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| West Virginia                                                  | 38-3648762                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

|   | Title of Each Class           |   |
|--------|-------------------------------|--------|
|   | Limited Partnership Interests |   |

| Large accelerated filer |  ̈ | Accelerated filer         |  ̈ |
|-------------------------|--------|---------------------------|--------|
|                    |   |                      |   |
| Non-accelerated filer   |  ̈ | Smaller reporting company | þ |

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PD

|                 |                                                                                                               | Page   |
|----------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|                 | PART I                                                                                                        |   |
|                 | Explanatory Note to This Comprehensive Annual Report                                                               | 1      |
| Item 1               | Business                                                                                                           | 4      |
| Item 1A              | Risk Factors                                                                                                       | 21     |
| Item 1B              | Unresolved Staff Comments                                                                                          | 21     |
| Item 2               | Properties                                                                                                         | 21     |
| Item 3               | Legal Proceedings                                                                                                  | 21     |
| Item 4               | [Removed and Reserved]                                                                                             | 21     |
|                 |                                                                                                               |   |
|                 | PART II                                                                                                       |   |
| Item 5               | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 22     |
| Item 6               | Selected Financial Data                                                                                            | 24     |
| Item 7               | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 25     |
| Item 7A              | Quantitative and Qualitative Disclosures About Market Risk                                                         | 40     |
| Item 8               | Financial Statements and Supplementary Data                                                                        | 40     |
| Item 9               | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                               | 40     |
| Item 9A              | Controls and Procedures                                                                                            | 40     |
| Item 9B              | Other Information                                                                                                  | 44     |
|                 |                                                                                                               |   |
|                 | PART III                                                                                                      |   |
| Item 10              | Directors, Executive Officers and Corporate Governance                                                             | 44     |
| Item 11              | Executive Compensation                                                                                             | 48     |
| Item 12              | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 49     |
| Item 13              | Certain Relationships and Related Transactions, and Director Independence                                          | 49     |
| Item 14              | Principal Accountant Fees and Services                                                                             | 51     |
|                 |                                                                                                               |   |
|                 | PART IV                                                                                                       |   |
| Item 15              | Exhibits, Financial Statement Schedules                                                                            | 52     |
|                 |                                                                                                               |
| Signatures           | 55                                                                                                                 |
|                 |                                                                                                               |
| Financial Statements | F-1                                                                                                                |

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EXPLANATORY NOTE TO THIS COMPREHENSIVE ANNUAL REPORT

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|   | · | changes in production volumes and worldwide demand; |
|--------|--------|-----------------------------------------------------|

|   | · | volatility of commodity prices for natural gas, NGLs and crude oil; |
|--------|--------|---------------------------------------------------------------------|

|   | · | changes in estimates of proved reserves; |
|--------|--------|------------------------------------------|

|   | · | inaccuracy of reserve estimates and expected production rates; |
|--------|--------|----------------------------------------------------------------|

|   | · | declines in the value of the Partnership’s natural gas and crude oil properties resulting in impairments; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | the availability of Partnership future cash flows for investor distributions or funding of refracturing  activities; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | the timing and extent of the Partnership’s success in further developing and producing the Partnership’s reserves; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------|

|   | · | the Managing General Partner’s ability to acquire drilling rig services, supplies and services at reasonable prices; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | risks incidental to the refracturing and operation of natural gas and crude oil wells; |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | the availability of sufficient pipeline and other transportation facilities to carry Partnership production and the impact of these facilities on price; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the effect of existing and future laws, governmental regulations and the political and economic climate of the U.S. as well as other oil producing countries throughout the world; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | changes in environmental laws, the regulation and enforcement of those laws and the costs to comply with those laws; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------|

|   | · | the impact of environmental events, governmental responses to the events and the Managing General Partner’s ability to insure adequately against such events; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | competition in the oil and gas industry; |
|--------|--------|------------------------------------------|

|   | · | the success of the Managing General Partner in marketing the Partnership’s natural gas, NGLs and crude oil; |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

|   | · | the effect of natural gas and crude oil derivative activities; |
|--------|--------|----------------------------------------------------------------|

|   | · | the availability of funding for the consideration payable by PDC and its wholly-owned subsidiary to consummate the prospective mergers of the 2003 and 2002 partnerships and the timing of consummating these mergers, if at all; |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | losses possible from pending or future litigation; and |
|--------|--------|--------------------------------------------------------|

|   | · | the success of strategic plans, expectations and objectives for future operations of the Managing General Partner. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

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| ITEM 1. | BUSINESS |
|---------|----------|

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|                                          |   | Producing Gas Wells |   |
|-----------------------------------------------|--------|---------------------|--------|
|                                          |   | 2010                |   |   | 2009 |   |   | 2008 |   |
| Location                                      |   | Gross               |   |   | Net |   |   | Gross |   |   | Net |   |   | Gross |   |   | Net |   |
| State of Colorado                             |   |                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                | 3.0    |   |   |   | 3.0 |   |   |   | 3.0 |   |   |   | 3.0 |   |   |   | 3.0 |   |   |   | 3.0 |   |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                | 11.0   |   |   |   | 9.8 |   |   |   | 11.0 |   |   |   | 9.8 |   |   |   | 11.0 |   |   |   | 9.8 |   |
| Total Colorado Productive Wells               |   |                | 14.0   |   |   |   | 12.8 |   |   |   | 14.0 |   |   |   | 12.8 |   |   |   | 14.0 |   |   |   | 12.8 |   |

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|   | · | Proved developed reserves are those natural gas, NGLs and crude oil quantities expected to be recovered from currently producing zones under the continuation of present operating methods. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Proved undeveloped reserves, or PUDs, are those reserves expected to be recovered from existing wells where a relatively major expenditure is required for refracturing. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                            |   | As of December 31, |   |
|---------------------------------|--------|--------------------|--------|
|                            |   | 2010               |   |   | 2009 |   |   | 2008 |   |
| Proved Reserves                 |   |               |   |   |   |   |   |   |   |
| Natural gas (MMcf)              |   |               | 1,079  |   |   |   | 1,319 |   |   |   | 1,372 |   |
| Crude Oil and Condensate (MBbl) |   |               | 65     |   |   |   | 84 |   |   |   | 91 |   |
| NGLs (MBbl)                     |   |               | 18     |   |   |   | - |   |   |   | - |   |
| Total proved reserves (MMcfe)   |   |               | 1,577  |   |   |   | 1,823 |   |   |   | 1,918 |   |

|   | · | For 2010 and 2009, a 12-month average price calculated as the unweighted arithmetic average of the prices on the first day of each month, January through December; for 2008, prices in effect as of December 31, 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Prices were adjusted by lease for Btu content, transportation and regional price differences; however, they were not adjusted to reflect the value of the Partnership’s commodity hedges. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Costs as of December 31 for each of the respective years presented. |
|--------|--------|---------------------------------------------------------------------|

|   | · | The amounts shown do not give effect to non-property related expenses, such as direct costs−general and administrative expenses or to depreciation, depletion and amortization expense. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                          |   | As of December 31, 2010 |   |
|-----------------------------------------------|--------|-------------------------|--------|
|                                          |   |                    |   |   |   |   |   | Crude Oil and |   |   | Natural Gas |   |   |   |   |
|                                          |   | Natural Gas        |   |   | NGLs |   |   | Condensate |   |   | Equivalent |   |   |   |   |
|                                          |   | (MMcf)                  |   |   | (MBbl) |   |   | (MBbl) |   |   | (MMcfe) |   |   | Percent |   |
| Proved developed                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | 640    |   |   |   | - |   |   |   | 2 |   |   |   | 652 |   |   |   | 68 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 130    |   |   |   | 9 |   |   |   | 21 |   |   |   | 310 |   |   |   | 32 | % |
| Total proved developed                        |   |                    | 770    |   |   |   | 9 |   |   |   | 23 |   |   |   | 962 |   |   |   | 100 | % |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved undeveloped                            |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 309    |   |   |   | 9 |   |   |   | 42 |   |   |   | 615 |   |   |   | 100 | % |
| Total proved undeveloped                      |   |                    | 309    |   |   |   | 9 |   |   |   | 42 |   |   |   | 615 |   |   |   | 100 | % |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved reserves                               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | 640    |   |   |   | - |   |   |   | 2 |   |   |   | 652 |   |   |   | 41 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 439    |   |   |   | 18 |   |   |   | 63 |   |   |   | 925 |   |   |   | 59 | % |
| Total proved reserves                         |   |                    | 1,079  |   |   |   | 18 |   |   |   | 65 |   |   |   | 1,577 |   |   |   | 100 | % |

|                                          |   | As of December 31, 2009 |   |
|-----------------------------------------------|--------|-------------------------|--------|
|                                          |   |                    |   |   |   |   |   | Crude Oil and |   |   | Natural Gas |   |   |   |   |
|                                          |   | Natural Gas        |   |   | NGLs |   |   | Condensate |   |   | Equivalent |   |   |   |   |
|                                          |   | (MMcf)                  |   |   | (MBbl) |   |   | (MBbl) |   |   | (MMcfe) |   |   | Percent |   |
| Proved developed                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | 624    |   |   |   | - |   |   |   | 1 |   |   |   | 630 |   |   |   | 69 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 157    |   |   |   | - |   |   |   | 21 |   |   |   | 283 |   |   |   | 31 | % |
| Total proved developed                        |   |                    | 781    |   |   |   | - |   |   |   | 22 |   |   |   | 913 |   |   |   | 100 | % |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved undeveloped                            |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 538    |   |   |   | - |   |   |   | 62 |   |   |   | 910 |   |   |   | 100 | % |
| Total proved undeveloped                      |   |                    | 538    |   |   |   | - |   |   |   | 62 |   |   |   | 910 |   |   |   | 100 | % |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved reserves                               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | 624    |   |   |   | - |   |   |   | 1 |   |   |   | 630 |   |   |   | 35 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 695    |   |   |   | - |   |   |   | 83 |   |   |   | 1,193 |   |   |   | 65 | % |
| Total proved reserves                         |   |                    | 1,319  |   |   |   | - |   |   |   | 84 |   |   |   | 1,823 |   |   |   | 100 | % |

|                                          |   | As of December 31, 2008 |   |
|-----------------------------------------------|--------|-------------------------|--------|
|                                          |   |                    |   |   |   |   |   | Crude Oil and |   |   | Natural Gas |   |   |   |   |
|                                          |   | Natural Gas        |   |   | NGLs |   |   | Condensate |   |   | Equivalent |   |   |   |   |
|                                          |   | (MMcf)                  |   |   | (MBbl) |   |   | (MBbl) |   |   | (MMcfe) |   |   | Percent |   |
| Proved developed                              |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | 500    |   |   |   | - |   |   |   | 1 |   |   |   | 506 |   |   |   | 63 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 161    |   |   |   | - |   |   |   | 22 |   |   |   | 293 |   |   |   | 37 | % |
| Total proved developed                        |   |                    | 661    |   |   |   | - |   |   |   | 23 |   |   |   | 799 |   |   |   | 100 | % |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved undeveloped                            |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 0 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 711    |   |   |   | - |   |   |   | 68 |   |   |   | 1,119 |   |   |   | 100 | % |
| Total proved undeveloped                      |   |                    | 711    |   |   |   | - |   |   |   | 68 |   |   |   | 1,119 |   |   |   | 100 | % |
|                                          |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Proved reserves                               |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field            |   |                    | 500    |   |   |   | - |   |   |   | 1 |   |   |   | 506 |   |   |   | 26 | % |
| Denver-Julesburg (DJ) Basin: Wattenberg Field |   |                    | 872    |   |   |   | - |   |   |   | 90 |   |   |   | 1,412 |   |   |   | 74 | % |
| Total proved reserves                         |   |                    | 1,372  |   |   |   | - |   |   |   | 91 |   |   |   | 1,918 |   |   |   | 100 | % |

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Table of Contents

|                                                         |   | Year Ended December 31, |    |
|--------------------------------------------------------------|--------|-------------------------|---------|
|                                                         |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
| Production(1)                                                |   |                    |    |   |   |   |   |   |   |
|                                                         |   |                    |    |   |   |   |   |   |   |
| Natural gas (Mcf)                                            |   |                    |    |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   |                    | 86,486  |   |   |   | 95,207 |   |   |   | 86,232 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 23,822  |   |   |   | 28,302 |   |   |   | 29,151 |   |
| Total Natural Gas                                            |   |                    | 110,308 |   |   |   | 123,509 |   |   |   | 115,383 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Crude Oil (Bbl)                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   |                    | 212     |   |   |   | 435 |   |   |   | 310 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 3,222   |   |   |   | 3,376 |   |   |   | 4,305 |   |
| Total Crude Oil                                              |   |                    | 3,434   |   |   |   | 3,811 |   |   |   | 4,615 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| NGLs (Bbl)                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 1,462   |   |   |   | - |   |   |   | - |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Natural gas equivalent (Mcfe)                                |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   |                    | 87,758  |   |   |   | 97,817 |   |   |   | 88,092 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 51,926  |   |   |   | 48,558 |   |   |   | 54,981 |   |
| Total natural gas equivalent                                 |   |                    | 139,684 |   |   |   | 146,375 |   |   |   | 143,073 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Natural Gas, NGLs and Crude Oil Sales                        |   |                    |    |   |   |   |   |   |   |   |   |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Natural gas sales                                            |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 292,040 |   |   | $ | 245,678 |   |   | $ | 533,753 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 90,043  |   |   |   | 117,780 |   |   |   | 231,115 |   |
| Total natural gas sales                                      |   | $                       | 382,083 |   |   | $ | 363,458 |   |   | $ | 764,868 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Crude oil sales                                              |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 12,446  |   |   | $ | 21,035 |   |   | $ | 24,010 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 237,660 |   |   |   | 182,959 |   |   |   | 376,612 |   |
| Total crude oil sales                                        |   | $                       | 250,106 |   |   | $ | 203,994 |   |   | $ | 400,622 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| NGLs sales                                                   |   |                    |    |   |   |   |   |   |   |   |   |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   | $                       | 62,486  |   |   | $ | - |   |   | $ | - |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales                        |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 304,486 |   |   | $ | 266,713 |   |   | $ | 557,763 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 390,189 |   |   |   | 300,739 |   |   |   | 607,727 |   |
| Total natural gas, NGLs and crude oil sales                  |   | $                       | 694,675 |   |   | $ | 567,452 |   |   | $ | 1,165,490 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Average Sales Price (excluding realized gain on derivatives) |   |                    |    |   |   |   |   |   |   |   |   |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Natural gas (per Mcf)                                        |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 3.38    |   |   | $ | 2.58 |   |   | $ | 6.19 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 3.78    |   |   |   | 4.16 |   |   |   | 7.93 |   |
| Average sales price natural gas, both fields                 |   |                    | 3.46    |   |   |   | 2.94 |   |   |   | 6.63 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Crude Oil (per Bbl)                                          |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 58.71   |   |   | $ | 48.36 |   |   | $ | 77.45 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 73.76   |   |   |   | 54.19 |   |   |   | 87.48 |   |
| Average sales price crude oil, both fields                   |   |                    | 72.83   |   |   |   | 53.53 |   |   |   | 86.81 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| NGLs (per Bbl)                                               |   |                    |    |   |   |   |   |   |   |   |   |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   | $                       | 42.74   |   |   | $ | - |   |   | $ | - |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Natural gas equivalent (per Mcfe)                            |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 3.47    |   |   | $ | 2.73 |   |   | $ | 6.33 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 7.51    |   |   |   | 6.19 |   |   |   | 11.05 |   |
| Average sales price natural gas equivalents, both fields     |   |                    | 4.97    |   |   |   | 3.88 |   |   |   | 8.15 |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Average Production (Lifting) Cost  (2)(per Mcfe)   |   |                    |    |   |   |   |   |   |   |   |   |   |
|                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |
| Piceance Basin: Grand Valley Field                           |   | $                       | 1.56    |   |   | $ | 1.84 |   |   | $ | 1.67 |   |
| Denver-Julesberg (DJ) Basin: Wattenberg Field                |   |                    | 2.40    |   |   |   | 2.83 |   |   |   | 2.14 |   |
| Average production cost, both fields                         |   |                    | 1.88    |   |   |   | 2.16 |   |   |   | 1.85 |   |

