 54,923,722 [1]
Total Assets 57,174,012 60,561,530 [1]
Current liabilities:    
Accounts payable and accrued expenses 105,187 136,704 [1]
Due to Managing General Partner-derivatives 2,312,589 2,580,843 [1]
Total current liabilities 2,417,776 2,717,547 [1]
Due to Managing General Partner-derivatives 2,356,163 3,556,891 [1]
Asset retirement obligations 765,575 727,952 [1]
Total liabilities 5,539,514 7,002,390 [1]
Commitments and contingent liabilities     [1]
Partners' equity:    
Managing General Partner 13,910,816 14,622,934 [1]
Limited Partners - 4470 units issued and outstanding 37,723,682 38,936,206 [1]
Total Partners' equity 51,634,498 53,559,140 [1]
Total Liabilities and Partners' Equity $ 57,174,012 $ 60,561,530 [1]
[1] *Derived from audited 2010 balance sheet
v2.3.0.11
Condensed Balance Sheet Parenthetical
Sep. 30, 2011
Dec. 31, 2010
Units of Limited Partnership Interest Issued 4,470.00 4,470.00
Units of Limited Partnership Interest Outstanding 4,470.00 4,470.00
v2.3.0.11
Condensed Statements of Operations (Unaudited) Statement (USD $)
3 Months Ended 9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Sep. 30, 2011
Sep. 30, 2010
Revenues:        
Natural gas, NGLs and crude oil sales $ 2,706,653 $ 3,023,580 $ 8,487,457 $ 11,277,923
Commodity price risk management gain, net 1,415,052 2,985,867 1,804,686 8,907,687
Total revenues 4,121,705 6,009,447 10,292,143 20,185,610
Operating costs and expenses:        
Natural gas, NGLs and crude oil production costs 979,626 1,043,139 3,479,511 3,554,298
Direct costs - general and administrative 46,171 35,406 133,217 117,381
Depreciation, depletion and amortization 1,321,147 2,124,558 4,066,218 7,097,647
Accretion of asset retirement obligations 12,753 11,924 37,623 35,178
Total operating costs and expenses 2,359,697 3,215,027 7,716,569 10,804,504
Income from operations 1,762,008 2,794,420 2,575,574 9,381,106
Interest Income 889 0 889 0
Net income 1,762,897 2,794,420 2,576,463 9,381,106
Net income allocated to partners 1,762,897 2,794,420 2,576,463 9,381,106
Less: Managing General Partner interest in net income 652,272 1,033,935 953,291 3,471,009
Net income allocated to Investor Partners 1,110,625 1,760,485 1,623,172 5,910,097
Net income per Investor Partner unit $ 248 $ 394 $ 363 $ 1,322
Investor Partner units outstanding 4,470.00 4,470.00 4,470.00 4,470.00
v2.3.0.11
Condensed Statements of Cash Flows (Unaudited) Statement (USD $)
9 Months Ended
Sep. 30, 2011
Sep. 30, 2010
Cash flows from operating activities:    
Net income $ 2,576,463 $ 9,381,106
Adjustments to net income to reconcile to net cash provided by operating activities:    
Depreciation, depletion and amortization 4,066,218 7,097,647
Accretion of asset retirement obligations 37,623 35,178
Unrealized gain on derivative transactions (1,203,556) (6,055,258)
Changes in operating assets and liabilities:    
Decrease in accounts receivable 377,521 674,048
Decrease (increase) in crude oil inventory 9,696 (55,892)
Decrease in accounts payable and accrued expenses (31,517) (72,391)
Decrease in Due from Managing General Partner - other, net 82,937 1,853,717
Net cash provided by operating activities 5,915,385 12,858,155
Cash flows from investing activities:    
Capital expenditures for natural gas and crude oil properties (64,280) (40,696)
Net cash used in investing activities (64,280) (40,696)
Cash flows from financing activities:    
Distributions to Partners (4,501,105) (12,251,292)
Net cash used in financing activities (4,501,105) (12,251,292)
Net increase in cash and cash equivalents 1,350,000 566,167
Cash and cash equivalents, beginning of period 690,377 [1] 4,229
Cash and Cash Equivalents, end of period $ 2,040,377 $ 570,396
[1] *Derived from audited 2010 balance sheet
v2.3.0.11
General and Basis of Presentation
9 Months Ended
Sep. 30, 2011
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
General and Basis of Presentation

