Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Jun. 30, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | FY | |
Entity Registrant Name | DGOC Series 18C LP | |
Entity Central Index Key | 1,711,736 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 0 | |
Entity Public Float | $ 0 | |
Entity Current Reporting Status | Yes | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No |
Balance Sheets
Balance Sheets - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Current assets: | ||
Cash | $ 0 | $ 249,000 |
Accounts receivable trade-affiliate | 1,325,700 | 1,139,500 |
Total current assets | 1,325,700 | 1,388,500 |
Gas and oil properties, net | 28,788,400 | 30,904,400 |
Long-term asset retirement receivable-affiliate | 317,800 | 170,700 |
Total assets | 30,431,900 | 32,463,600 |
Current liabilities: | ||
Accrued liabilities | 28,900 | 39,700 |
Total current liabilities | 28,900 | 39,700 |
Asset retirement obligations | 2,773,200 | 2,641,800 |
Total long-term liabilities | 2,773,200 | 2,641,800 |
Total liabilities | 2,802,100 | 2,681,500 |
Commitments and contingencies (Note 7) | ||
Partners’ capital: | ||
Managing general partner’s interest | 2,426,400 | 2,613,200 |
Limited partners’ interest (22,928.90 units) | 25,203,400 | 27,168,900 |
Total partners’ capital | 27,629,800 | 29,782,100 |
Total liabilities and partners’ capital | $ 30,431,900 | $ 32,463,600 |
Balance Sheets (Parenthetical)
Balance Sheets (Parenthetical) - shares | Dec. 31, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Limited partners' units | 22,928.90 | 22,928.90 |
Statements Of Operations
Statements Of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
REVENUES | ||
Natural gas | $ 6,519,800 | $ 4,464,800 |
Gain on mark-to-market derivatives | 0 | 18,500 |
Total revenues | 6,519,800 | 4,483,300 |
COSTS AND EXPENSES | ||
Production | 2,137,600 | 1,973,300 |
Depletion | 2,080,600 | 2,537,200 |
Impairment | 35,400 | 0 |
Accretion of asset retirement obligations | 131,400 | 124,900 |
General and administrative | 131,700 | 134,500 |
Total costs and expenses | 4,516,700 | 4,769,900 |
Net income (loss) | 2,003,100 | (286,600) |
Allocation of net income (loss): | ||
Managing general partner | 945,400 | 435,400 |
Limited partners | $ 1,057,700 | $ (722,000) |
Net income (loss) per limited partnership unit | $ 46 | $ (31) |
Statements Of Comprehensive Inc
Statements Of Comprehensive Income (Loss) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 2,003,100 | $ (286,600) |
Difference in estimated hedge gains receivable | 0 | 223,100 |
Reclassification adjustment to net loss of mark-to-market gains on cash flow hedges | 0 | (223,800) |
Total other comprehensive loss | 0 | (700) |
Comprehensive income (loss) | $ 2,003,100 | $ (287,300) |
Statements Of Changes In Partne
Statements Of Changes In Partners' Capital - USD ($) | Total | Managing General Partner | Limited Partners | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2015 | $ 33,250,900 | $ 2,765,200 | $ 30,485,000 | $ 700 |
Participation in revenues and costs and expenses: | ||||
Net production revenues | 2,491,500 | 726,700 | 1,764,800 | |
Gain on mark-to-market derivatives | 18,500 | 18,500 | ||
Depletion | (2,537,200) | (218,700) | (2,318,500) | |
Impairment | 0 | 0 | 0 | |
Accretion of asset retirement obligations | (124,900) | (35,100) | (89,800) | |
General and administrative | (134,500) | (37,500) | (97,000) | |
Net income (loss) | (286,600) | 435,400 | (722,000) | |
Other comprehensive loss | (700) | (700) | ||
Distributions to partners | (3,181,500) | (587,400) | (2,594,100) | |
Ending balance at Dec. 31, 2016 | 29,782,100 | 2,613,200 | 27,168,900 | 0 |
Participation in revenues and costs and expenses: | ||||
Net production revenues | 4,382,200 | 1,225,000 | 3,157,200 | |
Gain on mark-to-market derivatives | 0 | |||
Depletion | (2,080,600) | (190,600) | (1,890,000) | |
Impairment | (35,400) | (15,500) | (19,900) | |
Accretion of asset retirement obligations | (131,400) | (36,700) | (94,700) | |
General and administrative | (131,700) | (36,800) | (94,900) | |
Net income (loss) | 2,003,100 | 945,400 | 1,057,700 | |
Other comprehensive loss | 0 | |||
Distributions to partners | (4,155,400) | (1,132,200) | (3,023,200) | |
Ending balance at Dec. 31, 2017 | $ 27,629,800 | $ 2,426,400 | $ 25,203,400 | $ 0 |
Statements Of Cash Flows
Statements Of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 2,003,100 | $ (286,600) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||
Depletion | 2,080,600 | 2,537,200 |
Impairment | 35,400 | 0 |
Non-cash loss on derivative value | 0 | 747,800 |
Accretion of asset retirement obligations | 131,400 | 124,900 |
Changes in operating assets and liabilities: | ||
(Increase) decrease in accounts receivable trade-affiliate | (186,200) | 168,800 |
Increase in asset retirement receivable-affiliate | (147,100) | (64,000) |
(Decrease (increase) in accrued liabilities | (10,800) | 19,400 |
Net cash provided by operating activities | 3,906,400 | 3,247,500 |
Cash flows from investing activities: | ||
Proceeds from sale of tangible equipment | 0 | 12,000 |
Proceeds from sale of tangible equipment | 0 | 12,000 |
Cash flows from financing activities: | ||
Distributions to partners | (4,155,400) | (3,181,400) |
Cash flows from financing activities: | (4,155,400) | (3,181,400) |
Distributions to partners | (249,000) | 78,100 |
Cash at beginning of year | 249,000 | 170,900 |
Cash at end of year | $ 0 | $ 249,000 |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION DGOC Series 18(C), L.P. (the "Partnership") is a Delaware limited partnership, formed on July 6, 2017 and includes the Appalachian-based assets that were previously included within, Atlas Resources Public 18-2009(C), L.P. ("Predecessor Partnership") that was formed on June 9, 2009 and was then managed by Atlas Resources, LLC ("Atlas" or "Previous MGP"). DGOC Partnership Holdings, LLC now serves as the Partnership's Managing General Partner (“DGOC Holdings” or the “MGP”) and certain affiliates of the MGP serve as our Operator ("Operator"). DGOC Holdings is an indirect subsidiary of Diversified Gas & Oil, PLC (“Diversified”; AIM: DGOC). Unless the context otherwise requires, references below to “the Partnership,” “we,” “us,” “our” and “our company”, refer to DGOC Series 18(C), L.P. Atlas previously served as the Partnership's Managing General Partner and Operator . Atlas is an indirect subsidiary of Titan Energy, LLC (“Titan”). On May 4, 2017, Titan entered into a definitive agreement to sell, among other conventional assets, its general and limited partnership equity interest (“Equity Interest”) in the Partnership to Diversified (the “Purchase and Sale Agreement” or “PSA”). The transaction was subject to customary closing conditions, had an effective date of April 1, 2017 and closed on September 29, 2017. Prior to closing the PSA, the Previous MGP delegated operational activities to an affiliate of Diversified for the Partnership’s natural gas wells in Pennsylvania and Tennessee on June 30, 2017. Upon closing the PSA, the Previous MGP’s Equity Interest in the Partnership was transferred to DGOC Holdings and DGOC Holdings was admitted as a substitute managing general partner of the Partnership and continues to serve as Operator. Use of Estimates Preparation of the Partnership’s financial statements in conformity with U.S. GAAP requires the MGP