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|   | (1) | Production is net and determined by multiplying the gross production volume of properties in which the Partnership has an interest by the average percentage of the leasehold or other property interest the Partnership owns. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Average production unit costs presented exclude the effects of ad valorem and severance taxes. |
|--------|-----|------------------------------------------------------------------------------------------------|

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|   | · | Wattenberg Field contractual natural gas and NGLs processing and sales dedications are multi-year and extend throughout the well’s economic life. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Grand Valley Field contractual natural gas processing and firm sales dedications extend through 2022 and the contract provides the seller with the right to convert to a gathering and gas processing contract, solely. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Crude oil sales dedication is made under a 2-year master agreement with negotiated extensions. |
|--------|--------|------------------------------------------------------------------------------------------------|

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|   | · | bond requirements in order to drill or operate wells; |
|--------|--------|-------------------------------------------------------|

|   | · | the location of wells; |
|--------|--------|------------------------|

|   | · | the method of drilling and casing wells; |
|--------|--------|------------------------------------------|

|   | · | the surface use and restoration of well properties; |
|--------|--------|-----------------------------------------------------|

|   | · | the plugging and abandoning of wells; and |
|--------|--------|-------------------------------------------|

|   | · | the disposal of fluids. |
|--------|--------|-------------------------|

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|   | · | costs of providing service, including depreciation expense; |
|--------|--------|-------------------------------------------------------------|

|   | · | allowed rate of return, including the equity component of the capital structure and related income taxes; and |
|--------|--------|---------------------------------------------------------------------------------------------------------------|

|   | · | volume throughput assumptions. |
|--------|--------|--------------------------------|

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|   | · | The U.S. Environmental Protection Agency, or EPA, has recently focused on citizen concerns about the risk of water contamination and public health problems from drilling and hydraulic fracturing activities.  The EPA has held public meetings around the country on this issue that have been well publicized and well attended.  This renewed focus could lead to additional federal and state laws and regulations affecting the Partnership’s refracturing operations.  Additional laws, regulations or other changes could significantly reduce the Partnership’s future refracturing opportunities, increase the Partnership’s costs of operations, and reduce the Partnership’s cash available for distributions, in addition to undermining the demand for the natural gas and crude oil the Partnership produces. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Several bills in Congress, if passed, would establish a "cap and trade" system regarding greenhouse gas emissions.  Companies would be assigned emission "allowances" under these bills which would decline each year.  In addition, new EPA greenhouse gas monitoring and reporting regulations may affect the Partnership and the third parties that process the Partnership’s natural gas, NGLs and crude oil. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | New or increased severance taxes have been proposed in several states, which could adversely affect the existing operations in these states and the economic viability of future refracturing. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In July 2010, President Obama signed into law the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”).  The Dodd-Frank Act regulates derivative transactions, including the Partnership’s natural gas and crude oil hedging swaps.  These swaps are broadly defined to include most of the Partnership’s hedging instruments.  The new law requires the issuance of new regulations and administrative procedures related to derivatives within one year.  The effect of such future regulations on the Partnership’s business is currently uncertain.  In particular, the Dodd-Frank Act could potentially impact the Partnership’s business operations as follows: |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | i. | The Dodd-Frank Act may decrease the Managing General Partner’s ability to enter into hedging transactions which would expose the Partnership to additional risks related to commodity price volatility.  Commodity price decreases could then have an immediate significant adverse affect on the Partnership’s revenues and impair the Partnership’s ability to have certainty with respect to a portion of the Partnership’s cash available for distributions.  A reduction in cash flows may lead to decreased Investor Partner cash distributions or fewer completed Codell formation refracturing activities and therefore, decreased Partnership’s proved reserves and future production. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | ii. | The Managing General Partner expects that the cost to hedge will increase as a result of fewer counterparties in the market and the pass-through of increased counterparty costs.  The Partnership’s derivative counterparties may be subject to significant new capital, margin and business conduct requirements imposed as a result of the new legislation. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iii. | The Dodd-Frank Act contemplates that most swaps will be required to be cleared through a registered clearing facility and traded on a designated exchange or swap execution facility.  There are some exceptions to these requirements for entities that use swaps to hedge or mitigate commercial risk.  While the Partnership may ultimately be eligible for such exceptions, the scope of these exceptions currently is somewhat uncertain, pending further definition through rulemaking proceedings. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | iv. | The above factors could also affect the pricing of derivatives and make it more difficult for the Managing General Partner to enter into hedging transactions on behalf of the Partnership, on favorable terms. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 1A. | RISK FACTORS |
|----------|--------------|

| ITEM 1B. | UNRESOLVED STAFF COMMENTS |
|----------|---------------------------|

| ITEM 2. | PROPERTIES |
|---------|------------|

| ITEM 3. | LEGAL PROCEEDINGS |
|---------|-------------------|

| ITEM 4. | [REMOVED AND RESERVED] |
|---------|------------------------|

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| ITEM 5. | MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
|---------|--------------------------------------------------------------------------------------------------------------------|

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|                                                                 |   | Cash          |      |
|----------------------------------------------------------------------|--------|---------------|-----------|
| Period                                                               |   | Distributions |      |
|                                                                 |   |          |      |
| For the year ended December 31, 2010                                 |   | $             | 466,879   |   |
| For the year ended December 31, 2009                                 |   |          | 893,022   |   |
| For the year ended December 31, 2008                                 |   |          | 640,506   |   |
|                                                                 |   |          |      |   |
| For the period from the Partnership's inception to December 31, 2010 |   | $             | 9,460,879 |   |

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| Unit repurchase program period |   | UnitsRepurchased DuringMonth Ended |   |   | Average PricePaid perUnit |   |
|--------------------------------|--------|------------------------------------|--------|--------|---------------------------|--------|
|                           |   |                               |   |   |                      |   |
| April 2008                     |   |                               | 0.25   |   |                      | $      | 2,460 |   |
| July 2008                      |   |                               | 5.35   |   |                      |   | 2,457 |   |
|                           |   |                               |   |   |                      |   |   |   |
| April 2009                     |   |                               | 0.75   |   |                      |   | 3,727 |   |
| June 2009                      |   |                               | 0.25   |   |                      |   | 4,040 |   |
| September 2009                 |   |                               | 2.00   |   |                      |   | 3,735 |   |
| October 2009                   |   |                               | 5.00   |   |                      |   | 3,538 |   |
|                           |   |                               |   |   |                      |   |   |   |
| July 2010                      |   |                               | 0.25   |   |                      |   | 2,300 |   |
| December 2010                  |   |                               | 5.04   |   |                      |   | 3,170 |   |
|                           |   |                               |   |   |                      |   |   |   |
| January 2011                   |   |                               | 0.25   |   |                      |   | 3,400 |   |
| February 2011                  |   |                               | 1.20   |   |                      |   | 2,596 |   |

| ITEM 6. | SELECTED FINANCIAL DATA |
|---------|-------------------------|

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| ITEM 7. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
|---------|---------------------------------------------------------------------------------------------|

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|                                                                  |   | Year Ended December 31, |    |
|-----------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                  |   | 2010                    |    |   | 2009 |   |   | 2008 |   |   | 2010-2009 |   |   | 2009-2008 |   |
| Number of producing wells (end of period)                             |   |                    | 14      |   |   |   | 14 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Production(1)                                                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas (Mcf)                                                     |   |                    | 110,308 |   |   |   | 123,509 |   |   |   | 115,383 |   |   |   | -11 | % |   |   | 7 | % |
| NGLs (Bbl)                                                            |   |                    | 1,462   |   |   |   | - |   |   |   | - |   |   |   | * |   |   |   | * |   |
| Subtotal natural gas and NGLs (Mcfe)(2)                               |   |                    | 119,080 |   |   |   | 123,509 |   |   |   | 115,383 |   |   |   | -4 | % |   |   | 7 | % |
| Crude oil (Bbl)                                                       |   |                    | 3,434   |   |   |   | 3,811 |   |   |   | 4,615 |   |   |   | -10 | % |   |   | -17 | % |
| Natural gas equivalents (Mcfe)(2)                                     |   |                    | 139,684 |   |   |   | 146,375 |   |   |   | 143,073 |   |   |   | -5 | % |   |   | 2 | % |
| Mcfe per day                                                          |   |                    | 383     |   |   |   | 401 |   |   |   | 392 |   |   |   | -5 | % |   |   | 2 | % |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural Gas, NGLs and Crude Oil Sales                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas                                                           |   | $                       | 382,083 |   |   | $ | 363,458 |   |   | $ | 764,868 |   |   |   | 5 | % |   |   | -52 | % |
| NGLs                                                                  |   |                    | 62,486  |   |   |   | - |   |   |   | - |   |   |   | * |   |   |   | * |   |
| Subtotal natural gas and NGLs                                         |   |                    | 444,569 |   |   |   | 363,458 |   |   |   | 764,868 |   |   |   | 22 | % |   |   | -52 | % |
| Crude oil                                                             |   |                    | 250,106 |   |   |   | 203,994 |   |   |   | 400,622 |   |   |   | 23 | % |   |   | -49 | % |
| Total natural gas, NGLs and crude oil sales                           |   | $                       | 694,675 |   |   | $ | 567,452 |   |   | $ | 1,165,490 |   |   |   | 22 | % |   |   | -51 | % |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized Gain (Loss) on Derivatives, net                              |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas                                                           |   | $                       | 74,404  |   |   | $ | 273,739 |   |   | $ | 48,963 |   |   |   | -73 | % |   |   | * |   |
| Crude oil                                                             |   |                    | 33,704  |   |   |   | 77,307 |   |   |   | (12,829 | ) |   |   | -56 | % |   |   | * |   |
| Total realized gain on derivatives, net                               |   | $                       | 108,108 |   |   | $ | 351,046 |   |   | $ | 36,134 |   |   |   | -69 | % |   |   | * |   |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Selling Price (excluding realized gain (loss) on derivatives) |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas (per Mcf)                                                 |   | $                       | 3.46    |   |   | $ | 2.94 |   |   | $ | 6.63 |   |   |   | 18 | % |   |   | -56 | % |
| NGLs (per Bbl)                                                        |   |                    | 42.74   |   |   |   | - |   |   |   | - |   |   |   | * |   |   |   | * |   |
| Natural gas and NGLs (per Mcfe)                                       |   |                    | 3.73    |   |   |   | 2.94 |   |   |   | 6.63 |   |   |   | 27 | % |   |   | -56 | % |
| Crude oil (per Bbl)                                                   |   |                    | 72.83   |   |   |   | 53.53 |   |   |   | 86.81 |   |   |   | 36 | % |   |   | -38 | % |
| Natural gas equivalents (per Mcfe)                                    |   |                    | 4.97    |   |   |   | 3.88 |   |   |   | 8.15 |   |   |   | 28 | % |   |   | -52 | % |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Selling Price (including realized gain (loss) on derivatives) |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas (per Mcf)                                                 |   | $                       | 4.14    |   |   | $ | 5.16 |   |   | $ | 7.05 |   |   |   | -20 | % |   |   | -27 | % |
| NGLs (per Bbl)                                                        |   |                    | 42.74   |   |   |   | - |   |   |   | - |   |   |   | * |   |   |   | * |   |
| Natural gas and NGLs (per Mcfe)                                       |   |                    | 4.36    |   |   |   | 5.16 |   |   |   | 7.05 |   |   |   | -16 | % |   |   | -27 | % |
| Crude oil (per Bbl)                                                   |   |                    | 82.65   |   |   |   | 73.81 |   |   |   | 84.03 |   |   |   | 12 | % |   |   | -12 | % |
| Natural gas equivalents (per Mcfe)                                    |   |                    | 5.75    |   |   |   | 6.27 |   |   |   | 8.40 |   |   |   | -8 | % |   |   | -25 | % |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average cost per Mcfe                                                 |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production cost(3)                    |   | $                       | 2.12    |   |   | $ | 2.31 |   |   | $ | 2.54 |   |   |   | -8 | % |   |   | -9 | % |
| Depreciation, depletion and amortization                              |   |                    | 3.49    |   |   |   | 3.94 |   |   |   | 3.71 |   |   |   | -11 | % |   |   | 6 | % |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                         |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Direct costs - general and administrative                             |   | $                       | 208,232 |   |   | $ | 18,240 |   |   | $ | 26,013 |   |   |   | * |   |   |   | -30 | % |
| Depreciation, depletion and amortization                              |   |                    | 487,610 |   |   |   | 576,716 |   |   |   | 531,461 |   |   |   | -15 | % |   |   | 9 | % |
|                                                                  |   |                    |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash distributions                                                    |   | $                       | 466,879 |   |   | $ | 893,022 |   |   | $ | 640,506 |   |   |   | -48 | % |   |   | 39 | % |

|   | (1) | Production is net and determined by multiplying the gross production volume of properties in which the Partnership has an interest by the average percentage of the leasehold or other property interest the Partnership owns. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Six Mcf of natural gas equals one Bbl of crude oil or NGL. |
|--------|-----|------------------------------------------------------------|

|   | (3) | Production costs represent natural gas, NGLs and crude oil operating expenses which include production taxes. |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

