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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 September 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
    
    54-2113989(State or other jurisdiction of
    
    (I.R.S. Employerincorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Rd. 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (zip code)
 (412) 262-2830
 þ o
 o o
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company
þ
 o 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 September 30, 2010 and December 31, 2009
    
    
    3Statements of Operations for the Three Months and Nine Months Ended September 30,
2010 and 2009
    
    
    4Statement of Changes in Partners Capital for the Nine Months ended September 30, 2010
    
    
    5Statements of Cash Flows for the Nine Months ended September 30, 2010 and 2009
    
    
    6Notes to Financial Statements
    
    
    7-18Item 2: Managements Discussion and Analysis of Financial Condition and Results of Operations
    
    
    18-22Item 4: Controls and Procedures
    
    
    22PART II. OTHER INFORMATIONItem 1: Legal Proceedings
    
    
    22Item 6: Exhibits
    
    
    23SIGNATURES
    
    
    24CERTIFICATIONSExhibit 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
 September 30,
    
    
    December 31,2010
    
    
    2009(Unaudited)ASSETSCurrent assets:Cash and cash equivalents
    
    $
    90,200
    
    
    $
    175,000Accounts receivable-affiliate
    
    
    441,500
    
    
    
    489,600Short-term hedge receivable due from affiliate
    
    
    700,800
    
    
    
    450,200Total current assets
    
    
    1,232,500
    
    
    
    1,114,800Oil and gas properties, net
    
    
    10,045,700
    
    
    
    10,641,400Long-term hedge receivable due from affiliate
    
    
    736,500
    
    
    
    370,800$
    12,014,700
    
    
    $
    12,127,000LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    28,400
    
    
    $
    42,500Short-term hedge liability due to affiliate
    
    
    1,200
    
    
    
    5,400Total current liabilities
    
    
    29,600
    
    
    
    47,900Asset retirement obligation
    
    
    2,568,500
    
    
    
    2,457,900Long-term hedge liability due to affiliate
    
    
    119,200
    
    
    
    55,300Partners capital:Managing general partner
    
    
    6,045,600
    
    
    
    6,338,600Limited partners (4,024 units)
    
    
    2,331,500
    
    
    
    3,229,700Accumulated other comprehensive income (loss)
    
    
    920,300
    
    
    
    (2,400
    )Total partners capital
    
    
    9,297,400
    
    
    
    9,565,900$
    12,014,700
    
    
    $
    12,127,000
   3




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009REVENUESNatural gas and oil
    
    $
    421,500
    
    
    $
    771,200
    
    
    $
    1,458,900
    
    
    $
    2,552,600Interest income
    
    
    
    
    
    
    200
    
    
    
    200
    
    
    
    800Total revenues
    
    
    421,500
    
    
    
    771,400
    
    
    
    1,459,100
    
    
    
    2,553,400COSTS AND EXPENSESProduction
    
    
    352,000
    
    
    
    349,300
    
    
    
    1,025,900
    
    
    
    1,076,600Depletion
    
    
    176,800
    
    
    
    407,000
    
    
    
    594,200
    
    
    
    1,331,500Accretion of asset retirement obligation
    
    
    36,800
    
    
    
    31,500
    
    
    
    110,600
    
    
    
    94,400General and administrative
    
    
    51,400
    
    
    
    61,300
    
    
    
    166,800
    
    
    
    171,300Total expenses
    
    
    617,000
    
    
    
    849,100
    
    
    
    1,897,500
    
    
    
    2,673,800Net loss
    
    $
    (195,500
    )
    
    $
    (77,700
    )
    
    $
    (438,400
    )
    
    $
    (120,400
    )Allocation of net (loss) earnings:Managing general partner
    
    $
    (31,500
    )
    
    $
    58,100
    
    
    $
    (29,500
    )
    
    $
    236,900Limited partners
    
    $
    (164,000
    )
    
    $
    (135,800
    )
    
    $
    (408,900
    )
    
    $
    (357,300
    )Net loss per limited partnership unit
    
    $
    (41
    )
    
    $
    (34
    )
    
    $
    (102
    )
    
    $
    (89
    )
   4




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENT OF CHANGES IN PARTNERS CAPITAL
 FOR THE NINE MONTHS ENDED
 September 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
    
    
    151,500
    
    
    
    281,500
    
    
    
    
    
    
    
    433,000Interest income
    
    
    100
    
    
    
    100
    
    
    
    
    
    
    
    200Depletion
    
    
    (84,000
    )
    