Rockies Region 2007 Limited Partnership (the “Partnership” or the “Registrant”) was organized in 2007 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 of the Partnership commenced upon closing of an offering for the private placement of Partnership units. Upon funding, the Partnership entered into a Drilling and Operating Agreement (“D&O Agreement”) with the Managing General Partner which authorizes Petroleum Development Corporation (“PDC”), which conducts business under the name PDC Energy, 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 September 30, 2011, there were 1,794 Investor Partners. PDC is the designated Managing General Partner of the Partnership and owns a 37% Managing General Partner ownership in the Partnership. According to the terms of the Agreement, revenues, costs and cash distributions of the Partnership are allocated 63% to the limited partners (“Investor Partners”), which are shared pro rata, based upon the number of units in the Partnership, and 37% 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, 2011, the Managing General Partner has repurchased 2 units of Partnership interests from the Investor Partners at an average price of $4,823 per unit. As of September 30, 2011, the Managing General Partner owns 37.03% of the Partnership.

The Partnership expects continuing operations of its natural gas and crude oil properties until such time the Partnership's wells are depleted or become uneconomical to produce, at which time they may be sold or plugged, reclaimed and abandoned. The Partnership's maximum term of existence extends through December 31, 2057, unless dissolved by certain conditions stipulated within the Agreement which are unlikely to occur at this time, or by written consent of the Investor Partners owning a majority of outstanding units at that time.

In the Managing General Partner's opinion, the accompanying interim unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary for a fair statement of the Partnership's financial statements 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 Securities and Exchange Commission (“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 2010 Form 10-K. The Partnership's accounting policies are described in the Notes to Financial Statements in the Partnership's 2010 Form 10-K and updated, as necessary, in this Form 10-Q. The results of operations for the three and nine months ended September 30, 2011, and the cash flows for the same periods, 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 correct the prior period disclosures to conform to the current year presentation, specifically related to the fair value level classification of certain derivative instruments. The reclassification had no impact on the Partnership's previously reported financial position, cash flows, net income or partners' equity. See Note 4, Fair Value Measurements and Disclosures, for additional information regarding the fair value classification of the Partnership's natural gas and crude oil derivative instruments.

v2.3.0.11
Recent Accounting Standards
9 Months Ended
Sep. 30, 2011
New Accounting Pronouncement or Change in Accounting Principle, Current Period Disclosures [Abstract]  
Description of New Accounting Pronouncements Not yet Adopted [Text Block]
Recent Accounting Standards

Recently Adopted Accounting Standards

Fair Value Measurements and Disclosures

In January 2010, the Financial Accounting Standards Board ("FASB") issued changes related to fair value measurements requiring gross presentation of activities within the Level 3 roll forward, whereby entities must present separately information about purchases, sales, issuances and settlements. These changes were effective for the Partnership's financial statements issued for annual reporting periods, and for interim reporting periods within the year, beginning after December 15, 2010. The adoption of this change did not have a material impact on the Partnership's financial statements.

Recently Issued Accounting Standards

Fair Value Measurement

On May 12, 2011, the FASB issued changes related to fair value measurement. The changes represent the converged guidance of the FASB and the International Accounting Standards Board ("IASB") (collectively the "Boards") on fair value measurement. Many of the changes eliminate unnecessary wording differences between International Financial Reporting Standards ("IFRS") and U.S. GAAP. The changes expand existing disclosure requirements for fair value measurements categorized in Level 3 by requiring (1) a quantitative disclosure of the unobservable inputs and assumptions used in the measurement, (2) a description of the valuation processes in place and (3) 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 are effective for public entities during interim and annual periods beginning after December 15, 2011. Early application is not permitted. With the exception of the disclosure requirements, the adoption of these changes is not expected to have a significant impact on the Partnership's financial statements.
v2.3.0.11
Transactions with Managing General Partner and Affiliates
9 Months Ended
Sep. 30, 2011
Related Party Transactions [Abstract]  
Related Party Transactions Disclosure [Text Block]
Transactions with Managing General Partner and Affiliates

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 on behalf of the Partnership are distributed to the Partners net of (after deducting) 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 from Managing General Partner-other, net,” which remain undistributed or unsettled with the Partnership's investors as of the dates indicated.

    
 
September 30, 2011
 
December 31, 2010
Natural gas, NGLs and crude oil sales revenues
collected from the Partnership's third-party customers
$
720,625

 
$
875,468

Commodity price risk management, realized gain
187,809

 
478,306

Other (1)
(457,256
)
 
(819,659
)
Total Due from Managing General Partner-other, net
$
451,178

 
$
534,115


(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 and its affiliates for the three and nine months ended September 30, 2011 and 2010. “Well operations and maintenance” and “Gathering, compression and processing fees” are included in the “Natural gas, NGLs and crude oil production costs” line item on the condensed statements of operations.    
 