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|                    |   | 2010   |    |   | 2009   |   |    | 2008     |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|----------|--------|
| Total                   |   | Sales  |    |   | Mcfe   |   |    | per Mcfe |   |   | Sales |   |   | Mcfe |   |   | per Mcfe |   |   | Sales |   |   | Mcfe's |   |   | per Mcfe |   |
| Jan-Mar                 |   | $      | 215,077 |   |   |   | 36,970  |     |   | $ | 5.82 |   |   | $ | 124,209 |   |   |   | 36,976 |   |   | $ | 3.36 |   |   | $ | 364,433 |   |   |   | 43,712 |   |   | $ | 8.34 |   |
| Apr-Jun                 |   |   | 177,193 |   |   |   | 36,303  |     |   |   | 4.88 |   |   |   | 133,567 |   |   |   | 37,380 |   |   |   | 3.57 |   |   |   | 302,654 |   |   |   | 29,525 |   |   |   | 10.25 |   |
| Jul-Sep                 |   |   | 150,641 |   |   |   | 33,287  |     |   |   | 4.53 |   |   |   | 132,757 |   |   |   | 34,609 |   |   |   | 3.84 |   |   |   | 339,315 |   |   |   | 36,273 |   |   |   | 9.35 |   |
| Oct-Dec                 |   |   | 151,764 |   |   |   | 33,124  |     |   |   | 4.58 |   |   |   | 176,919 |   |   |   | 37,410 |   |   |   | 4.73 |   |   |   | 159,088 |   |   |   | 33,563 |   |   |   | 4.74 |   |
| Total                   |   | $      | 694,675 |   |   |   | 139,684 |     |   | $ | 4.97 |   |   | $ | 567,452 |   |   |   | 146,375 |   |   | $ | 3.88 |   |   | $ | 1,165,490 |   |   |   | 143,073 |   |   | $ | 8.15 |   |
| Change (year-over-year) |   |   | 22      | %      |   |   | -5      | %        |   |   | 28 | % |   |   | -51 | % |   |   | 2 | % |   |   | -52 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|                    |   | 2010   |    |   | 2009   |   |    | 2008    |   |
|-------------------------|--------|--------|---------|--------|--------|--------|---------|---------|--------|
| Natural Gas             |   | Sales  |    |   | Mcf    |   |    | per Mcf |   |   | Sales |   |   | Mcf |   |   | per Mcf |   |   | Sales |   |   | Mcf |   |   | per Mcf |   |
| Jan-Mar                 |   | $      | 134,928 |   |   |   | 29,296  |    |   | $ | 4.61 |   |   | $ | 94,123 |   |   |   | 31,792 |   |   | $ | 2.96 |   |   | $ | 252,224 |   |   |   | 35,666 |   |   | $ | 7.07 |   |
| Apr-Jun                 |   |   | 85,403  |   |   |   | 27,813  |    |   |   | 3.07 |   |   |   | 65,007 |   |   |   | 29,646 |   |   |   | 2.19 |   |   |   | 226,811 |   |   |   | 25,679 |   |   |   | 8.83 |   |
| Jul-Sep                 |   |   | 83,371  |   |   |   | 26,597  |    |   |   | 3.13 |   |   |   | 76,466 |   |   |   | 28,987 |   |   |   | 2.64 |   |   |   | 190,364 |   |   |   | 27,513 |   |   |   | 6.92 |   |
| Oct-Dec                 |   |   | 78,381  |   |   |   | 26,602  |    |   |   | 2.95 |   |   |   | 127,862 |   |   |   | 33,084 |   |   |   | 3.86 |   |   |   | 95,469 |   |   |   | 26,525 |   |   |   | 3.60 |   |
| Total                   |   | $      | 382,083 |   |   |   | 110,308 |    |   | $ | 3.46 |   |   | $ | 363,458 |   |   |   | 123,509 |   |   | $ | 2.94 |   |   | $ | 764,868 |   |   |   | 115,383 |   |   | $ | 6.63 |   |
| Change (year-over-year) |   |   | 5       | %      |   |   | -11     | %       |   |   | 18 | % |   |   | -52 | % |   |   | 7 | % |   |   | -56 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|                     |   | 2010   |    |   | 2009   |   |   | 2008    |   |
|--------------------------|--------|--------|---------|--------|--------|--------|--------|---------|--------|
| Crude Oil and Condensate |   | Sales  |    |   | Bbl    |   |   | per Bbl |   |   | Sales |   |   | Bbl |   |   | per Bbl |   |   | Sales |   |   | Bbl |   |   | per Bbl |   |
| Jan-Mar                  |   | $      | 61,263  |   |   |   | 865    |    |   | $ | 70.82 |   |   | $ | 30,086 |   |   |   | 864 |   |   | $ | 34.82 |   |   | $ | 112,209 |   |   |   | 1,341 |   |   | $ | 83.68 |   |
| Apr-Jun                  |   |   | 75,432  |   |   |   | 1,029  |    |   |   | 73.31 |   |   |   | 68,560 |   |   |   | 1,289 |   |   |   | 53.19 |   |   |   | 75,843 |   |   |   | 641 |   |   |   | 118.32 |   |
| Jul-Sep                  |   |   | 54,797  |   |   |   | 782    |    |   |   | 70.07 |   |   |   | 56,291 |   |   |   | 937 |   |   |   | 60.08 |   |   |   | 148,951 |   |   |   | 1,460 |   |   |   | 102.02 |   |
| Oct-Dec                  |   |   | 58,614  |   |   |   | 758    |    |   |   | 77.33 |   |   |   | 49,057 |   |   |   | 721 |   |   |   | 68.04 |   |   |   | 63,619 |   |   |   | 1,173 |   |   |   | 54.24 |   |
| Total                    |   | $      | 250,106 |   |   |   | 3,434  |    |   | $ | 72.83 |   |   | $ | 203,994 |   |   |   | 3,811 |   |   | $ | 53.53 |   |   | $ | 400,622 |   |   |   | 4,615 |   |   | $ | 86.81 |   |
| Change (year-over-year)  |   |   | 23      | %      |   |   | -10    | %       |   |   | 36 | % |   |   | -49 | % |   |   | -17 | % |   |   | -38 | % |   |   |   |   |   |   |   |   |   |   |   |   |

|    |   | 2010   |   |
|---------|--------|--------|--------|
| NGLs    |   | Sales  |   |   | Bbl |   |   | per Bbl |   |
| Jan-Mar |   | $      | 18,886 |   |   |   | 414 |   |   | $ | 45.62 |   |
| Apr-Jun |   |   | 16,358 |   |   |   | 386 |   |   |   | 42.38 |   |
| Jul-Sep |   |   | 12,473 |   |   |   | 333 |   |   |   | 37.46 |   |
| Oct-Dec |   |   | 14,769 |   |   |   | 329 |   |   |   | 44.89 |   |
| Total   |   | $      | 62,486 |   |   |   | 1,462 |   |   | $ | 42.74 |   |

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|                                                                       |   | Three months ended  |    |   | Year ended         |   |
|----------------------------------------------------------------------------|--------|---------------------|---------|--------|--------------------|--------|
|                                                                       |   | March 31, 2010 |    |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |   | December 31, 2010 |   |
| Commodity price risk management, net                                       |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized gain                                                              |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |
| Natural Gas                                                                |   | $                   | 56,270  |   |               | $      | 621 |   |   | $ | 2,323 |   |   | $ | 15,190 |   |   | $ | 74,404 |   |
| Crude Oil                                                                  |   |                | 8,781   |   |               |   | 9,375 |   |   |   | 10,620 |   |   |   | 4,928 |   |   |   | 33,704 |   |
| Total realized gain, net                                                   |   |                | 65,051  |   |               |   | 9,996 |   |   |   | 12,943 |   |   |   | 20,118 |   |   |   | 108,108 |   |
|                                                                       |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)                                                     |   |                |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of realized gain included in prior periods unrealized (1) |   |                | (60,184 | )      |               |   | (7,507 | ) |   |   | (5,657 | ) |   |   | (20,919 | ) |   |   | (11,457 | ) |
| Unrealized gain (loss) for the period (1)                                  |   |                | 156,615 |   |               |   | 50,256 |   |   |   | 106,886 |   |   |   | (28,652 | ) |   |   | 202,295 |   |
| Total unrealized gain (loss), net                                          |   |                | 96,431  |   |               |   | 42,749 |   |   |   | 101,229 |   |   |   | (49,571 | ) |   |   | 190,838 |   |
| Commodity price risk management gain (loss), net                           |   | $                   | 161,482 |   |               | $      | 52,745 |   |   | $ | 114,172 |   |   | $ | (29,453 | ) |   | $ | 298,946 |   |

|                                                                       |   | Three months ended  |     |   | Year ended         |   |
|----------------------------------------------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
|                                                                       |   | March 31, 2009 |     |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |   | December 31, 2009 |   |
| Commodity price risk management, net                                       |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized gain                                                              |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Natural gas                                                                |   | $                   | 93,866   |   |               | $      | 61,761 |   |   | $ | 55,776 |   |   | $ | 62,336 |   |   | $ | 273,739 |   |
| Crude Oil                                                                  |   |                | 31,579   |   |               |   | 20,807 |   |   |   | 15,149 |   |   |   | 9,772 |   |   |   | 77,307 |   |
| Total realized gain, net                                                   |   |                | 125,445  |   |               |   | 82,568 |   |   |   | 70,925 |   |   |   | 72,108 |   |   |   | 351,046 |   |
|                                                                       |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)                                                     |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of realized gain included in prior periods unrealized (1) |   |                | (104,072 | )      |               |   | (89,857 | ) |   |   | (71,282 | ) |   |   | (68,543 | ) |   |   | (301,885 | ) |
| Unrealized (loss) gain for the period (1)                                  |   |                | (25,032  | )      |               |   | (112,825 | ) |   |   | (80,443 | ) |   |   | 30,022 |   |   |   | (220,147 | ) |
| Total unrealized loss, net                                                 |   |                | (129,104 | )      |               |   | (202,682 | ) |   |   | (151,725 | ) |   |   | (38,521 | ) |   |   | (522,032 | ) |
| Commodity price risk management (loss) gain, net                           |   | $                   | (3,659   | )      |               | $      | (120,114 | ) |   | $ | (80,800 | ) |   | $ | 33,587 |   |   | $ | (170,986 | ) |

|                                                                              |   | Three months ended  |     |   | Year ended         |   |
|-----------------------------------------------------------------------------------|--------|---------------------|----------|--------|--------------------|--------|
|                                                                              |   | March 31, 2008 |     |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |   | December 31, 2008 |   |
| Commodity price risk management, net                                              |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Realized gain (loss)                                                              |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |
| Natural Gas                                                                       |   | $                   | (6,930   | )      |               | $      | (47,726 | ) |   | $ | 24,194 |   |   | $ | 79,425 |   |   | $ | 48,963 |   |
| Crude Oil                                                                         |   |                | (7,185   | )      |               |   | (12,838 | ) |   |   | (15,176 | ) |   |   | 22,370 |   |   |   | (12,829 | ) |
| Total realized (loss) gain, net                                                   |   |                | (14,115  | )      |               |   | (60,564 | ) |   |   | 9,018 |   |   |   | 101,795 |   |   |   | 36,134 |   |
|                                                                              |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)                                                            |   |                |     |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of realized (gain) loss included in prior periods unrealized (1) |   |                | (14,185  | )      |               |   | 42,185 |   |   |   | 62,956 |   |   |   | (61,238 | ) |   |   | 25,885 |   |
| Unrealized (loss) gain for the period (1)                                         |   |                | (116,671 | )      |               |   | (208,536 | ) |   |   | 400,519 |   |   |   | 315,069 |   |   |   | 394,214 |   |
| Total unrealized (loss) gain, net                                                 |   |                | (130,856 | )      |               |   | (166,351 | ) |   |   | 463,475 |   |   |   | 253,831 |   |   |   | 420,099 |   |
| Commodity price risk management (loss) gain, net                                  |   | $                   | (144,971 | )      |               | $      | (226,915 | ) |   | $ | 472,493 |   |   | $ | 355,626 |   |   | $ | 456,233 |   |

|   | (1) | Quarterly amounts presented on the line captioned “Unrealized (loss) gain for the period,” may be reclassified in subsequent quarterly periods, to amounts presented on the line captioned “Reclassification of realized (gains) losses included in prior periods unrealized.” For the years 2010, 2009 and 2008, quarterly amounts reclassified in subsequent quarters were $82,810, $31,869 and $3,833, respectively. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                            |   | Collars                |   |     | Fixed-Price Swaps              |   |   | CIG Basis Protection Swaps      |   |   |                           |   |
|---------------------------------|--------|------------------------|--------|----------|--------------------------------|--------|--------|---------------------------------|--------|--------|--------------------------------|--------|
| Commodity/Index                 |   | Quantity(Gas-MMbtu(1)) |   |     | Weighted AverageContract Price |   |   | Quantity(Gas-MMbtu(1) Oil-Bbls) |   |   | Weighted Average ContractPrice |   |   | Quantity(Gas-MMbtu(1)) |   |   | Weighted Average ContractPrice |   |   | Fair Value at March 31, 2011(2) |   |
|                            | Floors |                   |   | Ceilings |                           |
|                            |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural Gas                     |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                           |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 04/01 - 06/30/2011              |   |                   | -      |     |                           | $      | -      |                            |   | $      | -                              |   |   |   | 15,411 |   |   | $ | 6.78 |   |   |   | 15,411 |   |   | $ | (1.88 | ) |   | $ | 14,954 |   |
| 07/01 - 09/30/2011              |   |                   | -      |     |                           |   | -      |                            |   |   | -                              |   |   |   | 15,193 |   |   |   | 6.73 |   |   |   | 15,193 |   |   |   | (1.88 | ) |   |   | 11,142 |   |
| 10/01 - 12/31/2011              |   |                   | -      |     |                           |   | -      |                            |   |   | -                              |   |   |   | 14,786 |   |   |   | 6.78 |   |   |   | 14,786 |   |   |   | (1.88 | ) |   |   | 8,025 |   |
| 01/01 - 03/31/2012              |   |                   | 989    |     |                           |   | 6.00   |                            |   |   | 8.27                           |   |   |   | 13,291 |   |   |   | 6.98 |   |   |   | 14,280 |   |   |   | (1.88 | ) |   |   | 4,600 |   |
| 04/01 - 12/31/2012              |   |                   | 2,026  |     |                           |   | 6.00   |                            |   |   | 8.27                           |   |   |   | 39,286 |   |   |   | 6.98 |   |   |   | 41,312 |   |   |   | (1.88 | ) |   |   | 20,217 |   |
| 2013                            |   |                   | -      |     |                           |   | -      |                            |   |   | -                              |   |   |   | 50,617 |   |   |   | 7.12 |   |   |   | 50,617 |   |   |   | (1.88 | ) |   |   | 14,391 |   |
| Total Natural Gas               |   |                   | 3,015  |     |                           |   |   |                            |   |   |                           |   |   |   | 148,584 |   |   |   |   |   |   |   | 151,599 |   |   |   |   |   |   |   | 73,329 |   |
|                            |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude Oil                       |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                           |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 04/01 - 06/30/2011              |   |                   | -      |     |                           |   | -      |                            |   |   | -                              |   |   |   | 303 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (10,733 | ) |
| 07/01 - 09/30/2011              |   |                   | -      |     |                           |   | -      |                            |   |   | -                              |   |   |   | 310 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (11,211 | ) |
| 10/01 - 12/31/2011              |   |                   | -      |     |                           |   | -      |                            |   |   | -                              |   |   |   | 316 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (11,418 | ) |
| Total Crude Oil                 |   |                   | -      |     |                           |   |   |                            |   |   |                           |   |   |   | 929 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (33,362 | ) |
|                            |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Natural Gas and Crude Oil |   |                   |   |     |                           |   |   |                            |   |   |                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 39,967 |   |

|   | (1) | A standard unit of measure for natural gas (one MMbtu equals one Mcf). |
|--------|-----|------------------------------------------------------------------------|

|   | (2) | As of March 31, 2011, approximately 1% of the fair value of the Partnership’s derivative assets and all of the Partnership’s derivative liabilities were measured using significant unobservable inputs (Level 3). |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|    |   | 2010       |    |   | 2009   |   |    | 2008     |   |
|---------|--------|------------|---------|--------|--------|--------|---------|----------|--------|
|    |   | Prod Costs |    |   | Mcfe   |   |    | per Mcfe |   |   | Prod Costs |   |   | Mcfe |   |   | per Mcfe |   |   | Prod Costs |   |   | Mcfe's |   |   | per Mcfe |   |
| Jan-Mar |   | $          | 83,384  |   |   |   | 36,970  |     |   | $ | 2.26 |   |   | $ | 92,193 |   |   |   | 36,976 |   |   | $ | 2.49 |   |   | $ | 80,745 |   |   |   | 43,712 |   |   | $ | 1.85 |   |
| Apr-Jun |   |       | 65,920  |   |   |   | 36,303  |     |   |   | 1.82 |   |   |   | 90,178 |   |   |   | 37,380 |   |   |   | 2.41 |   |   |   | 109,494 |   |   |   | 29,525 |   |   |   | 3.71 |   |
| Jul-Sep |   |       | 65,042  |   |   |   | 33,287  |     |   |   | 1.95 |   |   |   | 102,401 |   |   |   | 34,609 |   |   |   | 2.96 |   |   |   | 82,503 |   |   |   | 36,273 |   |   |   | 2.27 |   |
| Oct-Dec |   |       | 82,403  |   |   |   | 33,124  |     |   |   | 2.49 |   |   |   | 53,557 |   |   |   | 37,410 |   |   |   | 1.43 |   |   |   | 91,284 |   |   |   | 33,563 |   |   |   | 2.72 |   |
| Total   |   | $          | 296,749 |   |   |   | 139,684 |     |   | $ | 2.12 |   |   | $ | 338,329 |   |   |   | 146,375 |   |   | $ | 2.31 |   |   | $ | 364,026 |   |   |   | 143,073 |   |   | $ | 2.54 |   |

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|    |   | 2010     |    |   | 2009   |   |    | 2008     |   |
|---------|--------|----------|---------|--------|--------|--------|---------|----------|--------|
|    |   | DD&A |    |   | Mcfe   |   |    | per Mcfe |   |   | DD&A |   |   | Mcfe |   |   | per Mcfe |   |   | DD&A |   |   | Mcfe |   |   | per Mcfe |   |
| Jan-Mar |   | $        | 139,951 |   |   |   | 36,970  |     |   | $ | 3.79 |   |   | $ | 144,018 |   |   |   | 36,976 |   |   | $ | 3.89 |   |   | $ | 146,600 |   |   |   | 43,712 |   |   | $ | 3.35 |   |
| Apr-Jun |   |     | 135,060 |   |   |   | 36,303  |     |   |   | 3.72 |   |   |   | 155,839 |   |   |   | 37,380 |   |   |   | 4.17 |   |   |   | 102,552 |   |   |   | 29,525 |   |   |   | 3.47 |   |
| Jul-Sep |   |     | 119,908 |   |   |   | 33,287  |     |   |   | 3.60 |   |   |   | 144,187 |   |   |   | 34,609 |   |   |   | 4.17 |   |   |   | 127,874 |   |   |   | 36,273 |   |   |   | 3.53 |   |
| Oct-Dec |   |     | 92,691  |   |   |   | 33,124  |     |   |   | 2.80 |   |   |   | 132,672 |   |   |   | 37,410 |   |   |   | 3.55 |   |   |   | 154,435 |   |   |   | 33,563 |   |   |   | 4.60 |   |
| Total   |   | $        | 487,610 |   |   |   | 139,684 |     |   | $ | 3.49 |   |   | $ | 576,716 |   |   |   | 146,375 |   |   | $ | 3.94 |   |   | $ | 531,461 |   |   |   | 143,073 |   |   | $ | 3.71 |   |

