MDS Energy Public 2013-a (MDSE) 10-Q 16 Nov 15 2015 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	9 Months Ended
	Sep. 30, 2015shares
Entity Registrant Name	MDS ENERGY PUBLIC 2013-A LP
Entity Central Index Key	1,551,390
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Document Type	10-Q
Document Period End Date	Sep. 30, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q3
Limited partnership interest
Entity Partnership Units Outstanding	1,508.53
General partnership interest
Entity Partnership Units Outstanding

Condensed Balance Sheets (Unaud

Condensed Balance Sheets (Unaudited) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Current Assets
Cash and Cash Equivalents	$ 24,102	$ 18,264
Accounts Receivable and Due from Managing General Partner	93,746	219,995
Total Current Assets	117,848	238,259
Natural Gas Properties, net	2,212,703	6,431,436
Total Assets	2,330,551	6,669,695
Liabilities and Partners' Equity
Current Liability - Accrued Expenses	108,970	104,527
Long-term Asset Retirement Obligations	132,915	129,630
Partners' Equity	2,088,666	6,435,538
Total Liabilities and Partners' Equity	$ 2,330,551	$ 6,669,695

Condensed Statements of Operati

Condensed Statements of Operations (Unaudited) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Revenue
Natural Gas Revenue, net	$ 123,944	$ 407,609	$ 520,033	$ 1,183,770
Expenses
Gathering Expense	45,120	72,353	132,734	141,872
Well Maintenance	34,857	23,200	118,526	46,400
Depreciation, Depletion and Amortization	141,399	356,067	487,040	763,658
Impact Fee	26,041	57,200	103,455	87,267
Professional Fees	25,000		75,000
Impairment Charge	3,734,978		3,734,978
Total Expenses	4,007,395	508,820	4,651,733	1,039,197
Operating (Loss) Income	(3,883,451)	(101,211)	(4,131,700)	144,573
Other Income		1,692		1,812
Net (Loss) Income	$ (3,883,451)	$ (99,519)	$ (4,131,700)	$ 146,385

Condensed Statements of Partner

Condensed Statements of Partners' Equity (Unaudited) - USD ($)	Investor Partners	Managing General Partner	Subscription Receivable	Total
Balance at Dec. 31, 2013	$ 14,927,939	$ 110,946	$ (1,048,263)	$ 13,990,622
Increase (Decrease) in Partners' Capital [Roll Forward]
Collection of Subscription Receivable			$ 1,048,263	1,048,263
Distributions	(707,005)	(115,890)		(822,895)
Net Income (Loss)	122,934	23,451		146,385
Balance at Sep. 30, 2014	14,343,868	18,507		14,362,375
Balance at Dec. 31, 2014	7,529,923	(1,094,385)		6,435,538
Increase (Decrease) in Partners' Capital [Roll Forward]
(Distributions) Due from Managing General Partner	(229,281)	14,109		(215,172)
Net Income (Loss)	(3,465,685)	(666,015)		(4,131,700)
Balance at Sep. 30, 2015	$ 3,834,957	$ (1,746,291)		$ 2,088,666

Condensed Statements of Cash Fl

Condensed Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Cash flows from Operating activities
Net (Loss) Income	$ (4,131,700)	$ 146,385
Adjustments to reconcile net (loss) income to cash provided by operating activities
Depreciation, Depletion and Amortization	483,755	761,533
Impairment Charge	3,734,978
Accretion Expense	3,285	2,127
Total adjustments to net (loss) income to reconcile to net cash provided by operating activities	90,318	910,045
Changes in assets and liabilities
Accounts Receivable and Due from Managing General Partner	126,249	(296,698)
Accrued Expenses	4,443	151,210
Net cash provided by operating activities	$ 221,010	764,557
Cash flows from investing activities
Drilling Advances paid to the Managing General Partner		11,689,445
Drilling and Development of Natural Gas Properties		$ (11,689,445)
Net cash used in investing activities
Cash flows from financing activities
Collection of Subscription Receivable		$ 1,048,263
Distributions	$ (229,281)	(666,895)
Due from (Repayments to) the Managing General Partner	14,109	(2,448,088)
Net cash used in financing activities	(215,172)	(2,066,720)
Net change in cash and cash equivalents	5,838	(1,302,163)
Cash and cash equivalents at beginning of period	18,264	1,312,723
Cash and cash equivalents at end of period	$ 24,102	$ 10,560

