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United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-Q
  þ
    
    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the quarterly period ended June 30, 2010
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from  to
 Commission file number 000-50700
 ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
  Delaware
(State or other jurisdiction of 
incorporation or organization)
    
    54-2113989
(I.R.S. Employer
Identification No.)Westpointe Corporate Center One 
1550 Coraopolis Heights Rd. 2nd Floor 
Moon Township, PA
(Address of principal executive offices)
    
    15108
(zip code)
 (412) 262-2830
 Yes þ No o
 Yes o No o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 Yes o No þ




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##### 



ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
(A Delaware Limited Partnership)
INDEX TO QUARTERLY REPORT
ON FORM 10-Q
 PAGEPART I. FINANCIAL INFORMATIONItem 1: Financial StatementsBalance Sheets as of June 30, 2010 and December 31, 2009
    
    
    3Statements of Operations for the Three Months and Six Months Ended June 30, 2010 and 2009
    
    
    4Statement of Changes in Partners Capital for the Six Months ended June 30, 2010
    
    
    5Statements of Cash Flows for the Six Months ended June 30, 2010 and 2009
    
    
    6Notes to Financial Statements
    
    
    7-17Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    17-21Item 4: Controls and Procedures
    
    
    21PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    21Item 6: Exhibits
    
    
    22SIGNATURES
    
    
    23CERTIFICATIONSExhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2
   2




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PART 1. FINANCIAL INFORMATION
 
 ITEM 1. FINANCIAL STATEMENTS
 ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 BALANCE SHEETS
 June 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    70,900
    
    
    $
    175,000Accounts receivable-affiliate
    
    
    540,500
    
    
    
    489,600Short-term hedge receivable due from affiliate
    
    
    553,500
    
    
    
    450,200Total current assets
    
    
    1,164,900
    
    
    
    1,114,800Oil and gas properties, net
    
    
    10,224,000
    
    
    
    10,641,400Long-term hedge receivable due from affiliate
    
    
    720,200
    
    
    
    370,800$
    12,109,100
    
    
    $
    12,127,000LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    38,900
    
    
    $
    42,500Short-term hedge liability due to affiliate
    
    
    9,200
    
    
    
    5,400Total current liabilities
    
    
    48,100
    
    
    
    47,900Asset retirement obligation
    
    
    2,531,700
    
    
    
    2,457,900Long-term hedge liability due to affiliate
    
    
    229,100
    
    
    
    55,300Partners capital:Managing general partner
    
    
    6,149,200
    
    
    
    6,338,600Limited partners (4,024 units)
    
    
    2,629,300
    
    
    
    3,229,700Accumulated other comprehensive income (loss)
    
    
    521,700
    
    
    
    (2,400
    )Total partners capital
    
    
    9,300,200
    
    
    
    9,565,900$
    12,109,100
    
    
    $
    12,127,000
   3




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    494,100
    
    
    $
    765,100
    
    
    $
    1,037,400
    
    
    $
    1,781,400Interest income
    
    
    100
    
    
    
    200
    
    
    
    200
    
    
    
    600Total revenues
    
    
    494,200
    
    
    
    765,300
    
    
    
    1,037,600
    
    
    
    1,782,000COSTS AND EXPENSESProduction
    
    
    352,700
    
    
    
    367,000
    
    
    
    673,900
    
    
    
    727,300Depletion
    
    
    189,800
    
    
    
    441,100
    
    
    
    417,400
    
    
    
    924,500Accretion of asset retirement obligation
    
    
    36,900
    
    
    
    31,400
    
    
    
    73,800
    
    
    
    62,900General and administrative
    
    
    58,900
    
    
    
    56,900
    
    
    
    115,400
    
    
    
    110,000Total expenses
    
    
    638,300
    
    
    
    896,400
    
    
    
    1,280,500
    
    
    
    1,824,700Net loss
    
    $
    (144,100
    )
    
    $
    (131,100
    )
    
    $
    (242,900
    )
    
    $
    (42,700
    )Allocation of net (loss) earnings :Managing general partner
    
    $
    (10,900
    )
    
