Mewbourne Energy Partners 08-a 10-K 31 Mar 17 2016 FY Annual report Financial data

Document And Entity Information

Document And Entity Information	12 Months Ended
	Dec. 31, 2016USD ($)
Document And Entity Information
Entity Central Index Key	1,436,942
Entity Registrant Name	MEWBOURNE ENERGY PARTNERS 08-A LP
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Current Fiscal Year End Date	--12-31
Amendment Flag	false
Entity Filer Category	Smaller Reporting Company
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Public Float	$ 73,000,000
Document Fiscal Period Focus	FY
Document Fiscal Year Focus	2,016

BALANCE SHEETS

BALANCE SHEETS - USD ($)	Dec. 31, 2016	Dec. 31, 2015
ASSETS
Cash	$ 25,288	$ 81,303
Accounts receivable, affiliate	449,777	406,490
Prepaid state taxes	193	3,305
Total current assets	475,258	491,098
Oil and gas properties at cost, full-cost method	69,798,040	69,797,551
Less accumulated depreciation, depletion, amortization and cost ceiling write-downs	(63,598,244)	(61,746,190)
Net oil and gas properties at cost, full-cost method	6,199,796	8,051,361
Total assets	6,675,054	8,542,459
LIABILITIES AND PARTNERS' CAPITAL
Accounts payable, affiliate	115,022	116,906
Total current liabilities	115,022	116,906
Asset retirement obligation	1,518,996	1,467,094
Partners' capital	5,041,036	6,958,459
Total liabilities and partners' capital	$ 6,675,054	$ 8,542,459

STATEMENTS OF OPERATIONS

STATEMENTS OF OPERATIONS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Revenues:
Oil sales	$ 939,483	$ 1,394,238
Gas sales	1,547,417	1,843,681
Total revenues	2,486,900	3,237,919
Expenses:
Lease operating expense	1,078,895	1,315,647
Production taxes	135,382	196,521
Administrative and general expense	141,276	188,068
Depreciation, depletion, and amortization	612,629	1,488,415
Cost ceiling write-down	1,244,108	15,230,543
Asset retirement obligation accretion	67,013	64,928
Total expenses	3,279,303	18,484,122
Net loss	$ (792,403)	$ (15,246,203)

STATEMENTS OF CHANGES IN PARTNE

STATEMENTS OF CHANGES IN PARTNERS' CAPITAL	USD ($)
Balance, beginning at Dec. 31, 2014	$ 24,802,876
Statement of Partners' Capital [Abstract]
Cash distributions	(2,598,214)
Net loss	(15,246,203)
Balance, ending at Dec. 31, 2015	6,958,459
Statement of Partners' Capital [Abstract]
Cash distributions	(1,125,020)
Net loss	(792,403)
Balance, ending at Dec. 31, 2016	$ 5,041,036

STATEMENTS OF CASH FLOWS

STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Cash flows from operating activities:
Net loss	$ (792,403)	$ (15,246,203)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion, and amortization	612,629	1,488,415
Cost ceiling write-down	1,244,108	15,230,543
Asset retirement obligation accretion	67,013	64,928
Plugging and abandonment cost paid from asset retirement obligation	(7,953)	(5,395)
Changes in operating assets and liabilities:
Accounts receivable, affiliate	(43,287)	403,044
Prepaid state taxes	3,112	(146)
Accounts payable, affiliate	(1,884)	(93,161)
Net cash provided by operating activities	1,081,335	1,842,025
Cash flows from investing activities:
Proceeds from sale of oil and gas properties		893,828
Purchase and development of oil and gas properties	(12,330)	(64,479)
Net cash (used in) provided by investing activities	(12,330)	829,349
Cash flows from financing activities:
Cash distributions to partners	(1,125,020)	(2,598,214)
Net cash used in financing activities	(1,125,020)	(2,598,214)
Net (decrease) increase in cash	(56,015)	73,160
Cash, beginning of period	81,303	8,143
Cash, end of period	25,288	81,303
Supplemental Cash Flow Information:
Change to net oil & gas properties related to asset retirement obligation liabilities	$ (7,158)	(47,926)
Change to property, plant and equipment related to accrual of leaseholds		$ 2,066

