United
      StatesSecurities
      and Exchange CommissionWashington,
      D.C. 20549Form
      10-Q(Mark
      One)R
              QUARTERLY
      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the quarterly period ended September 30, 2009o
              TRANSITION
      REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
      1934For
      the transition period from _____ to _____Commission
      file number 333-144070-02ATLAS
      RESOURCES PUBLIC 17-2008 (B) L.P.(Name
      of small business issuer in its charter)Delaware
              26-1466056(State
      or other jurisdiction of
                incorporation
      or organization)
              (I.R.S.
      Employer
                Identification
      No.)Westpointe
      Corporate Center One1550
      Coraopolis Heights Rd. 2nd FloorMoon
      Township, PA
              15108(Address
      of principal executive offices)
              (zip
      code)Issuer’s
      telephone number, including area code: (412)
      262-2830Indicate
      by check mark whether the registrant (1) has filed all reports required to
      be filed by Section 13 or 15 (d) of the SecuritiesExchange
      Act of 1934 during the preceding 12 months (or for such shorter period
      that the registrant was required to file such reports),and
      (2) has been subject to such filing requirements for the past 90 days.
      YesR
      No oIndicate
      by check mark whether the registrant has submitted electronically and
      posted on its corporate Web site, if any, every
  InteractiveData
      File required to be submitted and posted pursuant to Rule 405 of
      Regulation S-T (§232.405 of this chapter) during the preceding
      12months
      (or for such shorter period that the registrant was required to submit and
      post such files). Yes o No RIndicate
      by check mark whether the registrant is a large accelerated filer, an
      accelerated filer, a non-accelerated filer or a smallerreporting
      company. See the definitions of “large accelerated filer”, “accelerated
      filer”, “non-accelerating filer” and “smaller reportingcompany”
      in Rule 12b-2 of the Exchange Act (Check One) Large accelerated filer
       ̈ Accelerated
      filer  ̈
      Non-accelerated filer  ̈Smaller
      reporting company RIndicate
      by check mark whether the registrant is a shell company (as defined in
      Rule 12b-2 of the Exchange Act). Yes o No RTransitional
      Small Business Disclosure Format (check one): Yes o No R
 
  
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 (A
Delaware Limited Partnership)
 INDEX
TO QUARTERLY REPORT
 ON
FORM 10-Q
 
 PART
      I.
              
              FINANCIAL
      INFORMATION
              PAGEItem
      1:
              
              Financial
      StatementsBalance
      Sheets as of September 30, 2009 and December 31, 2008
              3Statements
      of Net Earnings for the Three Months and Nine Months ended September 30,
      2009 and 2008
              4Statement
      of Changes in Partners’ Capital for the Nine Months ended September 30,
      2009
              5Statements
      of Cash Flows for the Nine Months ended September 30, 2009 and 2008
              6Notes
      to Financial Statements
              7-19Item
      2:
              
              Management’s
      Discussion and Analysis of Financial Condition and Results of
      Operations
              19-24Item
      4:
              
              Controls
      and Procedures
              24-25PART
      II.
              
              OTHER
      INFORMATIONItem
      6:
              
              Exhibits
              25SIGNATURES
              26CERTIFICATIONS
              26-30
 
  2
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 BALANCE
SHEETS
 
 September
      30,
              
              
              December
      31,2009
              
              
              2008(Unaudited)ASSETSCurrent
      assets:Cash
      and cash equivalents
              
              $
              3,400
              
              
              $
              8,061,300Accounts
      receivable – affiliate
              
              
              10,360,700
              
              
              
              10,769,500Short-term
      hedge receivable due from affiliate
              
              
              4,249,200
              
              
              
              10,597,700Total
      current assets
              
              
              14,613,300
              
              
              
              29,428,500Oil
      and gas properties, net
              
              
              148,935,200
              
              
              
              142,517,100Construction
      in progress
              
              
              —
              
              
              
              4,840,000Long-term
      hedge receivable due from affiliate
              
              
              2,980,000
              
              
              
              6,787,000$
              166,528,500
              
              
              $
              183,572,600LIABILITIES
      AND PARTNERS’ CAPITALCurrent
      liabilities:Accrued
      liabilities
              
              $
              28,300
              
              
              $
              5,200Short-term
      hedge liability due to affiliate
              
              
              63,300
              
              
              
              924,300Total
      current liabilities
              
              
              91,600
              
              
              
              929,500Asset
      retirement obligation
              
              
              3,446,400
              
              
              
              3,298,000Long-term
      hedge liability due to affiliate
              
              
              752,700
              
              
              
              831,500Partners’
      capital:Managing
      general partner
              
              
              40,958,000
              
              
              
              37,298,200Limited
      partners (23,644.10 units)
              
              
              118,630,300
              
              
              
              133,156,200Accumulated
      other comprehensive income
              
              
              2,649,500
              
              
              
              8,059,200Total
      partners' capital
              
              
              162,237,800
              
              
              
              178,513,600$
              166,528,500
              
              
              $
              183,572,600
 
 
 The
accompanying notes are an integral part of these financial
statements.
  3
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 STATEMENTS
OF NET EARNINGS
 (Unaudited)
 
 Three
      Months Ended
              
              
              Nine
      Months EndedSeptember
      30,
              
              
              September
      30,2009
              
              
              2008
              
              
              2009
              
              
              2008REVENUESNatural
      gas, oil and liquid gas
              
              $
              8,489,200
              
              
              $
              7,359,000
              
              
              $
              28,893,400
              
              
              $
              7,644,700Interest
      income
              
              
              600
              
              
              
              —
              
              
              
              6,000
              
              
              
              —Total
      revenues
              
              
              8,489,800
              
              
              
              7,359,000
              
              
              
              28,899,400
              
              
              
              7,644,700COSTS
      AND EXPENSESProduction
              
              
              2,524,700
              
              
              
              1,134,200
              
              
              
              9,099,700
              
              
              
              1,187,600Depletion
              
              
              3,365,200
              
              
              
              3,504,400
              
              
              
              11,707,300
              
              
              
              3,624,900Accretion
      of asset retirement obligation
              
              
              49,400
              
              
              
              77,700
              
              
              
              148,400
              
              
              
              126,200General
      and administrative
              
              
              163,700
              
              
              
              47,600
              
              
              
              394,800
              
              
              
              61,900Total
      expenses
              
              
              6,103,000
              
              
              
              4,763,900
              
              
              
              21,350,200
              
              
              
              5,000,600Net
      earnings
              
              $
              2,386,800
              
              
              $
              2,595,100
              
              
              $
              7,549,200
              
              
              $
              2,644,100Allocation
      of net earnings:Managing
      general partner
              
              $
              1,530,900
              
              
              $
              1,558,900
              
              
              $
              4,524,200
              
              
              $
              1,597,300Limited
      partners
              
              $
              855,900
              
              
              $
              1,036,200
              
              
              $
              3,025,000
              
              
              $
              1,046,800Net
      earnings per limited partnership unit
              
              $
              36
              
              
              $
              43
              
              
              $
              128
              
              
              $
              44
 
 
 The
accompanying notes are an integral part of these financial
statements.
  4
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 STATEMENT
OF CHANGES IN PARTNERS' CAPITAL
 FOR
THE NINE MONTHS ENDED
 September
30, 2009
 (Unaudited)
 
 AccumulatedManaging
              
              
              
              
              
              OtherGeneral
              
              
              Limited
              
              
              ComprehensivePartner
              
              
              Partners
              
              
              Income
      (Loss)
              
              
              TotalBalance
      at January 1, 2009
              
              $
              37,298,200
              
              
              $
              133,156,200
              
              
              $
              8,059,200
              
              
              $
              178,513,600Participation
      in revenues and expenses:Net
      production revenues
              
              
              6,961,400
              
              
              
              12,832,300
              
              
              
              —
              
              
              
              19,793,700Interest
      income
              
              
              2,100
              
              
              
              3,900
              
              
              
              —
              
              
              
              6,000Depletion
              
              
              (2,248,300
              )
              
              
              (9,459,000
              )
              
              
              —
              
              
              
              (11,707,300
              )General
      and administrative expenses
              
              
              (138,800
              )
              
              
              (256,000
              )
              
              
              —
              
              
              
              (394,800
              )Accretion
      of asset retirement obligations
              
              
              (52,200
              )
              
              
              (96,200
              )
              
              
              —
              
              
              
              (148,400
              )Net
      earnings
              
              
              4,524,200
              
              
              
              3,025,000
              
              
              
              —
              
              
              
              7,549,200Other
      comprehensive loss
              
              
              —
              
              
              
              —
              
              
              
              (5,409,700
              )
              