to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of the Partnership’s financial statements, as well as the reported amounts of revenue and costs and expenses during the reporting periods. The Partnership’s financial statements are based on a number of significant estimates, including revenue and expense accruals, depletion, impairments, fair value of derivative instruments, and the probability of forecasted transactions. The natural gas industry principally conducts its business by processing actual transactions as many as 60 days after the month of delivery. Consequently, the most recent two months’ financial results were recorded using estimated volumes and contract market prices. Actual results could differ from those estimates. Receivables Accounts receivable trade-affiliate on the balance sheets consist solely of the trade accounts receivable associated with the Partnership’s operations. In evaluating the realizability of its accounts receivable, the MGP performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current creditworthiness, as determined by management’s review of the credit information. The Partnership extends credit on sales on an unsecured basis to many of their customers. At December 31, 2017 and 2016 , the Partnership had recorded no allowance for uncollectible accounts receivable on its balance sheets. Asset retirement receivable-affiliate on the balance sheets consist solely of the net amount withheld from distributions for the purpose of establishing a fund to cover the estimated costs of plugging and abandoning the Partnerships wells less any amounts used for the plugging and abandonment of the Partnership’s wells. As amounts are withheld, they are paid to the MGP and held until the Partnerships wells are plugged and abandoned, at which time, the funds are used to cover the actual expenditures incurred. The total amount withheld from distributions will not exceed the MGP’s estimate of the costs to plug and abandon the Partnership’s wells. For additional information, see Note 7. The following is a reconciliation of the Partnership’s asset retirement receivable-affiliate for the years indicated: 2017 2016 Asset retirement receivable-affiliate, beginning of year $ 170,700 $ 106,700 Asset retirement estimates withheld 147,100 64,000 Asset retirement receivable-affiliate, end of year $ 317,800 $ 170,700 Natural Gas Properties Natural gas properties are stated at cost. The Partnership follows the successful efforts method of accounting for natural gas producing activities. The Partnership expenses maintenance and repairs as incurred that generally do not extend the useful life or enhance the productivity of an asset for two years or more through the replacement of critical components. The Partnership capitalizes major renewals and improvements that generally extend the useful life of an asset for two years or more through the replacement of critical components. For additional information see Note 3. Upon the sale or retirement of a complete field of a proved property, the Partnership eliminates the cost from the property accounts and the resultant gain or loss is reclassified to the Partnership’s statements of operations. Upon the sale or retirement of an individual well, the Partnership reclassifies the costs associated with the well and credits the proceeds to accumulated depletion and impairment within its balance sheets. Impairment of Long-Lived Assets The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an asset’s estimated future cash flows will not be sufficient to recover its carrying amount, an impairment charge will be recorded to reduce the carrying amount of that asset to its estimated fair value if such carrying amount exceeds the fair value. The MGP reviews the Partnership’s natural gas properties on a field-by-field basis by determining if the historical cost of proved properties less the applicable accumulated depletion and impairment is less than the estimated expected undiscounted future cash flows including salvage. The MGP estimates the expected future cash flows based on the Partnership’s plans to continue to produce and develop proved reserves. The MGP calculates the expected future cash flow from the sale of the production of reserves based on estimated future prices. The Partnership estimates prices based upon current contracts in place, adjusted for basis differentials and market related information, including published futures prices. The estimated future level of production is based on assumptions surrounding future prices and costs, field decline rates, market demand and supply and the economic and regulatory climates. If the carrying value exceeds the expected future cash flows, we recognize impairment loss for the difference between the estimated fair market value (as determined by the discounted cash flows) and the carrying value of the assets. Determination of natural gas reserve estimates is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. Estimated reserves are often subject to future revisions, which could be substantial, based on the availability of additional information which could cause the assumptions to be modified. The Partnership cannot predict what reserve revisions may be required in future periods. For additional information see Note 3. Derivative Instruments and Other Comprehensive Loss The Partnership’s Previous MGP entered into certain financial derivative contracts to manage the Partnership’s exposure to changes in commodity prices. The derivative instruments recorded on the balance sheets were measured as either an asset or liability at fair value. Changes in a derivative instrument’s fair value were recognized in the Partnership’s statements of operations unless specific hedge accounting criteria were met. On January 1, 2015, the Partnership discontinued hedge accounting through de-designation for all of its existing commodity derivatives which were qualified as hedges. As such, subsequent changes in fair value after December 31, 2015 of these derivatives were recognized immediately within loss on mark-to-market derivatives in the Partnership’s statements of operations, while the fair values of the instruments recorded in accumulated other comprehensive loss as of December 31, 2015 were reclassified to the statements of operations in the periods in which the respective derivative contracts settled. For the year ended December 31, 2016 , the gain reclassified from accumulated other comprehensive loss into natural gas revenues was $700 and the gain subsequent to hedge accounting recognized in loss on mark-to-market derivatives was $18,500 . Asset Retirement Obligations The Partnership recognizes an estimated liability for the plugging and abandonment of its natural gas wells and related facilities. The Partnership recognizes a liability for its future asset retirement obligations in the current period if a reasonable estimate of the fair value of that liability can be made. For additional information see Note 4. Income Taxes The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the financial statements. Accordingly, no federal or state deferred income tax has been provided for in the financial statements. The Partnership files Partnership Returns of Income in the U.S. and various state jurisdictions. With few exceptions, the Partnership is no longer subject to income tax examinations by major tax authorities for years prior to 2012. The