    $
    46,600
    
    
    $
    2,000
    
    
    $
    178,800Limited partners
    
    $
    (133,200
    )
    
    $
    (177,700
    )
    
    $
    (244,900
    )
    
    $
    (221,500
    )Net loss per limited partnership unit
    
    $
    (33
    )
    
    $
    (44
    )
    
    $
    (61
    )
    
    $
    (55
    )
   4




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE SIX MONTHS ENDED
 June 30, 2010
 (Unaudited)
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income (Loss)
    
    
    TotalBalance at January 1, 2010
    
    $
    6,338,600
    
    
    $
    3,229,700
    
    
    $
    (2,400
    )
    
    $
    9,565,900Participation in revenues and expenses:Net production revenues
    
    
    127,200
    
    
    
    236,300
    
    
    
    
    
    
    
    363,500Interest income
    
    
    100
    
    
    
    100
    
    
    
    
    
    
    
    200Depletion
    
    
    (59,000
    )
    
    
    (358,400
    )
    
    
    
    
    
    
    (417,400
    )Accretion of asset retirement obligation
    
    
    (25,900
    )
    
    
    (47,900
    )
    
    
    
    
    
    
    (73,800
    )General and administrative
    
    
    (40,400
    )
    
    
    (75,000
    )
    
    
    
    
    
    
    (115,400
    )Net (loss) earnings
    
    
    2,000
    
    
    
    (244,900
    )
    
    
    
    
    
    
    (242,900
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    524,100
    
    
    
    524,100Distributions to partners
    
    
    (191,400
    )
    
    
    (355,500
    )
    
    
    
    
    
    
    (546,900
    )Balance at June 30, 2010
    
    $
    6,149,200
    
    
    $
    2,629,300
    
    
    $
    521,700
    
    
    $
    9,300,200
   5




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 Six Months EndedJune 30,2010
    
    
    2009Cash flows from operating activities:Net loss
    
    $
    (242,900
    )
    
    $
    (42,700
    )Adjustments to reconcile net loss to net cash provided by operating activities:Depletion
    
    
    417,400
    
    
    
    924,500Non-cash loss on derivative value
    
    
    249,000
    
    
    
    10,000Accretion of asset retirement obligation
    
    
    73,800
    
    
    
    62,900(Increase) decrease in accounts receivable  affiliate
    
    
    (50,900
    )
    
    
    376,600Decrease in accrued liabilities
    
    
    (3,600
    )
    
    
    (5,100
    )Net cash provided by operating activities
    
    
    442,800
    
    
    
    1,326,200Cash flows from financing activities:Distributions to partners
    
    
    (546,900
    )
    
    
    (1,598,900
    )Net cash used in financing activities
    
    
    (546,900
    )
    
    
    (1,598,900
    )Net decrease in cash and cash equivalents
    
    
    (104,100
    )
    
    
    (272,700
    )Cash and cash equivalents at beginning of period
    
    
    175,000
    
    
    
    574,000Cash and cash equivalents at end of period
    
    $
    70,900
    
    
    $
    301,300
   6




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 NOTES TO FINANCIAL STATEMENTS
 June 30, 2010
 (Unaudited)
 NOTE 1  BASIS OF PRESENTATION
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 Use of Estimates
   Fair Value of Financial Instruments
   7




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Oil and Gas Properties
   Impairment of Long-Lived Assets
      8




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Working Interest
  Revenue Recognition
    9




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Comprehensive Income (Loss)
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net loss
    
    $
    (144,100
    )
    
    $
    (131,100
    )
    
    $
    (242,900
    )
    
    $
    (42,700
    )Other comprehensive income (loss):Unrealized holding (loss) gain on hedging contracts
    
    
    (62,800
    )
    
    
    (54,000
    )
    
    
    591,300
    
    
    
    26,200Less: reclassification adjustment for gains realized in net loss
    
    
    (32,400
    )
    
    
    (298,200
    )
    
    
    (67,200
    )
    
    
    (524,300
    )Total other comprehensive income (loss)
    
    
    (95,200
    )
    