              
              (5,409,700
              )Working
      interest adjustment
              
              
              (3,243,400
              )
              
              
              3,243,400
              
              
              
              —
              
              
              
              —Asset
      contributions
              
              
              13,285,400
              
              
              
              —
              
              
              
              —
              
              
              
              13,285,400Distributions
      to partners
              
              
              (10,906,400
              )
              
              
              (20,794,300
              )
              
              
              —
              
              
              
              (31,700,700
              )Balance
      at September 30, 2009
              
              $
              40,958,000
              
              
              $
              118,630,300
              
              
              $
              2,649,500
              
              
              $
              162,237,800
 
 
 The
accompanying notes are an integral part of these financial
statements.
  5
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 STATEMENTS
OF CASH FLOWS
 (Unaudited)
 
 Nine
      Months EndedSeptember
      30,2009
              
              
              2008Cash
      flows from operating activities:Net
      earnings
              
              $
              7,549,200
              
              
              $
              2,644,100Adjustments
      to reconcile net earnings to net cash provided by operating
      activities:Depletion
              
              
              11,707,300
              
              
              
              3,624,900Non-cash
      loss on derivative value
              
              
              3,806,000
              
              
              
              —Accretion
      of asset retirement obligation
              
              
              148,400
              
              
              
              126,200Decrease
      (increase) in accounts receivable-affiliate
              
              
              408,800
              
              
              
              (6,410,100
              )Increase
      in accrued liabilities
              
              
              23,100
              
              
              
              14,900Net
      cash provided by operating activities
              
              
              23,642,800
              
              
              
              —Cash
      flows from investing activities:Oil
      and gas well drilling contracts paid to MGP
              
              
              —
              
              
              
              (236,027,000
              )Net
      cash used in investing activities
              
              
              —
              
              
              
              (236,027,000
              )Cash
      flows from financing activities:Initial
      capital contribution by MGP
              
              
              —
              
              
              
              100Partner’s
      capital contributions
              
              
              —
              
              
              
              236,027,000Distributions
      to partners
              
              
              (31,700,700
              )
              
              
              —Net
      cash (used in) provided by financing activities
              
              
              (31,700,700
              )
              
              
              236,027,100Net
      (decrease) increase in cash and cash equivalents
              
              
              (8,057,900
              )
              
              
              100Cash
      and cash equivalents at beginning of period
              
              
              8,061,300
              
              
              
              —Cash
      and cash equivalents at end of period
              
              $
              3,400
              
              
              $
              100Supplemental Schedule
      of non-cash investing and financing activities:Assets
      contributed by managing general partner:Tangible
      equipment
              
              $
              6,311,300
              
              
              $
              39,970,700Lease
      costs
              
              
              —
              
              
              
              5,391,700Intangible
      drilling costs
              
              
              6,974,100
              
              
              
              —Syndication
      and offering costs
              
              
              —
              
              
              
              25,963,000$
              13,285,400
              
              
              $
              71,325,400Asset
      retirement obligation
              
              $
              —
              
              
              $
              2,643,500
 
 
 
 The
accompanying notes are an integral part of these financial
statements.
  6
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2009
 (Unaudited)
 
 NOTE
1 - DESCRIPTION OF BUSINESS AND BASIS OF PRESENTATION
 
 Atlas
Resources Public 17-2008 (B) L.P. (the “Partnership”) is a Delaware Limited
Partnership which includes Atlas Resources, LLC of Pittsburgh, Pennsylvania, as
Managing General Partner ("MGP") and Operator, and 5,074 investors. The
Partnership was formed on May 7, 2007 to drill and operate gas wells located
primarily in Pennsylvania, Tennessee and West Virginia. The Partnership has no
employees and relies on its MGP for management which, in turn, relies on its
parent company, Atlas Energy Resources, LLC, ("Atlas Energy"), for
administrative services. On September 29, 2009, Atlas Energy Resources, LLC and
Atlas America, Inc. (“Atlas America”) (NASDAQ: ATLS) merged with Atlas Energy
Resources, LLC becoming a wholly owned subsidiary of Atlas America. In addition,
Atlas America changed its name to “Atlas Energy, Inc.”
 
 The
financial statements as of September 30, 2009 and for the three months and nine
months ended September 30, 2009 and 2008 are unaudited except that the balance
sheet at December 31, 2008 is derived from audited financial statements. Certain
information and footnote disclosures normally included in financial statements
prepared in accordance with accounting principles generally accepted in the
United States of America (“U.S. GAAP”) have been condensed or omitted in this
Form 10-Q pursuant to the rules and regulations of the Securities and Exchange
Commission (“SEC”). However, in the opinion of management, these interim
financial statements include all the necessary adjustments to fairly present the
results of the interim periods presented. Management has considered for
disclosure any material subsequent events through November 16, 2009, the
date the financial statements were issued. The unaudited interim financial
statements should be read in conjunction with the audited financial statements
included in the Partnership’s Form 10-K for the year ended December 31, 2008.
The results of operations for the three months and nine months ended September
30, 2009 may not necessarily be indicative of the results of operations for the
year ended December 31, 2009.
 
 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
 In
addition to matters discussed further in this note, the Partnership’s
significant accounting policies are detailed in its audited financial statements
and notes thereto in the Partnership’s annual report on Form 10-K for the year
ended December 31, 2008 filed with the SEC.
 
 Use
of Estimates
 
 Preparation
of financial statements in conformity with accounting principles generally
accepted in the United States of America requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
the disclosure of contingent assets and liabilities as of the date of the
financial statements and the reported amounts of revenues, costs and expenses
during the reporting period. The Partnership’s financial statements are based on
a number of significant estimates, including revenue and expense accruals,
depletion, fair value of derivative instruments and the probability of financial
transactions. Actual results could differ from these estimates.
 
 Accounts
Receivable and Allowance for Possible Losses
 
 In
evaluating the need for an allowance for possible losses, the Partnership's 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 review of its customers' credit information. Credit is extended on
an unsecured basis to many of its energy customers. At September 30, 2009, the
Partnership's MGP's credit evaluation indicated that the Partnership has no need
for an allowance for possible losses.
  7
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2009
 (Unaudited)
 
 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Revenue
Recognition
 
 The
Partnership generally sells natural gas and crude oil at prevailing market
prices.  Revenue is recognized when produced quantities are delivered
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 are reasonably assured and the sales price
is fixed or determinable.  Revenues from the production of natural gas
and crude oil in which the Partnership has an interest with other producers are
recognized on the basis of the Partnership’s percentage ownership of working
interest or overriding royalty. Generally, the Partnership’s sales contracts are
based on pricing provisions that are tied to a market index, with certain
adjustments based on proximity to gathering and transmission lines and the
quality of its natural gas.
 
 Because
there are timing differences between the delivery of natural gas and oil and its
receipt of a delivery statement, the Partnership has unbilled revenues. These
revenues are accrued based upon volumetric data from the Partnership’s records
and estimates of the related transportation and compression fees which are, in
turn, based upon applicable product prices. The Partnership had unbilled trade
receivables at September 30, 2009 and December 31, 2008 of $5,739,400 and
$8,029,100, respectively, which are included in accounts receivable on the
Partnership’s Balance Sheets.
 
 Oil
and Gas Properties
 
 The
Partnership follows the successful-efforts method of accounting for oil and gas
producing activities. Oil and gas properties are recorded at
cost.  Depletion is determined on a field-by-field basis using the
units-of-production method for well and related equipment costs based on proved
developed reserves associated with each field. Depletion rates are determined
based on reserve quantity estimates and the capitalized costs of developed
producing properties.  In addition, accumulated depletion includes
impairment adjustments to reflect the write-down to fair market value of the oil
and gas properties. Maintenance and repairs are expensed as incurred. Major
renewals and improvements that extend the useful lives of the property are
capitalized. Oil is converted to gas equivalent basis (“Mcfe”) at the rate one
barrel equals 6 thousand cubic feet (“Mcf”).
 
 Upon the
sale or retirement of a complete field of a proved property, the cost is
eliminated from the property accounts, and the resultant gain or loss is
recorded in operations. Upon the sale or retirement of an individual well, the
net book value is credited to accumulated depletion.
 
 Oil
      and gas properties consist of the following at the dates
      indicated:
              
              September
      30,
              
              
              December
      31,2009
              
              
              2008Natural
      gas and oil properties:Proved
      properties:Leasehold
      interests
              
              $
              5,366,700
              
              
              $
              5,366,700Wells
      and related equipment
              
              
              300,241,000
              
              
              
              282,115,600305,607,700
              
              
              
              287,482,300Accumulated
      depletion
              
              
              (156,672,500
              )
              
              
              (144,965,200
              )$
              148,935,200
              
              
              $
              142,517,100
 
 Construction
in Progress of oil and gas properties at December 31, 2008 was $4,840,000 and
was subsequently completed and included in the nine months ended September 30,
2009 oil and gas properties.
 