Company’s tax returns are generally subject to possible examination by the taxing authorities for a period of three years from the date they are filed, though the Partnership is not currently being examined by any jurisdiction and is not aware of any potential examinations as of December 31, 2017 . Environmental Matters The Partnership is subject to various federal, state, and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Partnership’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. The Partnership maintains insurance which may cover in whole or in part certain environmental expenditures. The Partnership had no environmental matters requiring specific disclosure or requiring the recognition of a liability for the years ended December 31, 2017 and 2016 . Concentration of Credit Risk The Partnership sells natural gas under contracts to various purchasers in the normal course of business. For the years ended December 31, 2017 and 2016 , the Partnership had the following customers that individually accounted for greater than 10% of the Partnership’s natural gas revenues, excluding the impact of all financial derivative activity. Percentage of Revenue Customer 2017 2016 Direct Energy Business LLC 73 % — % Dominion Field Services, Inc. 11 % 15 % Hess Energy Marketing, LLC — % 52 % Atmos Energy Marketing, LLC — % 24 % Other (no single customer accounts for more than 10% of revenues) 16 % 9 % Total 100 % 100 % Revenue Recognition The Partnership generally sells natural gas at prevailing market prices. Generally, the Partnership’s sales contracts are based on pricing provisions that are tied to a market index, with certain fixed adjustments based on proximity to gathering and transmission lines for natural gas and the quality of its natural gas. Generally, the market index is fixed two business days prior to the commencement of the production month. The MGP recognizes revenue and the related accounts receivable when the MGP delivers the produced quantities to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured and the sales price is fixed or determinable. The Partnership recognizes revenues from the production of natural gas in which the Partnership has an interest with other producers on the basis of its percentage ownership of the working interest and/or overriding royalty. The MGP and its affiliates perform all administrative and management functions for the Partnership including billing and collecting revenues and paying expenses. Accounts Receivable Trade-Affiliate on the Partnership’s balance sheets includes the net production revenues due from the MGP. The Partnership accrues unbilled revenue due to timing differences between the delivery of natural gas, and the receipt of a delivery statement. The MGP records revenues based upon volumetric data from the Partnership’s records and management estimates of the related commodity sales and transportation and compression fees which are, in turn, based upon applicable product prices. The Partnership had unbilled revenues at December 31, 2017 and 2016 of $817,700 and $913,600 , respectively, which were included in accounts receivable trade-affiliate within the Partnership’s balance sheets. Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will replace most of the existing revenue recognition requirements in GAAP when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date of ASU 2014-09 by one year. As a result, the standard is effective for annual periods beginning on or after December 31, 2017, including interim periods within that reporting period. The standard can be applied using either the full retrospective approach or a modified retrospective approach at the date of adoption. At December 31, 2017, the MGP has completed the evaluation of sources of revenue and the impact of this accounting standards update on our results of operations, financial position, cash flows and financial disclosures, in addition to developing and implementing any process or control changes necessary. We do not expect to record a cumulative effect adjustment on date of adoption. The Partnership adopted the new standard on January 1, 2018 using the modified retrospective method at the date of adoption. |
Participation in Revenues and C
Participation in Revenues and Costs (Working Interest) | 12 Months Ended |
Dec. 31, 2017 | |
Partners' Capital Notes [Abstract] | |
PARTICIPATION IN REVENUES AND COSTS (WORKING INTEREST) | PARTICIPATION IN REVENUES AND COSTS (WORKING INTEREST) The MGP allocates revenues and expenses to the MGP and limited partners based on their proportion of capital contributions to total contributions ("working interest") per the partnership agreement. The MGP has provided an additional working interest of 10% as provided in the partnership agreement. The MGP determined the final working interest ownership of the partners once the wells were producing. The MGP and the limited partners generally participated in revenues and costs in the following manner: Managing General Partner Limited Partners Organization and offering cost 100% —% Lease costs 100% —% Intangible drilling costs 2% 98% Tangible drilling costs 40% 60% Revenues (1) 28% 72% Operating costs, administrative costs, direct and all other costs (2) 28% 72% ___________________________________________________________ (1) All partnership revenues will be shared in the same percentage as capital contributions are to the total partnership capital contributions, except that the MGP will receive an additional 10% of the partnership revenues. (2) These costs will be charged to the partners in the same ratio as the related production revenues are credited. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT The following is a summary of proved natural gas properties at the dates indicated: December 31, 2017 2016 Proved properties: Leasehold interests $ 1,660,400 $ 1,660,400 Wells and related equipment 210,127,800 210,127,800 Total natural gas properties 211,788,200 211,788,200 Accumulated depletion and impairment (182,999,800 ) (180,883,800 ) Natural Gas properties, net $ 28,788,400 $ 30,904,400 The Partnership recorded depletion expense on natural gas properties of $2,080,600 and $2,537,200 for the years ended December 31, 2017 and 2016 , respectively. |
Asset Retirement Obligations
Asset Retirement Obligations | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