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|            |   | As of               |    |
|-----------------|--------|---------------------|---------|
|            |   | March 31, 2010 |    |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
|            |   |                |    |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                   | 174,330 |   |   | $ | 108,924 |   |   | $ | 147,175 |   |   | $ | (22,206 | ) |

|            |   | As of               |    |
|-----------------|--------|---------------------|---------|
|            |   | March 31, 2009 |    |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
|            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                   | 828,800 |   |   | $ | 619,139 |   |   | $ | 210,354 |   |   | $ | 156,902 |   |

|            |   | As of               |    |
|-----------------|--------|---------------------|---------|
|            |   | March 31, 2008 |    |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
|            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Working capital |   | $                   | 340,266 |   |   | $ | 126,183 |   |   | $ | 603,830 |   |   | $ | 777,130 |   |

|   | · | Accounts receivable decreased by $18,000 between December 31, 2010 and December 31, 2009. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Realized and unrealized derivative gains receivables decreased by $31,000 between December 31, 2010 and December 31, 2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------|

|   | · | Due to the Managing General Partner-other payable, excluding natural gas, NGLs and crude oil sales received from third parties and realized derivative gains, increased by approximately $131,000 as of December 31, 2010 compared to December 31, 2009. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Accounts receivable decreased by $42,000 between December 31, 2009 and December 31, 2008. |
|--------|--------|-------------------------------------------------------------------------------------------|

|   | · | Realized and unrealized derivative gains receivables decreased by $338,000 between December 31, 2009 and December 31, 2008. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------|

|   | · | Due to the Managing General Partner-other payable, excluding natural gas, NGLs and crude oil sales received from third parties and realized derivative gains, increased by approximately $242,000 as of December 31, 2009 compared to December 31, 2008. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                 |   | 2010           |    |   | Total         |   |
|--------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                 |   | Quarter ended  |    |   | Quarter ended |   |   | Quarter ended |   |   | Quarter ended |   |   | Year ended |   |
|                                 |   | March 31, |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |   | December 31, |   |
|                                 |   |           |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $              | 179,784 |   |          | $      | 186,649 |   |   | $ | 93,744 |   |   | $ | 25,821 |   |   | $ | 485,998 |   |

|                                 |   | 2009           |    |   | Total         |   |
|--------------------------------------|--------|----------------|---------|--------|---------------|--------|
|                                 |   | Quarter ended  |    |   | Quarter ended |   |   | Quarter ended |   |   | Quarter ended |   |   | Year ended |   |
|                                 |   | March 31, |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |   | December 31, |   |
|                                 |   |           |    |   |          |   |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $              | 152,560 |   |          | $      | 198,253 |   |   | $ | 374,406 |   |   | $ | 154,722 |   |   | $ | 879,941 |   |

|                                 |   | 2008           |   |   | Total         |   |
|--------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                 |   | Quarter ended  |   |   | Quarter ended |   |   | Quarter ended |   |   | Quarter ended |   |   | Year ended |   |
|                                 |   | March 31, |   |   | June 30, |   |   | September 30, |   |   | December 31, |   |   | December 31, |   |
|                                 |   |           |   |   |          |   |   |   |   |   |   |   |   |   |   |
| Cash flows from operating activities |   | $              | 60,461 |   |          | $      | 258,668 |   |   | $ | 167,035 |   |   | $ | 177,859 |   |   | $ | 664,023 |   |

|   | · | An increase in natural gas, NGLs and crude oil sales receipts of $0.1 million; |
|--------|--------|--------------------------------------------------------------------------------|

|   | · | A decrease in commodity price risk management realized gains receipts of $0.3 million; and |
|--------|--------|--------------------------------------------------------------------------------------------|

|   | · | An increase in payments for production costs and direct costs – general and administrative of $0.2 million. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------|

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|   | · | A decrease in natural gas, NGLs and crude oil sales receipts of $0.6 million; |
|--------|--------|-------------------------------------------------------------------------------|

|   | · | An increase in commodity price risk management realized gains receipts of $0.5 million; and |
|--------|--------|---------------------------------------------------------------------------------------------|

|   | · | A decrease in payments for production costs and direct costs – general and administrative of $0.3 million. |
|--------|--------|------------------------------------------------------------------------------------------------------------------|

|    |   | Managing             |    |   | Investor      |   |    |          |   |
|---------|--------|----------------------|---------|--------|---------------|--------|---------|---------------|--------|
|    |   | General Partner |    |   | Partners      |   |    | Total         |   |
|    |   | Distributions        |    |   | Distributions |   |    | Distributions |   |
|    |   |                 |    |   |          |   |    |          |   |
| 2010    |   |                 |    |   |          |   |    |          |   |
| Jan-Mar |   | $                    | 19,140  |   |          | $      | 160,624 |          |   | $ | 179,764 |   |
| Apr-Jun |   |                 | 18,319  |   |          |   | 168,138 |          |   |   | 186,457 |   |
| Jul-Sep |   |                 | 4,066   |   |          |   | 76,168  |          |   |   | 80,234 |   |
| Oct-Dec |   |                 | (411    | )      |          |   | 20,835  |          |   |   | 20,424 |   |
|    |   | $                    | 41,114  |   |          | $      | 425,765 |          |   | $ | 466,879 |   |
|    |   |                 |    |   |          |   |    |          |   |   |   |   |
| 2009    |   |                 |    |   |          |   |    |          |   |   |   |   |
| Jan-Mar |   | $                    | 30,448  |   |          | $      | 121,792 |          |   | $ | 152,240 |   |
| Apr-Jun |   |                 | 39,649  |   |          |   | 158,597 |          |   |   | 198,246 |   |
| Jul-Sep |   |                 | 77,628  |   |          |   | 310,512 |          |   |   | 388,140 |   |
| Oct-Dec |   |                 | 21,442  |   |          |   | 132,954 |          |   |   | 154,396 |   |
|    |   | $                    | 169,167 |   |          | $      | 723,855 |          |   | $ | 893,022 |   |
|    |   |                 |    |   |          |   |    |          |   |   |   |   |
| 2008    |   |                 |    |   |          |   |    |          |   |   |   |   |
| Jan-Mar |   | $                    | 11,364  |   |          | $      | 45,453  |          |   | $ | 56,817 |   |
| Apr-Jun |   |                 | 49,832  |   |          |   | 199,331 |          |   |   | 249,163 |   |
| Jul-Sep |   |                 | 31,822  |   |          |   | 127,286 |          |   |   | 159,108 |   |
| Oct-Dec |   |                 | 35,083  |   |          |   | 140,335 |          |   |   | 175,418 |   |
|    |   | $                    | 128,101 |   |          | $      | 512,405 |          |   | $ | 640,506 |   |

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|   | · | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.  Included in Level 1 are the Partnership’s commodity derivative instruments for NYMEX-based natural gas swaps. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   | · | Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability and (iv) inputs that are derived from observable market data by correlation or other means. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 – Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.  Included in Level 3 are the Partnership’s commodity derivative instruments for CIG-based natural gas swaps, crude oil swaps, natural gas and crude oil collars, and the Partnership’s natural gas basis protection derivative instruments. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 7A. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK |
|----------|------------------------------------------------------------|

| ITEM 8. | FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
|---------|---------------------------------------------|

| ITEM 9. | CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
|---------|--------------------------------------------------------------------------------------|

| ITEM 9A | CONTROLS AND PROCEDURES |
|---------|-------------------------|

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|   | · | The support for the Partnership’s general ledger depends in part on the effectiveness of controls of the Managing General Partner’s spreadsheets.  The overall ineffectiveness of the Managing General Partner's spreadsheet controls could have a material effect on the Partnership’s financial statements.  The Partnership did not maintain effective controls to ensure the completeness, accuracy, and validity of key financial statement spreadsheets generated by the Managing General Partner.  These spreadsheets are utilized by the Partnership to support significant balance sheet and income statement accounts.  This material weakness has been remediated as of December 31, 2008. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The support for the Partnership’s derivative calculations depends in part on the effectiveness of controls of the Managing General Partner’s process.  The overall ineffectiveness of the Managing General Partner's derivative controls could have a material effect on the Partnership’s financial statements.  The Partnership did not maintain effective controls to ensure that the Managing General Partner had policies and procedures, or personnel with sufficient technical expertise to record derivative activities in accordance with generally accepted accounting principles.  This material weakness has been remediated as of December 31, 2008. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For the transactions that are directly related to and processed by the Partnership, the Partnership failed to maintain sufficient documentation to adequately assess the operating effectiveness of internal control over financial reporting.  More specifically, the Partnership’s financial close and reporting narrative failed to adequately describe the process, identify key controls and assess segregation of duties.  This material weakness has been remediated as of December 31, 2009. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the issuer; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America and that receipts and expenditures of the issuer are being made only in accordance with authorizations of management and directors of the issuer; and |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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|   | (3) | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the issuer’s assets that could have a material effect on the financial statements of the issuer. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During the first quarter of 2008, the Managing General Partner implemented the general ledger, accounts receivable, cash receipts, revenue, financial reporting, and joint interest billing modules as part of a new broader financial system.  The new financial system enhanced operating efficiencies and provided more effective management of Partnership business operations and processes.  The Managing General Partner has taken the necessary steps to monitor and maintain appropriate internal controls during this period of change.  These steps include documenting all new business process changes related to the new financial system; testing all new business processes on the new financial system; and conducting training related to the new business processes and the new financial system software.  The Managing General Partner expects the implementation of the new financial system to strengthen the overall system of internal controls due to enhanced automation and integration of related processes.  The Managing General Partner continues to modify the design and documentation of internal control processes and procedures related to the new financial system to supplement and complement existing internal controls over financial reporting.  The system changes were developed to integrate systems and consolidate information, and were not undertaken in response to any actual or perceived deficiencies in the Partnership's internal control over financial reporting.  Testing of the controls related to this new system was included in the scope of the Managing General Partner's assessment of the Partnership's internal control over financial reporting for 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | During the third quarter of 2008, the Managing General Partner improved controls over certain key financial statement spreadsheets that support all significant balance sheet and income statement accounts.  Specifically, the Managing General Partner enhanced the spreadsheet policy to provide additional clarification and guidance with regard to risk assessment and enforced controls over:  1) the security and integrity of the data used in the various spreadsheets, 2) access to the spreadsheets, 3) changes to spreadsheet functionality and the related approval process and 4) increased management’s review of the spreadsheets. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During the third quarter of 2008, in addition to accredited derivative training attended by key personnel, the Managing General Partner created and documented a desktop procedure to:  1) ensure the completeness and accuracy of the Managing General Partner’s derivative activities and 2) supplement key controls previously existing in the process.  Further, the desktop procedure provides for a more robust review of the Managing General Partner’s derivative process.  This procedure continued to be enhanced throughout the fourth quarter of 2008. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | During the first and second quarters of 2009, the Partnership developed a plan to improve controls over certain key financial statement spreadsheets that support all significant balance sheet and income statement accounts.  The Partnership also created and documented a procedural framework to ensure the completeness and accuracy of the Partnership’s derivative activities.  Additionally, the Partnership completed the development of a revised financial close and reporting narrative that adequately describes the process, identifies key controls and assesses segregation of duties. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | In the third quarter, the Partnership developed documentation that describes the business processes and identifies key controls for internal control over financial reporting that assisted the Managing General Partner in adequately assessing internal control over financial reporting for the Partnership.  In addition, the Partnership developed documentation and procedures to adequately assess segregation of duties.  The controls and procedures were tested prior to December 31, 2009.  At present, the Partnership has not quantified the total cost of this initiative; however, the majority of this cost is expected to be paid by the Managing General Partner. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Effective July 1, 2009, as part of PDC’s broader financial reporting system, PDC implemented a new partnership investor distribution accounting module replacing the existing accounting software.  PDC has taken the necessary steps to monitor and maintain appropriate internal controls during this period of change.  These steps included procedures to preserve the integrity of the data converted and a review by the business owners to validate data converted.  Additionally, PDC provided training related to the business process changes and the financial reporting system software to individuals using the financial reporting system to carry out their job responsibilities, as well as those who rely on the financial information.  PDC anticipates that the implementation of this module will strengthen the overall systems of internal controls due to enhanced automation and integration of related processes.  PDC is modifying the design and documentation of internal control processes and procedures relating to the new module to supplement and complement existing internal control over financial reporting.  The system changes were undertaken to integrate systems and consolidate information and were not undertaken in response to any actual or perceived deficiencies in PDC’s internal control over financial reporting.  Testing of the controls related to these new systems was included in the scope of PDC’s assessment of its internal control over financial reporting as of December 31, 2009. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 9B. | OTHER INFORMATION |
|----------|-------------------|

| ITEM 10. | DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE |
|----------|--------------------------------------------------------|

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|   | · | Profitable development and cost-effective production operations of the Partnership’s  reserves; |
|--------|--------|-----------------------------------------------------------------------------------------------------------------|

|   | · | Market-responsive natural gas and crude oil marketing and prudent field operations cost management which support maximum cash flows; and |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Technology-enhanced compliant Partnership administration including the following: accounting; revenue and cost allocation; cash management; tax and regulatory agency reporting and filing; and Investor Partner relations. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Name                    |   | Age    |   | Positions and Offices Held                       |   | Director Since |   | Directorship Term Expires |
|-------------------------|--------|--------|--------|--------------------------------------------------|--------|----------------|--------|---------------------------|
|                    |   |   |   |                                             |   |           |   |                      |
| James M. Trimble        |   | 63     |   | Chief Executive Officer, President and Director  |   | 2009           |   | 2013                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Gysle R. Shellum        |   | 59     |   | Chief Financial Officer                          |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| R. Scott Meyers         |   | 36     |   | Chief Accounting Officer                         |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Barton R. Brookman, Jr. |   | 49     |   | Senior Vice President Exploration and Production |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Daniel W. Amidon        |   | 50     |   | General Counsel and Secretary                    |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Lance Lauck             |   | 48     |   | Senior Vice President Business Development       |   | -              |   | -                         |
|                    |   |   |   |                                             |   |           |   |                      |
| Jeffrey C. Swoveland    |   | 56     |   | Director and Chairman                            |   | 1991           |   | 2014                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Joseph E. Casabona      |   | 67     |   | Director                                         |   | 2007           |   | 2014                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Anthony J. Crisafio     |   | 58     |   | Director                                         |   | 2006           |   | 2012                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Larry F. Mazza          |   | 50     |   | Director                                         |   | 2007           |   | 2013                      |
|                    |   |   |   |                                             |   |           |   |                      |
| David C. Parke          |   | 44     |   | Director                                         |   | 2003           |   | 2014                      |
|                    |   |   |   |                                             |   |           |   |                      |
| Kimberly Luff Wakim     |   | 53     |   | Director                                         |   | 2003           |   | 2012                      |

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| ITEM 11. | EXECUTIVE COMPENSATION |
|----------|------------------------|