  8
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2009
 (Unaudited)
 
 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Impairment
of Oil and Gas Properties and Long-Lived Assets
 
 The
Partnership’s oil and gas properties are reviewed for impairment annually or
whenever events or changes in circumstances indicate that their carrying amounts
may not be recoverable. Oil and gas properties are reviewed for potential
impairments at the lowest levels for which there are identifiable cash
flows.
 
 The
review of the Partnership’s oil and gas properties is done on a field-by-field
basis by determining if the historical cost of proved properties less the
applicable accumulated depletion and abandonment is less than the estimated
expected undiscounted future cash flows. The expected future cash flows are
estimated based on the Partnership’s plans to continue to produce and develop
proved reserves. Expected future cash flow from the sale of production of
reserves is calculated 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 levels of prices and costs, field decline rates, market demand and
supply, and the economic and regulatory climates. If the carrying value exceeds
such cash flows, an impairment loss is recognized for the difference between the
estimated fair market value (as determined by discounted future cash flows), and
the carrying value of the assets.
 
 The
determination of oil and 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. In addition, reserve
estimates for wells with limited or no production history are less reliable than
those based on actual production.  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.There were no
impairments of oil and gas properties recorded by the Partnership for the three
months and nine months ended September 30, 2009 and 2008.
 
 Working
Interest
 
 The
Partnership agreement establishes that revenues and expenses will be allocated
to the MGP and limited partners based on their ratio of capital contributions to
total contributions, (“the working interest”). The MGP is also provided an
additional working interest of 7% as provided in the Partnership Agreement. Due
to the time necessary to complete drilling operations and accumulate all
drilling costs, estimated working interest percentage ownership rates are
utilized to allocate revenues and expenses until the wells are completely
drilled and turned on-line into production. Once the wells are completed, the
final working interest ownership of the partners is determined, and any
previously allocated revenues and expenses based on the estimated working
interest percentage ownership are adjusted to conform to the final working
interest percentage ownership. As of September 30, 2009 $3,243,400 of net
earnings resulting from the working interest adjustment was reclassified from
the general partner’s capital account to the limited partner’s capital
account.
 
  9
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2009
 (Unaudited)
 
 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Recently
Adopted Accounting Standards
 
 In August
2009, the Financial Accounting Standards Board (“FASB”) issued Accounting
Standards Update 2009-05, Fair
Value Measurements and Disclosures (Topic 820) – Measuring Liabilities at Fair
Value (“Update 2009-05”). Update 2009-05 amends subtopic 820-10, “Fair
Value Measurements and Disclosures- Overall” and provides clarification for the
fair value measurement of liabilities in circumstances where quoted prices for
an identical liability in an active market are not available. The amendments
also provide clarification for not requiring the reporting entity to include
separate inputs or adjustments to other inputs relating to the existence of a
restriction that prevents the transfer of a liability when estimating the fair
value of a liability.  Additionally, these amendments clarify that
both the quoted price in an active market for an identical liability at the
measurement date and the quoted price for an identical liability when traded as
an asset in an active market when no adjustments to the quoted price of the
asset are required are considered Level 1 fair value measurements. These
requirements are effective for financial statements issued after the release of
Update 2009-05.  The Partnership adopted the requirements on September
30, 2009 and it did not have a material impact on its financial position,
results of operations or related disclosures.
 
 In June
2009, the FASB issued Accounting Standards Update 2009-01, Topic 105- Generally Accepted
Accounting Principles Amendments Based on Statements of Financial Accounting
Standards No. 168- The FASB Accounting Standards Codification and the Hierarchy
of Generally Accepted Accounting Principles (“Update 2009-01”). Update
2009-01 establishes the FASB Accounting Standards Codification (“ASC”) as the
single source of authoritative U.S. generally accepted accounting principles
recognized by the FASB to be applied by nongovernmental entities.  The
ASC supersedes all existing non-Securities and Exchange Commission accounting
and reporting standards.  Following the ASC, the FASB will not issue
new standards in the form of Statements, FASB Staff Positions, or Emerging
Issues Task Force Abstracts. Instead, the FASB will issue Accounting Standards
Updates, which will serve only to update the ASC.  ASC 105 is
effective for financial statements issued for interim and annual periods ending
after September 15, 2009.  Entities are not required to include
specific references to the ASC in their financial statements and, therefore, the
Partnership has removed all previous references to FASB authoritative guidance
and describes its accounting policies using a “plain English” approach. The
Partnership adopted the requirements of Update 2009-01 to its financial
statements on September 30, 2009 and it did not have a material impact to the
Partnership’s financial statement disclosures.
 
 In May
2009, the FASB issued ASC 855-10, Subsequent Events (“ASC
855-10”). ASC 855-10 establishes general standards of accounting for and
disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. The provisions
require management of a reporting entity to evaluate events or transactions that
may occur after the balance sheet date for potential recognition or disclosure
in the financial statements and provides guidance for disclosures that an entity
should make about those events. ASC 855-10 is effective for interim or annual
financial periods ending after June 15, 2009 and shall be applied prospectively.
The Partnership adopted the requirements of this standard on June 30, 2009 and
it did not have a material impact to its financial position or results of
operations or related disclosures. The adoption of these provisions does not
change the Partnership’s current practices with respect to evaluating, recording
and disclosing subsequent events.
 
  10
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2009
 (Unaudited)
 
 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Recently
Adopted Accounting Standards (Continued)
 
 In April
2009, the FASB issued ASC 820-10-65-4, Determining Fair Value When the
Volume and Level of Activity for the Asset or Liability Have Significantly
Decreased and Identifying Transactions That Are Not Orderly (“ASC
820-10-65-4”). ASC 820-10-65-4 applies to all fair value measurements and
provides additional clarification on estimating fair value when the market
activity for an asset has declined significantly. ASC 820-10-65-4 also require
an entity to disclose a change in valuation technique and related inputs to the
valuation calculation and to quantify its effects, if practicable. ASC
820-10-65-4 is effective for interim and annual periods ending after June 15,
2009, with early adoption permitted for periods ending after March 15,
2009.  The Partnership adopted the requirements of ASC 820-10-65-4 on
April 1, 2009 and its adoption did not have a material impact on the
Partnership’s financial position and results of operations.
 
 In April
2009, the FASB issued ASC 825-10-65-1, Interim Disclosures about Fair Value
of Financial Instruments (“ASC 825-10-65-1”), which requires an entity to
provide disclosures about fair value of financial instruments in interim
financial information. In addition, an entity shall disclose in the body or in
the accompanying notes of its summarized financial information for interim
reporting periods and in its financial statements for annual reporting periods
the fair value of all financial instruments for which it is practicable to
estimate that value, whether recognized or not recognized in the statement of
financial position. ASC 825-10-65-1 is effective for interim periods ending
after June 15, 2009, with early adoption permitted for periods ending after
March 15, 2009. The Partnership adopted these requirements on April 1, 2009 and
its adoption did not have a material impact on the Partnership’s financial
position and results of operations.
 
 In March
2008, the FASB issued ASC 815-10-50-1, Disclosures about Derivative
Instruments and Hedging Activities (“ASC 815-10-50-1”), to require
enhanced disclosure about how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for and how
derivative instruments and related hedged items affect an entity’s financial
position, financial performance and cash flows. The Partnership adopted the
requirements of this section of ASC 815-10-50-1 on January 1, 2009 and it did
not have a material impact on its financial position or results of operations
(see Note 5).
 
 Modernization
of Oil and Gas Reporting
 
 In
December 2008, the SEC announced that it had approved revisions to its oil and
gas reporting disclosures by adopting amendments to Rule 4-10 of Regulation S-X
and Items 201, 801, and 802 of Regulation S-K. These new disclosure requirements
are referred to as “Modernization of Oil and Gas Reporting” and include
provisions that:
 
 ·
              Introduce
      a new definition of oil and gas producing activities. This new definition
      allows companies to include in their reserve base volumes from
      unconventional resources. Such unconventional resources include bitumen
      extracted from oil sands and oil and gas extracted from coal beds and
      shale formations.
 
 ·
              Report
      oil and gas reserves using an unweighted average price using the prior
      12-month period, based on the closing prices on the first day of each
      month, rather than year-end pricing. This should maximize the
      comparability of reserve estimates among companies and mitigate the
      distortion of the estimates that arises when using a single pricing
      date.
  11
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS
 September
30, 2009
 (Unaudited)
 
 NOTE
2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 
 Modernization
of Oil and Gas Reporting (Continued)
 
 ·
              Permit
      companies to disclose their probable and possible reserves on a voluntary
      basis. Current rules limit disclosure to only proved
    reserves.
 