ASSET RETIREMENT OBLIGATIONS | ASSET RETIREMENT OBLIGATIONS The estimated liability for asset retirement obligations is based on the MGP’s historical experience in plugging and abandoning wells, the estimated remaining lives of those wells based on reserve estimates, external estimates as to the cost to plug and abandon the wells in the future and federal and state regulatory requirements. The liability is discounted using an assumed credit-adjusted risk-free interest rate. Revisions to the liability could occur due to changes in estimates of plugging and abandonment costs or remaining lives of the wells or if federal or state regulators enact new plugging and abandonment requirements. The Partnership has no assets legally restricted for purposes of settling asset retirement obligations. The MGP’s historical practice and continued intention is to retain distributions from the limited partners up to the fair value of the future plugging and abandonment costs. As of December 31, 2017 and 2016 , the MGP and the Previous MGP withheld $317,800 and $170,700 , respectively, of net production revenue for future plugging and abandonment costs. The following table reconciles the Partnership’s asset retirement obligation liability for well plugging and abandonment costs: Years Ended December 31, 2017 2016 Asset retirement liability, beginning of year $ 2,641,800 $ 2,516,900 Accretion expense 131,400 124,900 Asset retirement liability, end of year $ 2,773,200 $ 2,641,800 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The Partnership has established a hierarchy to measure its financial instruments at fair value, which requires it to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Observable inputs represent market data obtained from independent sources, whereas unobservable inputs reflect the Partnership’s own market assumptions, which are used if observable inputs are not reasonably available without undue cost and effort. The hierarchy defines three levels of inputs that may be used to measure fair value: Level 1– Unadjusted quoted prices for identical instruments in active markets. Level 2– Quoted prices for similar instruments. Level 3 –Valuations that are significant and unobservable. Financial Instruments The Partnership determines its estimated fair value of the Partnership’s financial instruments, which include current assets and liabilities, based upon its assessment of available market information and valuation methodologies. The Partnership has categorized the estimated fair values of these instruments approximate their carrying amounts due to their short-term nature as Level 1. Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis Asset Retirement Obligations The Partnership estimates the fair value of its asset retirement obligations based on discounted cash flow projections using numerous estimates, assumptions and judgments discussed in Note 5. The MGP made no adjustments to retirement obligations for the years ended December 31, 2017 and 2016 and would define them, if applicable, as Level 3 fair value measurements. For additional information see Note 4. Long-Lived Assets: The Partnership estimates the fair value of its long-lived assets in conjunction with the review of assets for impairment or whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, using estimates, assumptions, and judgments regarding such events or circumstances. For the years ended December 31, 2017 and 2016 , the Partnership recognized no impairments of its long-lived natural gas properties, which we would define, if applicable, as Level 3 fair value measurements. For additional information see Note 3. |
Certain Relationships and Relat
Certain Relationships and Related Party Transactions | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS | CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS The Partnership has entered into the following significant transactions with the MGP and its affiliates as provided under its partnership agreement. Administrative costs, which are included in general and administrative expenses in the Partnership’s statements of operations, are payable at $75 per well per month. Direct costs, which are included in production and general and administrative expenses in the Partnership's statements of operations, are payable to the MGP and its affiliates as reimbursement for all costs expended on the Partnership’s behalf. Monthly well supervision fees of $975 per well per month for Marcellus wells and for all other wells a fee of $392 is charged per well per month for operating and maintaining the wells. Well supervision fees are proportionately reduced to the extent the Partnership does not acquire 100% of working interest in a well. Transportation fees are included in production expenses in the Partnership’s statements of operations and are generally payable at either 16% of the natural gas sales price or $0.35 per Mcf, whichever is greater. The MGP and its affiliates, with administrative support from the Previous MGP under the previously mentioned TSA, perform all administrative and management functions for the Partnership, including billing revenues and paying expenses. The following table provides information with respect to these costs and the periods incurred: Years Ended December 31, 2017 2016 $ Change % Change Transportation fees $ 941,800 $ 704,000 $ 237,800 34 % Supervision fees 712,600 737,400 (24,800 ) (3 )% Direct costs 483,200 531,900 (48,700 ) (9 )% Total production costs $ 2,137,600 $ 1,973,300 $ 164,300 8 % Administrative fees $ 54,800 $ 56,700 $ (1,900 ) (3 )% Direct Costs 76,900 77,800 (900 ) (1 )% Total general and administrative $ 131,700 $ 134,500 $ (2,800 ) (2 )% |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | General Commitments Subject to certain conditions, investor partners may present their interests for purchase by the MGP. The purchase price is calculated by the MGP in accordance with the terms of the partnership agreement. In the event that the MGP is unable to obtain the necessary funds, it may suspend its purchase obligation. Beginning one year after each of the Partnership's wells was placed into production, the MGP, as operator, exercised its right to retain $200 per month per well to cover estimated future plugging and abandonment costs. For additional information refer to Note 5. Environmental risk is inherent to natural gas operations, and we and our affiliates may be, at times, subject to potential environmental remediation liability. At December 31, 2017 , there were no unresolved environmental matters. For additional information refer to Note 1. Legal Proceedings From time to time, the Partnership and affiliates of the MGP and their subsidiaries are party to various routine legal proceedings arising out of the ordinary course of its business. The MGP believes that none of these actions, individually or in the aggregate, will have a material adverse effect on the Partnership’s or the MGP’s financial condition or results of operations. As of December 31, 2017 , there were no outstanding legal proceedings. |
Supplemental Gas and Oil Inform
Supplemental Gas and Oil Information (Unaudited) | 12 Months Ended |
Dec. 31, 2017 | |
Extractive Industries [Abstract] | |
SUPPLEMENTAL GAS AND OIL INFORMATION (UNAUDITED) | SUPPLEMENTAL GAS INFORMATION (UNAUDITED) Natural Gas Reserve Information. The MGP's reserve engineers prepared the Partnership’s natural gas reserve estimates in accordance with our MGP’s prescribed internal control procedures. For the periods presented, the MGP retained Wright & Company, Inc., the MGP's independent third-party reserve engineer, to prepare a report of proved reserves related to the Partnership. The reserve information for the Partnership includes natural gas reserves which are all located in the United States. The independent reserves engineer’s evaluation was based on more than 41 years of experience in the estimation of and evaluation of petroleum reserves, specified economic parameters, operating conditions, and government regulations. The MGP’s internal control procedures include verification of input data delivered to its third-party reserve specialist. Our MGP's Vice President of Gas Marketing, who has more than 18 years of natural gas and oil industry experience, oversaw the preparation, review and approval of reserve estimates with final approval by the MGP’s Chief Operating Officer. The reserve disclosures that follow