    
    (510,200
    )
    
    
    
    
    
    
    (594,200
    )Accretion of asset retirement obligation
    
    
    (38,700
    )
    
    
    (71,900
    )
    
    
    
    
    
    
    (110,600
    )General and administrative
    
    
    (58,400
    )
    
    
    (108,400
    )
    
    
    
    
    
    
    (166,800
    )Net loss
    
    
    (29,500
    )
    
    
    (408,900
    )
    
    
    
    
    
    
    (438,400
    )Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    922,700
    
    
    
    922,700Distributions to partners
    
    
    (263,500
    )
    
    
    (489,300
    )
    
    
    
    
    
    
    (752,800
    )Balance at September 30, 2010
    
    $
    6,045,600
    
    
    $
    2,331,500
    
    
    $
    920,300
    
    
    $
    9,297,400
   5




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 STATEMENTS OF CASH FLOWS
 (Unaudited)
 Nine Months EndedSeptember 30,2010
    
    
    2009Cash flows from operating activities:Net loss
    
    $
    (438,400
    )
    
    $
    (120,400
    )Adjustments to reconcile net loss to net cash provided by operating activities:Depletion
    
    
    594,200
    
    
    
    1,331,500Non-cash loss on derivative value
    
    
    366,100
    
    
    
    24,500Accretion of asset retirement obligation
    
    
    110,600
    
    
    
    94,400Decrease in accounts receivable  affiliate
    
    
    48,100
    
    
    
    389,600(Decrease) increase in accrued liabilities
    
    
    (14,100
    )
    
    
    6,300Net cash provided by operating activities
    
    
    666,500
    
    
    
    1,725,900Cash flows from investing activities:Proceeds from sale of tangible equipment
    
    
    1,500
    
    
    
    Net cash provided by investing activities
    
    
    1,500
    
    
    
    Cash flows from financing activities:Distributions to partners
    
    
    (752,800
    )
    
    
    (2,029,700
    )Net cash used in financing activities
    
    
    (752,800
    )
    
    
    (2,029,700
    )Net decrease in cash and cash equivalents
    
    
    (84,800
    )
    
    
    (303,800
    )Cash and cash equivalents at beginning of period
    
    
    175,000
    
    
    
    574,000Cash and cash equivalents at end of period
    
    $
    90,200
    
    
    $
    270,200
   6




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
 
 NOTES TO FINANCIAL STATEMENTS
 September 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)
September 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)
September 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)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Comprehensive Income (Loss)
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Net loss
    
    $
    (195,500
    )
    
    $
    (77,700
    )
    
    $
    (438,400
    )
    
    $
    (120,400
    )Other comprehensive income (loss):Unrealized holding gains on
hedging contracts
    
    
    441,800
    
    
    
    900
    
    
    
    1,033,100
    
    
    
    27,100Less: reclassification
adjustment for gains realized in
net loss
    
    
    (43,200
    )
    
    
    (310,900
    )
    
    
    (110,400
    )
    
    
    (835,200
    )Total other comprehensive income (loss)
    
    
    398,600
    
    
    
    (310,000
    )
    
    
    922,700
    
    
    
    (808,100
    )Comprehensive income (loss)
    
    $
    203,100
    
    
    $
    (387,700
    )
    
    $
    484,300
    
    
    $
    (928,500
    )
 Recently Adopted Accounting Standards
     10




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards (Continued)
  Recently Issued Accounting Standards
    11




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 3  OIL AND GAS PROPERTIES
  September 30,
    
    
    December 31,2010
    
    
    2009Natural gas and oil properties:Proved properties:Leasehold interests
    
    $
    1,137,100
    
    
    $
    1,137,100Wells and related equipment
    
    
    51,813,200
    
    
    
    51,814,70052,950,300
    
    
    
    52,951,800Accumulated depletion
    
    
    (42,904,600
    )
    
    
    (42,310,400
    )$
    10,045,700
    
    
    $
    10,641,400
 NOTE 4  ASSET RETIREMENT OBLIGATIONS
    Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Asset retirement obligation at beginning of
period
    
    $
    2,531,700
    
    
    $
    2,160,800
    
    
    $
    2,457,900
    
    
    $
    2,097,900Accretion expense
    
    
    36,800
    
    
    
    31,500
    
    
    
    110,600
    
    
    
    94,400Asset retirement obligation at end of period
    
    $
    2,568,500
    
    
    $
    2,192,300
    
    
    $
    2,568,500
    
    
    $
    2,192,300
  12




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 5  DERIVATIVE INSTRUMENTS
     13