 ·
              Update
      and revise reserve definitions to reflect changes in the oil and gas
      industry and new technologies. New updated definitions include “by
      geographic area” and “reasonable
certainty.”
 
 ·
              Permit
      the use of new technologies to determine proved reserves if those
      technologies have been demonstrated empirically to lead to reliable
      conclusions about reserves volumes.
 
 ·
              Require
      additional disclosures regarding the qualifications of the chief technical
      person who oversees the Partnership’s overall reserve estimation process.
      Additionally, disclosures are required related to internal controls over
      reserve estimation, as well as a report addressing the independence and
      qualifications of a Partnership’s reserves preparer or auditor based on
      Society of Petroleum Engineers
criteria.
 
 The
Partnership will begin complying with the disclosure requirements in its annual
report on Form 10-K for the year ending December 31, 2009. The new rules may not
be applied to disclosures in quarterly reports prior to the first annual report
in which the revised disclosures are required. The Partnership is currently in
the process of evaluating the new requirements.
 
 NOTE
3 - TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES
 
 The
Partnership has entered into the following significant transactions with its 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 Net Earnings are payable at $75 per well per
      month. Administrative costs incurred for the three months and nine months
      ended September 30, 2009 were $94,200 and $269,900, respectively.
      Administrative costs incurred for the three months and the period ended
      September 30, 2008 were $29,400 and $32,600,
  respectively.
 
 ·
              Monthly
      well supervision fees which are included in production expenses in the
      Partnership’s Statements of Net Earnings are payable at $377 per well per
      month in 2009 and 2008. For operating and maintaining the wells. Well
      supervision fees incurred for the three months and nine months ended
      September 30, 2009 were $473,800 and $1,356,900, respectively. Supervision
      fees incurred for the three months and the period ended September 30, 2008
      were $148,100 and $164,100,
respectively.
 
 ·
              Transportation
      fees which are included in production expenses in the Partnership’s
      Statements of Net Earnings are generally payable at 13% of the natural gas
      sales price. Transportation fees incurred for the three months and nine
      months ended September 30, 2009 were $1,115,400 and $3,899,800,
      respectively. Transportation fees incurred for the three months and the
      period ended September 30, 2008 were $907,300 and $935,500,
      respectively.
  12
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE
3 - TRANSACTIONS WITH ATLAS RESOURCES, LLC AND ITS AFFILIATES
(Continued)
 
 ·
              Assets
      contributed from the MGP which are disclosed on the Partnership’s
      Statements of Cash Flows as a non-cash activity for the nine months ended
      September 30, 2009 and 2008 were $13,285,400 and $71,325,400,
      respectively.
 
 The MGP
and its affiliates perform all administrative and management functions for the
Partnership including billing revenues and paying expenses. “Accounts
receivable-affiliate” on the Partnership's Balance Sheets represents the net
production revenues due from the MGP.
 
 Subordination
by Managing General Partner
 
 Under the
terms of the Partnership agreement, the MGP may be required to subordinate up to
50% of its share of net production revenues of the Partnership to provide a
distribution to the limited partners equal to at least 10% of their agreed
subscriptions. Subordination is determined on a cumulative basis, in each of the
first five years of Partnership operations, commencing with the first
distribution of net revenues to the investor partners (February 2009). Since the
inception of the program, the MGP has not been required to subordinate any of
its distributions to its limited partners.
 
 NOTE
4 - COMPREHENSIVE INCOME
 
 Comprehensive
income includes net earnings and all other changes in equity of a business
during a period from transactions and other events and circumstances from
non-owner sources. These changes, other than net earnings, are referred to as
"other comprehensive income" and, for the Partnership, include changes in the
fair value of unsettled derivative contracts accounted for as cash flow hedges.
A reconciliation of the Partnership’s comprehensive income for the periods
indicated is as follows:
 
 Three
      Months Ended
              
              
              Nine
      Months EndedSeptember
      30,
              
              
              September
      30,2009
              
              
              2008
              
              
              2009
              
              
              2008Net
      earnings
              
              $
              2,386,800
              
              
              $
              2,595,100
              
              
              $
              7,549,200
              
              
              $
              2,644,100Other
      comprehensive loss:Unrealized
      holding gain (loss) on hedging contracts
              
              
              1,153,500
              
              
              
              (1,308,400
              )
              
              
              1,457,700
              
              
              
              (1,308,400
              )Less:
      reclassification adjustment for (gains) losses realized in net
      earnings
              
              
              (2,865,900
              )
              
              
              1,107,200
              
              
              
              (6,867,400
              )
              
              
              1,107,200Total
      other comprehensive loss
              
              
              (1,712,400
              )
              
              
              (201,200
              )
              
              
              (5,409,700
              )
              
              
              (201,200
              )Comprehensive
      income
              
              $
              674,400
              
              
              $
              2,393,900
              
              
              $
              2,139,500
              
              
              $
              2,442,900
 
 
  13
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE
5 - DERIVATIVE INSTRUMENTS
 
 The
Partnership is exposed to certain risks relating to its ongoing business
operations. The risk is managed by using derivative instruments related to
commodity price risk. Forward contracts on natural gas and oil are entered into
to manage the price risk associated with forecasted sales of natural gas and
crude oil. The Partnership designates these derivatives as cash flow hedges and
the derivative instruments have been recorded as either assets or liabilities at
fair value on the balance sheets. The effective portion of the gain or loss on
the derivative is reported as a component of other comprehensive income and
reclassified to earnings in the same period during which the hedged transaction
affects earnings. The following table summarizes the fair value of derivative
instruments as of September 30, 2009 and December 31, 2008, as well as the gain
or loss recognized for the three months and nine months ended September 30, 2009
and 2008, respectively. There were no gains or losses recognized in income for
ineffective derivative instruments for the three months and nine months ended
September 30, 2009 and 2008, respectively.
 
 Fair
      Value of Derivative Instruments:Asset
      Derivatives
              
              Liability
      DerivativesDerivatives
      in
              
              
              
              Fair
      Value
              
              
              
              Fair
      ValueCash
      Flow Hedging
              
              Balance
      Sheet
              
              September
      30,
              
              
              December
      31,
              
              Balance
      Sheet
              
              September
      30,
              
              
              December
      31,Relationships
              
              Location
              
              2009
              
              
              2008
              
              Location
              
              2009
              
              
              2008Commodity
      contracts:
              
              Current
      assets
              
              $
              4,249,200
              
              
              $
              10,597,700
              
              Current
      liabilities
              
              $
              (63,300
              )
              
              $
              (924,300
              )Long-term
      assets
              
              
              2,980,000
              
              
              
              6,787,000
              
              Long-term
      liabilities
              
              
              (752,700
              )
              
              
              (831,500
              )Total
      derivatives
              
              $
              7,229,200
              
              
              $
              17,384,700
              
              
              
              $
              (816,000
              )
              
              $
              (1,755,800
              )
 
 Effects
of Derivative Instruments on Statements of Net Earnings:
 
 Derivatives
      in
              
              Gain
      (Loss)
                Recognized
      in OCI on Derivative
                (Effective
      Portion)
                Three
      Months Ended
              
              Location
      of Gain/(Loss)
                Reclassified
      from Accumulated
              
              Gain
      (Loss)
                Reclassified
      from OCI into Income
                (Effective
      Portion)
                Three
      Months EndedCash
      Flow
              
              September
      30,
              
              
              September
      30,
              
              OCI
      into Income
              
              September
      30,
              
              
              September
      30,Hedging
      Relationship
              
              2009
              
              
              2008
              
              (Effective
      Portion)
              
              2009
              
              
              2008Commodity
      contracts
              
              $
              1,153,500
              
              
              $
              (1,308,400
              )
              Natural
      gas and oil revenue
              
              $
              2,865,900
              
              
              $
              (1,107,200
              )
 
 Derivatives
      in
              
              Gain
      (Loss)
                Recognized
      in OCI on Derivative
                (Effective
      Portion)
                Nine
      Months Ended
              
              Location
      of Gain/(Loss)
                Reclassified
      from Accumulated
              
              Gain
      (Loss)
                Reclassified
      from OCI into Income
                (Effective
      Portion)
                Nine
      Months EndedCash
      Flow
              
              September
      30,
              
              
              September
      30,
              
              OCI
      into Income
              
              September
      30,
              
              
              September
      30,Hedging
      Relationship
              
              2009
              
              
              2008
              
              (Effective
      Portion)
              