reflect estimates of proved developed reserves of natural gas owned at year end, net of royalty interests. Proved developed reserves are those reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. The proved reserves quantities and future net cash flows were estimated using an unweighted 12-month average pricing based on the prices on the first day of each month during the years ended December 31, 2017 and 2016 , including adjustments related to regional price differentials and energy content. We experienced significant downward revisions of our natural gas reserves volumes and values in 2016 and 2017 due to the significant declines in commodity prices. Numerous uncertainties are inherent in estimating quantities of proven reserves and in projecting future net revenues and the timing of development expenditures. The reserve data presented represents estimates only and should not be construed as being exact. In addition, the standardized measures of discounted future net cash flows may not represent the fair market value of natural gas reserves included within the Partnership or the present value of future cash flows of equivalent reserves, due to anticipated future changes in natural gas prices and in production and development costs and other factors. Reserve quantity information and a reconciliation of changes in proved reserve quantities included within the Partnership are as follows: Gas (Mcf) Balance, December 31, 2015 40,438,800 Revisions (1) 1,037,300 Production (3,205,800 ) Balance, December 31, 2016 38,270,300 Revisions (2) (1,526,300 ) Production (2,622,500 ) Balance, December 31, 2017 34,121,500 _________________________________________________________________________________________________ (1) The upward revision in natural gas forecasts is primarily due to production forecast adjustments in order to reflect actual production. (2) The downward revision is primarily due to future production forecast adjustments in our Marcellus field to reflect realized production declines. Standardized Measure of Discounted Future Cash Flows. The following schedule presents the standardized measure of estimated discounted future net cash flows relating to the Partnership’s proved natural gas reserves using the pricing methodology described above. The resulting estimated future cash inflows were reduced by estimated future costs to produce the proved reserves based on year-end cost levels, and includes the effect on cash flows of settlement of asset retirement obligations on gas properties, with the net result discounted to present value by applying a 10% discount factor. The standardized measure of future cash flows was prepared using the prevailing economic conditions existing at the dates presented and such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations: Years Ended December 31, 2017 2016 Future cash inflows $ 83,256,500 $ 47,024,500 Future production costs (38,453,700 ) (18,532,000 ) Future development costs (1) (2,778,600 ) — Future net cash flows 42,024,200 28,492,500 Less 10% annual discount for estimated timing of cash flows (23,628,300 ) (15,790,900 ) Standardized measure of discounted future net cash flows $ 18,395,900 $ 12,701,600 _________________________________________________________________________________________________ (1) Future development costs represent costs to plug and abandon wells at the end of the estimated economic life of a well. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Use of Estimates | Use of Estimates Preparation of the Partnership’s financial statements in conformity with U.S. GAAP requires the MGP to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities that exist at the date of the Partnership’s financial statements, as well as the reported amounts of revenue and costs and expenses during the reporting periods. The Partnership’s financial statements are based on a number of significant estimates, including revenue and expense accruals, depletion, impairments, fair value of derivative instruments, and the probability of forecasted transactions. The natural gas industry principally conducts its business by processing actual transactions as many as 60 days after the month of delivery. Consequently, the most recent two months’ financial results were recorded using estimated volumes and contract market prices. Actual results could differ from those estimates. |
Receivables | Receivables Accounts receivable trade-affiliate on the balance sheets consist solely of the trade accounts receivable associated with the Partnership’s operations. In evaluating the realizability of its accounts receivable, the MGP performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and the customer’s current creditworthiness, as determined by management’s review of the credit information. The Partnership extends credit on sales on an unsecured basis to many of their customers. At December 31, 2017 and 2016 , the Partnership had recorded no allowance for uncollectible accounts receivable on its balance sheets. Asset retirement receivable-affiliate on the balance sheets consist solely of the net amount withheld from distributions for the purpose of establishing a fund to cover the estimated costs of plugging and abandoning the Partnerships wells less any amounts used for the plugging and abandonment of the Partnership’s wells. As amounts are withheld, they are paid to the MGP and held until the Partnerships wells are plugged and abandoned, at which time, the funds are used to cover the actual expenditures incurred. The total amount withheld from distributions will not exceed the MGP’s estimate of the costs to plug and abandon the Partnership’s wells |
Gas and Oil Properties | Natural Gas Properties Natural gas properties are stated at cost. The Partnership follows the successful efforts method of accounting for natural gas producing activities. The Partnership expenses maintenance and repairs as incurred that generally do not extend the useful life or enhance the productivity of an asset for two years or more through the replacement of critical components. The Partnership capitalizes major renewals and improvements that generally extend the useful life of an asset for two years or more through the replacement of critical components. For additional information see Note 3. Upon the sale or retirement of a complete field of a proved property, the Partnership eliminates the cost from the property accounts and the resultant gain or loss is reclassified to the Partnership’s statements of operations. Upon the sale or retirement of an individual well, the Partnership reclassifies the costs associated with the well and credits the proceeds to accumulated depletion and impairment within its balance sheets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Partnership reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If it is determined that an asset’s estimated future cash flows will not be sufficient to recover its carrying amount, an impairment charge will be recorded to reduce the carrying amount of that asset to its estimated fair value if such carrying amount exceeds the fair value. The MGP reviews the Partnership’s natural gas properties on a field-by-field basis by determining if the historical cost of proved properties less the applicable accumulated depletion and impairment is less than the estimated expected undiscounted future cash flows including salvage. The