v2.4.0.6
Document Entity Information Document
6 Months Ended
Jun. 30, 2012
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 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 $ 3,630,376 $ 2,690,377 [1]
Accounts receivable 475,400 767,950 [1]
Crude oil inventory 39,258 47,247 [1]
Due from Managing General Partner-derivatives 4,924,046 5,067,966 [1]
Due from Managing General Partner-other, net 311,251 411,571 [1]
Total current assets 9,380,331 8,985,111 [1]
Natural gas and crude oil properties, successful efforts method, at cost 80,622,226 80,260,368 [1]
Less: Accumulated depreciation, depletion and amortization (37,535,526) (35,059,637) [1]
Natural gas and crude oil properties, net 43,086,700 45,200,731 [1]
Due from Managing General Partner-derivatives 2,056,012 3,844,431 [1]
Other assets 19,134 0 [1]
Total Assets 54,542,177 58,030,273 [1]
Current liabilities:    
Accounts payable and accrued expenses 58,613 95,529 [1]
Due to Managing General Partner-derivatives 2,114,570 2,217,809 [1]
Total current liabilities 2,173,183 2,313,338 [1]
Due to Managing General Partner-derivatives 953,391 1,905,253 [1]
Asset retirement obligations 1,069,895 1,031,186 [1]
Total liabilities 4,196,469 5,249,777 [1]
Commitments and contingent liabilities       [1]
Partners' equity:    
Managing General Partner 13,433,964 14,334,835 [1]
Limited Partners - 4,470 units issued and outstanding 36,911,744 38,445,661 [1]
Total Partners' equity 50,345,708 52,780,496 [1]
Total Liabilities and Partners' Equity $ 54,542,177 $ 58,030,273 [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 4,470 4,470
Limited Partners' Capital Account, Units Outstanding 4,470 4,470
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 $ 1,393,894 $ 2,526,088 $ 3,460,824 $ 5,780,804
Commodity price risk management gain (loss), net (417,354) 796,963 1,103,976 389,634
Total revenues 976,540 3,323,051 4,564,800 6,170,438
Operating costs and expenses:        
Natural gas, NGLs and crude oil production costs 725,125 1,009,282 1,463,649 2,499,885
Direct costs - general and administrative 43,331 39,796 82,115 87,046
Depreciation, depletion and amortization 1,128,250 1,242,257 2,475,889 2,745,071
Accretion of asset retirement obligations 19,536 12,540 38,709 24,870
Total operating costs and expenses 1,916,242 2,303,875 4,060,362 5,356,872
Net income (loss) (939,702) 1,019,176 504,438 813,566
Net income (loss) allocated to partners (939,702) 1,019,176 504,438 813,566
Less: Managing General Partner interest in net income (loss) (347,690) 377,095 186,642 301,019
Net income (loss) allocated to Investor Partners $ (592,012) $ 642,081 $ 317,796 $ 512,547
Net income (loss) per Investor Partner unit (132) 144 71 115
Investor Partner units outstanding 4,470 4,470 4,470 4,470
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 (loss) $ 504,438 $ 813,566
Adjustments to net income (loss) to reconcile to net cash provided by operating activities:    
Depreciation, depletion and amortization 2,475,889 2,745,071
Accretion of asset retirement obligations 38,709 24,870
Unrealized (gain) loss on derivative transactions 877,238 (32,812)
Changes in operating assets and liabilities:    
Accounts receivable 292,550 324,245
Crude oil inventory 7,989 (40,895)
Other assets (19,134) 0
Accounts payable and accrued expenses (36,916) (36,712)
Due from Managing General Partner - other, net 100,320 160,612
Net cash from operating activities 4,241,083 3,957,945
Cash flows from investing activities:    
Capital expenditures for natural gas and crude oil properties (361,858) (28,084)
Net cash from investing activities (361,858) (28,084)
Cash flows from financing activities:    
Distributions to Partners (2,939,226) (3,329,861)
Net cash from financing activities (2,939,226) (3,329,861)
Net change in cash and cash equivalents 939,999 600,000
Cash and cash equivalents, beginning of period 2,690,377 [1] 690,377
Cash and cash equivalents, end of period $ 3,630,376 $ 1,290,377
[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

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 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 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 1,792 limited partners in the Partnership (“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 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 June 30, 2012, the Managing General Partner had repurchased 6.0 units of Partnership interests from the Investor Partners at an average price of $4,528 per unit. As of June 30, 2012, the Managing General Partner owned 37.08% of the Partnership.