              2009
              
              
              2008Commodity
      contracts
              
              $
              1,457,700
              
              
              $
              (1,308,400
              )
              Natural
      gas and oil revenue
              
              $
              6,867,400
              
              
              $
              (1,107,200
              )
 
 Atlas
Energy, on behalf of the Partnership, from time to time enters into natural gas
and crude oil future option and collar contracts to hedge exposure to changes in
natural gas prices and oil prices. At any point in time, such contracts may
include regulated New York Mercantile Exchange (“NYMEX”) futures, options
contracts and non-regulated over-the-counter futures contracts with qualified
counterparties. NYMEX contracts are generally settled with offsetting positions,
but may be settled by the delivery of natural gas. Crude oil contracts are based
on a West Texas Intermediate ("WTI") index. These contracts have qualified and
been designated as cash flow hedges and recorded at their fair
values.
  14
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE
5 - DERIVATIVE INSTRUMENTS (Continued)
 
 At
September 30, 2009, the Partnership reflected a net hedge asset on its Balance
Sheet of $6,413,200, however unrealized gains of $3,763,700 which were required
to be recognized in net income which were related to impairment charges of the
Partnership’s oil and gas properties for the year ended December 31, 2008
results in a net unrealized accumulated gain of $2,649,500. Of the remaining
$2,649,500 net unrealized gain in accumulated other comprehensive income at
September 30, 2009, if the fair values of the instruments remain at current
market values, the Partnership will reclassify $2,091,200 of a net gains to its
Statements of Net Earnings over the next twelve month period as these contracts
settle, and $558,300 of net gains in later periods. Actual amounts that will be
reclassified will vary as a result of future price changes. Ineffective hedge
gains or losses are recorded within the Statements of Net Earnings while the
hedge contract is open and may increase or decrease until settlement of the
contract. The Partnership recognized no gains or losses during the three months
and nine months ended September 30, 2009 for hedge ineffectiveness or as a
result of the discontinuance of cash flow hedges.
 
 Natural
Gas Fixed Price Swaps
 Production
              
              
              
              
              AveragePeriod
      Ending
              
              Volumes
              
              
              Fixed
      Price
              
              
              Fair
      ValueDecember
      31,
              
              (MMbtu)
      (1)
              
              
              (per
      MMbtu) (1)
              
              
              Asset
      (2)2009
              
              
              531,200
              
              
              $
              8.24
              
              
              $
              1,858,5002010
              
              
              1,564,200
              
              
              
              7.71
              
              
              
              2,353,5002011
              
              
              954,100
              
              
              
              7.04
              
              
              
              789,2002012
              
              
              874,100
              
              
              
              7.22
              
              
              
              594,7002013
              
              
              510,100
              
              
              
              7.08
              
              
              
              73,800$
              5,669,700
 
 Natural
Gas Costless Collars
 Production
              
              
              
              
              
              
              Average
              
              
              Fair
      ValuePeriod
      Ending
              
              Option
              
              Volumes
              
              
              Floor
      & Cap
              
              
              AssetDecember
      31,
              
              Type
              
              (MMbtu)
      (1)
              
              
              (per
      MMbtu) (1)
              
              
              (Liability)
      (2)2009
              
              Puts
      purchased
              
              
              3,000
              
              
              $
              11.00
              
              
              $
              19,0002009
              
              Calls
      sold
              
              
              3,000
              
              
              
              15.35
              
              
              
              —2010
              
              Puts
      purchased
              
              
              163,000
              
              
              
              7.84
              
              
              
              296,5002010
              
              Calls
      sold
              
              
              163,000
              
              
              
              9.01
              
              
              
              —2011
              
              Puts
      purchased
              
              
              431,000
              
              
              
              6.52
              
              
              
              280,4002011
              
              Calls
      sold
              
              
              431,000
              
              
              
              7.67
              
              
              
              —2012
              
              Puts
      purchased
              
              
              164,000
              
              
              
              6.51
              
              
              
              1,5002012
              
              Calls
      sold
              
              
              164,000
              
              
              
              7.72
              
              
              
              —2013
              
              Puts
      purchased
              
              
              204,500
              
              
              
              6.52
              
              
              
              —2013
              
              Calls
      sold
              
              
              204,500
              
              
              
              7.81
              
              
              
              (20,700
              )$
              576,700
 
  15
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE
5 - DERIVATIVE INSTRUMENTS (Continued)
 
 Crude
Oil Fixed Price Swaps
 Production
              
              
              
              
              AveragePeriod
      Ending
              
              Volumes
              
              
              Fixed
      Price
              
              
              Fair
      ValueDecember
      31,
              
              (Bbl)
      (1)
              
              
              (per
      Bbl) (1)
              
              
              Asset
      (3)2009
              
              
              600
              
              
              $
              99.32
              
              
              $
              17,6002010
              
              
              1,900
              
              
              
              97.40
              
              
              
              45,1002011
              
              
              1,600
              
              
              
              77.46
              
              
              
              30,3002012
              
              
              1,200
              
              
              
              76.86
              
              
              
              19,2002013
              
              
              400
              
              
              
              77.36
              
              
              
              5,100$
              117,300
 
 Crude
Oil Costless Collars
 Production
              
              
              
              
              
              
              AveragePeriod
      Ending
              
              Option
              
              Volumes
              
              
              Floor
      & Cap
              
              
              Fair
      ValueDecember
      31,
              
              Type
              
              (Bbl)
      (1)
              
              
              (per
      Bbl) (1)
              
              
              Asset
      (3)2009
              
              Puts
      purchased
              
              
              400
              
              
              $
              85.00
              
              
              $
              5,6002009
              
              Calls
      sold
              
              
              400
              
              
              
              116.56
              
              
              
              —2010
              
              Puts
      purchased
              
              
              1,200
              
              
              
              85.00
              
              
              
              18,6002010
              
              Calls
      sold
              
              
              1,200
              
              
              
              112.92
              
              
              
              —2011
              
              Puts
      purchased
              
              
              1,000
              
              
              
              67.22
              
              
              
              14,0002011
              
              Calls
      sold
              
              
              1,000
              
              
              
              89.44
              
              
              
              —2012
              
              Puts
      purchased
              
              
              800
              
              
              
              65.51
              
              
              
              9,1002012
              
              Calls
      sold
              
              
              800
              
              
              
              91.45
              
              
              
              —2013
              
              Puts
      purchased
              
              
              200
              
              
              
              65.36
              
              
              
              2,2002013
              
              Calls
      sold
              
              
              200
              
              
              
              93.44
              
              
              
              —$
              49,500Total
      Net Asset
              
              
              $
              6,413,200
 _____________
 
 (1)
              MMBTU
      represents million British Thermal Units. Bbl represents
      barrels.
 (2)
              Fair
      value based on forward NYMEX natural gas
prices.
 (3)
              Fair
      value based on forward WTI crude oil
prices.
  16
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE
6 - 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. The hierarchy
defines three levels of inputs that may be used to measure fair
value.
 
 Level 1–Quoted prices in
active markets for identical assets and liabilities that the reporting entity
has the ability to access at the measurement date.
 
 Level 2–Inputs other than
quoted prices included within Level 1 that are observable for the asset and
liability or can be corroborated with observable market data for substantially
the entire contractual term of the asset or liability.
 
 Level 3–Unobservable inputs
that reflect the entities own assumptions about the assumptions that market
participants would use in the pricing of the asset or liability and are
consequently not based on market activity, but rather through particular
valuation techniques.
 
 Assets
and Liabilities Measured at Fair Value on a Recurring Basis
 
 The
Partnership has certain assets and liabilities that are reported at fair value
on a recurring basis in its balance sheets. The following methods and
assumptions were used to estimate fair values.
 
 All of
the Partnership’s derivatives contracts are defined as Level 2. The
Partnership's natural gas and crude oil derivative contracts are valued based on
prices quoted on the NYMEX or WTI and adjusted by the respective counterparty
using various assumptions including quoted forward prices, time value,
volatility factors, and contractual prices for the underlying instruments.
Information for assets and liabilities measured at fair value on a recurring
basis at September 30, 2009 and December 31, 2008 is as follows.
 
 September
      30, 2009
              
              
              December
      31, 2008Level
      2
              
              
              Total
              
              
              Level
      2
              
              
              TotalCommodity-based
      derivatives
              
              $
              6,413,200
              
              
              $
              6,413,200
              
              
              $
              15,628,900
              
              
              $
              15,628,900Total
              
              $
              6,413,200
              
              
              $
              6,413,200
              
              
              $
              15,628,900
              
              
              $
              15,628,900
 
 Assets
and Liabilities Measured at Fair Value on a Nonrecurring Basis
 
 The
Partnership has certain assets and liabilities that are reported at fair value
on a nonrecurring basis in its Balance Sheets. The following methods and
assumptions were used to estimate fair values.
 