Description of Business

Description of Business	12 Months Ended
	Dec. 31, 2016
Description Of Business
Description of Business	1. Description of Business Mewbourne Energy Partners 08-A, L.P., (the “Registrant” or the “Partnership”), a Delaware limited partnership engaged primarily in oil and gas development and production in Texas, Oklahoma, and New Mexico, was organized on March 7, 2008. The offering of limited and general partner interests began May 1, 2008 as a part of a private placement pursuant to Section 4(2) of the Securities Act of 1933 and Regulation D promulgated thereunder, and concluded August 4, 2008, with total investor contributions of $73,000,000 originally being sold to accredited investors of which $68,105,000 were sold to accredited investors as general partner interests and $4,895,000 were sold to accredited investors as limited partner interests. During 2010 all general partner equity interests were converted to limited partner equity interests. The managing general partner has no significant equity interest in the Partnership. The Partnership’s sole business is the development and production of oil and gas. A substantial portion of the Partnership’s gas production is being sold regionally in the spot market. Due to the highly competitive nature of the spot market, prices are subject to seasonal and regional pricing fluctuations. In addition, such spot market sales are generally short-term in nature and are dependent upon obtaining transportation services provided by pipelines. The prices received for the Partnership’s oil and gas are subject to influences such as global consumption and supply trends.

Summary of Significant Accounti

Summary of Significant Accounting Policies	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates inherent in the Registrant’s financial statements include the estimate of oil and gas reserves and future abandonment costs. Changes in oil and gas prices and the changes in production estimates could have a significant effect on reserve estimates. The reserve estimates directly impact the computation of depreciation, depletion, and amortization, asset retirement obligation, and the ceiling test for the Registrant’s oil and gas properties. Full Cost Accounting The Partnership follows the full-cost method of accounting for its oil and gas activities. Under the full-cost method, all productive and non-productive costs incurred in the acquisition, exploration and development of oil and gas properties are capitalized. Depreciation, depletion and amortization of oil and gas properties subject to amortization is computed on the units-of-production method based on the proved reserves underlying the oil and gas properties. At December 31, 2016 and 2015 all capitalized costs were subject to amortization. Proceeds from the sale or other disposition of properties are credited to the full cost pool. Gains and losses are not recognized unless such adjustments would significantly alter the relationship between capitalized costs and the proved oil and gas reserves. Capitalized costs are subject to a quarterly ceiling test that limits such costs to the aggregate of the present value of estimated future net cash flows of proved reserves, computed using the 12-month unweighted average of first-day-of the-month oil and gas prices, discounted at 10%, and the lower of cost or fair value of unproved properties. If unamortized costs capitalized exceed the ceiling, the excess is charged to expense in the period the excess occurs. There were cost ceiling write-downs totaling $1,244,108 and $15,230,543 during the years ended December 31, 2016 and 2015, respectively. Subsequent Events The Partnership has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued. Recent Accounting Developments In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, concerning revenue recognition. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein. In April 2015, the FASB proposed to delay the effective date one year, beginning in fiscal year 2018 and such proposal was subsequently adopted by the FASB in August 2015. The Partnership is currently determining the impacts of the new revenue recognition standard on its contracts. The Partnership’s approach include evaluating its key revenue contracts representative of its revenue and comparing historical accounting policies and practices to the new standard. The Partnership’s revenue contracts are primarily normal purchase/normal sale contracts with index pricing that settle monthly and as such, the Partnership does not expect that the new revenue recognition standard will have a material impact on its financial statements upon adoption. The new revenue recognition standard will require new disclosure related to