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.

During the three and six months ended June 30, 2012, the Managing General Partner identified errors totaling $0.1 million in natural gas, NGLs and crude oil production costs related to accounting entries made for the Partnership in connection with production taxes for the period April 1, 2011 through March 31, 2012. The Partnership corrected these clerical errors during the three months ended June 30, 2012, which had the effect of reducing natural gas, NGLs and crude oil production costs by $0.1 million and decreasing net loss by $0.1 million for the period. Because the amounts involved were not material to the financial statements in any individual prior period and the cumulative amount is not material to the estimated results of operations for the current year, the Partnership recorded the cumulative effect of correcting these items during the three months ended June 30, 2012.
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 from 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
$
465,460

 
$
738,787

Commodity price risk management, realized gain
726,404

 
274,775

Other (1)
(880,613
)
 
(601,991
)
Total Due from Managing General Partner-other, net
$
311,251

 
$
411,571


(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
$
690,773

 
$
753,032

 
$
1,231,347

 
$
2,012,583

 Gathering, compression and processing fees
116,200

 
102,679

 
201,363

 
203,249

 Direct costs - general and administrative
43,331

 
39,796

 
82,115

 
87,046

 Cash distributions (1)
562,135

 
543,917

 
1,089,933

 
1,232,049


(1)
Cash distributions include $1,266 and $2,420 during the three and six months ended June 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. There were no equity cash distributions for Investor Partner units during the three and six months ended June 30, 2011.
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
 
$
4,796,076

 
$
127,970

 
$
4,924,046

 
$
4,831,200

 
$
236,766

 
$
5,067,966

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commodity based derivatives
Due from Managing General Partner-derivatives
 
2,056,012

 

 
2,056,012

 
3,844,431

 

 
3,844,431

 Total assets
 
 
6,852,088

 
127,970

 
6,980,058

 
8,675,631

 
236,766

 
8,912,397

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
2,114,570

 

 
2,114,570

 
2,217,809

 

 
2,217,809

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
953,391

 

 
953,391

 
1,905,253

 

 
1,905,253

 Total liabilities
 
 
3,067,961

 

 
3,067,961

 
4,123,062

 

 
4,123,062

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Net asset (1)
 
 
$
3,784,127

 
$
127,970

 
$
3,912,097

 
$
4,552,569

 
$
236,766

 
$
4,789,335

(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
$
236,766

 
$
355,842

Changes in fair value included in condensed statement of operations line item:
 
 
 
Commodity price risk management gain (loss), net
40,822

 
53,955

Settlements
(149,618
)
 
(298,278
)
 Fair value, net asset, end of period
$
127,970

 
$
111,519

 
 
 
 
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
$
18,904

 
$
11,362

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 1,919,948 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)
 
$
1,120,484

 
$
(17,336
)
 
$
1,103,148

 
$
153,671

 
$
6,350

 
$
160,021

Unrealized gains (losses)
 
(1,120,484
)
 
(400,018
)
 
(1,520,502
)
 
(153,671
)
 
790,613

 
636,942

Total
$

 
$
(417,354
)
 
$
(417,354
)
 
$

 
$
796,963

 
$
796,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 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)
 
$
1,562,032

 
$
419,182

 
$
1,981,214

 
$
399,991

 
$
(43,169
)
 
$
356,822

Unrealized gains (losses)
 
(1,562,032
)
 
684,794

 
(877,238
)
 
(399,991
)
 
432,803

 
32,812

Total
$

 
$
1,103,976

 
$
1,103,976

 
$

 
$
389,634

 
$
389,634



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.