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 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
    
    
    September 30,
    
    
    December 31,
    
    
    Balance sheet
    
    
    September 30,
    
    
    December 31,Hedging Relationships
    
    Location
    
    
    2010
    
    
    2009
    
    
    Location
    
    
    2010
    
    
    2009Commodity Contracts
    
    Current Assets
    
    $
    700,800
    
    
    $
    450,200
    
    
    Current liabilities
    
    $
    (1,200
    )
    
    $
    (5,400
    )Long-Term Assets
    
    
    736,500
    
    
    
    370,800
    
    
    Long-term liabilities
    
    
    (119,200
    )
    
    
    (55,300
    )Total Derivatives
    
    
    
    
    
    $
    1,437,300
    
    
    $
    821,000
    
    
    
    
    
    
    $
    (120,400
    )
    
    $
    (60,700
    )
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Net Loss(Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Derivatives in
    
    Three Months Ended
    
    
    Reclassified from Accumulated
    
    
    Three Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into Loss
    
    
    September 30,
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    2009Commodity Contracts
    
    $
    441,800
    
    
    $
    900
    
    
    Natural Gas and Oil Revenue
    
    $
    43,200
    
    
    $
    310,900
 Gain
    
    
    
    
    
    
    GainRecognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Net Loss(Effective Portion)
    
    
    Location of Gain
    
    
    (Effective Portion)Derivatives in
    
    Nine Months Ended
    
    
    Reclassified from Accumulated
    
    
    Nine Months EndedCash Flow
    
    September 30,
    
    
    September 30,
    
    
    OCI into Loss
    
    
    September 30,
    
    
    September 30,Hedging Relationships
    
    2010
    
    
    2009
    
    
    (Effective Portion)
    
    
    2010
    
    
    2009Commodity Contracts
    
    $
    1,033,100
    
    
    $
    27,100
    
    
    Natural Gas and Oil Revenue
    
    $
    110,400
    
    
    $
    835,200
   14




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 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
    
    
    64,900
    
    
    $
    7.236
    
    
    $
    213,6002011
    
    
    173,000
    
    
    
    6.845
    
    
    
    415,9002012
    
    
    116,200
    
    
    
    7.172
    
    
    
    242,2002013
    
    
    65,200
    
    
    
    6.544
    
    
    
    79,6002014
    
    
    28,500
    
    
    
    5.899
    
    
    
    13,000$
    964,300
 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
    
    
    11,100
    
    
    $
    5.774
    
    
    $
    20,8002010
    
    Calls sold
    
    
    11,100
    
    
    
    6.996
    
    
    
    (100
    )2011
    
    Puts purchased
    
    
    80,100
    
    
    
    6.441
    
    
    
    169,0002011
    
    Calls sold
    
    
    80,100
    
    
    
    7.551
    
    
    
    (3,600
    )2012
    
    Puts purchased
    
    
    72,000
    
    
    
    6.013
    
    
    
    108,5002012
    
    Calls sold
    
    
    72,000
    
    
    
    7.183
    
    
    
    (23,900
    )2013
    
    Puts purchased
    
    
    84,400
    
    
    
    5.749
    
    
    
    125,5002013
    
    Calls sold
    
    
    84,400
    
    
    
    6.937
    
    
    
    (59,900
    )2014
    
    Puts purchased
    
    
    31,000
    
    
    
    5.613
    
    
    
    47,3002014
    
    Calls sold
    
    
    31,000
    
    
    
    6.724
    
    
    
    (31,400
    )$
    352,200
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    10
    
    
    $
    97.061
    
    
    $
    2002011
    
    
    20
    
    
    
    88.498
    
    
    
    1002012
    
    
    20
    
    
    
    88.093
    
    
    
    202013
    
    
    10
    
    
    
    88.398
    
    
    
    52014
    
    
    
    
    
    
    
    
    
    
    $
    325
  15




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 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
    
    
    5
    
    
    $
    85.000
    
    
    $
    352010
    
    Calls sold
    
    
    5
    
    
    
    112.220
    
    
    
    2011
    
    Puts purchased
    
    
    15
    
    
    
    77.563
    
    
    
    1102011
    
    Calls sold
    
    
    15
    
    
    
    101.861
    
    
    
    (80
    )2012
    
    Puts purchased
    
    
    15
    
    
    
    76.952
    
    
    