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| ITEM 12. | SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |   |
|----------|------------------------------------------------------------------------------------------------|--------|

|                                                                           |   | Limited Partnership Units                                                          |   |   |                               |   |
|--------------------------------------------------------------------------------|--------|------------------------------------------------------------------------------------|--------|--------|------------------------------------|--------|
| Person or Group                                                                |   | Number of Units Outstanding Which Represent 80% of Total Partnership Interests (1) |   |   | Number of Units Beneficially Owned |   |   |   Percentage of Total Units Outstanding |   |   | Percentage of Total Partnership Interests Beneficially Owned |   |
|                                                                           |   |                                                                               | 559.02 |   |                               |   |   |   |   |   |   |   |   |
| Petroleum Development Corporation (2) (3) (4) (5)                              |   |                                                                               | -      |   |                               |   | 31.62 |   |   |   | 5.66 | % |   |   | 4.53 | % |
| Investor Partners beneficially owning 5% or more, of limited partner interests |   |                                                                               | -      |   |                               |   | - |   |   |   | - |   |   |   | - |   |

|   | (1) | Additional general partner units were converted to limited partner interests at the completion of drilling activities. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Petroleum Development Corporation (dba PDC Energy), 1775 Sherman Street Suite 3000, Denver, Colorado 80203. |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (3) | No director or officer of PDC owns interest in PDC limited partnerships.  Pursuant to the Partnership Agreement individual investor partners may present their units to PDC for purchase subject to certain conditions; however, PDC is not obligated to purchase more than 10% of the total outstanding units during any calendar year. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | The Percentage of “Total Partnership Interests Beneficially Owned” by PDC with respect to its limited partnership units repurchased is determined by multiplying the percentage of limited partnership units repurchased by PDC to total limited partnership units, by the limited partners’ percentage ownership in the Partnership.  (31.62 units/559.02 units)*80% limited partnership ownership |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | In addition to this ownership percentage of limited partnership interest, Petroleum Development Corporation (dba PDC Energy) owns a Managing General Partner interest of 20%. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ITEM 13. | CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE |
|----------|---------------------------------------------------------------------------|

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|   | · | Geoscientists who identify and develop PDC’s drilling prospects and oversee the drilling process; |
|--------|--------|---------------------------------------------------------------------------------------------------------|

|   | · | Petroleum engineers who plan and direct PDC’s well completions and recompletions, construct and operate PDC’s well and gathering lines, and manage PDC’s production operations; |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Petroleum reserve engineers who evaluate well reserves at least annually and monitor individual well performance against expectations; and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Full-time well tenders and supervisors who operate PDC wells. |
|--------|--------|---------------------------------------------------------------|

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| ITEM 14. | PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|----------|----------------------------------------|

|            |   | Year Ended December 31, |   |
|-----------------|--------|-------------------------|--------|
| Type of Service |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
|            |   |                    |   |   |   |   |   |   |   |
| Audit Fees (1)  |   | $                       | 50,000 |   |   | $ | 50,000 |   |   | $ | 50,000 |   |

|   | (1) | Audit fees consist of professional service fees billed for the audit of the Partnership’s annual financial statements which accompany the Partnership’s Annual Report on Form 10-K, including reviews of the Partnership’s quarterly condensed interim financial statements which accompany this report. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| ITEM 15. | EXHIBITS, FINANCIAL STATEMENT SCHEDULES |
|----------|-----------------------------------------|

|           |   |                                                                                                                                                                                                                                                                                                           |   | Incorporated by Reference |   |            |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                                                                            |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
| 3.1            |   | Limited Partnership Agreement                                                                                                                                                                                                                                                                                  |   | 10-K                      |   | 000-50227       |   | 3.1 |   | 01/14/2011 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 3.2            |   | Certificate of limited partnership which reflects the organization of the Partnership under West Virginia law                                                                                                                                                                                                  |   | 10-K                      |   | 000-50227       |   | 3.2 |   | 01/14/2011 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.1           |   | Drilling and operating agreement between the Partnership and PDC, as Managing General Partner                                                                                                                                                                                                                  |   | 10-K                      |   | 000-50227       |   | 10.1 |   | 01/14/2011 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.2           |   | Form of assignment of leases to the Partnership                                                                                                                                                                                                                                                                |   | 10-K                      |   | 000-50227       |   | 10.2 |   | 01/14/2011 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.3           |   | Audited Consolidated Financial Statements for the year ended December 31, 2010 of Petroleum Development Corporation (dba PDC Energy) and its subsidiaries, as Managing General Partner of the Partnership                                                                                                      |   | 10-K                      |   | 000-07246       |   |   |   | 02/24/2011 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.4           |   | Gas Purchase and Processing Agreement between Duke Energy Field Services, Inc.; United States Exploration, Inc.; and Petroleum Development Corporation, dated October 28, 1999 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership)                                          |   | 10-12G/A Amend 3          |   | 000-53201       |   | 10.3 |   | 03/31/2009 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                           |   |                      |   |            |   |   |   |   |   |   |
| 10.5           |   | Gas Purchase and Processing Agreement between Natural Gas Associates, a Colorado partnership, and Aceite Energy Corporation, Walker Exploratory Program 1982-A Limited and Cattle Creek Company, dated October 14, 1983 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership) |   | 10-12G/A Amend 3          |   | 000-53201       |   | 10.4 |   | 03/31/2009 |   |   |

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|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | Incorporated by Reference |   |            |
|----------------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
| 10.6           |   | Gas Purchase and Processing Agreement between Natural Gas Associates, a Colorado partnership, and SHF Partnership, a Colorado general partnership, Trailblazer Oil and Gas, Inc., Alfa Resources, Inc., Pulsar Oil and Gas, Inc., Overthrust Oil Royalty Corporation, Corvette Petroleum Ltd., Robert Lanari, an individual, and Toby A Martinez, an individual, dated September 21, 1983 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership) |   | 10-12G/A Amend 3     |   | 000-53201       |   | 10.5 |   | 03/31/2009 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |   |   |   |   |   |   |
| 10.7           |   | Domestic Crude Oil Purchase Agreement with ConocoPhillips Company, dated January 1, 1993, as amended by agreements with Teppco Crude Oil, LLC dated August 2, 2007; September 24, 2007; October 17, 2007; January 7, 2008; January 15, 2008; and April 17, 2008 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership)                                                                                                                           |   | 10-12G/A Amend 3          |   | 000-53201       |   | 10.6 |   | 03/31/2009 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |   |   |   |   |   |   |
| 10.8           |   | Gas Purchase Agreement between Williams Production RMT Company, Riley Natural Gas Company and Petroleum Development Corporation, dated as of June 1, 2006 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership)                                                                                                                                                                                                                                 |   | 10-12G/A Amend 3          |   | 000-53201       |   | 10.7 |   | 03/31/2009 |   |   |
|           |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                      |   |            |   |   |   |   |   |   |
| 10.9           |   | Domestic Crude Oil Purchase Agreement between Suncor Energy Marketing Inc. and Petroleum Development Corporation, dated April 22, 2008 (filed by PDC as Managing General Partner for Rockies Region 2007 Limited Partnership)                                                                                                                                                                                                                                                    |   | 10-Q                      |   | 000-53201       |   | 10.1 |   | 05/18/2009 |   |   |

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|           |   |                                                                                                                                                                                                                                                   |   | Incorporated by Reference |   |            |
|----------------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|-----------------|
|           |   |                                                                                                                                                                                                                                                   |   |                      |   |            |
| Exhibit Number |   | Exhibit Description                                                                                                                                                                                                                                    |   | Form                      |   | SEC File Number |   | Exhibit |   | Filing Date |   | Filed Herewith |
| 31.1           |   | Rule 13a-14(a)/15d-14(c) Certification of Chief Executive Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership.                                                                              |   |                      |   |            |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                   |   |                      |   |            |   |   |   |   |   |   |
| 31.2           |   | Rule 13a-14(a)/15d-14(c) Certification of Chief Financial Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership.                                                                              |   |                      |   |            |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                   |   |                      |   |            |   |   |   |   |   |   |
| 32.1           |   | Title 18 U.S.C. Section 1350 (Section 906 of Sarbanes-Oxley Act of 2002) Certifications by Chief Executive Officer and Chief Financial Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership. |   |                      |   |            |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                   |   |                      |   |            |   |   |   |   |   |   |
| 99.2           |   | Report of Independent Petroleum Consultants−Ryder Scott Company, LP as of December 31, 2010                                                                                                                                                      |   |                      |   |            |   |   |   |   |   | X |
|           |   |                                                                                                                                                                                                                                                   |   |                      |   |            |   |   |   |   |   |   |
| 99.3           |   | Report of Independent Petroleum Consultants−Ryder Scott Company, LP as of December 31, 2009                                                                                                                                                      |   |                      |   |            |   |   |   |   |   | X |

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SIGNATURE

| Signature                |   | Title                                              |   | Date          |
|--------------------------|--------|----------------------------------------------------|--------|---------------|
|                     |   |                                               |   |          |
| /s/ James M. Trimble     |   | Chief Executive Officer                            |   | June 30, 2011 |
| James M. Trimble         |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |
|                     |   | (Principal executive officer)                      |   |          |
|                     |   |                                               |   |          |
| /s/ Gysle R. Shellum     |   | Chief Financial Officer                            |   | June 30, 2011 |
| Gysle R. Shellum         |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |
|                     |   | (Principal financial officer)                      |   |          |
|                     |   |                                               |   |          |
| /s/ R. Scott Meyers      |   | Chief Accounting Officer                           |   | June 30, 2011 |
| R. Scott Meyers          |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |
|                     |   | (Principal accounting officer)                     |   |          |
|                     |   |                                               |   |          |
| /s/ Jeffrey C. Swoveland |   | Director and Chairman                              |   | June 30, 2011 |
| Jeffrey C. Swoveland     |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |
|                     |   |                                               |   |          |
| /s/ Joseph E. Casabona   |   | Director                                           |   | June 30, 2011 |
| Joseph E. Casabona       |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |
|                     |   |                                               |   |          |
| /s/ Anthony J. Crisafio  |   | Director                                           |   | June 30, 2011 |
| Anthony J. Crisafio      |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |
|                     |   |                                               |   |          |
| /s/ Kimberly Luff Wakim  |   | Director                                           |   | June 30, 2011 |
| Kimberly Luff Wakim      |   | Petroleum Development Corporation (dba PDC Energy) |   |          |
|                     |   | Managing General Partner of the Registrant         |   |          |

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Index to Financial Statements

| Report of Independent Registered Public Accounting Firm                               | F-2    |
|---------------------------------------------------------------------------------------|--------|
|                                                                                  |   |
| Balance Sheets - December 31, 2010, 2009 and 2008                                     | F-3    |
|                                                                                  |   |
| Statements of Operations - For the Years Ended December 31, 2010, 2009 and 2008       | F-4    |
|                                                                                  |   |
| Statements of Partners' Equity - For the Years Ended December 31, 2010, 2009 and 2008 | F-5    |
|                                                                                  |   |
| Statements of Cash Flows - For the Years Ended December 31, 2010, 2009 and 2008       | F-6    |
|                                                                                  |   |
| Notes to Financial Statements                                                         | F-7    |
|                                                                                  |   |
| Supplemental Natural Gas, NGL and Crude Oil Information - Unaudited                   | F-25   |
|                                                                                  |   |
| Unaudited Condensed Quarterly Financial Statements:                                   |   |
|                                                                                  |   |
| Balance Sheets – 2010                                                           | F-29   |
| Balance Sheets – 2009                                                           | F-30   |
| Balance Sheets – 2008                                                           | F-31   |
|                                                                                  |   |
| Statements of Operations – 2010                                                 | F-32   |
| Statements of Operations – 2009                                                 | F-33   |
| Statements of Operations – 2008                                                 | F-34   |
|                                                                                  |   |
| Statements of Cash Flows – 2010                                                 | F-35   |
| Statements of Cash Flows – 2009                                                 | F-36   |
| Statements of Cash Flows – 2008                                                 | F-37   |
|                                                                                  |   |
| Notes to Unaudited Condensed Quarterly Financial Statements                           | F-38   |

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| Balance Sheets                                                           |   |
|--------------------------------------------------------------------------|--------|
| As of December 31, 2010, 2009 and 2008                                   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Assets                                                                   |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |
| Current assets:                                                          |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                |   | $ | 10,281 |   |   | $ | 935 |   |   | $ | 16,634 |   |
| Accounts receivable                                                      |   |   | 33,072 |   |   |   | 55,270 |   |   |   | 48,452 |   |
| Crude oil inventory                                                      |   |   | 16,072 |   |   |   | 24,050 |   |   |   | 16,390 |   |
| Due from Managing General Partner-derivatives                            |   |   | 119,434 |   |   |   | 82,309 |   |   |   | 301,886 |   |
| Due from Managing General Partner-other, net                             |   |   | - |   |   |   | 70,668 |   |   |   | 409,728 |   |
| Total current assets                                                     |   |   | 178,859 |   |   |   | 233,232 |   |   |   | 793,090 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |   | 8,744,472 |   |   |   | 8,734,699 |   |   |   | 8,687,377 |   |
| Less:  Accumulated depreciation, depletion and amortization    |   |   | (5,973,662 | ) |   |   | (5,486,052 | ) |   |   | (4,909,336 | ) |
| Natural gas and crude oil properties, net                                |   |   | 2,770,810 |   |   |   | 3,248,647 |   |   |   | 3,778,041 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                            |   |   | 188,773 |   |   |   | 70,633 |   |   |   | 116,599 |   |
| Other assets                                                             |   |   | 34,528 |   |   |   | 26,858 |   |   |   | 19,824 |   |
| Total noncurrent assets                                                  |   |   | 2,994,111 |   |   |   | 3,346,138 |   |   |   | 3,914,464 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                             |   | $ | 3,172,970 |   |   | $ | 3,579,370 |   |   | $ | 4,707,554 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                    |   | $ | 5,854 |   |   | $ | 5,479 |   |   | $ | 15,960 |   |
| Due to Managing General Partner-derivatives                              |   |   | 100,569 |   |   |   | 70,851 |   |   |   | - |   |
| Due to Managing General Partner-other, net                               |   |   | 94,642 |   |   |   | - |   |   |   | - |   |
| Total current liabilities                                                |   |   | 201,065 |   |   |   | 76,330 |   |   |   | 15,960 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                              |   |   | 142,961 |   |   |   | 208,252 |   |   |   | 22,614 |   |
| Asset retirement obligations                                             |   |   | 154,650 |   |   |   | 145,733 |   |   |   | 98,220 |   |
| Total liabilities                                                        |   |   | 498,676 |   |   |   | 430,315 |   |   |   | 136,794 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Commitments and contingent liabilities                                   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                                 |   |   | 597,648 |   |   |   | 640,338 |   |   |   | 915,242 |   |
| Limited Partners - 559.02  units issued and outstanding        |   |   | 2,076,646 |   |   |   | 2,508,717 |   |   |   | 3,655,518 |   |
| Total Partners' equity                                                   |   |   | 2,674,294 |   |   |   | 3,149,055 |   |   |   | 4,570,760 |   |
|                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                                   |   | $ | 3,172,970 |   |   | $ | 3,579,370 |   |   | $ | 4,707,554 |   |

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| Statements of Operations                                                |   |
|-------------------------------------------------------------------------|--------|
| For the Years Ended December 31, 2010, 2009 and 2008                    |   |
|                                                                    |   |   |   |   |   |   |   |   |   |
|                                                                    |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Revenues:                                                               |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales                                   |   | $ | 694,675 |   |   | $ | 567,452 |   |   | $ | 1,165,490 |   |
| Commodity price risk management gain (loss), net                        |   |   | 298,946 |   |   |   | (170,986 | ) |   |   | 456,233 |   |
| Total revenues                                                          |   |   | 993,621 |   |   |   | 396,466 |   |   |   | 1,621,723 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production cost                         |   |   | 296,749 |   |   |   | 338,329 |   |   |   | 364,026 |   |
| Direct costs - general and administrative                               |   |   | 208,232 |   |   |   | 18,240 |   |   |   | 26,013 |   |
| Depreciation, depletion and amortization                                |   |   | 487,610 |   |   |   | 576,716 |   |   |   | 531,461 |   |
| Accretion of asset retirement obligations                               |   |   | 8,917 |   |   |   | 2,809 |   |   |   | 5,340 |   |
| Total operating costs and expenses                                      |   |   | 1,001,508 |   |   |   | 936,094 |   |   |   | 926,840 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from operations                                           |   |   | (7,887 | ) |   |   | (539,628 | ) |   |   | 694,883 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                        |   |   | - |   |   |   | (3,691 | ) |   |   | - |   |
| Interest income                                                         |   |   | 5 |   |   |   | 14,636 |   |   |   | 24,141 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                       |   | $ | (7,882 | ) |   | $ | (528,683 | ) |   | $ | 719,024 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income allocated to partners                                 |   | $ | (7,882 | ) |   | $ | (528,683 | ) |   | $ | 719,024 |   |
| Less:  Managing General Partner interest in net (loss) income |   |   | (1,576 | ) |   |   | (105,737 | ) |   |   | 143,805 |   |
| Net (loss) income allocated to Investor Partners                        |   | $ | (6,306 | ) |   | $ | (422,946 | ) |   | $ | 575,219 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per Investor Partner unit                             |   | $ | (11 | ) |   | $ | (757 | ) |   | $ | 1,029 |   |
|                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                                      |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

