UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 12b-25
Commission File Number: 0-20298
NOTIFICATION OF LATE FILING
(Check one)
Form 10-K and Form 10-KSB Form 20-F Form 11-K
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X Form 10-Q and Form 10-QSB Form N-SAR
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For Period Ended June 30, 2003
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__ Transition Report on Form 10-K and Form 10-KSB
__ Transition Report on Form 20-F
__ Transition Report on Form 11-K
__ Transition Report on Form 10-Q and Form 10-QSB
__ Transition Report on Form N-SAR
For the Transition Period Ended:
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Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification relates to a portion of the filing checked above,
identify the item(s) to which the notification relates:
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PART I -- REGISTRANT INFORMATION
Full Name of Registrant: Southwest Royalties Institutional Income Fund X-C,
L.P.
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Former Name of Registrant:
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Address of Principal Executive Office (Street and Number):
407 North Big Spring, Suite 300
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City, State and Zip Code:
Midland, Texas 79701
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PART II -- RULES 12b-25 (b) and (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25, the
following should be completed.
(Check box if appropriate):
[x] (a) The reasons described in reasonable detail in Part III
of this form could not be eliminated without unreasonable effort or
expense;
[x] (b) The subject annual report, semi-annual report,
transition report on Forms 10-K, 10-KSB, Form 20-F, 11-K, Form N-SAR,
or portion thereof, will be filed on or before the fifteenth calendar
day following the prescribed due date; or the subject quarterly report
or transition report on Forms 10-Q, 10-QSB, or portion thereof will be
filed on or before the fifth calendar day following the prescribed due
date; and
[ ] (c) The accountant's statement or other exhibit required by
Rule 12b-25 (c) has been attached if applicable.
PART III -- NARRATIVE
State below in reasonable detail the reasons why the Forms 10-K, 10-KSB, 20-
F, 11-K, 10-Q, 10-QSB, N-SAR, or the transition report or portion thereof,
could not be filed within the prescribed time period. (Attach extra sheets
if needed)
The Partnership is in the review process with the SEC in response to
comment letters dated May 28 and May 30, 2003. The Partnership is in the
process of preparing amendments to it's previously issued 2002 10-K and
March 31, 2003 10-Q based on the comment letters. Once the Amendment No. 1
to its Annual Report on Form 10-K for 2002 and March 31, 2003 Quarterly
Report on Form 10-Q have been filed, the Partnership will file it's June
30, 2003 10-Q.
PART IV -- OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification
Lisa Hailes (432) 686-9927
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(Name) (Area code and Telephone Number)
(2) Have all other periodic reports required under Section 13 or 15(d) of
the Securities Exchange Act of 1934 or Section 30 of the Investment Company
Act of 1940 during the preceding 12 months (or for such shorter period that
the registrant was required to file such reports) been filed? If answer is
no, identify report(s).
X Yes No
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(3)
Is it anticipated that any significant change in results of operations from
the corresponding period for the last fiscal year will be reflected by
the earnings statements to be included in the subject report or
portion thereof?
X Yes No
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If so, attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons
why a reasonable estimate of the results cannot be made.
On January 1, 2003, the Partnership adopted Statement of
Financial Accounting Standards No. 143, Accounting for Asset
Retirement Obligations ("SFAS No. 143"). Adoption of SFAS No. 143 is
required for all companies with fiscal years beginning after June 15,
2002. The new standard requires the Partnership to recognize a
liability for the present value of all legal obligations associated
with the retirement of tangible long-lived assets and to capitalize an
equal amount as a cost of the asset and depreciate the additional cost
over the estimated useful life of the asset. On January 1, 2003, the
Partnership recorded additional costs, net of accumulated
depreciation, of approximately $214,465, a long term liability of
approximately $813,495 and a loss of approximately $599,030 for the
cumulative effect on depreciation of the additional costs and
accretion expense on the liability related to expected abandonment
costs of its oil and natural gas producing properties. At June 30,
2003, the asset retirement obligation was $839,801. The increase in
the balance from January 1, 2003 is due to accretion expense of
$32,420, partially offset by the sale of an oil and gas property,
which decreased the asset retirement obligation by $6,114. The pro
forma amounts for the three and six months ended June 30, 2002, which
are presented on the face of the statements of operations, reflect the
effect of retroactive application of SFAS No. 143.
In the fourth quarter of 2002, the Partnership changed methods of
accounting for depletion of capitalized costs from the units-of-
revenue method to the units-of-production method. The newly adopted
accounting principle is preferable in the circumstances because the
units-of-production method results in a better matching of the costs
of oil and gas production against the related revenue received in
periods of volatile prices for production as have been experienced in
recent periods. Additionally, the units-of-production method is the
predominant method used by full cost companies in the oil and gas
industry, accordingly, the change improves the comparability of the
Partnership's financial statements with its peer group. The
Partnership adopted the units-of-production method through the
recording of a cumulative effect of a change in accounting principle
in the amount of $59,000 effective as of January 1, 2002. The
Partnership's depletion for the three and six months ended June 30,
2003 and 2002 has been calculated using the units-of-production
method. The effect of the change on the three and six months ended
June 30, 2002 was to decrease income before cumulative effect of a
change in accounting principle by $3,000 and $8,000 ($.50 and $1.34
per limited partner unit), respectively and decrease and increase net
income by $3,000 and $51,000 ($.50 and $8.52 per limited partner
unit), respectively.
SIGNATURES
Southwest Royalties Institutional Income Fund X-C, L.P.
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(Name of Registrant as Specified in Charter)
has caused this notification to be signed on its behalf by the undersigned
hereto duly authorized
Dated: August 14, 2003 Southwest Royalties Institutional Income Fund
X-C, L.P.
By: Southwest Royalties, Inc.,
Managing General Partner
By: /s/ H.H. Wommack, III
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H.H. Wommack, III, Chairman
of the Board, President, Director
and Chief Executive Officer