    1202012
    
    Calls sold
    
    
    15
    
    
    
    102.368
    
    
    
    (110
    )2013
    
    Puts purchased
    
    
    5
    
    
    
    76.952
    
    
    
    402013
    
    Calls sold
    
    
    5
    
    
    
    103.269
    
    
    
    (40
    )2014
    
    Puts purchased
    
    
    
    
    
    
    
    
    
    
    2014
    
    Calls sold
    
    
    
    
    
    
    
    
    
    
    $
    75Total Net Asset
    
    $
    1,316,900
 
 (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 
  16




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ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 6  FAIR VALUE OF FINANCIAL INSTRUMENTS (Continued)
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  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 nine months ended September 30,
2010 were $43,700 and $130,800, respectively. Administrative costs incurred for the
three months and nine months ended September 30, 2009 were $36,300 and $126,100,
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 for
operating and maintaining the wells. Well supervision fees incurred for the three months
and nine months ended September 30, 2010 were $182,600 and $546,500, respectively. Well
supervision fees incurred for the three months and nine months ended September 30, 2009
were $151,600 and $526,800, 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 nine months ended September 30,
2010 were $54,800 and $192,000, respectively. Transportation fees incurred for the three
months and nine months ended September 30, 2009 were $86,200 and $286,000, respectively.
  Subordination by Managing General Partner
   17




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##### Table of Contents



ATLAS AMERICA PUBLIC #12-2003 Limited Partnership
NOTES TO FINANCIAL STATEMENTS (Continued)
September 30, 2010
(Unaudited)
 NOTE 8  COMMITMENTS AND CONTINGENCIES
 Legal Proceedings
   
 NOTE 9 — SUBSEQUENT EVENT-MERGER AGREEMENT
 )
    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
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Results of Operations
  Three Months Ended
    
    
    Nine Months EndedSeptember 30,
    
    
    September 30,2010
    
    
    2009
    
    
    2010
    
    
    2009Production revenues (in thousands):Gas
    
    $
    382
    
    
    $
    719
    
    
    $
    1,379
    
    
    $
    2,466Oil
    
    
    40
    
    
    
    52
    
    
    
    80
    
    
    
    87Total
    
    $
    422
    
    
    $
    771
    
    
    $
    1,459
    
    
    $
    2,553Production volumes:Gas (mcf/day) (1)
    
    
    813
    
    
    
    968
    
    
    
    937
    
    
    
    1,088Oil (bbls/day) (1)
    
    
    6
    
    
    
    8
    
    
    
    4
    
    
    
    5Total (mcfe/day) (1)
    
    
    849
    
    
    
    1,016
    
    
    
    961
    
    
    
    1,118Average sales prices: (2)Gas (per mcf) (1) (3)
    
    $
    6.67
    
    
    $
    8.24
    
    
    $
    6.82
    
    
    $
    8.39Oil (per bbl) (1) (4)
    
    $
    77.45
    
    
    $
    73.22
    
    
    $
    78.72
    
    
    $
    61.97Average production costs:As a percent of revenues
    
    
    84
    %
    
    
    45
    %
    
    
    70
    %
    
    
    42
    %Per mcfe (1)
    
    $
    4.52
    
    
    $
    3.74
    
    
    $
    3.92
    
    
    $
    3.53Depletion 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 $116,900 and $14,500 for the three months
ended September 30, 2010 and 2009, respectively. Previously recognized derivative gains
were $365,500 and $24,500 for the nine months ended September 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 $600 for the three and nine months
ended September 30, 2010. The derivative gains are included in other comprehensive
income and resulted from prior period impairment charges. 
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Natural Gas Revenues.
  Oil Revenues.
  Expenses.
   Liquidity and Capital Resources
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Subordination by Managing General Partner
  CRITICAL ACCOUNTING POLICIES AND ESTIMATES
  Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3 
  21




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ITEM 4. CONTROLS AND PROCEDURES
    
 PART II. OTHER INFORMATION
 
 ITEM 1. LEGAL PROCEEDINGS
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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  23




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SIGNATURES
  Atlas America Public #12-2003 Limited Partnership
Atlas Resources, LLC, Managing General PartnerDate:  November 12, 2010
    By:
    /s/ FREDDIE M. KOTEKFreddie M. Kotek, Chief ExecutiveChairman of the Board of Directors,
Chief Executive Officer and PresidentDate:  November 12, 2010
    By:
    /s/ MATTHEW A. JONESMatthew A. Jones,Chief Financial Officer  24