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| Statements of Partners' Equity                       |   |
|------------------------------------------------------|--------|
| For the Years Ended December 31, 2010, 2009 and 2008 |   |
|                                                 |   |
|                                                 |   |   |   |   |   |   |   |   |   |
|                                                 |   |   |   |   | Managing |   |   |   |   |
|                                                 |   | Investor |   |   | General |   |   |   |   |
|                                                 |   | Partners |   |   | Partner |   |   | Total |   |
|                                                 |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2007                           |   | $ | 3,592,704 |   |   | $ | 899,538 |   |   | $ | 4,492,242 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to partners                            |   |   | (512,405 | ) |   |   | (128,101 | ) |   |   | (640,506 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                           |   |   | 575,219 |   |   |   | 143,805 |   |   |   | 719,024 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2008                           |   |   | 3,655,518 |   |   |   | 915,242 |   |   |   | 4,570,760 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to partners                            |   |   | (723,855 | ) |   |   | (169,167 | ) |   |   | (893,022 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                             |   |   | (422,946 | ) |   |   | (105,737 | ) |   |   | (528,683 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                           |   |   | 2,508,717 |   |   |   | 640,338 |   |   |   | 3,149,055 |   |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to partners                            |   |   | (425,765 | ) |   |   | (41,114 | ) |   |   | (466,879 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                             |   |   | (6,306 | ) |   |   | (1,576 | ) |   |   | (7,882 | ) |
|                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                           |   | $ | 2,076,646 |   |   | $ | 597,648 |   |   | $ | 2,674,294 |   |

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| Statements of Cash Flows                                                                         |   |
|--------------------------------------------------------------------------------------------------|--------|
| For the Years Ended December 31, 2010, 2009 and 2008                                             |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |
|                                                                                             |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                            |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                                |   | $ | (7,882 | ) |   | $ | (528,683 | ) |   | $ | 719,024 |   |
| Adjustments to net (loss) income to reconcile to net cash provided by operating activities:      |   |   |   |   |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization                                                         |   |   | 487,610 |   |   |   | 576,716 |   |   |   | 531,461 |   |
| Accretion of asset retirement obligations                                                        |   |   | 8,917 |   |   |   | 2,809 |   |   |   | 5,340 |   |
| Unrealized (gain) loss on derivative transactions                                                |   |   | (190,838 | ) |   |   | 522,032 |   |   |   | (420,099 | ) |
| Changes in operating assets and liabilities:                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
| Decrease (increase) in accounts receivable                                                       |   |   | 22,198 |   |   |   | (6,818 | ) |   |   | 27,580 |   |
| Decrease (increase) in crude oil inventory                                                       |   |   | 7,978 |   |   |   | (7,660 | ) |   |   | (16,390 | ) |
| Increase in other assets                                                                         |   |   | (7,670 | ) |   |   | (7,034 | ) |   |   | (7,674 | ) |
| Increase (decrease) in accounts payable and accrued expenses                                     |   |   | 375 |   |   |   | (10,481 | ) |   |   | 652 |   |
| Decrease (increase) in due from Managing General Partner, Net                                    |   |   | 70,668 |   |   |   | 339,060 |   |   |   | (175,871 | ) |
| Increase in due to Managing General Partner, Net                                                 |   |   | 94,642 |   |   |   | - |   |   |   | - |   |
| Net cash provided by operating activities                                                        |   |   | 485,998 |   |   |   | 879,941 |   |   |   | 664,023 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital expenditures for natural gas and crude oil properties                                    |   |   | (9,773 | ) |   |   | (2,618 | ) |   |   | (20,744 | ) |
| Net cash used in investing activities                                                            |   |   | (9,773 | ) |   |   | (2,618 | ) |   |   | (20,744 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Distributions to Partners                                                                        |   |   | (466,879 | ) |   |   | (893,022 | ) |   |   | (640,506 | ) |
| Net cash used in financing activities                                                            |   |   | (466,879 | ) |   |   | (893,022 | ) |   |   | (640,506 | ) |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                             |   |   | 9,346 |   |   |   | (15,699 | ) |   |   | 2,773 |   |
| Cash and cash equivalents, beginning of year                                                     |   |   | 935 |   |   |   | 16,634 |   |   |   | 13,861 |   |
| Cash and cash equivalents, end of year                                                           |   | $ | 10,281 |   |   | $ | 935 |   |   | $ | 16,634 |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:                                                              |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash payments for:                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                                                                                         |   | $ | - |   |   | $ | 3,691 |   |   | $ | - |   |
|                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental disclosure of non-cash activity:                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset retirement obligation, with corresponding increase to natural gas and crude oil properties |   | $ | - |   |   | $ | 44,704 |   |   | $ | - |   |

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|   | · | An acquirer to recognize the assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at their acquisition-date fair values. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | The disclosure of the information necessary for investors and other users to evaluate and understand the nature and financial effect of the business combination. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Acquisition-related costs are to be expensed as incurred. |
|--------|--------|-----------------------------------------------------------|

|   | · | Certain acquired contingencies are to be treated as contingent consideration and measured both initially and subsequently at fair value, if fair value can be reasonably estimated. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Accounting for income taxes, to require the acquirer to recognize changes in the amount of its deferred tax benefits recognizable due to a business combination either in income from continuing operations in the period of the combination or directly in contributed capital, depending on the circumstances. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Accounting for uncertainty in income taxes, to require, subsequent to a prescribed measurement period, changes to acquisition-date income tax uncertainties to be reported in income from continuing operations and changes to acquisition-date acquiree deferred tax benefits to be reported in income from continuing operations or directly in contributed capital, depending on the circumstances. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Affirms that the objective of fair value when the market for an asset is not active is the price that would be received to sell the asset in an orderly transaction; clarifies and includes additional factors for determining whether there has been a significant decrease in market activity for an asset when the market for that asset is not active; eliminates the proposed presumption that all transactions are distressed (not orderly) unless proven otherwise and instead requires an entity to base its conclusion about whether a transaction was not orderly on the weight of the evidence; requires an entity to disclose a change in valuation technique (and the related inputs) resulting from the application of the amendment and to quantify its effects, if practicable; and applies to all fair value measurements when appropriate. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Requires an entity to provide disclosures about fair value of financial instruments in interim financial information and requires those disclosures in summarized financial information at interim reporting periods.  Pursuant to this amendment, a reporting entity shall include disclosures about the fair value of its financial instruments whenever it issues summarized financial information for interim reporting periods.  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. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | the obligation to absorb losses of the entity that could potentially be significant to the variable interest entity or the right to receive benefits from the entity that could potentially be significant to the variable interest entity. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | · | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.  Included in Level 1 are the Partnership’s commodity derivative instruments for New York Mercantile Exchange, or NYMEX, based natural gas swaps. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability and (iv) inputs that are derived from observable market data by correlation or other means. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 – Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.  Included in Level 3 are the Partnership’s commodity derivative instruments for Colorado Interstate Gas, or CIG, based natural gas swaps, crude oil swaps, natural gas and crude oil collars and the Partnership’s natural gas basis protection derivative instruments. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                     |   | Quarter ended                                |    |
|------------------------------------------|--------|----------------------------------------------|---------|
|                                     |   | December 31, 2010                            |    |   | December 31, 2009 |   |   | December 31, 2008 |   |
|                                     |   | Quoted Prices in Active Markets Level 1 |    |   | Significant Unobservable Inputs Level 3 |   |   | Total |   |   | Quoted Prices in Active Markets Level 1 |   |   | Significant Unobservable Inputs Level 3 |   |   | Total |   |   | Quoted Prices in Active Markets Level 1 |   |   | Significant Unobservable Inputs Level 3 |   |   | Total |   |
| Assets:.                                 |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   | $                                            | 295,930 |   |   | $ | 12,277 |   |   | $ | 308,207 |   |   | $ | 71,475 |   |   | $ | 81,467 |   |   | $ | 152,942 |   |   | $ | - |   |   | $ | 418,485 |   |   | $ | 418,485 |   |
| Total assets                             |   |                                         | 295,930 |   |   |   | 12,277 |   |   |   | 308,207 |   |   |   | 71,475 |   |   |   | 81,467 |   |   |   | 152,942 |   |   |   | - |   |   |   | 418,485 |   |   |   | 418,485 |   |
|                                     |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   |                                         | -       |   |   |   | (26,987 | ) |   |   | (26,987 | ) |   |   | (5,193 | ) |   |   | (18,570 | ) |   |   | (23,763 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Basis protection derivative contracts    |   |                                         | -       |   |   |   | (216,543 | ) |   |   | (216,543 | ) |   |   | - |   |   |   | (255,340 | ) |   |   | (255,340 | ) |   |   | - |   |   |   | (22,614 | ) |   |   | (22,614 | ) |
| Total liabilities                        |   |                                         | -       |   |   |   | (243,530 | ) |   |   | (243,530 | ) |   |   | (5,193 | ) |   |   | (273,910 | ) |   |   | (279,103 | ) |   |   | - |   |   |   | (22,614 | ) |   |   | (22,614 | ) |
|                                     |   |                                         |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments |   | $                                            | 295,930 |   |   | $ | (231,253 | ) |   | $ | 64,677 |   |   | $ | 66,282 |   |   | $ | (192,443 | ) |   | $ | (126,161 | ) |   | $ | - |   |   | $ | 395,871 |   |   | $ | 395,871 |   |

|                                                                                                                                                                              |   | December 31, |     |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                                                                                                              |   | 2010         |     |   | 2009 |   |   | 2008 |   |
| Fair value, net (liability) asset beginning of year                                                                                                                               |   | $            | (192,443 | ) |   | $ | 395,871 |   |   | $ | (24,228 | ) |
| Changes in fair value included in statement of operations line item:                                                                                                              |   |         |     |   |   |   |   |   |   |   |   |   |
| Commodity price risk management gain (loss), net                                                                                                                                  |   |         | 2,910    |   |   |   | (237,268 | ) |   |   | 456,233 |   |
| Settlements                                                                                                                                                                       |   |         | (41,720  | ) |   |   | (351,046 | ) |   |   | (36,134 | ) |
| Fair value, net (liability) asset end of year                                                                                                                                     |   | $            | (231,253 | ) |   | $ | (192,443 | ) |   | $ | 395,871 |   |
|                                                                                                                                                                              |   |         |     |   |   |   |   |   |   |   |   |   |
| Change in unrealized gain (loss) relating to assets (liabilities) still held as of December 31, 2010, 2009 and 2008, respectively, included in statement of operations line item: |   |         |     |   |   |   |   |   |   |   |   |   |
| Commodity price risk management gain (loss), net                                                                                                                                  |   | $            | (24,113  | ) |   | $ | (268,887 | ) |   | $ | - |   |

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|   | · | Collars contain a fixed floor price (put) and ceiling price (call).  If the index price falls below the fixed put strike price, PDC, as Managing General Partner receives the market price from the purchaser and receives the difference between the put strike price and index price from the counterparty.  If the index price exceeds the fixed call strike price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the call strike price and index price to the counterparty.  If the index price is between the put and call strike price, no payments are due to or from the counterparty. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Swaps are arrangements that guarantee a fixed price.  If the index price is below the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and receives the difference between the index price and the fixed contract price from the counterparty.  If the index price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the index price and the fixed contract price to the counterparty.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Basis protection swaps are arrangements that guarantee a price differential for natural gas from a specified delivery point.  For CIG basis protection swaps, which traditionally have negative differentials to NYMEX, PDC, as Managing General Partner, receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract.  If the market price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                               |   | December 31, |     |
|----------------------------------------------------|--------|--------------|----------|
|                                               |   | 2010         |     |   | 2009 |   |   | 2008 |   |
|                                               |   |         |     |   |   |   |   |   |   |
| Derivative net assets (liabilities)                |   |         |     |   |   |   |   |   |   |
| Natural gas and crude oil sales activities:        |   |         |     |   |   |   |   |   |   |
| Fixed-price natural gas swaps                      |   | $            | 295,930  |   |   | $ | 95,331 |   |   | $ | 122,116 |   |
| Natural gas collars                                |   |         | 12,275   |   |   |   | 25,590 |   |   |   | 130,116 |   |
| Natural gas basis protection swaps                 |   |         | (216,543 | ) |   |   | (255,340 | ) |   |   | (22,614 | ) |
| Fixed-price crude oil swaps                        |   |         | (26,985  | ) |   |   | 8,258 |   |   |   | 166,253 |   |
|                                               |   |         |     |   |   |   |   |   |   |   |   |   |
| Estimated net fair value of derivative instruments |   | $            | 64,677   |   |   | $ | (126,161 | ) |   | $ | 395,871 |   |

| Derivative instruments not                                   | Balance Sheet                                 |   | December 31, |    |
|--------------------------------------------------------------|-----------------------------------------------|--------|--------------|---------|
| designated as hedge  (1):                          | Line Item                                     |   | 2010         |    |   | 2009 |   |   | 2008 |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |
| Derivative Assets:                                           |                                          |   |         |    |   |   |   |   |   |   |
| Current                                                      |                                          |   |         |    |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner-derivatives |   | $            | 119,434 |   |   | $ | 82,309 |   |   | $ | 301,886 |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner-derivatives |   |         | 188,773 |   |   |   | 70,633 |   |   |   | 116,599 |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Total Derivative Assets                                      |                                          |   |         | 308,207 |   |   |   | 152,942 |   |   |   | 418,485 |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Derivative Liabilities:                                      |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner-derivatives   |   |         | 26,987  |   |   |   | 5,329 |   |   |   | - |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner-derivatives   |   |         | 73,582  |   |   |   | 65,522 |   |   |   | - |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner-derivatives   |   |         | -       |   |   |   | 18,434 |   |   |   | - |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner-derivatives   |   |         | 142,961 |   |   |   | 189,818 |   |   |   | 22,614 |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Total Derivative Liabilities                                 |                                          |   |         | 243,530 |   |   |   | 279,103 |   |   |   | 22,614 |   |
|                                                         |                                          |   |         |    |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments - asset (liability) |                                          | $      | 64,677       |    |   | $ | (126,161 | ) |   | $ | 395,871 |   |

|   | (1) | As of December 31, 2010, 2009 and 2008, none of the Partnership’s derivative instruments were designated as hedges. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