MGP estimates the expected future cash flows based on the Partnership’s plans to continue to produce and develop proved reserves. The MGP calculates the expected future cash flow from the sale of the production of reserves based on estimated future prices. The Partnership estimates prices based upon current contracts in place, adjusted for basis differentials and market related information, including published futures prices. The estimated future level of production is based on assumptions surrounding future prices and costs, field decline rates, market demand and supply and the economic and regulatory climates. If the carrying value exceeds the expected future cash flows, we recognize impairment loss for the difference between the estimated fair market value (as determined by the discounted cash flows) and the carrying value of the assets. Determination of natural gas reserve estimates is a subjective process, and the accuracy of any reserve estimate depends on the quality of available data and the application of engineering and geological interpretation and judgment. Estimates of economically recoverable reserves and future net cash flows depend on a number of variable factors and assumptions that are difficult to predict and may vary considerably from actual results. Estimated reserves are often subject to future revisions, which could be substantial, based on the availability of additional information which could cause the assumptions to be modified. The Partnership cannot predict what reserve revisions may be required in future periods. |
Derivative Instruments | Derivative Instruments and Other Comprehensive Loss The Partnership’s Previous MGP entered into certain financial derivative contracts to manage the Partnership’s exposure to changes in commodity prices. The derivative instruments recorded on the balance sheets were measured as either an asset or liability at fair value. Changes in a derivative instrument’s fair value were recognized in the Partnership’s statements of operations unless specific hedge accounting criteria were met. On January 1, 2015, the Partnership discontinued hedge accounting through de-designation for all of its existing commodity derivatives which were qualified as hedges. |
Asset Retirement Obligations | Asset Retirement Obligations The Partnership recognizes an estimated liability for the plugging and abandonment of its natural gas wells and related facilities. The Partnership recognizes a liability for its future asset retirement obligations in the current period if a reasonable estimate of the fair value of that liability can be made. |
Income Taxes | Income Taxes The Partnership is not subject to U.S. federal and most state income taxes. The partners of the Partnership are liable for income tax in regard to their distributive share of the Partnership’s taxable income. Such taxable income may vary substantially from net income reported in the financial statements. Accordingly, no federal or state deferred income tax has been provided for in the financial statements. The Partnership files Partnership Returns of Income in the U.S. and various state jurisdictions. With few exceptions, the Partnership is no longer subject to income tax examinations by major tax authorities for years prior to 2012. |
Environmental Matters | Environmental Matters The Partnership is subject to various federal, state, and local laws and regulations relating to the protection of the environment. Management has established procedures for the ongoing evaluation of the Partnership’s operations, to identify potential environmental exposures and to comply with regulatory policies and procedures. Environmental expenditures that relate to current operations are expensed or capitalized as appropriate. Expenditures that relate to an existing condition caused by past operations and do not contribute to current or future revenue generation are expensed. Liabilities are recorded when environmental assessments and/or clean-ups are probable, and the costs can be reasonably estimated. |
Revenue Recognition | Revenue Recognition The Partnership generally sells natural gas at prevailing market prices. Generally, the Partnership’s sales contracts are based on pricing provisions that are tied to a market index, with certain fixed adjustments based on proximity to gathering and transmission lines for natural gas and the quality of its natural gas. Generally, the market index is fixed two business days prior to the commencement of the production month. The MGP recognizes revenue and the related accounts receivable when the MGP delivers the produced quantities to a custody transfer point, persuasive evidence of a sales arrangement exists, the rights and responsibility of ownership pass to the purchaser upon delivery, collection of revenue from the sale is reasonably assured and the sales price is fixed or determinable. The Partnership recognizes revenues from the production of natural gas in which the Partnership has an interest with other producers on the basis of its percentage ownership of the working interest and/or overriding royalty. The MGP and its affiliates perform all administrative and management functions for the Partnership including billing and collecting revenues and paying expenses. Accounts Receivable Trade-Affiliate on the Partnership’s balance sheets includes the net production revenues due from the MGP. The Partnership accrues unbilled revenue due to timing differences between the delivery of natural gas, and the receipt of a delivery statement. The MGP records revenues based upon volumetric data from the Partnership’s records and management estimates of the related commodity sales and transportation and compression fees which are, in turn, based upon applicable product prices. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”). The standard requires an entity to recognize revenue in a manner that depicts the transfer of goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 will replace most of the existing revenue recognition requirements in GAAP when it becomes effective. In August 2015, the FASB issued ASU No. 2015-14, deferring the effective date of ASU 2014-09 by one year. As a result, the standard is effective for annual periods beginning on or after December 31, 2017, including interim periods within that reporting period. The standard can be applied using either the full retrospective approach or a modified retrospective approach at the date of adoption. At December 31, 2017, the MGP has completed the evaluation of sources of revenue and the impact of this accounting standards update on our results of operations, financial position, cash flows and financial disclosures, in addition to developing and implementing any process or control changes necessary. We do not expect to record a cumulative effect adjustment on date of adoption. The Partnership adopted the new standard on January 1, 2018 using the modified retrospective method at the date of adoption. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reconciliation of the Partnerships Asset Retirement Receivable | The following is a reconciliation of the Partnership’s asset retirement receivable-affiliate for the years indicated: 2017 2016 Asset retirement receivable-affiliate, beginning of year $ 170,700 $ 106,700 Asset retirement estimates withheld 147,100 64,000 Asset retirement receivable-affiliate, end of year $ 317,800 $ 170,700 |