 Asset Retirement
Obligations.  The Partnership estimates the fair value of asset
retirement obligations based on discounted cash flow projections using numerous
estimates, assumptions and judgments regarding such factors at the date of
establishment of an asset retirement obligation such as: amounts and timing of
settlements; the credit adjusted risk free rate of the Partnership; and
estimated inflation rates. There were no new asset retirement obligations
incurred for the three months and ninemonths ended September
30, 2009, respectively. There were new asset retirement obligations incurred for
the three months and nine months ended September 30, 2008, is as
follows:
  17
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE 6 - FAIR VALUE OF FINANCIAL
INSTRUMENTS (Continued)
 
 Assets
and Liabilities Measured at Fair Value on a Nonrecurring Basis
(Continued)
 
 Three
      Months Ended
              
              
              Nine
      Months EndedSeptember
      30, 2008
              
              
              September
      30, 2008Level
      3
              
              
              Total
              
              
              Level
      3
              
              
              TotalAsset
      retirement obligations
              
              $
              1,220,800
              
              
              $
              1,220,800
              
              
              $
              2,643,500
              
              
              $
              2,643,500Total
              
              $
              1,220,800
              
              
              $
              1,220,800
              
              
              $
              2,643,500
              
              
              $
              2,643,500
 
 NOTE
7 - ASSET RETIREMENT OBLIGATION
 
 The
Partnership recognizes an estimated liability for the plugging and abandonment
of its oil and gas wells and related facilities. It also recognizes a liability
for future asset retirement obligations if a reasonable estimate of the fair
value of that liability can be made. The associated asset retirement costs are
capitalized as part of the carrying amount of the long-lived asset. The
Partnership also considers the estimated salvage value in the calculation of
depreciation, depletion and amortization.
 
 The
estimated liability is based on historical experience in plugging and abandoning
wells, 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.  Except for its oil and gas properties, the
Partnership has determined that there are no other material retirement
obligations associated with tangible long-lived assets.
 
 A
reconciliation of the Partnership’s liability for plugging and abandonment costs
for the periods indicated is as follows:
 
 Three
      Months Ended
              
              
              Nine
      Months EndedSeptember
      30,
              
              
              September
      30,2009
              
              
              2008
              
              
              2009
              
              
              2008Asset
      retirement obligation at beginning of period
              
              $
              3,397,000
              
              
              $
              1,471,200
              
              
              $
              3,298,000
              
              
              $
              —Liabilities
      incurred from drilling wells
              
              
              —
              
              
              
              1,220,800
              
              
              
              —
              
              
              
              2,643,500Accretion
      expense
              
              
              49,400
              
              
              
              77,700
              
              
              
              148,400
              
              
              
              126,200Asset
      retirement obligation at end of period
              
              $
              3,446,400
              
              
              $
              2,769,700
              
              
              $
              3,446,400
              
              
              $
              2,769,700
 
  18
  
 ATLAS
RESOURCES PUBLIC 17-2008 (B) L.P.
 NOTES
TO FINANCIAL STATEMENTS (Continued)
 September
30, 2009
 (Unaudited)
 
 NOTE
8 - COMMITMENTS AND CONTINGENCIES
 
 The
Managing General Partner is not aware of any legal proceedings filed against the
Partnership.
 
 Affiliates
of the MGP and their subsidiaries are party to various routine legal proceedings
arising in the ordinary course of their collective business. The MGP management
believes that none of these actions, individually or in the aggregate, will have
a material adverse effect on the MGP's financial condition or results of
operations.
 
 ITEM
      2.
              MANAGEMENT'S
      DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
      (UNAUDITED)
 
 Forward-Looking
Statements
 
 The
matters discussed within this report include forward-looking statements. These
statements may be identified by the use of forward-looking terminology such as
“anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,”
“may,” “might,” “plan,” “potential,” “predict,” “should,” or “will,” or the
negative thereof or other variations thereon or comparable terminology. In
particular, statements about our expectations, beliefs, plans, objectives,
assumptions or future events or performance contained in this report are
forward-looking statements. We have based these forward-looking statements on
our current expectations, assumptions, estimates and projections. While we
believe these expectations, assumptions, estimates and projections are
reasonable, such forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, many of which are beyond our control.
These and other important factors may cause our actual results, performance or
achievements to differ materially from any future results, performance or
achievements expressed or implied by these forward-looking
statements.
 
 Management’s
Discussion and Analysis should be read in conjunction with our Financial
Statements and the Notes to our Financial Statements.
 
 General
 
 We were
formed as a Delaware limited partnership on May 7, 2007, with Atlas Resources,
LLC as our Managing General Partner, or MGP, to drill natural gas development
wells. We have no employees and rely on our MGP for management, which in turn
relies on its parent company, Atlas Energy Resources, LLC, or Atlas Energy, for
administrative services. On September 29, 2009 Atlas Energy completed its merger
with Atlas America, Inc. (NASDAQ:ATLS). In addition, Atlas America changed its
name to Atlas Energy, Inc.
 
 Our wells
are currently producing natural gas and, to a far lesser extent, oil and liquid
gas which are our only products. Most of our gas is gathered and delivered to
market through Laurel Mountain Midstream, LLC’s gas gathering system, a newly
formed joint-venture between Atlas Energy’s affiliate, Atlas Pipeline Partners,
L.P. (NYSE:APL) and The Williams Companies (NYSE:WMB). We do not plan to sell
any of our wells and will continue to produce them until they are depleted or
become uneconomical to produce, at which time they will be plugged and abandoned
or sold.
  19
  
 Results
of Operations
 
 The
following table sets forth information relating to our production revenues,
volumes, sales prices, production costs and depletion during the periods
indicated:
 
 Three
      Months Ended
              
              
              Nine
      Months EndedSeptember
      30,
              
              
              September
      30,2009
              
              
              2008
              
              
              2009
              
              
              2008Production
      revenues (in thousands):Gas
              
              $
              8,119
              
              
              $
              6,997
              
              
              $
              27,791
              
              
              $
              7,283Oil
              
              
              365
              
              
              
              362
              
              
              
              1,097
              
              
              
              362Liquid
              
              
              5
              
              
              
              —
              
              
              
              5
              
              
              
              —Total
              
              $
              8,489
              
              
              $
              7,359
              
              
              $
              28,893
              
              
              $
              7,645Production
      volumes:Gas
      (mcf/day) (1)
              
              
              11,950
              
              
              
              6,781
              
              
              
              13,909
              
              
              
              3,438Oil
      (bbls/day) (1)
              
              
              66
              
              
              
              35
              
              
              
              79
              
              
              
              17Liquid
      (mcf/day) (1)
              
              
              12
              
              
              
              —
              
              
              
              4
              
              
              
              —Total
      (mcfe/day) (1)
              
              
              12,358
              
              
              
              6,991
              
              
              
              14,387
              
              
              
              3,540Average
      sales prices: (2)Gas
      (per mcf) (1)
      (3)
              
              $
              8.41
              
              
              $
              11.22
              
              
              $
              8.29
              
              
              $
              11.27Oil
      (per bbl) (1)
      (4)
              
              $
              66.96
              
              
              $
              13.26
              
              
              $
              57.02
              
              
              $
              113.26Liquid
      (per mcf) (1)
              
              $
              4.21
              
              
              $
              —
              
              
              $
              4.21
              
              
              $
              —Average
      production costs:As
      a percent of revenues
              
              
              30
              %
              
              
              15
              %
              
              
              31
              %
              
              
              16
              %Per
      mcfe (1)
              
              $
              2.22
              
              
              $
              1.76
              
              
              $
              2.32
              
              
              $
              1.78Depletion
      per mcfe
              
              $
              2.96
              
              
              $
              5.45
              
              
              $
              2.98
              
              
              $
              5.45
 ____________
 
 (1)
              “Mcf”
      means thousand cubic feet, “mcfe” means thousand cubic feet equivalent and
      “bbls” means barrels. Bbls are converted to mcfe using the ratio of six
      mcfs to one bbl. Liquids are gathered in gallons and converted to
      mcfs.
 (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 $1,127,700 and
      $3,668,100 for the three months and nine months ended September 30, 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 $43,300 and $137,800
      for the three months and nine months ended September 30, 2009,
      respectively.  The derivative gains are included in other
      comprehensive income and resulted from prior period impairment
      charges.
 