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|                                                   |   | Year Ended December 31,                                                       |    |
|--------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------|
|                                                   |   | 2010                                                                          |    |   | 2009 |   |   | 2008 |   |
| Statement of operations line item                      |   | Reclassification of Realized Loss (Gain) Included in Prior Periods Unrealized |    |   | Realized and Unrealized Gain For the Current Period |   |   | Total |   |   | Reclassification of Realized Loss (Gain) Included in Prior Periods Unrealized |   |   | Realized and Unrealized Gain (Loss) For the Current Period |   |   | Total |   |   | Reclassification of Realized (Gain) Loss Included in Prior Periods Unrealized |   |   | Realized and Unrealized Gain For the Current Period |   |   | Total |   |
|                                                   |   |                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management,  net        |   |                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized gain (loss)                                   |   | $                                                                             | 11,457  |   |   | $ | 96,651 |   |   | $ | 108,108 |   |   | $ | 301,885 |   |   | $ | 49,161 |   |   | $ | 351,046 |   |   | $ | (25,885 | ) |   | $ | 62,019 |   |   | $ | 36,134 |   |
| Unrealized (loss) gain                                 |   |                                                                          | (11,457 | ) |   |   | 202,295 |   |   |   | 190,838 |   |   |   | (301,885 | ) |   |   | (220,147 | ) |   |   | (522,032 | ) |   |   | 25,885 |   |   |   | 394,214 |   |   |   | 420,099 |   |
| Total commodity price risk management gain (loss), net |   | $                                                                             | -       |   |   | $ | 298,946 |   |   | $ | 298,946 |   |   | $ | - |   |   | $ | (170,986 | ) |   | $ | (170,986 | ) |   | $ | - |   |   | $ | 456,233 |   |   | $ | 456,233 |   |

|                                              |   | Year Ended December 31, |   |
|---------------------------------------------------|--------|-------------------------|--------|
| Major Customer                                    |   | 2010                    |   |   | 2009 |   |   | 2008 |   |
| DCP Midstream LP (“DCP”)              |   |                    | 22     | % |   |   | 21 | % |   |   | 20 | % |
| Teppco Crude Oil, LP (“Teppco”)       |   |                    | 0      | % |   |   | 4 | % |   |   | 34 | % |
| Williams Production RMT (“Williams”), |   |                    | 42     | % |   |   | 43 | % |   |   | 46 | % |
| Suncor Energy (USA) Inc. (“Suncor”)   |   |                    | 36     | % |   |   | 32 | % |   |   | 0 | % |

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|                              |   | Year Ended December 31, |    |
|-----------------------------------|--------|-------------------------|---------|
|                              |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|                              |   |                    |    |   |   |   |   |   |   |
| Balance at beginning of year      |   | $                       | 145,733 |   |   | $ | 98,220 |   |   | $ | 92,880 |   |
| Revisions in estimated cash flows |   |                    | -       |   |   |   | 44,704 |   |   |   | - |   |
| Accretion expense                 |   |                    | 8,917   |   |   |   | 2,809 |   |   |   | 5,340 |   |
| Balance at end of year            |   | $                       | 154,650 |   |   | $ | 145,733 |   |   | $ | 98,220 |   |

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|                                                                     |   |     |   |   | Managing |   |
|--------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                     |   | Investor |   |   | General  |   |
|                                                                     |   | Partners |   |   | Partner  |   |
| Partnership Revenue:                                                     |   |     |   |   |     |   |
| Natural gas, NGLs and crude oil sales                                    |   |     | 80     | %      |     |   | 20 | % |
| Preferred cash distribution (a)                                          |   |     | 100    | %      |     |   | 0 | % |
| Commodity price risk management gain (loss)                              |   |     | 80     | %      |     |   | 20 | % |
| Sale of productive properties                                            |   |     | 80     | %      |     |   | 20 | % |
| Sale of equipment                                                        |   |     | 0      | %      |     |   | 100 | % |
| Interest income                                                          |   |     | 80     | %      |     |   | 20 | % |
|                                                                     |   |     |   |   |     |   |   |   |
| Partnership Operating Costs and Expenses:                                |   |     |   |   |     |   |   |   |
| Natural gas, NGLs and crude oil production and well operations costs (b) |   |     | 80     | %      |     |   | 20 | % |
| Depreciation, depletion and amortization expense                         |   |     | 80     | %      |     |   | 20 | % |
| Accretion of asset retirement obligations                                |   |     | 80     | %      |     |   | 20 | % |
| Direct costs - general and administrative (c)                            |   |     | 80     | %      |     |   | 20 | % |

|   | (a) | To the extent that Investor Partners receive preferred cash distributions, the allocations for Investor Partners will be increased accordingly and the allocation for the Managing General Partner will likewise be decreased.  See Performance Standard Obligation of Managing General Partner below. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | Represents operating costs incurred after the completion of productive wells, including monthly per-well charges paid to the Managing General Partner. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | (c) | The Managing General Partner receives monthly reimbursement from the Partnership for direct costs – general and administrative incurred by the Managing General Partner on behalf of the Partnership. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|               |   | Year Ended December 31, |    |
|--------------------|--------|-------------------------|---------|
|               |   | 2010                    |    |   | 2009 |   |   | 2008 |   |
|               |   |                    |    |   |   |   |   |   |   |
| Cash distributions |   | $                       | 466,879 |   |   | $ | 893,022 |   |   | $ | 640,506 |   |

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|                                                                                                  |   | December 31, |     |
|-------------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                                  |   | 2010         |     |   | 2009 |   |   | 2008 |   |
|                                                                                                  |   |         |     |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales revenues collected from the Partnership's third-party customers |   | $            | 65,527   |   |   | $ | 61,460 |   |   | $ | 110,636 |   |
| Commodity Price Risk Management, Realized Gain                                                        |   |         | 16,576   |   |   |   | 54,701 |   |   |   | 101,795 |   |
| Other (1)                                                                                             |   |         | (176,745 | ) |   |   | (45,493 | ) |   |   | 197,297 |   |
| Total Due (to) from Managing General Partner - other, net                                             |   | $            | (94,642  | ) |   | $ | 70,668 |   |   | $ | 409,728 |   |

|   | (1) | All other unsettled transactions, excluding derivative instruments, between the Partnership and the Managing General Partner.  Except as noted below, the majority of these are operating costs or general and administrative costs which have not been deducted from distributions. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                                           |   | Year Ended December 31, |    |
|------------------------------------------------|--------|-------------------------|---------|
|                                           |   | 2010                    |    |   | 2009 |   |   | 2009 |   |
|                                           |   |                    |    |   |   |   |   |   |   |
| Well operations and maintenance (1)            |   | $                       | 235,400 |   |   | $ | 290,636 |   |   | $ | 242,671 |   |
| Gathering, compression and processing fees (2) |   |                    | 26,526  |   |   |   | 26,080 |   |   |   | 22,357 |   |
| Direct costs - general and administrative (3)  |   |                    | 208,232 |   |   |   | 18,240 |   |   |   | 26,013 |   |
| Cash distributions (4) (5)                     |   |                    | 60,147  |   |   |   | 194,631 |   |   |   | 141,207 |   |

|   | · | well tending, routine maintenance and adjustment; |
|--------|--------|---------------------------------------------------|

|   | · | reading meters, recording production, pumping, maintaining appropriate books and records; and |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | preparing production related reports to the Partnership and government agencies. |
|--------|--------|----------------------------------------------------------------------------------|

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|   | · | the purchase or repairs of equipment, materials or third-party services; |
|--------|--------|--------------------------------------------------------------------------|

|   | · | the cost of compression and third-party gathering services, or gathering costs; |
|--------|--------|---------------------------------------------------------------------------------|

|   | · | brine disposal; and |
|--------|--------|---------------------|

|   | · | rebuilding of access roads. |
|--------|--------|-----------------------------|

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|               |   | Price Used to Estimate Reserves |   |
|--------------------|--------|---------------------------------|--------|
| As of December 31, |   | Crude Oil (per Bbl)             |   |   | Natural Gas (per Mcf)(1) |   |   | NGLs (per Bbl)(1) |   |
| 2010(2)            |   | $                               | 71.05  |   |   | $ | 3.42 |   |   | $ | 34.10 |   |
| 2009(2)            |   |                            | 54.99  |   |   |   | 3.42 |   |   |   | - |   |
| 2008(3)            |   |                            | 38.43  |   |   |   | 4.82 |   |   |   | - |   |

|   | (1) | Prior to 2010, NGLs were included in natural gas, which impacts the comparability for 2010 to 2009 and 2008. |
|--------|-----|--------------------------------------------------------------------------------------------------------------|

|   | (2) | For 2010 and 2009, represents a 12-month average price calculated as the unweighted arithmetic average of the price on the first day of each month January through December. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | For 2008, represents the price in effect as of December 31, 2008, for the respective commodity. |
|--------|-----|-------------------------------------------------------------------------------------------------|

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|                                                  |   | Natural Gas |   |   | NGLs   |   |   | Crude Oil and Condensate |   |   | Natural Gas Equivalent |   |
|-------------------------------------------------------|--------|-------------|--------|--------|--------|--------|--------|--------------------------|--------|--------|------------------------|--------|
|                                                  |   | (MMcf)      |   |   | (MBbl) |   |   | (MBbl)                   |   |   | (MMcfe)                |   |
| Proved Reserves:                                      |   |        |   |   |   |   |   |                     |   |   |                   |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |
| Proved reserves, January 1, 2008                      |   |        | 1,296  |   |   |   | -      |                     |   |   | 98                     |   |   |   | 1,884 |   |
| Revisions of previous estimates                       |   |        | 191    |   |   |   | -      |                     |   |   | (3                     | )      |   |   | 173 |   |
| Production                                            |   |        | (115   | )      |   |   | -      |                     |   |   | (4                     | )      |   |   | (139 | ) |
| Proved reserves, December 31, 2008                    |   |        | 1,372  |   |   |   | -      |                     |   |   | 91                     |   |   |   | 1,918 |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
| Revisions of previous estimates                       |   |        | 70     |   |   |   | -      |                     |   |   | (3                     | )      |   |   | 52 |   |
| Production                                            |   |        | (123   | )      |   |   | -      |                     |   |   | (4                     | )      |   |   | (147 | ) |
| Proved reserves, December 31, 2009                    |   |        | 1,319  |   |   |   | -      |                     |   |   | 84                     |   |   |   | 1,823 |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
| Revisions of previous estimates and reclassifications |   |        | (130   | )      |   |   | 19     |                     |   |   | (15                    | )      |   |   | (106 | ) |
| Production                                            |   |        | (110   | )      |   |   | (1     | )                        |   |   | (4                     | )      |   |   | (140 | ) |
| Proved reserves, December 31, 2010                    |   |        | 1,079  |   |   |   | 18     |                     |   |   | 65                     |   |   |   | 1,577 |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
| Proved Developed Reserves, as of:                     |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
| December 31, 2008                                     |   |        | 661    |   |   |   | -      |                     |   |   | 23                     |   |   |   | 799 |   |
| December 31, 2009                                     |   |        | 781    |   |   |   | -      |                     |   |   | 22                     |   |   |   | 913 |   |
| December 31, 2010                                     |   |        | 770    |   |   |   | 9      |                     |   |   | 23                     |   |   |   | 962 |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
| Proved Undeveloped Reserves, as of:                   |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
|                                                  |   |        |   |   |   |   |   |                     |   |   |                   |   |   |   |   |   |
| December 31, 2008                                     |   |        | 711    |   |   |   | -      |                     |   |   | 68                     |   |   |   | 1,119 |   |
| December 31, 2009                                     |   |        | 538    |   |   |   | -      |                     |   |   | 62                     |   |   |   | 910 |   |
| December 31, 2010                                     |   |        | 309    |   |   |   | 9      |                     |   |   | 42                     |   |   |   | 615 |   |

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|                                                                     |   | As of December 31, |       |
|--------------------------------------------------------------------------|--------|--------------------|------------|
|                                                                     |   | 2010               |       |   | 2009 |   |   | 2008 |   |
|                                                                     |   |               |       |   |   |   |   |   |   |
| Leasehold costs                                                          |   | $                  | 337,489    |   |   | $ | 337,478 |   |   | $ | 337,478 |   |
| Development costs                                                        |   |               | 8,406,983  |   |   |   | 8,397,221 |   |   |   | 8,349,899 |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |               | 8,744,472  |   |   |   | 8,734,699 |   |   |   | 8,687,377 |   |
| Less: Accumulated depreciation, depletion and amortization               |   |               | (5,973,662 | ) |   |   | (5,486,052 | ) |   |   | (4,909,336 | ) |
| Natural gas and crude oil properties, net                                |   | $                  | 2,770,810  |   |   | $ | 3,248,647 |   |   | $ | 3,778,041 |   |

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|                                                                     |   | As of          |       |
|--------------------------------------------------------------------------|--------|----------------|------------|
|                                                                     |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                                   |   | 2010           |       |   | 2010 |   |   | 2010 |   |   | 2010* |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                          |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                |   | $              | 911        |   |   | $ | 887 |   |   | $ | 10,277 |   |   | $ | 10,281 |   |
| Accounts receivable                                                      |   |           | 45,774     |   |   |   | 40,360 |   |   |   | 36,170 |   |   |   | 33,072 |   |
| Crude oil inventory                                                      |   |           | 14,638     |   |   |   | 14,713 |   |   |   | 12,020 |   |   |   | 16,072 |   |
| Due from Managing General Partner-derivatives                            |   |           | 99,134     |   |   |   | 89,989 |   |   |   | 134,925 |   |   |   | 119,434 |   |
| Due from Managing General Partner-other, net                             |   |           | 104,358    |   |   |   | 35,204 |   |   |   | 37,206 |   |   |   | - |   |
| Total current assets                                                     |   |           | 264,815    |   |   |   | 181,153 |   |   |   | 230,598 |   |   |   | 178,859 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |           | 8,734,743  |   |   |   | 8,734,959 |   |   |   | 8,739,079 |   |   |   | 8,744,472 |   |
| Less:  Accumulated depreciation, depletion and amortization    |   |           | (5,626,003 | ) |   |   | (5,761,063 | ) |   |   | (5,880,971 | ) |   |   | (5,973,662 | ) |
| Natural gas and crude oil properties, net                                |   |           | 3,108,740  |   |   |   | 2,973,896 |   |   |   | 2,858,108 |   |   |   | 2,770,810 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                            |   |           | 176,041    |   |   |   | 166,386 |   |   |   | 220,887 |   |   |   | 188,773 |   |
| Other assets                                                             |   |           | 28,775     |   |   |   | 30,693 |   |   |   | 32,611 |   |   |   | 34,528 |   |
| Total noncurrent assets                                                  |   |           | 3,313,556  |   |   |   | 3,170,975 |   |   |   | 3,111,606 |   |   |   | 2,994,111 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                             |   | $              | 3,578,371  |   |   | $ | 3,352,128 |   |   | $ | 3,342,204 |   |   | $ | 3,172,970 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                    |   | $              | 7,040      |   |   | $ | 4,294 |   |   | $ | 4,389 |   |   | $ | 5,854 |   |
| Due to Managing General Partner-derivatives                              |   |           | 83,445     |   |   |   | 67,935 |   |   |   | 79,034 |   |   |   | 100,569 |   |
| Due to Managing General Partner-other                                    |   |           | -          |   |   |   | - |   |   |   | - |   |   |   | 94,642 |   |
| Total current liabilities                                                |   |           | 90,485     |   |   |   | 72,229 |   |   |   | 83,423 |   |   |   | 201,065 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                              |   |           | 221,460    |   |   |   | 175,421 |   |   |   | 162,530 |   |   |   | 142,961 |   |
| Asset retirement obligations                                             |   |           | 147,913    |   |   |   | 150,125 |   |   |   | 152,371 |   |   |   | 154,650 |   |
| Total liabilities                                                        |   |           | 459,858    |   |   |   | 397,775 |   |   |   | 398,324 |   |   |   | 498,676 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                                 |   |           | 651,042    |   |   |   | 637,183 |   |   |   | 647,069 |   |   |   | 597,648 |   |
| Limited Partners -  559.02 units issued and outstanding        |   |           | 2,467,471  |   |   |   | 2,317,170 |   |   |   | 2,296,811 |   |   |   | 2,076,646 |   |
| Total Partners' equity                                                   |   |           | 3,118,513  |   |   |   | 2,954,353 |   |   |   | 2,943,880 |   |   |   | 2,674,294 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                                   |   | $              | 3,578,371  |   |   | $ | 3,352,128 |   |   | $ | 3,342,204 |   |   | $ | 3,172,970 |   |