 Three months ended September 30,
 
Nine months ended September 30,
 
2011
 
2010
 
2011
 
2010
 Well operations and maintenance
$
722,768

 
$
760,820

 
$
2,735,351

 
$
2,731,809

 Gathering, compression and processing fees
107,113

 
126,973

 
310,362

 
409,158

 Direct costs - general and administrative
46,171

 
35,406

 
133,217

 
117,381

 Cash distributions(1)
433,636

 
754,744

 
1,665,685

 
4,532,978


(1)
Cash distributions include $276 for both the three and nine months ended September 30, 2011 related to equity cash distributions on Investor Partner units repurchased by PDC. There were no equity cash distributions on Investor Partner units repurchased by PDC prior to the current period.
v2.3.0.11
Fair Value Measurements
9 Months Ended
Sep. 30, 2011
Fair Value Disclosures [Abstract]  
Fair Value Disclosures [Text Block]
Fair Value Measurements and Disclosures

Derivative Financial Instruments

Determination of fair value. Fair value accounting standards have established a fair value hierarchy that prioritizes the inputs used in applying a valuation methodology. 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. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. 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 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) in active markets for identical assets or liabilities.

Level 2 - Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability and (iv) 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 for the asset or liability.

Derivative Financial Instruments. The Managing General Partner measures the fair value of its 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 counterparties to the Partnership's derivative instruments are primarily financial institutions. The Managing General Partner validates the fair value measurement through (1) the review of counterparty statements and other supporting documentation, (2) the determination that the source of the inputs are valid, (3) the corroboration of the original source of inputs through access to multiple quotes, if available, or other information and (4) monitoring changes in valuation methods and assumptions. While the Managing General Partner uses common industry practices to develop its valuation techniques, changes in the 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 following table presents, for each hierarchy level, the Partnership's derivative assets and liabilities, both current and non-current portions, measured at fair value on a recurring basis.
 
September 30, 2011
 
December 31, 2010 (a)
 
 Level 2 (b)
 
 Level 3 (c)
 
 Total
 
 Level 2 (b)
 
 Level 3 (c)
 
 Total
 
 
 
 
 
 
 
 
 
 
 
 
 Assets:
 
 
 
 
 
 
 
 
 
 
 
 Commodity based derivatives
$
7,449,328

 
$
152,600

 
$
7,601,928

 
$
7,511,512

 
$
355,842

 
$
7,867,354

 Total assets
7,449,328

 
152,600

 
7,601,928

 
7,511,512

 
355,842

 
7,867,354

 
 
 
 
 
 
 
 
 
 
 
 
 Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 Commodity based derivatives
56,757

 

 
56,757

 
618,004

 

 
618,004

 Basis protection derivative contracts
4,611,995

 

 
4,611,995

 
5,519,730

 

 
5,519,730

 Total liabilities
4,668,752

 

 
4,668,752

 
6,137,734

 

 
6,137,734

 Net asset
$
2,780,576

 
$
152,600

 
$
2,933,176

 
$
1,373,778

 
$
355,842

 
$
1,729,620


(a) The Partnership reclassified its NYMEX-based natural gas fixed-price swaps from Level 1 to Level 2 (decreasing the previously reported net asset in Level 1 by $7.5 million) and CIG-based basis swaps and crude oil fixed-price swaps from Level 3 to Level 2 (decreasing the previously reported net liability in Level 3 by $6.1 million). The amounts presented reflect these reclassifications and conform to current period presentation.
(b) Includes the Partnership's fixed-price swaps and basis swaps.
(c) Includes the Partnership's natural gas collars.
The following table presents a reconciliation of the Partnership's Level 3 fair value measurements.
 
Nine months ended
 
September 30, 2011
 
September 30, 2010 (1)
 Fair value, net asset, beginning of period
$
355,842

 
$
739,017

 Changes in fair value included in statement of operations line item:
 
 
 
 Commodity price risk management gain, net
95,036

 
641,928

 Settlements
(298,278
)
 
(743,755
)
 Fair value, net asset, end of period
$
152,600

 
$
637,190

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

 
 
September 30, 2011 and 2010, respectively, included in statement of operations line item:
 
 
 
 Commodity price risk management gain, net
$
52,442

 
$
568,985


(1) The Partnership reclassified its CIG-based basis swaps and crude oil fixed-price swaps from Level 3 to Level 2 (decreasing the previously reported net liability at the beginning of the period by $5.3 million). The amounts presented reflect these reclassifications and conform to current period presentation.
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 comprising current assets and current liabilities approximate fair value due to the short-term maturities of these instruments.
v2.3.0.11
Derivative Financial Instruments
9 Months Ended
Sep. 30, 2011
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]
Derivative Financial Instruments
As of September 30, 2011, the Partnership had derivative instruments in place for a portion of its anticipated natural gas production through 2013 for a total of 3,025,403 MMbtu and its anticipated crude oil production through December of 2011 for a total of 6,929 Bbl.