    
    (352,200
    )
    
    
    524,100
    
    
    
    (498,100
    )Comprehensive income (loss)
    
    $
    (239,300
    )
    
    $
    (483,300
    )
    
    $
    281,200
    
    
    $
    (540,800
    )
 Recently Adopted Accounting Standards
     10




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Issued Accounting Standards
  NOTE 3  OIL AND GAS PROPERTIES
  June 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    1,137,100
    
    
    $
    1,137,100Wells and related equipment
    
    
    51,814,700
    
    
    
    51,814,70052,951,800
    
    
    
    52,951,800Accumulated depletion
    
    
    (42,727,800
    )
    
    
    (42,310,400
    )$
    10,224,000
    
    
    $
    10,641,400
 NOTE 4  ASSET RETIREMENT OBLIGATIONS
    11




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 4  ASSET RETIREMENT OBLIGATIONS (Continued)
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of period
    
    $
    2,494,800
    
    
    $
    2,129,400
    
    
    $
    2,457,900
    
    
    $
    2,097,900Accretion expense
    
    
    36,900
    
    
    
    31,400
    
    
    
    73,800
    
    
    
    62,900Asset retirement obligation at end of period
    
    $
    2,531,700
    
    
    $
    2,160,800
    
    
    $
    2,531,700
    
    
    $
    2,160,800
 NOTE 5  DERIVATIVE INSTRUMENTS
     12




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
  Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    Liability DerivativesDerivatives in
    
    
    
    
    
    Fair Value
    
    
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    June 30,
    
    
    December 31,
    
    
    Balance Sheet
    
    June 30,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2010
    
    
    2009
    
    
    Location
    
    2010
    
    
    2009Commodity contracts:
    
    Current assets
    
    $
    553,500
    
    
    $
    450,200
    
    
    Current liabilities
    
    $
    (9,200
    )
    
    $
    (5,400
    )Long-term assets
    
    
    720,200
    
    
    
    370,800
    
    
    Long-term liabilities
    
    
    (229,100
    )
    
    
    (55,300
    )Total derivatives
    
    
    
    
    
    $
    1,273,700
    
    
    $
    821,000
    
    
    
    
    
    
    $
    (238,300
    )
    
    $
    (60,700
    )
 Effects of Derivative Instruments on Statements of Operations:
 Loss
    
    
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    
    Three Months EndedCash Flow
    
    June 30,
    
    
    June 30,
    
    
    OCI into Income
    
    
    June 30,
    
    
    June 30,Hedging Relationship
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    
    2009Commodity contracts
    
    $
    (62,800
    )
    
    $
    (54,000
    )
    
    Natural gas and oil revenue
    
    $
    32,400
    
    
    $
    298,200
 Gain
    
    
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Derivatives in
    
    Six Months Ended
    
    
    Reclassified from Accumulated
    
    
    Six Months EndedCash Flow
    
    June 30,
    
    
    June 30,
    
    
    OCI into Income
    
    
    June 30,
    
    
    June 30,Hedging Relationship
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    
    2009Commodity contracts
    
    $
    591,300
    
    
    $
    26,200
    
    
    Natural gas and oil revenue
    
    $
    67,200
    
    
    $
    524,300
   13




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    128,400
    
    
    $
    7.238
    
    
    $
    309,1002011
    
    
    175,200
    
    
    
    6.839
    
    
    
    261,4002012
    
    
    117,500
    
    
    
    7.165
    
    
    
    171,2002013
    
    
    66,100
    
    
    
    7.011
    
    
    
    71,1002014
    
    
    
    
    
    
    
    
    
    
    $
    812,800
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset (Liability)(2)2010
    
    Puts purchased
    
    
    17,300
    
    
    $
    6.123
    
    
    $
    29,1002010
    
    Calls sold
    
    
    17,300
    
    
    
    7.327
    
    
    
    (2,500
    )2011
    
    Puts purchased
    
    
    80,900
    
    
    
    6.435
    
    
    
    129,9002011
    
    Calls sold
    
    
    80,900
    
    
    
    7.545
    
    
    