revenue. The Partnership intends to apply the new standard utilizing a modified retrospective basis that could result in a cumulative effect adjustment as of January 1, 2018. Cash The Partnership maintains all its cash in one financial institution. At various times throughout the year, the cash amount may be in excess of the amount insured by the Federal Deposit Insurance Corporation. Fair Value of Financial Instruments The FASB has issued guidance on determining the estimated fair value for financial instruments. This disclosure states that the fair value of financial instruments is determined at discrete points in time based on relevant market information. Such estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature. Asset Retirement Obligations The Partnership has recognized an estimated liability for future plugging and abandonment costs. A liability for the estimated fair value of the future plugging and abandonment costs is recorded with a corresponding increase in the full cost pool at the time a new well is drilled. Depreciation expense associated with estimated plugging and abandonment costs is recognized in accordance with the full cost methodology. The Partnership estimates a liability for plugging and abandonment costs based on historical experience and estimated well life. The liability is discounted using the credit-adjusted risk-free rate. Revisions to the liability could occur due to changes in well plugging and abandonment costs or well useful lives, or if federal or state regulators enact new well restoration requirements. The Partnership recognizes accretion expense in connection with the discounted liability over the remaining life of the well. A reconciliation of the Partnership’s liability for well plugging and abandonment costs for the year ended December 31, 2016 and December 31, 2015 is as follows: 2016 2015 Balance, beginning of period $ 1,467,094 $ 1,455,487 Liabilities incurred — 2,060 Liabilities reduced due to settlements, plugging and abandonments, and sales of property (15,111 ) (55,381 ) Accretion expense 67,013 64,928 Balance, end of period $ 1,518,996 $ 1,467,094 Oil and Gas Sales The Partnership’s oil and condensate production is sold and revenue recognized at or near the Partnership’s wells under short-term purchase contracts at prevailing prices in accordance with arrangements which are customary in the oil industry. Sales of gas applicable to the Partnership’s interest are recorded as revenue when the gas is metered and title transferred pursuant to the gas sales contracts covering the Partnership’s interest in gas reserves. The Partnership uses the sales method to recognize oil and gas revenue whereby revenue is recognized for the amount of production taken regardless of the amount for which the Partnership is entitled based on its working interest ownership. As of December 31, 2016 and 2015, no material gas imbalances between the Partnership and other working interest owners existed. Substantially all of the Partnership’s accounts receivable result from oil and gas sales to third parties in the oil and gas industry. This concentration of customers may impact the Partnership’s overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. Historically, the Partnership has not experienced significant credit losses on such receivables. No bad debt expense was recorded in 2016 or 2015. The Partnership cannot ensure that such losses will not be realized in the future. Comprehensive Income Comprehensive income is defined as a change in equity of a business enterprise during a period from transactions and other events and circumstances from non-partner sources and includes all changes in equity during a period except those resulting from investments by partners and distributions to partners. The Partnership has no items of comprehensive income, other than net income, in any period presented. Therefore, net income as presented in the statements of operations equals comprehensive income. Income Taxes The Partnership is treated as a partnership for income tax purposes and, as a result, income of the Partnership is reported on the tax returns of the partners and no recognition is given to income taxes in the financial statements. The Partnership’s financial reporting basis of its net assets exceeded the tax basis of its net assets by $6,025,269 and $7,551,021 at December 31, 2016 and 2015, respectively. The Partnership accounts for uncertainty in income taxes in accordance with applicable accounting guidance and recognizes the effects of those positions only if they are more likely than not of being sustained. As no liability had been recognized as of December 31, 2016 or 2015, the Partnership did not accrue for any interest or penalties.