ORGANIZATION AND NATURE OF OPER

ORGANIZATION AND NATURE OF OPERATIONS	9 Months Ended
	Sep. 30, 2015
Organization and Nature Of Operations [Abstract]
ORGANIZATION AND NATURE OF OPERATIONS	NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONS On May 3, 2012 (date of inception), MDS Energy Public 2013-A LP (Partnership), a Delaware limited partnership, was formed for the purpose of drilling developmental natural gas wells. The Partnership has a maximum 50-year term, although the Partnership intends to terminate when all of the wells invested in by the Partnership become uneconomical to continue to operate, which may be approximately 15 years or longer. The Partnership was formed by MDS Energy Development, LLC (MDS), a related party, as the Managing General Partner (MGP) and M/D Gas, Inc. (M/D), a related party. In accordance with the terms of the limited partnership agreement, the MGP is authorized to manage all activities of the Partnership and initiates and completes substantially all transactions. In our opinion, the accompanying condensed financial statements contain all adjustments necessary for a fair presentation 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 10 of Regulation S-X of the SEC. Accordingly, pursuant to such rules and regulations, certain notes and other financial information included in 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 its 2014 Form 10-K. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full year.

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Proved Property Impairment - The Partnership assesses its producing natural gas properties for possible impairment, upon a triggering event, by comparing net capitalized costs to estimated undiscounted future net cash flows on a well by well basis using estimated production based upon prices at which the Partnership reasonably estimates the commodities to be sold. The estimates of future prices may differ from current market prices of natural gas. Certain events, including but not limited to, downward revisions in estimates to the Partnership’s reserve quantities, expectations of falling commodity prices or rising operating costs, could result in a triggering event and, therefore, a possible impairment of the Partnership’s proved natural gas properties. If net capitalized costs exceed undiscounted future net cash flows, the measurement of impairment is based on estimated fair value utilizing a future discounted cash flows analysis, which is predominantly unobservable data or inputs, and is measured by the amount by which the net capitalized costs exceed their fair value. Estimated undiscounted future net cash flows are determined using prices from the forward price curve at the measurement date. Estimated discounted future net cash flows are determined utilizing a risk adjusted discount rate that is based on rates utilized by market participants that are commensurate with the risks inherent in the development of the underlying natural gas reserves. Due to the decrease in natural gas prices, as further discussed in Note 4, the Partnership reviewed its proved natural gas properties for impairment at September 30, 2015 and recognized an impairment charge of approximately $3,735,000 during the third quarter 2015. The Partnership recognized an impairment charge of proved properties of approximately $6,931,000 for the year ended December 31, 2014. Asset Retirement Obligations - The Partnership applies the provisions of “Accounting for Asset Retirement Obligations” and “Accounting for Conditional Asset Retirement Obligations” and accounts for asset retirement obligations by recording the fair value of its plugging and abandonment obligations when incurred, which is at the time the well is completely drilled. Upon initial recognition of an asset retirement obligation, the Partnership increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the asset retirement obligations are accreted, over the estimated life of the related asset, for the change in their present value. The initial capitalized costs are depleted over the useful lives of the related assets, through charges to depreciation, depletion and amortization. If the fair value of the estimated asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs and changes in the estimated timing of settling asset retirement obligations. Recent Accounting Pronouncements - In May 2014, the FASB and the International Accounting Standards Board issued their converged standard on revenue recognition that provides a single, comprehensive model that entities will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard outlines a five-step approach to apply the underlying principle: (a) identify the contract with the customer, (b) identify the separate performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to separate performance obligations and (e) recognize revenue when (or as) each performance obligation is satisfied. The revenue standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and can be adopted under the full retrospective method or simplified transition method. Early adoption is not permitted. The Partnership plans to adopt the revenue standard beginning January 1, 2018 and is currently evaluating the impact that these changes will have on our condensed financial statements. In August 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-15, Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern, new guidance related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adopting is permitted. The adoption of this standard is not expected to have a material impact on the financial statements.