 Natural Gas
Revenues.  Our natural gas revenues were $8,119,200 and
$6,997,600 for the three months ended September 30, 2009 and 2008, respectively,
an increase of $1,121,600. The $1,121,600 increase in natural gas revenues for
the three months ended September 30, 2009 as compared to the prior year similar
period was mostly attributable to a $5,334,200 increase in production volumes,
partially offset by a $4,212,600 decrease in gas prices. Our production volumes
increased to 11,950 mcf per day for the three months ended September 30, 2009
from 6,781 mcf per day for the three months ended September 30, 2008, an
increase of 5,169 (76%) mcf per day.
 
 Our
natural gas revenues were $27,791,300 and $7,283,300 for the nine months ended
September 30, 2009 and 2008, respectively, an increase of $20,508,000. The
$20,508,000 increase in natural gas revenues for the nine months ended September
30, 2009 as compared to the prior year similar period was mostly attributable to
a $35,507,200 increase in production volumes, partially offset by a $14,999,200
decrease in gas prices. Our production volumes increased to 13,909 mcf per day
for the nine months ended September 30, 2009 from 3,438 mcf per day for the nine
months ended September 30, 2008, an increase of 10,471 mcf per
day.
  20
  
 Oil Revenues. We drill wells
primarily to produce natural gas, rather than oil, but some wells have limited
oil production. Our oil revenues were $365,200 and $361,400 for the three months
ended September 30, 2009 and 2008, respectively, an increase of $3,800 (1%). The
$3,800 increase in oil revenues for the three months ended September 30, 2009 as
compared to the prior year similar period was attributable to a $329,400
increase in production volumes, partially offset by a $325,600 decrease in oil
prices. Our production volumes increased to 66 bbls per day for the three months
ended September 30, 2009 from 35 bbls per day for the three months ended
September 30, 2008, an increase of 31 bbls (89%) per day.
 
 Our oil
revenues were $1,097,300 and $361,400 for the nine months ended September 30,
2009 and 2008, respectively, an increase of $735,900. The $735,900 increase in
oil revenues for the nine months ended September 30, 2009 as compared to the
prior year similar period was attributable to a $2,091,900 increase in
production volumes, partially offset by a $1,356,000 decrease in oil prices. Our
production volumes increased to 79 bbls per day for the nine months ended
September 30, 2009 from 17 bbls per day for the nine months ended September 30,
2008, an increase of 62 bbls per day.
 
 Natural Gas Liquids
Revenue.  The majority of our wells produce “dry gas,” which is
composed primarily of methane and requires no additional processing before being
transported and sold to the purchaser. Some wells, however, produce “wet gas,”
which contains larger amounts of ethane and other associated hydrocarbons (i.e.
“natural gas liquids”) that must be removed prior to transporting the gas. Once
removed, these natural gas liquids are sold to various purchasers. Our natural
gas liquids revenues were $4,800 for the three and nine months ended
September 30, 2009.
 
 Expenses.Production
expenses were $2,524,700 and $1,134,200 for the three months ended September 30,
2009 and 2008, respectively, an increase of $1,390,500. Production expenses were
$9,099,700 and $1,187,600 for the nine months ended September 30, 2009 and 2008,
respectively, an increase of $7,912,100. These increases were primarily due to
higher transportation fees and other variable expenses which are affected by an
increase in production volumes.
 
 Depletion
of oil and gas properties as a percentage of oil and gas revenues were 40% and
48% in the three months ended September 30, 2009 and 2008, respectively; and 41%
and 47% for the nine months ended September 30, 2009 and 2008, respectively.
These percentage changes were directly attributable to changes in revenues, oil
and gas reserve quantities, product prices, production volumes and changes in
the depletable cost basis of oil and gas properties.
 
 General
and administrative expenses were $163,700 and $394,800 for the three months and
nine months ended September 30, 2009, respectively; and $47,600 and $61,900 for
the three months and nine months ended September 30, 2008, respectively. These
expenses include third-party costs for services as well as the monthly
administrative fees charged by our MGP and vary from period to period due to the
timing and billing of the costs and services provided to the
Partnership.
 
 Liquidity
and Capital Resources
 
 Cash
provided by operating activities was $23,642,800 in the nine months ended
September 30, 2009. There was no cash provided by operations for the nine months
ended September 30, 2008. The increase was due to an increase in net earnings
before depletion and accretion of $13,009,700. In addition, an increase in the
net non-cash loss on derivative values of $3,806,000 and the change in accounts
receivable-affiliate increased operating cash flows by $6,818,900 for the nine
months ended September 30, 2009 compared to the nine months ended September 30,
2008.
 
 Cash used
in investing activities for the nine months ended September 30, 2008 consisted
of costs paid to our MGP of $236,027,000.
 
 Cash used
in financing activities was $31,700,700 for the nine months ended September 30,
2009. This was entirely due to distributions to partners. Cash provided by
financing activities was $236,027,100 during the period ended September 30, 2008
consisted of funds contributed by the investor’ partners for well drilling
costs.
  21
  
 Our MGP
may withhold funds for future plugging and abandonment costs. Any additional
funds, if required, will be obtained from production revenues or borrowings from
our MGP or its affiliates, which are not contractually committed to make loans
to us. The amount that we may borrow may not at any time exceed 5% of our total
subscriptions, and we will not borrow from third-parties.
 
 The
Partnership is generally limited to the amount of funds generated by the cash
flows from our operations, which we believe is adequate to fund future
operations and distributions to our partners. Historically, there has been no
need to borrow funds from our MGP to fund operations.
 
 Critical
Accounting Policies
 
 The
discussion and analysis of our financial condition and results of operations are
based upon our financial statements, which have been prepared in accordance with
accounting principles generally accepted in the United States of America. On an
on-going basis, we evaluate our estimates, including those related to our asset
retirement obligations, depletion and certain accrued receivables and
liabilities. We base our estimates on historical experience and on various other
assumptions that we believe reasonable under the circumstances, the results of
which form the basis for making judgments about the carrying values of assets
and liabilities that are not readily apparent from other sources. Actual results
may differ from these estimates under different assumptions or conditions. A
discussion of our significant accounting policies we have adopted and followed
in the preparation of our financial statements is included within “Notes to
Financial Statements” in Part I, Item 1, “Financial Statements” in this
quarterly report and in our Annual Report on Form 10-K for the year ended
December 31, 2008.
 
 Subordination
by Managing General Partner
 
 Under the
terms of the Partnership agreement, the MGP may be required to subordinate up to
50% of its share of net production revenues of the Partnership to provide a
distribution to the investor partners equal to at least 10% of their agreed
subscriptions. Subordination is determined on a cumulative basis, in each of the
first five years of Partnership operations, commencing with the first
distribution of net revenues to the investor partners (February 2009). Since the
inception of the program, the MGP has not been required to subordinate any of
its distributions to its limited partners.
 
 Recently
Adopted Accounting Standards
 
 In August
2009, the Financial Accounting Standards Board or FASB issued Accounting
Standards Update 2009-05, Fair
Value Measurements and Disclosures (Topic 820) – Measuring Liabilities at Fair
Value an Update 2009-05. Update 2009-05 amends subtopic 820-10, “Fair
Value Measurements and Disclosures- Overall” and provides clarification for the
fair value measurement of liabilities in circumstances where quoted prices for
an identical liability in an active market are not available. The amendments
also provide clarification for not requiring the reporting entity to include
separate inputs or adjustments to other inputs relating to the existence of a
restriction that prevents the transfer of a liability when estimating the fair
value of a liability. Additionally, these amendments clarify that both the
quoted price in an active market for an identical liability at the measurement
date and the quoted price for an identical liability when traded as an asset in
an active market when no adjustments to the quoted price of the asset are
required are considered Level 1 fair value measurements. These requirements are
effective for financial statements issued after the release of Update 2009-05.
We adopted the requirements on September 30, 2009 and it did not have a material
impact on our financial position, results of operations or related
disclosures.
  22
  
 In June
2009, the FASB issued Accounting Standards Update 2009-01, Topic 105- Generally Accepted
Accounting Principles Amendments Based on Statements of Financial Accounting
Standards No. 168- The FASB Accounting Standards Codification and the Hierarchy
of Generally Accepted Accounting Principles an Update 2009-01. Update
2009-01 establishes the FASB Accounting Standards Codification or ASC as the
single source of authoritative U.S. generally accepted accounting principles
recognized by the FASB to be applied by nongovernmental entities. The ASC
supersedes all existing non-Securities and Exchange Commission accounting and
reporting standards.  Following the ASC, the FASB will not issue new
standards in the form of Statements, FASB Staff Positions, or Emerging Issues
Task Force Abstracts. Instead, the FASB will issue Accounting Standards Updates,
which will serve only to update the ASC. ASC 105 is effective for financial
statements issued for interim and annual periods ending after September 15,
2009. Entities are not required to include specific references to the ASC in
their financial statements and, therefore, we have removed all previous
references to FASB authoritative guidance and describes our accounting policies
using a “plain English” approach. We adopted the requirements of Update 2009-01
to our financial statements on September 30, 2009 and it did not have a material
impact to our financial statement disclosures.
 