Organization and Related Party

Organization and Related Party Transactions	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Organization and Related Party Transactions	3. Organization and Related Party Transactions: The Partnership was organized on March 7, 2008 in accordance with the laws of the state of Delaware. Mewbourne Development Corporation (“MD”), a Delaware Corporation, has been appointed as the Registrant’s managing general partner. MD has no significant equity interest in the Registrant. Mewbourne Oil Company (MOC) is operator of oil and gas properties owned by the Partnership. Mewbourne Holdings, Inc. is the parent of both MD and MOC. Substantially all transactions are with MD and MOC. In the ordinary course of business, MOC will incur certain costs that will be passed on to well owners of the well for which the costs were incurred. The Partnership will receive their portion of these costs based upon their ownership in each well incurring the costs. These costs are referred to as operator charges and are standard and customary in the oil and gas industry. Operator charges include recovery of gas marketing costs, fixed rate overhead, supervision, pumping, and equipment furnished by the operator, some of which will be included in the full cost pool pursuant to Rule 4-10(c)(2) of Regulation S-X. Amounts accrued for and paid to MOC for operator charges totaled $600,445 and $687,340 for the years ended December 31, 2016 and 2015, respectively. Operator charges are billed in accordance with the Program and Partnership Agreements. In accordance with the Partnership agreement, during any particular calendar year, the total amount of administrative expenses allocated to the Partnership by MOC shall not exceed the greater of (a) 3.5% of the Partnership’s gross revenue from the sale of oil and gas production during each year (calculated without any deduction for operating costs or other costs and expenses) or (b) the sum of $50,000 plus .25% of the capital contributions of limited and general partners. Administrative expenses can only be paid out of funds available for distributions. Under this arrangement, $86,023 and $137,285 were allocated to the Partnership during the years ended December 31, 2016 and 2015, respectively. The Partnership participates in oil and gas activities through a Drilling Program Agreement (the “Program”). The Partnership and MD are parties to the Program Agreement. The costs and revenues of the Program are allocated to MD and the Partnership as follows: Partnership MD (1) Revenues: Proceeds from disposition of depreciable and depletable properties 70 % 30 % All other revenues 70 % 30 % Costs and expenses: Organization and offering costs (1) 0 % 100 % Lease acquisition costs (1) 0 % 100 % Tangible and intangible drilling costs (1) 100 % 0 % Operating costs, reporting and legal expenses, general and administrative expenses and all other costs 70 % 30 % (1) As noted above, pursuant to the Program, MD must contribute 100% of organization and offering costs and lease acquisition costs which should approximate 20% of total capital costs. To the extent that organization and offering costs and lease acquisition costs are less than 20% of total capital costs, MD is responsible for tangible drilling costs until its share of the Program’s total capital costs reaches approximately 20%. The Partnership’s financial statements reflect its respective proportionate interest in the Program.