CONCENTRATION OF RISK

CONCENTRATION OF RISK	9 Months Ended
	Sep. 30, 2015
Risks and Uncertainties [Abstract]
CONCENTRATION OF RISK	NOTE 3 - CONCENTRATION OF RISK Accounts Receivable - This Partnership’s accounts receivable are from purchasers of natural gas production. The Partnership sells substantially all of its gas production to a customer who purchases from other Partnerships managed by the Partnership’s MGP. Inherent to the Partnership’s industry is the concentration of natural gas sales to a limited number of customers. This industry concentration has the potential to impact the Partnership’s overall exposure to credit risk in that its customers may be similarly affected by the changes in economic and financial condition, commodity prices and other conditions. As of September 30, 2015 and December 31, 2014, the Partnership did not record an allowance for doubtful accounts. In making the estimate for receivables that are uncollectible, the MGP considers, among other things, subsequent collections, historical write-offs and overall creditworthiness of the Partnership’s customers. It is reasonably possible the estimate for uncollectable receivables will change periodically. Historically neither MDS nor any of the other Partnerships managed by the Partnership’s MGP, have experienced uncollectable accounts receivable. The Partnership did not incur any losses on accounts receivable for the nine months ended September 30, 2015 or September 30, 2014.

PARTICIPATION IN COSTS AND REVE

PARTICIPATION IN COSTS AND REVENUES	9 Months Ended
	Sep. 30, 2015
Partners Participation In Costs and Revenues [Abstract]
PARTICIPATION IN COSTS AND REVENUES	NOTE 4 - PARTICIPATION IN COSTS AND REVENUES For the nine months ended September 30, 2015, approximately $586,000 of gross revenue from the sale of natural gas had been received or estimated for approximately 361,400 MCF at an average price of $1.62 per MCF. Royalties for this period were approximately $66,000. The estimated amount is further explained below. For the nine months ended September 30, 2014, approximately $1,260,000 of gross revenue from the sale of natural gas had been received or estimated for approximately 393,400 MCF at an average price of $3.20 per MCF. Royalties for this period were approximately $164,000. The estimated amount is further explained below. For the three months ended September 30, 2015, approximately $137,000 of gross revenue from the sale of natural gas had been received or estimated, which is 111,300 MCF at an average price per MCF of $1.23. This incudes approximately $89,000 of gross revenue from the sale of natural gas had been recorded as revenue as a result of the Partnership estimating revenue not yet received, which is 73,800 MCF at an average price per MCF of $1.21. These estimates are recorded as accounts receivable net of royalties approximating $9,000. The total estimate of expenses to be deducted from those amounts is approximately $66,000, which are typically transportation, well maintenance and lease operating expense. For the three months ended September 30, 2014, approximately $461,000 of gross revenue from the sale of natural gas had been received or estimated, which is 183,000 MCF at an average price per MCF of $2.52. This includes approximately $148,000 of gross revenue from the sale of natural gas had been recorded as revenue as a result of the Partnership estimating revenue not yet received, which is 62,500 MCF at an average price per MCF of $2.37. These estimates are recorded as accounts receivable net of royalties approximating $18,400. The total estimate of expenses to be deducted from those amounts is approximately $52,000, which are typically transportation, well maintenance and lease operating expense.

PARTNERS CAPITAL

PARTNERS CAPITAL	9 Months Ended
	Sep. 30, 2015
Partners' Capital Notes [Abstract]
PARTNERS CAPITAL	NOTE 5 - PARTNERS’ CAPITAL The Partnership Agreement provides that MDS shall review the accounts of the Partnership at least monthly to determine whether cash distributions are appropriate and the amount to be distributed, if any. The Partnership Agreement provides for the enhancement of investor cash distributions if the Partnership does not meet a performance standard defined in the agreement during the first 8 years of operations beginning the earlier of the first full year of operation after all wells begin production or 12 months after the final closing of the Partnership. In general, if the cumulative distributions to the investors is less than 10% of their subscriptions for years 1 through 5 and 7.5% of their subscriptions for years 6 through 8, MDS will subordinate up to 60% of its share, as MGP, of Partnership gross production revenues. As a result of the trend of lower revenue per MCF that the industry is currently experiencing, the MGP has subordinated 60% of it revenue interest beginning in August 2014 and continuing through September 2015. During the nine months ended September 30, 2015 and for the year ended December 31, 2014, MGP subordinated $45,337 and $27,533, respectively, which was distributed to investors. The MGP’s share of expenses exceeds its share of revenue, due to the subordination, thus, the MGP is not currently receiving distributions and owes the Partnership $14,109 which is included with Accounts Receivable and Due from Managing General Partner.