 In May
2009, the FASB issued ASC 855-10, Subsequent Events or ASC
855-10.  ASC 855-10 establishes general standards of accounting for
and disclosure of events that occur after the balance sheet date but before
financial statements are issued or are available to be issued. The provisions
require management of a reporting entity to evaluate events or transactions that
may occur after the balance sheet date for potential recognition or disclosure
in the financial statements and provides guidance for disclosures that an entity
should make about those events. ASC 855-10 is effective for interim or annual
financial periods ending after June 15, 2009 and shall be applied
prospectively.  We adopted the requirements of this standard on June
30, 2009 and it did not have a material impact to our financial position or
results of operations or related disclosures. The adoption of these provisions
does not change our current practices with respect to evaluating, recording and
disclosing subsequent events.
 
 In April
2009, the FASB issued ASC 820-10-65-4, Determining Fair Value When the
Volume and Level of Activity for the Asset or Liability Have Significantly
Decreased and Identifying Transactions That Are Not Orderly or ASC
820-10-65-4. ASC 820-10-65-4 applies to all fair value measurements and provides
additional clarification on estimating fair value when the market activity for
an asset has declined significantly. ASC 820-10-65-4 also require an entity to
disclose a change in valuation technique and related inputs to the valuation
calculation and to quantify its effects, if practicable. ASC 820-10-65-4 is
effective for interim and annual periods ending after June 15, 2009, with early
adoption permitted for periods ending after March 15, 2009. We adopted the
requirements of ASC 820-10-65-4 on April 1, 2009 and its adoption did not have a
material impact on our financial position and results of
operations.
 
 In April
2009, the FASB issued ASC 825-10-65-1, Interim Disclosures about Fair Value
of Financial Instruments or ASC 825-10-65-1, which requires an entity to
provide disclosures about fair value of financial instruments in interim
financial information. In addition, an entity shall disclose in the body or in
the accompanying notes of its summarized financial information for interim
reporting periods and in its financial statements for annual reporting periods
the fair value of all financial instruments for which it is practicable to
estimate that value, whether recognized or not recognized in the statement of
financial position. ASC 825-10-65-1 is effective for interim periods ending
after June 15, 2009, with early adoption permitted for periods ending after
March 15, 2009.  We adopted these requirements on April 1, 2009 and
its adoption did not have a material impact on our financial position and
results of operations.
 
 In March
2008, the FASB issued ASC 815-10-50-1, Disclosures about Derivative
Instruments and Hedging Activities or ASC 815-10-50-1, to require
enhanced disclosure about how and why an entity uses derivative instruments, how
derivative instruments and related hedged items are accounted for and how
derivative instruments and related hedged items affect an entity’s financial
position, financial performance and cash flows. We adopted the requirements of
this section of ASC 815-10-50-1 on January 1, 2009 and it did not have a
material impact on our financial position or results of operations (see Note
5).
  23
  Modernization
of Oil and Gas Reporting
 
 In
December 2008, the Securities and Exchange Commission or SEC announced that it
had approved revisions to its oil and gas reporting disclosures by adopting
amendments to Rule 4-10 of Regulation S-X and Items 201, 801, and 802 of
Regulation S-K. These new disclosure requirements are referred to as
“Modernization of Oil and Gas Reporting” and include provisions
that:
 
 ·
              Introduce
      a new definition of oil and gas producing activities. This new definition
      allows companies to include in their reserve base volumes from
      unconventional resources. Such unconventional resources include bitumen
      extracted from oil sands and oil and gas extracted from coal beds and
      shale formations.
 
 ·
              Report
      oil and gas reserves using an unweighted average price using the prior
      12-month period, based on the closing prices on the first day of each
      month, rather than year-end pricing. This should maximize the
      comparability of reserve estimates among companies and mitigate the
      distortion of the estimates that arises when using a single pricing
      date.
 
 ·
              Permit
      companies to disclose their probable and possible reserves on a voluntary
      basis. Current rules limit disclosure to only proved
    reserves.
 
 ·
              Update
      and revise reserve definitions to reflect changes in the oil and gas
      industry and new technologies. New updated definitions include “by
      geographic area” and “reasonable
certainty.”
 
 ·
              Permit
      the use of new technologies to determine proved reserves if those
      technologies have been demonstrated empirically to lead to reliable
      conclusions about reserves volumes.
 
 ·
              Require
      additional disclosures regarding the qualifications of the chief technical
      person who oversees the Partnership’s overall reserve estimation process.
      Additionally, disclosures are required related to internal controls over
      reserve estimation, as well as a report addressing the independence and
      qualifications of a Partnership’s reserves preparer or auditor based on
      Society of Petroleum Engineers
criteria.
 
 We will
begin complying with the disclosure requirements in its annual report on Form
10-K for the year ending December 31, 2009. The new rules may not be applied to
disclosures in quarterly reports prior to the first annual report in which the
revised disclosures are required. We are currently in the process of evaluating
the new requirements.
 
 ITEM
4.  CONTROLS AND PROCEDURES
 
 Evaluation
of Disclosure Controls and Procedures
 
 The
Partnership maintains disclosure controls and procedures that are designed to
ensure that information required to be disclosed in Securities and Exchange Act
of 1934 reports is recorded, processed, summarized and reported within the time
periods specified in the SEC’s rules and forms, and that such information is
accumulated and communicated to the MGP’s management, including the chief
executive officer and the chief financial officer, as appropriate, to allow
timely decisions regarding required disclosure. In designing and evaluating the
disclosure controls and procedures, the MGP’s management recognized that any
controls and procedures, no matter how well designed and operated, can provide
only reasonable assurance of achieving the desired control objectives, and the
MGP’s management necessarily was required to apply its judgment in evaluating
the cost-benefit relationship of possible controls and
procedures.
  24
  
 Under the
supervision of the chief executive officer and chief financial officer, the MGP
has carried out an evaluation of the effectiveness of the Partnership’s
disclosure controls and procedures as of the end of the period covered by this
report. Based upon that evaluation, the chief executive officer and chief
financial officer concluded that the Partnership’s disclosure controls and
procedures are effective at the reasonable assurance level at September 30,
2009.
 
 There
have been no changes in the Partnership’s internal control over financial
reporting during our most recent fiscal quarter that have materially affected,
or are reasonably likely to materially effect, our internal control over
financial reporting.
 
 PART
II. OTHER INFORMATION
 
 ITEM
6.  EXHIBITS
 
 EXHIBIT
INDEX
 
 Exhibit
      No.
              
              Description4.0
              
              Amended
      and Restated Certificate and Agreement of Limited Partnership for Public
      17-2007 (B) L.P. (1)10.1
              
              Drilling
      and Operating Agreement for Atlas America Public 17-2007 (B) L.P. (1)31.1
              
              Certification
      Pursuant to Rule 13a-14/15(d)-1431.2
              
              Certification
      Pursuant to Rule 13a-14/15(d)-1432.1
              
              Certification
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes-OxleyAct
      of 200232.2
              
              Certification
      Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of
      the Sarbanes-OxleyAct
      of 2002
 _____________
 
 (1)
              
              Filed
      on June 27, 2007 in the Form S-1 Registration Statement dated June 27,
      2007, File No. 333-144070
  25
  
 SIGNATURES
 
 Pursuant
      to the requirements of the Securities of the Exchange Act of 1934, the
      registrant has duly caused this report to be signed on its behalf by the
      undersigned, thereunto duly authorized.Atlas
      Resources Public 17-2008 (B) L.P.Atlas
      Resources, LLC, Managing General PartnerDate:  November
      16, 2009
              
              By:/s/ Freddie M.
      KotekFreddie
      M. Kotek, Chairman of the Board of Directors, Chief Executive
      Officerand
      PresidentIn
      accordance with the Exchange Act, this report has been signed by the
      following persons on behalf of the registrant and in the capacities and on
      the dates indicated.Date:  November
      16, 2009
              
              By:/s/ Freddie M.
      KotekFreddie
      M. Kotek, Chairman of the Board of Directors, Chief
    ExecutiveOfficer
      and PresidentDate:  November
      16, 2009
              
              By:/s/ Matthew A.
      JonesMatthew
      A. Jones, Chief Financial OfficerDate:  November
      16, 2009
              
              By:/s/ Sean P.
      McGrathSean
      P. McGrath. Chief Accounting Officer
 
  26