Summary of Significant Account9

Summary of Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
Full Cost Accounting	Full Cost Accounting The Partnership follows the full-cost method of accounting for its oil and gas activities. Under the full-cost method, all productive and non-productive costs incurred in the acquisition, exploration and development of oil and gas properties are capitalized. Depreciation, depletion and amortization of oil and gas properties subject to amortization is computed on the units-of-production method based on the proved reserves underlying the oil and gas properties. At December 31, 2016 and 2015 all capitalized costs were subject to amortization. Proceeds from the sale or other disposition of properties are credited to the full cost pool. Gains and losses are not recognized unless such adjustments would significantly alter the relationship between capitalized costs and the proved oil and gas reserves. Capitalized costs are subject to a quarterly ceiling test that limits such costs to the aggregate of the present value of estimated future net cash flows of proved reserves, computed using the 12-month unweighted average of first-day-of the-month oil and gas prices, discounted at 10%, and the lower of cost or fair value of unproved properties. If unamortized costs capitalized exceed the ceiling, the excess is charged to expense in the period the excess occurs. There were cost ceiling write-downs totaling $1,244,108 and $15,230,543 during the years ended December 31, 2016 and 2015, respectively.
Subsequent Events	Subsequent Events The Partnership has evaluated events and transactions for potential recognition or disclosure through the date the financial statements were issued.
Recent Accounting Developments	Recent Accounting Developments In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers, concerning revenue recognition. The standard is effective for annual periods beginning after December 15, 2016, and interim periods therein. In April 2015, the FASB proposed to delay the effective date one year, beginning in fiscal year 2018 and such proposal was subsequently adopted by the FASB in August 2015. The Partnership is currently determining the impacts of the new revenue recognition standard on its contracts. The Partnership’s approach include evaluating its key revenue contracts representative of its revenue and comparing historical accounting policies and practices to the new standard. The Partnership’s revenue contracts are primarily normal purchase/normal sale contracts with index pricing that settle monthly and as such, the Partnership does not expect that the new revenue recognition standard will have a material impact on its financial statements upon adoption. The new revenue recognition standard will require new disclosure related to revenue. The Partnership intends to apply the new standard utilizing a modified retrospective basis that could result in a cumulative effect adjustment as of January 1, 2018.
Cash	Cash The Partnership maintains all its cash in one financial institution. At various times throughout the year, the cash amount may be in excess of the amount insured by the Federal Deposit Insurance Corporation.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The FASB has issued guidance on determining the estimated fair value for financial instruments. This disclosure states that the fair value of financial instruments is determined at discrete points in time based on relevant market information. Such estimates involve uncertainties and cannot be determined with precision. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to their short-term nature.
Asset Retirement Obligations	Asset Retirement Obligations The Partnership has recognized an estimated liability for future plugging and abandonment costs. A liability for the estimated fair value of the future plugging and abandonment costs is recorded with a corresponding increase in the full cost pool at the time a new well is drilled. Depreciation expense associated with estimated plugging and abandonment costs is recognized in accordance with the full cost methodology. The Partnership estimates a liability for plugging and abandonment costs based on historical experience and estimated well life. The liability is discounted using the credit-adjusted risk-free rate. Revisions to the liability could occur due to changes in well plugging and abandonment costs or well useful lives, or if federal or state regulators enact new well restoration requirements. The Partnership recognizes accretion expense in connection with the discounted liability over the remaining life of the well. A reconciliation of the Partnership’s liability for well plugging and abandonment costs for the year ended December 31, 2016 and December 31, 2015 is as follows: 2016 2015 Balance, beginning of period $ 1,467,094 $ 1,455,487 Liabilities incurred — 2,060 Liabilities reduced due to settlements, plugging and abandonments, and sales of property (15,111 ) (55,381 ) Accretion expense 67,013 64,928 Balance, end of period $ 1,518,996 $ 1,467,094
Oil and Gas Sales	Oil and Gas Sales The Partnership’s oil and condensate production is sold and revenue recognized at or near the Partnership’s wells under short-term purchase contracts at prevailing prices in accordance with arrangements which are customary in the oil industry. Sales of gas applicable to the Partnership’s interest are recorded as revenue when the gas is metered and title transferred pursuant to the gas sales contracts covering the Partnership’s interest in gas reserves. The Partnership uses the sales method to recognize oil and gas revenue whereby revenue is recognized for the amount of production taken regardless of the amount for which the Partnership is entitled based on its working interest ownership. As of December 31, 2016 and 2015, no material gas imbalances between the Partnership and other working interest owners existed. Substantially all of the Partnership’s accounts receivable result from oil and gas sales to third parties in the oil and gas industry. This concentration of customers may impact the Partnership’s overall credit risk in that these entities may be similarly affected by changes in economic and other conditions. Historically, the Partnership has not experienced significant credit losses on such receivables. No bad debt expense was recorded in 2016 or 2015. The Partnership cannot ensure that such losses will not be realized in the future.
Comprehensive Income	Comprehensive Income Comprehensive income is defined as a change in equity of a business enterprise during a period from transactions and other events and circumstances from non-partner sources and includes all changes in equity during a period except those resulting from investments by partners and distributions to partners. The Partnership has no items of comprehensive income, other than net income, in any period presented. Therefore, net income as presented in the statements of operations equals comprehensive income.
Income Taxes	Income Taxes The Partnership is treated as a partnership for income tax purposes and, as a result, income of the Partnership is reported on the tax returns of the partners and no recognition is given to income taxes in the financial statements. The Partnership’s financial reporting basis of its net assets exceeded the tax basis of its net assets by $6,025,269 and $7,551,021 at December 31, 2016 and 2015, respectively. The Partnership accounts for uncertainty in income taxes in accordance with applicable accounting guidance and recognizes the effects of those positions only if they are more likely than not of being sustained. As no liability had been recognized as of December 31, 2016 or 2015, the Partnership did not accrue for any interest or penalties.

Summary of Significant Accoun10

Summary of Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2016
Accounting Policies [Abstract]
A reconciliation of the Partnership's liability for well plugging and abandonment costs	A reconciliation of the Partnership’s liability for well plugging and abandonment costs for the year ended December 31, 2016 and December 31, 2015 is as follows: 2016 2015 Balance, beginning of period $ 1,467,094 $ 1,455,487 Liabilities incurred — 2,060 Liabilities reduced due to settlements, plugging and abandonments, and sales of property (15,111 ) (55,381 ) Accretion expense 67,013 64,928 Balance, end of period $ 1,518,996 $ 1,467,094