TRANSFERS AND PRESENTATIONS

TRANSFERS AND PRESENTATIONS	9 Months Ended
	Sep. 30, 2015
Transfers And Presentation [Abstract]
TRANSFERS AND PRESENTATIONS	NOTE 6 - TRANSFERS AND PRESENTATIONS There is no established public trading market for the Partnership’s units and the Partnership does not anticipate that a market for the Partnership’s units will develop. The Partnership’s units may be transferred only in accordance with the provisions of the Partnership Agreement which require: ● the MGP may require an opinion of counsel that registration under applicable federal and state law is not required; ● the transfer not result in materially adverse tax consequences to the Partnership; and ● the transfer must not contravene any terms of the Partnership Agreement. An assignee of a unit may become a substituted partner only upon meeting the following conditions: ● the assignor gives the assignee the right; ● the assignee pays to the Partnership all costs and expenses incurred in connection with the substitution; and ● the assignee executes and delivers the instruments, which the MGP requires to effect the substitution and to confirm his or her agreement to be bound by the terms of the Partnership Agreement. A substitute partner is entitled to all of the rights of full ownership of the assigned units, including the right to vote. Investor Partners may request that the MGP repurchase their units at any time beginning with the fifth anniversary after December 31, 2013 provided that certain conditions are met. The repurchase price is set at the greater of the partner’s share of (i) predominantly 70% of the Partnership’s present worth of future net revenues from the proved reserves as determined under the last reserve report and is reduced by an amount equal to all of the Partnership’s debts or (ii) an amount equal to three times the total amount of distributions paid by the Partnership to the participant during the previous twelve months. The MGP is also permitted to adjust the purchase price under certain conditions for changes occurring after the date of the presentment request. Repurchase requests are fulfilled by the MGP on a first-come, first-served basis and may not exceed 5% of the total units outstanding. The MGP may suspend the presentment feature at any time if it determines that it does not have sufficient cash flow or it is unable to borrow funds on terms it deems reasonable.

NATURAL GAS PROPERTIES

NATURAL GAS PROPERTIES	9 Months Ended
	Sep. 30, 2015
Oil and Gas Property [Abstract]
NATURAL GAS PROPERTIES	NOTE 7 - NATURAL GAS PROPERTIES The Partnership is engaged solely in natural gas activities, all of which are located in Armstrong County, Pennsylvania. Costs capitalized for these activities are as follows: September 30, 2015 December 31, 2014 Leasehold Costs $ 124,987 $ 124,987 Asset Retirement Obligation Asset 124,764 124,764 Development Costs 3,657,077 7,392,055 Natural Gas Properties, successful efforts method 3,906,828 7,641,806 Less: Accumulated Depreciation, Depletion and Amortization 1,694,125 1,210,370 Natural Gas Properties, net $ 2,212,703 $ 6,431,436 As of September 30, 2015, all fourteen wells are completed with twelve wells revenue producing. The last two wells have been shut in line since early July 2015 to preserve flush production for when more favorable pricing conditions exist.

ASSET RETIREMENT OBLIGATION

ASSET RETIREMENT OBLIGATION	9 Months Ended
	Sep. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
ASSET RETIREMENT OBLIGATION	NOTE 8 - ASSET RETIREMENT OBLIGATIONS Changes in carrying amount of asset retirement obligations associated with natural gas properties are as follows: December 31, 2014 $ 129,630 Obligations assumed with development activities - Accretion expense 3,285 September 30, 2015 $ 132,915 The above accretion expense is included in depreciation, depletion and amortization in the Partnership’s statement of operations.