During the six months ended June 30, 2012, as a result of the Managing General Partner's periodic review, there were no new environmental remediation efforts identified and the Partnership's expense for environmental remediation efforts was insignificant. The Partnership had accrued environmental remediation liabilities of approximately $13,000 and $18,000 as of June 30, 2012 and December 31, 2011, respectively.

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 from 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
$
465,460

 
$
738,787

Commodity price risk management, realized gain
726,404

 
274,775

Other (1)
(880,613
)
 
(601,991
)
Total Due from Managing General Partner-other, net
$
311,251

 
$
411,571


(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
$
690,773

 
$
753,032

 
$
1,231,347

 
$
2,012,583

 Gathering, compression and processing fees
116,200

 
102,679

 
201,363

 
203,249

 Direct costs - general and administrative
43,331

 
39,796

 
82,115

 
87,046

 Cash distributions (1)
562,135

 
543,917

 
1,089,933

 
1,232,049


(1)
Cash distributions include $1,266 and $2,420 during the three and six months ended June 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. There were no equity cash distributions for Investor Partner units during the three and six months ended June 30, 2011.
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
 
$
4,796,076

 
$
127,970

 
$
4,924,046

 
$
4,831,200

 
$
236,766

 
$
5,067,966

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
 Commodity based derivatives
Due from Managing General Partner-derivatives
 
2,056,012

 

 
2,056,012

 
3,844,431

 

 
3,844,431

 Total assets
 
 
6,852,088

 
127,970

 
6,980,058

 
8,675,631

 
236,766

 
8,912,397

 
 
 
 
 
 
 
 
 
 
 
 
 
 
Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
2,114,570

 

 
2,114,570

 
2,217,809

 

 
2,217,809

Non-Current
 
 
 
 
 
 
 
 
 
 
 
 
 
Basis protection derivative contracts
Due to Managing General Partner-derivatives
 
953,391

 

 
953,391

 
1,905,253

 

 
1,905,253

 Total liabilities
 
 
3,067,961

 

 
3,067,961

 
4,123,062

 

 
4,123,062

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Net asset (1)
 
 
$
3,784,127

 
$
127,970

 
$
3,912,097

 
$
4,552,569

 
$
236,766

 
$
4,789,335

(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
$
236,766

 
$
355,842

Changes in fair value included in condensed statement of operations line item:
 
 
 
Commodity price risk management gain (loss), net
40,822

 
53,955

Settlements
(149,618
)
 
(298,278
)
 Fair value, net asset, end of period
$
127,970

 
$
111,519

 
 
 
 
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
$
18,904

 
$
11,362

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)
 
$
1,120,484

 
$
(17,336
)
 
$
1,103,148

 
$
153,671

 
$
6,350

 
$
160,021

Unrealized gains (losses)
 
(1,120,484
)
 
(400,018
)
 
(1,520,502
)
 
(153,671
)
 
790,613

 
636,942

Total
$

 
$
(417,354
)
 
$
(417,354
)
 
$

 
$
796,963

 
$
796,963

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 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)
 
$
1,562,032

 
$
419,182

 
$
1,981,214

 
$
399,991

 
$
(43,169
)
 
$
356,822

Unrealized gains (losses)
 
(1,562,032
)
 
684,794

 
(877,238
)
 
(399,991
)
 