Organization and Related Part11

Organization and Related Party Transactions (Tables)	12 Months Ended
	Dec. 31, 2016
Related Party Transactions [Abstract]
Costs and revenues allocated between Partnership and MD	The Partnership participates in oil and gas activities through a Drilling Program Agreement (the “Program”). The Partnership and MD are parties to the Program Agreement. The costs and revenues of the Program are allocated to MD and the Partnership as follows: Partnership MD (1) Revenues: Proceeds from disposition of depreciable and depletable properties 70 % 30 % All other revenues 70 % 30 % Costs and expenses: Organization and offering costs (1) 0 % 100 % Lease acquisition costs (1) 0 % 100 % Tangible and intangible drilling costs (1) 100 % 0 % Operating costs, reporting and legal expenses, general and administrative expenses and all other costs 70 % 30 % (1) As noted above, pursuant to the Program, MD must contribute 100% of organization and offering costs and lease acquisition costs which should approximate 20% of total capital costs. To the extent that organization and offering costs and lease acquisition costs are less than 20% of total capital costs, MD is responsible for tangible drilling costs until its share of the Program’s total capital costs reaches approximately 20%. The Partnership’s financial statements reflect its respective proportionate interest in the Program.

Description of Business (Detail

Description of Business (Details Narrative)	3 Months Ended
	Aug. 04, 2008USD ($)
Description Of Business Details Narrative
Investor contributions, total	$ 73,000,000
General Partners investor contributions	68,105,000
Limited Partners investor contributions	$ 4,895,000

Summary of Significant Accoun13

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Accounting Policies [Abstract]
Discount rate of future cash flows	10.00%
Financial reporting basis of net assets exceed the tax basis of net assets	$ 6,025,269	$ 7,551,021

Summary of Significant Accoun14

Summary of Significant Accounting Policies (Details) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Partnership's liability for well plugging and abandonment costs
Balance, beginning of period	$ 1,467,094	$ 1,455,487
Liabilities incurred		2,060
Liabilities reduced due to settlements, plugging and abandonments, and sales of property	(15,111)	(55,381)
Accretion expense	67,013	64,928
Balance, end of period	$ 1,518,996	$ 1,467,094

Organization and Related Part15

Organization and Related Party Transactions (Details Narrative) - USD ($)	12 Months Ended
	Dec. 31, 2016	Dec. 31, 2015
Description of management control	Mewbourne Development Corporation (“MD”), a Delaware Corporation, has been appointed as the Partnership’s managing general partner. MD has no significant equity interest in the Partnership. Mewbourne Oil Company (“MOC”) is operator of oil and gas properties owned by the Partnership. Mewbourne Holdings, Inc. is the parent of both MD and MOC. Substantially all transactions are with MD and MOC.
Description of allocated administrative expenses	In accordance with the Partnership agreement, during any particular calendar year the total amount of administrative expenses allocated to the Partnership by MOC shall not exceed the greater of (a) 3.5% of the Partnership’s gross revenue from the sale of oil and natural gas production during each year (calculated without any deduction for operating costs or other costs and expenses) or (b) the sum of $50,000 plus .25% of the capital contributions of limited and general partners.
Percentage of Partnership's gross revenue from sale of oil and gas	3.50%
Amount of administrative fees allocated	$ 50,000
Percentage of capital contributions of limited and general partners	0.25%
Mewbourne Oil Company [Member]
Operator charges	$ 600,445	$ 687,340
Amount of administrative fees allocated, distributed	$ 86,023	$ 137,285

Organization and Related Part16

Organization and Related Party Transactions (Details)	12 Months Ended
	Dec. 31, 2016
Revenues:
Proceeds from disposition of depreciable and depletable properties	70.00%
All other revenues	70.00%
Costs and expenses:
Organization and offering costs	0.00%	[1]
Lease acquisition costs	0.00%	[1]
Tangible and intangible drilling costs	100.00%	[1]
Operating costs, reporting and legal expenses, general and administrative expenses and all other costs	70.00%
Mewbourne Development Corporation [Member]
Revenues:
Proceeds from disposition of depreciable and depletable properties	30.00%
All other revenues	30.00%
Costs and expenses:
Organization and offering costs	100.00%	[1]
Lease acquisition costs	100.00%	[1]
Tangible and intangible drilling costs	0.00%	[1]
Operating costs, reporting and legal expenses, general and administrative expenses and all other costs	30.00%
Total capital costs, (percent)	20.00%
[1]	As noted above, pursuant to the Program, MD must contribute 100% of organization and offering costs and lease acquisition costs which should approximate 20% of total capital costs. To the extent that organization and offering costs and lease acquisition costs are less than 20% of total capital costs, MD is responsible for tangible drilling costs until its share of the Program's total capital costs reaches approximately 20%. The Partnership's financial statements reflect its respective proportionate interest in the Program.