RELATED-PARTY ACTIVITIES

RELATED-PARTY ACTIVITIES	9 Months Ended
	Sep. 30, 2015
Related Party Transactions [Abstract]
RELATED-PARTY ACTIVITIES	NOTE 9 - RELATED-PARTY ACTIVITIES MDS, through entities under common ownership, performed drilling, and well services for the Partnership and is paid at competitive rates for these services. First Class Energy, an entity under common ownership performed much of the drilling services on behalf of the MGP. Gathering, transportation and gas marketing is provided by Snyder Brothers, Inc. The MGP also receives a fully accountable reimbursement for actual administrative costs. At September 30, 2015 and 2014, $19,200 and $16,000 respectively were due to the MGP for well maintenance fees related to the revenue producing wells and this amount is included in the accrued expenses on the balance sheet.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	9 Months Ended
	Sep. 30, 2015
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 10 - FAIR VALUE MEASUREMENT This Partnership's fair value measurements were estimated pursuant to a fair value hierarchy that requires this Partnership to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date, giving the highest priority to quoted prices in active markets (Level 1) and the lowest priority to unobservable data (Level 3). In some cases, the inputs used to measure fair value might fall in different levels of the fair value hierarchy. In these cases, the lowest level input that is significant to a fair value measurement in its entirety determines the applicable level in the fair value hierarchy. Assessing the significance of a particular input to the fair value measurement in its entirety requires judgment, considering factors specific to the asset or liability, and may affect the valuation of the assets and liabilities and their placement within the fair value hierarchy levels. The carrying value of the financial instruments included in current assets and current liabilities approximate fair value due to the short-term maturities of these instruments. The MGP utilizes fair value, on a non-recurring basis, to perform impairment testing on this Partnership's natural gas properties by comparing net capitalized costs, or carrying value, to estimated undiscounted future net cash flows. If net capitalized costs exceed undiscounted future net cash flows, the measurement of impairment is based on estimated fair value and is measured by the amount by which the net capitalized costs exceed their fair value, which is generally determined using the discounted cash flows. The fair values were determined using the income approach and were based on the expected present values of the future cash flows from proved reserves. Significant level 3 assumptions associated with the calculation of discounted cash flows used in the impairment analysis included estimates of production costs, development expenditures, anticipated production of reserves, appropriate risk – adjusted discount rates and other relevant data.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 11 - COMMITMENTS AND CONTINGENCIES Environmental Due to the nature of the natural gas industry, the Partnership is exposed to environmental risks through the services provided to it by affiliated companies. The affiliated companies have various policies and procedures to avoid environmental contamination and mitigate the risks from environmental contamination. The affiliated companies conduct periodic reviews to identify changes in their environmental risk profile. Liabilities are accrued when environmental assessments and/or clean-ups are probable and the costs can be reasonably estimated. The MGP is not aware of any environmental claims existing as of September 30, 2015. However, there can be no assurance that current regulatory requirements will not change or unknown past noncompliance with environmental laws will not be discovered on the Partnership’s properties. Legal Neither the Partnership nor the MGP are party to any pending legal proceeding that the MGP believes would have a materially adverse effect on the Partnership’s business, financial condition, results of operations or liquidity.