    (23,900
    )2012
    
    Puts purchased
    
    
    72,900
    
    
    
    6.012
    
    
    
    107,5002012
    
    Calls sold
    
    
    72,900
    
    
    
    7.181
    
    
    
    (60,500
    )2013
    
    Puts purchased
    
    
    85,200
    
    
    
    6.010
    
    
    
    142,0002013
    
    Calls sold
    
    
    85,200
    
    
    
    7.173
    
    
    
    (103,200
    )2014
    
    Puts purchased
    
    
    29,600
    
    
    
    5.860
    
    
    
    49,7002014
    
    Calls sold
    
    
    29,600
    
    
    
    6.961
    
    
    
    (46,600
    )$
    221,500
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    20
    
    
    $
    97.123
    
    
    $
    4002011
    
    
    20
    
    
    
    88.304
    
    
    
    2002012
    
    
    20
    
    
    
    87.901
    
    
    
    1002013
    
    
    20
    
    
    
    88.211
    
    
    
    1002014
    
    
    
    
    
    
    
    
    
    
    $
    800
  14




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS (Continued)
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset (Liability)(3)2010
    
    Puts purchased
    
    
    10
    
    
    $
    85.000
    
    
    $
    1002010
    
    Calls sold
    
    
    10
    
    
    
    112.350
    
    
    
    (5
    )2011
    
    Puts purchased
    
    
    10
    
    
    
    77.381
    
    
    
    2002011
    
    Calls sold
    
    
    10
    
    
    
    101.642
    
    
    
    (80
    )2012
    
    Puts purchased
    
    
    10
    
    
    
    76.756
    
    
    
    1652012
    
    Calls sold
    
    
    10
    
    
    
    102.181
    
    
    
    (100
    )2013
    
    Puts purchased
    
    
    10
    
    
    
    76.757
    
    
    
    502013
    
    Calls sold
    
    
    10
    
    
    
    103.103
    
    
    
    (30
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    300Total Net Asset
    
    $
    1,035,400
 
 (1)
    
    MMBTU represents million British Thermal Units. Bbl represents barrels.(2)
    
    Fair value based on forward NYMEX natural gas prices, as applicable.(3)
    
    Fair value based on forward WTI crude oil prices, as applicable. NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
 Level 2 
 Level 3 
  15




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
 (see Note 5)
 Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
  NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    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.
Administrative costs incurred for the three months and six months ended June 30, 2010
were $43,600 and $87,100, respectively. Administrative costs incurred for the three
months and six months ended June 30, 2009 were $44,700 and $89,800, respectively.
 
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships statements of operations are payable at $313 per well per month in 2010
and 2009, respectively, for operating and maintaining the wells. Well supervision fees
incurred for the three months and six months ended June 30, 2010 were $182,300 and
$363,900, respectively. Well supervision fees incurred for the three months and six
months ended June 30, 2009 were $187,000 and $375,200, respectively.
 
    
    Transportation fees which are included in production expenses in the Partnerships
statements of operations are generally payable at 13% of the natural gas sales price.
Transportation fees incurred for the three months and six months ended June 30, 2010
were $62,600 and $137,200, respectively. Transportation fees incurred for the three
months and six months ended June 30, 2009 were $84,600 and $199,800, respectively.
   16




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
June 30, 2010
(Unaudited)
 NOTE 7  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS (Continued)
 Subordination by Managing General Partner
  NOTE 8  COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
   
 ITEM 2.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS (UNAUDITED)
 Forward-Looking Statements
 When used in this Form 10-Q , the words believes, anticipates, expects and similar
expressions are intended to identify forward-looking statements. There are risks and uncertainties
that could cause actual results to differ materially from the results stated or implied in this
document. Readers are cautioned not to place undue reliance on these forward-looking statements,
which speak only as of the date hereof. We undertake no obligation to publicly release the results
of any revisions to forward-looking statements which we may make to reflect events or circumstances
after the date of this Form 10-Q or to reflect the occurrence of unanticipated events.
 BUSINESS OVERVIEW
   17