432,803

 
32,812

Total
$

 
$
1,103,976

 
$
1,103,976

 
$

 
$
389,634

 
$
389,634

v2.4.0.6
General and Basis of Presentation (Details) (USD $)
In Millions, except Share data, unless otherwise specified
3 Months Ended 6 Months Ended
Jun. 30, 2012
Number_of_Limited_Partners
Jun. 30, 2012
Number_of_Limited_Partners
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Number of Limited Partners 1,792 1,792
Managing General Partner, Ownership Interest Before Unit Repurchases 37.00% 37.00%
Investor Partner Ownership Interest 63.00%  
Limited Partner Units Repurchased by Managing General Partner 6.0 6.0
Average Price Paid for Units Repurchased by Managing General Partner $ 4,528 $ 4,528
Managing General Partner Ownership Interest   37.08%
Prior Period Production Cost Error $ 0.1  
Decrease in Production Cost Due to Prior Period Error 0.1  
Decrease in Net Loss Due to Prior Period Error $ 0.1  
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 $ 311,251 $ 411,571
Oil and Gas Sales Revenue Collected [Member]
   
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other 465,460 738,787
Gain (Loss) on Settlement of Derivative Instrument [Member]
   
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other 726,404 274,775
Other Unsettled Transactions [Member]
   
Related Party Transaction [Line Items]    
Due from (to) Managing General Partner-other $ (880,613) [1] $ (601,991) [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 $ 43,331 $ 39,796 $ 82,115 $ 87,046
Managing General Partner [Member]
       
Related Party Transaction [Line Items]        
Well operations and maintenance 690,773 753,032 1,231,347 2,012,583
Gathering, compression and processing fees 116,200 102,679 201,363 203,249
Direct costs - general and administrative 43,331 39,796 82,115 87,046
Cash distributions 562,135 [1] 543,917 [1] 1,089,933 [1] 1,232,049 [1]
Payments for repurchases of Partner units $ 1,266   $ 2,420  
[1] Cash distributions include $1,266 and $2,420 during the three and six months ended June 30, 2012, respectively, related to equity cash distributions for Investor Partner units repurchased by PDC. There were no equity cash distributions for Investor Partner units during the three and six months ended June 30, 2011.
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 $ 4,924,046 $ 5,067,966 [1]
Due from Managing General Partner-derivatives 2,056,012 3,844,431 [1]
Due to Managing General Partner-derivatives 2,114,570 2,217,809 [1]
Due to Managing General Partner-derivatives 953,391 1,905,253 [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 6,852,088 8,675,631
Liabilities, Fair Value Disclosure 3,067,961 4,123,062
Net Asset Fair Value 3,784,127 [2] 4,552,569 [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 127,970 236,766
Liabilities, Fair Value Disclosure 0 0
Net Asset Fair Value 127,970 [2] 236,766 [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 6,980,058 8,912,397
Liabilities, Fair Value Disclosure 3,067,961 4,123,062
Net Asset Fair Value 3,912,097 [2] 4,789,335 [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 4,796,076 4,831,200
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 127,970 236,766
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 4,924,046 5,067,966
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 2,056,012 3,844,431
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 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 2,056,012 3,844,431
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 2,114,570 2,217,809
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 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 2,114,570 2,217,809
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 953,391 1,905,253
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 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 $ 953,391 $ 1,905,253
[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
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 $ 236,766 $ 355,842
Commodity price risk management gain (loss), net 40,822 53,955
Settlements (149,618) (298,278)
Fair value, net asset, end of period 127,970 111,519
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 $ 18,904 $ 11,362
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 $ 1,103,148 $ 160,021 $ 1,981,214 $ 356,822
Unrealized Gain (Loss) on Derivatives (1,520,502) 636,942 (877,238) 32,812
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net (417,354) 796,963 1,103,976 389,634
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 1,120,484 153,671 1,562,032 399,991
Unrealized Gain (Loss) on Derivatives (1,120,484) (153,671) (1,562,032) (399,991)
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 (17,336) 6,350 419,182 (43,169)
Unrealized Gain (Loss) on Derivatives (400,018) 790,613 684,794 432,803
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net $ (417,354) $ 796,963 $ 1,103,976 $ 389,634
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 1,919,948
v2.4.0.6
Commitments and Contingencies (Details) (USD $)
Jun. 30, 2012
Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]    
Accrued environmental remediation liabilities $ 13,000 $ 18,000