SUMMARY OF SIGNIFICANT ACCOUN17

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	9 Months Ended
	Sep. 30, 2015
Accounting Policies [Abstract]
Proved Property Impairment	Proved Property Impairment - The Partnership assesses its producing natural gas properties for possible impairment, upon a triggering event, by comparing net capitalized costs to estimated undiscounted future net cash flows on a well by well basis using estimated production based upon prices at which the Partnership reasonably estimates the commodities to be sold. The estimates of future prices may differ from current market prices of natural gas. Certain events, including but not limited to, downward revisions in estimates to the Partnership’s reserve quantities, expectations of falling commodity prices or rising operating costs, could result in a triggering event and, therefore, a possible impairment of the Partnership’s proved natural gas properties. If net capitalized costs exceed undiscounted future net cash flows, the measurement of impairment is based on estimated fair value utilizing a future discounted cash flows analysis, which is predominantly unobservable data or inputs, and is measured by the amount by which the net capitalized costs exceed their fair value. Estimated undiscounted future net cash flows are determined using prices from the forward price curve at the measurement date. Estimated discounted future net cash flows are determined utilizing a risk adjusted discount rate that is based on rates utilized by market participants that are commensurate with the risks inherent in the development of the underlying natural gas reserves. Due to the decrease in natural gas prices, as further discussed in Note 4, the Partnership reviewed its proved natural gas properties for impairment at September 30, 2015 and recognized an impairment charge of approximately $3,735,000 during the third quarter 2015. The Partnership recognized an impairment charge of proved properties of approximately $6,931,000 for the year ended December 31, 2014.
Asset Retirement Obligations	Asset Retirement Obligations - The Partnership applies the provisions of “Accounting for Asset Retirement Obligations” and “Accounting for Conditional Asset Retirement Obligations” and accounts for asset retirement obligations by recording the fair value of its plugging and abandonment obligations when incurred, which is at the time the well is completely drilled. Upon initial recognition of an asset retirement obligation, the Partnership increases the carrying amount of the long-lived asset by the same amount as the liability. Over time, the asset retirement obligations are accreted, over the estimated life of the related asset, for the change in their present value. The initial capitalized costs are depleted over the useful lives of the related assets, through charges to depreciation, depletion and amortization. If the fair value of the estimated asset retirement obligation changes, an adjustment is recorded to both the asset retirement obligation and the asset retirement cost. Revisions in estimated liabilities can result from revisions of estimated inflation rates, escalating retirement costs and changes in the estimated timing of settling asset retirement obligations.
Recent Accounting Pronouncements	Recent Accounting Pronouncements - In May 2014, the FASB and the International Accounting Standards Board issued their converged standard on revenue recognition that provides a single, comprehensive model that entities will apply to determine the measurement of revenue and timing of when it is recognized. The underlying principle is that an entity will recognize revenue to depict the transfer of goods or services to customers at an amount that the entity expects to be entitled to in exchange for those goods or services. The standard outlines a five-step approach to apply the underlying principle: (a) identify the contract with the customer, (b) identify the separate performance obligations in the contract, (c) determine the transaction price, (d) allocate the transaction price to separate performance obligations and (e) recognize revenue when (or as) each performance obligation is satisfied. The revenue standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and can be adopted under the full retrospective method or simplified transition method. Early adoption is not permitted. The Partnership plans to adopt the revenue standard beginning January 1, 2018 and is currently evaluating the impact that these changes will have on our condensed financial statements. In August 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-15, Disclosures of Uncertainties About an Entity’s Ability to Continue as a Going Concern, new guidance related to the disclosures around going concern. The new standard provides guidance around management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Early adopting is permitted. The adoption of this standard is not expected to have a material impact on the financial statements.

NATURAL GAS PROPERTIES (Tables)

NATURAL GAS PROPERTIES (Tables)	9 Months Ended
	Sep. 30, 2015
Oil and Gas Property [Abstract]
Schedule of aggregate capitalized costs relating to oil and gas producing activities	September 30, 2015 December 31, 2014 Leasehold Costs $ 124,987 $ 124,987 Asset Retirement Obligation Asset 124,764 124,764 Development Costs 3,657,077 7,392,055 Natural Gas Properties, successful efforts method 3,906,828 7,641,806 Less: Accumulated Depreciation, Depletion and Amortization 1,694,125 1,210,370 Natural Gas Properties, net $ 2,212,703 $ 6,431,436

ASSET RETIREMENT OBLIGATION (Ta

ASSET RETIREMENT OBLIGATION (Tables)	9 Months Ended
	Sep. 30, 2015
Asset Retirement Obligation Disclosure [Abstract]
Schedule of changes in carrying amount of asset retirement obligations	December 31, 2014 $ 129,630 Obligations assumed with development activities - Accretion expense 3,285 September 30, 2015 $ 132,915

ORGANIZATION AND NATURE OF OP20

ORGANIZATION AND NATURE OF OPERATIONS (Detail Textuals)	9 Months Ended
	Sep. 30, 2015
Organization and Nature Of Operations [Abstract]
Maximum partnership term (in years)	50 years
Partnership termination period (in years)	15 years

SUMMARY OF SIGNIFICANT ACCOUN21

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($)	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2015	Sep. 30, 2015	Dec. 31, 2014
Accounting Policies [Abstract]
Impairment charge	$ 3,734,978	$ 3,734,978	$ 6,931,000