Schedule of Revenue by Major Customers | For the years ended December 31, 2017 and 2016 , the Partnership had the following customers that individually accounted for greater than 10% of the Partnership’s natural gas revenues, excluding the impact of all financial derivative activity. Percentage of Revenue Customer 2017 2016 Direct Energy Business LLC 73 % — % Dominion Field Services, Inc. 11 % 15 % Hess Energy Marketing, LLC — % 52 % Atmos Energy Marketing, LLC — % 24 % Other (no single customer accounts for more than 10% of revenues) 16 % 9 % Total 100 % 100 % |
Participation in Revenues and18
Participation in Revenues and Costs (Working Interest) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Partners' Capital Notes [Abstract] | |
Schedule of Participation in Revenues and Costs, Allocation | The MGP and the limited partners generally participated in revenues and costs in the following manner: Managing General Partner Limited Partners Organization and offering cost 100% —% Lease costs 100% —% Intangible drilling costs 2% 98% Tangible drilling costs 40% 60% Revenues (1) 28% 72% Operating costs, administrative costs, direct and all other costs (2) 28% 72% ___________________________________________________________ (1) All partnership revenues will be shared in the same percentage as capital contributions are to the total partnership capital contributions, except that the MGP will receive an additional 10% of the partnership revenues. (2) These costs will be charged to the partners in the same ratio as the related production revenues are credited. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Natural Gas and Oil Properties | The following is a summary of proved natural gas properties at the dates indicated: December 31, 2017 2016 Proved properties: Leasehold interests $ 1,660,400 $ 1,660,400 Wells and related equipment 210,127,800 210,127,800 Total natural gas properties 211,788,200 211,788,200 Accumulated depletion and impairment (182,999,800 ) (180,883,800 ) Natural Gas properties, net $ 28,788,400 $ 30,904,400 |
Asset Retirement Obligations (T
Asset Retirement Obligations (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Asset Retirement Obligation Disclosure [Abstract] | |
Schedule of Asset Retirement Obligations | The following table reconciles the Partnership’s asset retirement obligation liability for well plugging and abandonment costs: Years Ended December 31, 2017 2016 Asset retirement liability, beginning of year $ 2,641,800 $ 2,516,900 Accretion expense 131,400 124,900 Asset retirement liability, end of year $ 2,773,200 $ 2,641,800 |
Certain Relationships and Rel21
Certain Relationships and Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Related Party Transactions [Abstract] | |
Certain Relationships and Related Party Transactions | The following table provides information with respect to these costs and the periods incurred: Years Ended December 31, 2017 2016 $ Change % Change Transportation fees $ 941,800 $ 704,000 $ 237,800 34 % Supervision fees 712,600 737,400 (24,800 ) (3 )% Direct costs 483,200 531,900 (48,700 ) (9 )% Total production costs $ 2,137,600 $ 1,973,300 $ 164,300 8 % Administrative fees $ 54,800 $ 56,700 $ (1,900 ) (3 )% Direct Costs 76,900 77,800 (900 ) (1 )% Total general and administrative $ 131,700 $ 134,500 $ (2,800 ) (2 )% |
Supplemental Gas and Oil Info22
Supplemental Gas and Oil Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2017 | |
Extractive Industries [Abstract] | |
Changes in Proved Reserve Quantities | Reserve quantity information and a reconciliation of changes in proved reserve quantities included within the Partnership are as follows: Gas (Mcf) Balance, December 31, 2015 40,438,800 Revisions (1) 1,037,300 Production (3,205,800 ) Balance, December 31, 2016 38,270,300 Revisions (2) (1,526,300 ) Production (2,622,500 ) Balance, December 31, 2017 34,121,500 |
Standardized Measure of Discounted Future Cash Flows | The following schedule presents the standardized measure of estimated discounted future net cash flows relating to the Partnership’s proved natural gas reserves using the pricing methodology described above. The resulting estimated future cash inflows were reduced by estimated future costs to produce the proved reserves based on year-end cost levels, and includes the effect on cash flows of settlement of asset retirement obligations on gas properties, with the net result discounted to present value by applying a 10% discount factor. The standardized measure of future cash flows was prepared using the prevailing economic conditions existing at the dates presented and such conditions continually change. Accordingly, such information should not serve as a basis in making any judgment on the potential value of recoverable reserves or in estimating future results of operations: Years Ended December 31, 2017 2016 Future cash inflows $ 83,256,500 $ 47,024,500 Future production costs (38,453,700 ) (18,532,000 ) Future development costs (1) (2,778,600 ) — Future net cash flows 42,024,200 28,492,500 Less 10% annual discount for estimated timing of cash flows (23,628,300 ) (15,790,900 ) Standardized measure of discounted future net cash flows $ 18,395,900 $ 12,701,600 _________________________________________________________________________________________________ (1) Future development costs represent costs to plug and abandon wells at the end of the estimated economic life of a well. |
Basis of Presentation Basis of
Basis of Presentation Basis of Presentation (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for uncollectible accounts receivable | $ 0 | $ 0 |
Gain reclassified from accumulated OCI into revenue | 700 | |
Gain on mark-to-market derivatives | 0 | 18,500 |
Federal or state deferred income tax | 0 | |
Unbilled revenues | $ 817,700 | $ 913,600 |
Basis of Presentation (Reconcil
Basis of Presentation (Reconciliation of the Partnerships Asset Retirement Receivable) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Receivable [Roll Forward] | ||
Asset retirement receivable – affiliate, beginning of year | $ 170,700 | $ 106,700 |
Asset retirement estimates withheld | 147,100 | 64,000 |
Asset retirement receivable –affiliate, end of year | $ 317,800 | $ 170,700 |
Basis Of Presentation (Schedule
Basis Of Presentation (Schedule of Revenue by Major Customer) (Details) - Customer Concentration Risk - Sales Revenues | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 100.00% | 100.00% |
Direct Energy Business LLC | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 73.00% | 0.00% |
Dominion Field Services, Inc. | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 11.00% | 15.00% |
Hess Energy Marketing, LLC | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 0.00% | 52.00% |
Atmos Energy Marketing, LLC | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 0.00% | 24.00% |
Other (no single customer accounts for more than 10% of revenues) | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Concentration risk, percentage | 16.00% | 9.00% |
Participation in Revenues and26
Participation in Revenues and Costs (Working Interest) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Managing General Partner | |
Capital Unit [Line Items] | |
Additional partnership revenues to receive, percentage | 10.00% |
Participation in Revenues and27