The following table presents the location and fair value amounts of the Partnership's derivative instruments on the accompanying condensed balance sheets. These derivative instruments were comprised of commodity collars, commodity fixed-price swaps and basis swaps.
 
 
 
 
 
Fair Value
 
 
 
 
 
September 30,
 
December 31,
Derivative instruments not designated as hedge(1):
 
Balance Sheet Line Item
 
2011
 
2010
Derivative Assets:
Current
 
 
 
 
 
 
 
Commodity contracts
 
Due from Managing General Partner-derivatives
 
$
4,011,550

 
$
3,178,313

 
Non Current
 
 
 
 
 
 
 
Commodity contracts
 
Due from Managing General Partner-derivatives
 
3,590,378

 
4,689,041

Total Derivative Assets
 
 
 
 
$
7,601,928

 
$
7,867,354

 
 
 
 
 
 
 
 
Derivative Liabilities:
Current
 
 
 
 

 
 

 
Commodity contracts
 
Due to Managing General Partner-derivatives
 
$
56,757

 
$
618,004

 
Basis protection contracts
 
Due to Managing General Partner-derivatives
 
2,255,832

 
1,962,839

 
Non Current
 
 
 
 
 
 
 
Basis protection contracts
 
Due to Managing General Partner-derivatives
 
2,356,163

 
3,556,891

Total Derivative Liabilities
 
 
 
$
4,668,752

 
$
6,137,734


(1)As of September 30, 2011 and December 31, 2010, none of the Partnership's derivative instruments were designated as hedges.

The following tables present the impact of the Partnership's derivative instruments on the Partnership's accompanying condensed statements of operations.
 
 
 Three months ended September 30,
 
 
2011
 
2010
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
Commodity price risk management gain, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
157,140

 
$
87,168

 
$
244,308

 
$
274,317

 
$
219,068

 
$
493,385

Unrealized gains (losses)
 
(157,140
)
 
1,327,884

 
1,170,744

 
(274,317
)
 
2,766,799

 
2,492,482

Total commodity price risk management gain, net
$

 
$
1,415,052

 
$
1,415,052

 
$

 
$
2,985,867

 
$
2,985,867

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nine months ended September 30,
 
 
2011
 
2010
Statement of operations line item:
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
 
Reclassification of Realized Gains (Losses) Included in Prior Periods Unrealized
 
Realized and Unrealized Gains For the Current Period
 
Total
Commodity price risk management gain, net
 
 
 
 
 
 
 
 
 
 
 
 
Realized gains
 
$
556,794

 
$
44,336

 
$
601,130

 
$
736,014

 
$
2,116,415

 
$
2,852,429

Unrealized gains (losses)
 
(556,794
)
 
1,760,350

 
1,203,556

 
(736,014
)
 
6,791,272

 
6,055,258

Total commodity price risk management gain, net
$

 
$
1,804,686

 
$
1,804,686

 
$

 
$
8,907,687

 
$
8,907,687


Concentration of Credit Risk. The Managing General Partner makes use of over-the-counter derivative instruments that enable the Partnership to manage a portion of its exposure to price volatility from producing natural gas and crude oil. These arrangements expose the Partnership to the credit risk of nonperformance by the counterparties. The Managing General Partner primarily uses financial institutions, who are also major lenders in the Managing General Partner's credit facility agreement, 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 impact of the nonperformance of the counterparties on the fair value of the Partnership's derivative instruments was not significant.
v2.3.0.11
Commitments and Contingencies
9 Months Ended
Sep. 30, 2011
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 natural gas and crude oil industry, the Partnership is exposed to environmental risks. The Managing General Partner has various policies and procedures in place to avoid 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. During the three months ended September 30, 2011, there were no new material environmental remediation projects identified by the Managing General Partner for the Partnership. As of September 30, 2011, the Partnership had accrued environmental remediation liabilities for the Partnership's Grand Valley Field wells, in addition to one well in the Wattenberg Field, of approximately $17,000, which is included in line item captioned “Accounts payable and accrued expenses” on the condensed balance sheet. As of December 31, 2010, the Partnership had accrued environmental remediation liabilities for the Partnership's Grand Valley Field wells in the amount of approximately $5,000, which is included in line item captioned “Accounts payable and accrued expenses” on the condensed balance sheet. The Managing General Partner is not currently aware of any environmental claims existing as of September 30, 2011, 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.