PARTICIPATION IN COSTS AND RE22

PARTICIPATION IN COSTS AND REVENUES (Detail Textuals) - Thousand Cubic Feet (MCF)	3 Months Ended		9 Months Ended
	Sep. 30, 2015USD ($)$ / MCFMMcf	Sep. 30, 2014USD ($)$ / MCFMMcf	Sep. 30, 2015USD ($)$ / MCFMMcf	Sep. 30, 2014USD ($)$ / MCFMMcf
Partners Participation In Costs and Revenues [Line Items]
Net revenue from the sale of natural gas	$ 137,000	$ 461,000	$ 586,000	$ 1,260,000
Unit of production of natural gas | MMcf	111,300	183,000	361,400	393,400
Average price of natural gas per MCF | $ / MCF	1.23	2.52	1.62	3.20
Amount of royalties			$ 66,000	$ 164,000
Partnership
Partners Participation In Costs and Revenues [Line Items]
Net revenue from the sale of natural gas	$ 89,000	$ 148,000
Unit of production of natural gas | MMcf	73,800	62,500
Average price of natural gas per MCF | $ / MCF	1.21	2.37
Accounts receivable net of royalties	$ 9,000	$ 18,400	$ 9,000	$ 18,400
Expenses deducted from accounts receivable	$ 66,000	$ 52,000

PARTNERS CAPITAL (Detail Textua

PARTNERS CAPITAL (Detail Textuals)	9 Months Ended
	Sep. 30, 2015
Partners' Capital Notes [Abstract]
Period of performance standard as defined in the agreement	8 years
Period of performance standard after final closing of partnership	12 months
Minimum cumulative distributions for one through five years	10.00%
Minimum cumulative distributions for six through eight years	7.50%
Maximum percentage of share subordinated net production revenues	60.00%
Terms under partnership agreement	The Partnership Agreement provides for the enhancement of investor cash distributions if the Partnership does not meet a performance standard defined in the agreement during the first 8 years of operations beginning the earlier of the first full year of operation after all wells begin production or 12 months after the final closing of the Partnership.

PARTNERS CAPITAL (Detail Text24

PARTNERS CAPITAL (Detail Textuals 1) - USD ($)	9 Months Ended		12 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Dec. 31, 2014
Partners Capital [Line Items]
Repayments to the Managing General Partner	$ (14,109)	$ 2,448,088
Managing General Partner
Partners Capital [Line Items]
Value of distributions subordinated to investors	45,337		$ 27,533
Repayments to the Managing General Partner	$ 14,109

TRANSFERS AND PRESENTATIONS (De

TRANSFERS AND PRESENTATIONS (Detail Textuals)	9 Months Ended
	Sep. 30, 2015
Transfers And Presentation [Abstract]
Present worth of future net revenues	70.00%
Maximum repurchase request units percentage	5.00%

NATURAL GAS PROPERTIES - Summar

NATURAL GAS PROPERTIES - Summary of costs capitalized for gas activities (Details) - USD ($)	Sep. 30, 2015	Dec. 31, 2014
Oil and Gas Property [Abstract]
Leasehold Costs	$ 124,987	$ 124,987
Asset Retirement Obligation Asset	124,764	124,764
Development Costs	3,657,077	7,392,055
Natural Gas Properties, successful efforts method	3,906,828	7,641,806
Less: Accumulated Depreciation, Depletion and Amortization	1,694,125	1,210,370
Natural Gas Properties, net	$ 2,212,703	$ 6,431,436

NATURAL GAS PROPERTIES (Detail

NATURAL GAS PROPERTIES (Detail Textuals)	Sep. 30, 2015Well
Oil and Gas Property [Abstract]
Number of wells completed	14
Number of revenue producing wells	12
Number of wells shut down	2

ASSET RETIREMENT OBLIGATION - C

ASSET RETIREMENT OBLIGATION - Changes in carrying amount of asset retirement obligations associated with gas properties (Details)	9 Months Ended
	Sep. 30, 2015USD ($)
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
December 31, 2014	$ 129,630
September 30, 2015	132,915
Oil and gas properties
Asset Retirement Obligation, Roll Forward Analysis [Roll Forward]
December 31, 2014	$ 129,630
Obligations assumed with development activities
Accretion expense	$ 3,285
September 30, 2015	$ 132,915

RELATED-PARTY ACTIVITIES (Detai

RELATED-PARTY ACTIVITIES (Detail Textuals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Sep. 30, 2015	Sep. 30, 2014
Related Party Transaction [Line Items]
Well maintenance fees	$ 34,857	$ 23,200	$ 118,526	$ 46,400
Managing General Partner
Related Party Transaction [Line Items]
Well maintenance fees			$ 19,200	$ 16,000