Participation in Revenues and Costs (Working Interest) (Schedule of Participation in Revenues and Costs, Allocation) (Details) | 12 Months Ended | |
Dec. 31, 2017 | ||
Managing General Partner | ||
Capital Unit [Line Items] | ||
Additional partnership revenues to receive, percentage | 10.00% | |
Organization and offering cost | Managing General Partner | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 100.00% | |
Organization and offering cost | Limited Partners | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 0.00% | |
Lease costs | Managing General Partner | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 100.00% | |
Lease costs | Limited Partners | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 0.00% | |
Intangible drilling costs | Managing General Partner | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 2.00% | |
Intangible drilling costs | Limited Partners | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 98.00% | |
Tangible drilling costs | Managing General Partner | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 40.00% | |
Tangible drilling costs | Limited Partners | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 60.00% | |
Revenues | Managing General Partner | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 28.00% | |
Revenues | Limited Partners | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 72.00% | |
Operating costs, administrative costs, direct and all other costs | Managing General Partner | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 28.00% | [1] |
Operating costs, administrative costs, direct and all other costs | Limited Partners | ||
Capital Unit [Line Items] | ||
Participation in revenues and costs, percentage | 72.00% | [1] |
[1] | These costs will be charged to the partners in the same ratio as the related production revenues are credited. |
Property, Plant and Equipment28
Property, Plant and Equipment (Summary of Natural Gas and Oil Properties) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Proved properties: | ||
Total natural gas and oil properties | $ 211,788,200 | $ 211,788,200 |
Accumulated depletion and impairment | (182,999,800) | (180,883,800) |
Natural Gas properties, net | 28,788,400 | 30,904,400 |
Leasehold interests | ||
Proved properties: | ||
Total natural gas and oil properties | 1,660,400 | 1,660,400 |
Wells and related equipment | ||
Proved properties: | ||
Total natural gas and oil properties | $ 210,127,800 | $ 210,127,800 |
Property, Plant and Equipment29
Property, Plant and Equipment (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | ||
Depletion of natural gas and oil properties | $ 2,080,600 | $ 2,537,200 |
Asset Retirement Obligations (N
Asset Retirement Obligations (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligation Disclosure [Abstract] | ||
Net production revenue for future plugging and abandonment costs | $ 317,800 | $ 170,700 |
Asset Retirement Obligations (S
Asset Retirement Obligations (Schedule of Asset Retirement Obligations) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Asset Retirement Obligations, Roll Forward Analysis [Roll Forward] | ||
Beginning of year | $ 2,641,800 | $ 2,516,900 |
Accretion expense | 131,400 | 124,900 |
End of year | $ 2,773,200 | $ 2,641,800 |
Fair Value of Financial Instr32
Fair Value of Financial Instruments (Narrative) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment | $ 35,400 | $ 0 |
Asset Retirement Obligation Costs | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Adjustments to retirement obligations | 0 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment | $ 0 | $ 0 |
Certain Relationships and Rel33
Certain Relationships and Related Party Transactions (Narrative) (Details) - MGP and Affiliates | 12 Months Ended |
Dec. 31, 2017USD ($)$ / mo | |
Administrative fees | |
Related Party Transaction [Line Items] | |
Monthly administrative costs per well | 75 |
Transportation fees | |
Related Party Transaction [Line Items] | |
Transportation fee rate as percentage of natural gas sales price | 16.00% |
Transportation fees (USD per Mcf) | $ | $ 0.35 |
Transportation fees | Marcellus wells | |
Related Party Transaction [Line Items] | |
Monthly supervision fees per well | 975 |
Transportation fees | Other Wells | |
Related Party Transaction [Line Items] | |
Monthly supervision fees per well | 392 |
Certain Relationships and Rel34
Certain Relationships and Related Party Transactions (Schedule of Transactions) (Details) - MGP and Affiliates - USD ($) | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Related Party Transaction [Line Items] | ||
Total production costs, amount | $ 2,137,600 | $ 1,973,300 |
Total production costs, $ change | $ 164,300 | |
Total production costs, % change | 8.00% | |
Total general and administrative, amount | $ 131,700 | 134,500 |
Total general and administrative, $ change | $ (2,800) | |
Total general and administrative, % change | (2.00%) | |
Transportation fees | ||
Related Party Transaction [Line Items] | ||
Total production costs, amount | $ 941,800 | 704,000 |
Total production costs, $ change | $ 237,800 | |
Total production costs, % change | 34.00% | |
Supervision fees | ||
Related Party Transaction [Line Items] | ||
Total production costs, amount | $ 712,600 | 737,400 |
Total production costs, $ change | $ (24,800) | |
Total production costs, % change | (3.00%) | |
Administrative fees | ||
Related Party Transaction [Line Items] | ||
Total general and administrative, amount | $ 54,800 | 56,700 |
Total general and administrative, $ change | $ (1,900) | |
Total general and administrative, % change | (3.00%) | |
Direct costs | ||
Related Party Transaction [Line Items] | ||
Total production costs, amount | $ 483,200 | 531,900 |
Total production costs, $ change | $ (48,700) | |
Total production costs, % change | (9.00%) | |
Total general and administrative, amount | $ 76,900 | $ 77,800 |
Total general and administrative, $ change | $ (900) | |
Total general and administrative, % change | (1.00%) |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017$ / mo | |
Commitments and Contingencies Disclosure [Abstract] | |
Operator fee per well to cover estimated future plugging and abandonment costs, monthly | 200 |
Supplemental Gas and Oil Info36
Supplemental Gas and Oil Information (Unaudited) (Changes in Proved Reserve Quantities) (Details) - Gas (Mcf) - Mcf | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Proved Developed and Undeveloped Reserves [Roll Forward] | ||
Balance | 38,270,300 | 40,438,800 |
Revisions | (1,526,300) | 1,037,300 |
Production | (2,622,500) | (3,205,800) |
Balance | 34,121,500 | 38,270,300 |
Supplemental Gas and Oil Info37
Supplemental Gas and Oil Information (Unaudited) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2017 | |
Natural gas and oil properties: | |
Present value of discount factor | 10.00% |
Supplemental Gas and Oil Info38
Supplemental Gas and Oil Information (Unaudited) (Standardized Measure of Discounted Future Cash Flows) (Details) - USD ($) | Dec. 31, 2017 | Dec. 31, 2016 |
Natural gas and oil properties: | ||
Future cash inflows | $ 83,256,500 | $ 47,024,500 |
Future production costs | (38,453,700) | (18,532,000) |
Future development costs(1) | (2,778,600) | 0 |
Future net cash flows | 42,024,200 | 28,492,500 |
Less 10% annual discount for estimated timing of cash flows | (23,628,300) | (15,790,900) |
Standardized measure of discounted future net cash flows | $ 18,395,900 | $ 12,701,600 |