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##### Table of Contents



Results of Operations
  Three Months Ended
    
    
    Six Months EndedJune 30,
    
    
    June 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    454
    
    
    $
    758
    
    
    $
    998
    
    
    $
    1,746Oil
    
    
    40
    
    
    
    7
    
    
    
    40
    
    
    
    35Total
    
    $
    494
    
    
    $
    765
    
    
    $
    1,038
    
    
    $
    1,781Production volumes:Gas (mcf/day) (1)
    
    
    886
    
    
    
    1,100
    
    
    
    999
    
    
    
    1,148Oil (bbls/day) (1)
    
    
    5
    
    
    
    2
    
    
    
    3
    
    
    
    4Total (mcfe/day) (1)
    
    
    916
    
    
    
    1,112
    
    
    
    1,017
    
    
    
    1,172Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    7.24
    
    
    $
    7.72
    
    
    $
    6.89
    
    
    $
    8.45Oil (per bbl) (1) (4)
    
    $
    80.45
    
    
    $
    42.40
    
    
    $
    80.04
    
    
    $
    50.44Average production costs:As a percent of revenues
    
    
    71
    %
    
    
    48
    %
    
    
    65
    %
    
    
    41
    %Per mcfe (1)
    
    $
    4.22
    
    
    $
    3.63
    
    
    $
    3.67
    
    
    $
    3.43Depletion per mcfe
    
    $
    2.27
    
    
    $
    4.36
    
    
    $
    2.27
    
    
    $
    4.36
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent, and bbls represents barrels. Bbls are converted to mcfe using the ratio
of six mcfs to one bbl.(2)
    
    Average sales prices represent accrual basis pricing after reversing the effect
of previously recognized gains resulting from prior period impairment charges.(3)
    
    Average gas prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $129,200 and $15,600 for the three months
ended June 30, 2010 and 2009, respectively. Previously recognized derivative gains were
$248,600 and $10,000 for the six months ended June 30, 2010 and 2009, respectively. The
derivative gains are included in other comprehensive income and resulted from prior
period impairment charges.(4)
    
    Average oil prices are calculated by including in total revenue derivative gains
previously recognized into income and dividing by the total volume for the period.
Previously recognized derivative gains were $200 and $400 for the three and six months
ended June 30, 2010. The derivative gains are included in other comprehensive income
and resulted from prior period impairment charges.  18




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##### Table of Contents



Natural Gas Revenues.
  Oil Revenues.
  Expenses.
   Liquidity and Capital Resources
   19




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##### Table of Contents



Subordination by Managing General Partner
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3 
  20




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##### Table of Contents



ITEM 4.
    
    CONTROLS AND PROCEDURES
    
 PART II. OTHER INFORMATION
 
 ITEM 1.
    
    LEGAL PROCEEDINGS
    21




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##### Table of Contents



ITEM 6.
    
    EXHIBITS
 
 EXHIBIT INDEX
 Exhibit No.
    
    Description4.0
    
    
    Amended and Restated Certificate and Agreement of Limited Partnership for Public #12-2003 Limited
Partnership (1)10.1
    
    
    Drilling and Operating Agreement for Atlas America Public #12-2003 Limited Partnership (1)31.1
    
    
    Rule 13a-14(a)/15d-14(a) Certification.31.2
    
    
    Rule 13a-14(a)/15d-14(a) Certification.32.1
    
    
    Section 1350 Certification.32.2
    
    
    Section 1350 Certification.
 
 (1)
    
    Filed on September 3, 2003 in the Form S-1 Registration Statement dated September 3, 2003, File No. 000-50700  22




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##### Table of Contents



SIGNATURES
  Atlas America Public #12-2003 Limited Partnership
Atlas Resources, LLC, Managing General PartnerDate:  August 16, 2010
    By:
    /s/ FREDDIE M. KOTEKFreddie M. Kotek, Chief ExecutiveChairman of the Board of Directors,
Chief Executive Officer and PresidentDate:  August 16, 2010
    By:
    /s/ MATTHEW A. JONESMatthew A. Jones,Chief Financial Officer  23