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|                                                                        |   | As of          |       |
|-----------------------------------------------------------------------------|--------|----------------|------------|
|                                                                        |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                                      |   | 2009           |       |   | 2009 |   |   | 2009 |   |   | 2009* |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                             |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                   |   | $              | 16,940     |   |   | $ | 16,947 |   |   | $ | 958 |   |   | $ | 935 |   |
| Accounts receivable                                                         |   |           | 33,766     |   |   |   | 36,412 |   |   |   | 42,637 |   |   |   | 55,270 |   |
| Crude oil inventory                                                         |   |           | 22,932     |   |   |   | 21,019 |   |   |   | 12,079 |   |   |   | 24,050 |   |
| Due from Managing General Partner-derivatives                               |   |           | 347,646    |   |   |   | 230,403 |   |   |   | 153,994 |   |   |   | 82,309 |   |
| Due from Managing General Partner-other, net                                |   |           | 412,554    |   |   |   | 338,249 |   |   |   | 66,331 |   |   |   | 70,668 |   |
| Total current assets                                                        |   |           | 833,838    |   |   |   | 643,030 |   |   |   | 275,999 |   |   |   | 233,232 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil properties, successful efforts method, at cost    |   |           | 8,687,391  |   |   |   | 8,687,391 |   |   |   | 8,689,646 |   |   |   | 8,734,699 |   |
| Less:   Accumulated depreciation, depletion and amortization |   |           | (5,053,354 | ) |   |   | (5,209,193 | ) |   |   | (5,353,380 | ) |   |   | (5,486,052 | ) |
| Natural gas and crude oil properties, net                                   |   |           | 3,634,037  |   |   |   | 3,478,198 |   |   |   | 3,336,266 |   |   |   | 3,248,647 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                               |   |           | 58,292     |   |   |   | 22,050 |   |   |   | 11,242 |   |   |   | 70,633 |   |
| Other assets                                                                |   |           | 21,742     |   |   |   | 23,661 |   |   |   | 24,940 |   |   |   | 26,858 |   |
| Total noncurrent assets                                                     |   |           | 3,714,071  |   |   |   | 3,523,909 |   |   |   | 3,372,448 |   |   |   | 3,346,138 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                                |   | $              | 4,547,909  |   |   | $ | 4,166,939 |   |   | $ | 3,648,447 |   |   | $ | 3,579,370 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                            |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                       |   | $              | 5,038      |   |   | $ | 5,815 |   |   | $ | 4,276 |   |   | $ | 5,479 |   |
| Due to Managing General Partner-derivatives                                 |   |           | -          |   |   |   | 18,076 |   |   |   | 61,369 |   |   |   | 70,851 |   |
| Total current liabilities                                                   |   |           | 5,038      |   |   |   | 23,891 |   |   |   | 65,645 |   |   |   | 76,330 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                                 |   |           | 139,171    |   |   |   | 170,292 |   |   |   | 191,507 |   |   |   | 208,252 |   |
| Asset retirement obligations                                                |   |           | 99,632     |   |   |   | 101,044 |   |   |   | 102,456 |   |   |   | 145,733 |   |
| Total liabilities                                                           |   |           | 243,841    |   |   |   | 295,227 |   |   |   | 359,608 |   |   |   | 430,315 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                           |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                                    |   |           | 861,904    |   |   |   | 775,433 |   |   |   | 658,858 |   |   |   | 640,338 |   |
| Limited Partners -  559.02 units issued and outstanding           |   |           | 3,442,164  |   |   |   | 3,096,279 |   |   |   | 2,629,981 |   |   |   | 2,508,717 |   |
| Total Partners' equity                                                      |   |           | 4,304,068  |   |   |   | 3,871,712 |   |   |   | 3,288,839 |   |   |   | 3,149,055 |   |
|                                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                                      |   | $              | 4,547,909  |   |   | $ | 4,166,939 |   |   | $ | 3,648,447 |   |   | $ | 3,579,370 |   |

----

Table of Contents

|                                                                     |   | As of          |       |
|--------------------------------------------------------------------------|--------|----------------|------------|
|                                                                     |   | March 31, |       |   | June 30, |   |   | September 30, |   |   | December 31, |   |
| Assets                                                                   |   | 2008           |       |   | 2008 |   |   | 2008 |   |   | 2008* |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Current assets:                                                          |   |           |       |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                |   | $              | 14,816     |   |   | $ | 15,466 |   |   | $ | 16,624 |   |   | $ | 16,634 |   |
| Accounts receivable                                                      |   |           | 148,655    |   |   |   | 108,807 |   |   |   | 88,583 |   |   |   | 48,452 |   |
| Crude oil inventory                                                      |   |           | 32,552     |   |   |   | 16,326 |   |   |   | 28,348 |   |   |   | 16,390 |   |
| Due from Managing General Partner-derivatives                            |   |           | -          |   |   |   | - |   |   |   | 145,258 |   |   |   | 301,886 |   |
| Due from Managing General Partner-other, net                             |   |           | 316,518    |   |   |   | 237,730 |   |   |   | 387,200 |   |   |   | 409,728 |   |
| Total current assets                                                     |   |           | 512,541    |   |   |   | 378,329 |   |   |   | 666,013 |   |   |   | 793,090 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |           | 8,669,322  |   |   |   | 8,678,177 |   |   |   | 8,684,946 |   |   |   | 8,687,377 |   |
| Less accumulated depreciation, depletion and amortization                |   |           | (4,524,475 | ) |   |   | (4,627,027 | ) |   |   | (4,754,901 | ) |   |   | (4,909,336 | ) |
| Natural gas and crude oil properties, net                                |   |           | 4,144,847  |   |   |   | 4,051,150 |   |   |   | 3,930,045 |   |   |   | 3,778,041 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                            |   |           | 8,307      |   |   |   | 213 |   |   |   | 66,385 |   |   |   | 116,599 |   |
| Due from Managing General Partner-other                                  |   |           | 37,941     |   |   |   | 42,875 |   |   |   | - |   |   |   | - |   |
| Other assets                                                             |   |           | 14,069     |   |   |   | 15,987 |   |   |   | 17,905 |   |   |   | 19,824 |   |
| Total noncurrent assets                                                  |   |           | 4,205,164  |   |   |   | 4,110,225 |   |   |   | 4,014,335 |   |   |   | 3,914,464 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Assets                                                             |   | $              | 4,717,705  |   |   | $ | 4,488,554 |   |   | $ | 4,680,348 |   |   | $ | 4,707,554 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                         |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current liabilities:                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Accounts payable                                                         |   | $              | 31,294     |   |   | $ | 25,637 |   |   | $ | 28,700 |   |   | $ | 15,960 |   |
| Due to Managing General Partner-derivatives                              |   |           | 140,981    |   |   |   | 226,509 |   |   |   | 33,483 |   |   |   | - |   |
| Total current liabilities                                                |   |           | 172,275    |   |   |   | 252,146 |   |   |   | 62,183 |   |   |   | 15,960 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                              |   |           | 22,410     |   |   |   | 95,139 |   |   |   | 36,120 |   |   |   | 22,614 |   |
| Asset retirement obligations                                             |   |           | 94,215     |   |   |   | 95,550 |   |   |   | 96,885 |   |   |   | 98,220 |   |
| Total liabilities                                                        |   |           | 288,900    |   |   |   | 442,835 |   |   |   | 195,188 |   |   |   | 136,794 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Partners' equity:                                                        |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Managing General Partner                                                 |   |           | 886,850    |   |   |   | 810,233 |   |   |   | 898,121 |   |   |   | 915,242 |   |
| Limited Partners - 559.02  units issued and outstanding        |   |           | 3,541,955  |   |   |   | 3,235,486 |   |   |   | 3,587,039 |   |   |   | 3,655,518 |   |
| Total Partners' equity                                                   |   |           | 4,428,805  |   |   |   | 4,045,719 |   |   |   | 4,485,160 |   |   |   | 4,570,760 |   |
|                                                                     |   |           |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                                   |   | $              | 4,717,705  |   |   | $ | 4,488,554 |   |   | $ | 4,680,348 |   |   | $ | 4,707,554 |   |

----

Table of Contents

|                                                                    |   | Quarter Ended  |    |
|-------------------------------------------------------------------------|--------|----------------|---------|
|                                                                    |   | March 31, |    |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                                    |   | 2010           |    |   | 2010 |   |   | 2010 |   |   | 2010 |   |
| Revenues:                                                               |   |           |    |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales                                   |   | $              | 215,077 |   |   | $ | 177,193 |   |   | $ | 150,641 |   |   | $ | 151,764 |   |
| Commodity price risk management gain (loss), net                        |   |           | 161,482 |   |   |   | 52,745 |   |   |   | 114,172 |   |   |   | (29,453 | ) |
| Total revenues                                                          |   |           | 376,559 |   |   |   | 229,938 |   |   |   | 264,813 |   |   |   | 122,311 |   |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                           |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production cost                         |   |           | 83,384  |   |   |   | 65,920 |   |   |   | 65,042 |   |   |   | 82,403 |   |
| Direct costs - general and administrative                               |   |           | 1,822   |   |   |   | 4,450 |   |   |   | 7,856 |   |   |   | 194,104 |   |
| Depreciation, depletion and amortization                                |   |           | 139,951 |   |   |   | 135,060 |   |   |   | 119,908 |   |   |   | 92,691 |   |
| Accretion of asset retirement obligations                               |   |           | 2,180   |   |   |   | 2,212 |   |   |   | 2,246 |   |   |   | 2,279 |   |
| Total operating costs and expenses                                      |   |           | 227,337 |   |   |   | 207,642 |   |   |   | 195,052 |   |   |   | 371,477 |   |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) from operations                                           |   |           | 149,222 |   |   |   | 22,296 |   |   |   | 69,761 |   |   |   | (249,166 | ) |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                         |   |           | -       |   |   |   | 1 |   |   |   | - |   |   |   | 4 |   |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss)                                                       |   | $              | 149,222 |   |   | $ | 22,297 |   |   | $ | 69,761 |   |   | $ | (249,162 | ) |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) allocated to partners                                 |   | $              | 149,222 |   |   | $ | 22,297 |   |   | $ | 69,761 |   |   | $ | (249,162 | ) |
| Less:  Managing General Partner interest in net income (loss) |   |           | 29,844  |   |   |   | 4,460 |   |   |   | 13,952 |   |   |   | (49,832 | ) |
| Net income (loss) allocated to Investor Partners                        |   | $              | 119,378 |   |   | $ | 17,837 |   |   | $ | 55,809 |   |   | $ | (199,330 | ) |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income (loss) per Investor Partner unit                             |   | $              | 214     |   |   | $ | 32 |   |   | $ | 100 |   |   | $ | (357 | ) |
|                                                                    |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                                      |   |           | 559.02  |   |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

----

Table of Contents

|                                                                    |   | Quarter Ended  |     |
|-------------------------------------------------------------------------|--------|----------------|----------|
|                                                                    |   | March 31, |     |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                                    |   | 2009           |     |   | 2009 |   |   | 2009 |   |   | 2009 |   |
| Revenues:                                                               |   |           |     |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales                                   |   | $              | 124,209  |   |   | $ | 133,567 |   |   | $ | 132,757 |   |   | $ | 176,919 |   |
| Commodity price risk management (loss) gain, net                        |   |           | (3,659   | ) |   |   | (120,114 | ) |   |   | (80,800 | ) |   |   | 33,587 |   |
| Total revenues                                                          |   |           | 120,550  |   |   |   | 13,453 |   |   |   | 51,957 |   |   |   | 210,506 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                           |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production cost                         |   |           | 92,193   |   |   |   | 90,178 |   |   |   | 102,401 |   |   |   | 53,557 |   |
| Direct costs - general and administrative                               |   |           | 2,028    |   |   |   | 4,759 |   |   |   | 360 |   |   |   | 11,093 |   |
| Depreciation, depletion and amortization                                |   |           | 144,018  |   |   |   | 155,839 |   |   |   | 144,187 |   |   |   | 132,672 |   |
| Accretion of asset retirement obligations                               |   |           | 1,412    |   |   |   | 1,412 |   |   |   | 1,412 |   |   |   | (1,427 | ) |
| Total operating costs and expenses                                      |   |           | 239,651  |   |   |   | 252,188 |   |   |   | 248,360 |   |   |   | 195,895 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from operations                                           |   |           | (119,101 | ) |   |   | (238,735 | ) |   |   | (196,403 | ) |   |   | 14,611 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                                        |   |           | -        |   |   |   | - |   |   |   | (3,691 | ) |   |   | - |   |
| Interest income                                                         |   |           | 4,649    |   |   |   | 4,625 |   |   |   | 5,361 |   |   |   | 1 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                       |   | $              | (114,452 | ) |   | $ | (234,110 | ) |   | $ | (194,733 | ) |   | $ | 14,612 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income allocated to partners                                 |   | $              | (114,452 | ) |   | $ | (234,110 | ) |   | $ | (194,733 | ) |   | $ | 14,612 |   |
| Less:  Managing General Partner interest in net (loss) income |   |           | (22,890  | ) |   |   | (46,822 | ) |   |   | (38,947 | ) |   |   | 2,922 |   |
| Net (loss) income allocated to Investor Partners                        |   | $              | (91,562  | ) |   | $ | (187,288 | ) |   | $ | (155,786 | ) |   | $ | 11,690 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per Investor Partner unit                             |   | $              | (164     | ) |   | $ | (335 | ) |   | $ | (279 | ) |   | $ | 21 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                                      |   |           | 559.02   |   |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

----

Table of Contents

|                                                                    |   | Quarter Ended  |     |
|-------------------------------------------------------------------------|--------|----------------|----------|
|                                                                    |   | March 31, |     |   | June 30, |   |   | September 30, |   |   | December 31, |   |
|                                                                    |   | 2008           |     |   | 2008 |   |   | 2008 |   |   | 2008 |   |
| Revenues:                                                               |   |           |     |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales                                   |   | $              | 364,433  |   |   | $ | 302,654 |   |   | $ | 339,315 |   |   | $ | 159,088 |   |
| Commodity price risk management (loss) gain, net                        |   |           | (144,971 | ) |   |   | (226,915 | ) |   |   | 472,493 |   |   |   | 355,626 |   |
| Total revenues                                                          |   |           | 219,462  |   |   |   | 75,739 |   |   |   | 811,808 |   |   |   | 514,714 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                           |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production cost                         |   |           | 80,745   |   |   |   | 109,494 |   |   |   | 82,503 |   |   |   | 91,284 |   |
| Direct costs - general and administrative                               |   |           | 3,731    |   |   |   | 2,231 |   |   |   | 7,559 |   |   |   | 12,492 |   |
| Depreciation, depletion and amortization                                |   |           | 146,600  |   |   |   | 102,552 |   |   |   | 127,874 |   |   |   | 154,435 |   |
| Accretion of asset retirement obligations                               |   |           | 1,335    |   |   |   | 1,335 |   |   |   | 1,335 |   |   |   | 1,335 |   |
| Total operating costs and expenses                                      |   |           | 232,411  |   |   |   | 215,612 |   |   |   | 219,271 |   |   |   | 259,546 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (Loss) income from operations                                           |   |           | (12,949  | ) |   |   | (139,873 | ) |   |   | 592,537 |   |   |   | 255,168 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest income                                                         |   |           | 6,329    |   |   |   | 5,950 |   |   |   | 6,012 |   |   |   | 5,850 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income                                                       |   | $              | (6,620   | ) |   | $ | (133,923 | ) |   | $ | 598,549 |   |   | $ | 261,018 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income allocated to partners                                 |   | $              | (6,620   | ) |   | $ | (133,923 | ) |   | $ | 598,549 |   |   | $ | 261,018 |   |
| Less:  Managing General Partner interest in net (loss) income |   |           | (1,324   | ) |   |   | (26,785 | ) |   |   | 119,710 |   |   |   | 52,204 |   |
| Net (loss) income allocated to Investor Partners                        |   | $              | (5,296   | ) |   | $ | (107,138 | ) |   | $ | 478,839 |   |   | $ | 208,814 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net (loss) income per Investor Partner unit                             |   | $              | (9       | ) |   | $ | (192 | ) |   | $ | 857 |   |   | $ | 374 |   |
|                                                                    |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                                      |   |           | 559.02   |   |   |   | 559.02 |   |   |   | 559.02 |   |   |   | 559.02 |   |

----

Table of Contents

|                                                                                 |   | Three          |     |   | Six           |   |     | Nine               |   |
|--------------------------------------------------------------------------------------|--------|----------------|----------|--------|---------------|--------|----------|--------------------|--------|
|                                                                                 |   | Months Ended   |     |   | Months Ended  |   |     | Months Ended       |   |
|                                                                                 |   | March 31, |     |   | June 30, |   |     | September 30, |   |
|                                                                                 |   | 2010           |     |   | 2010          |   |     | 2010               |   |
| Cash flows from operating activities:                                                |   |           |     |   |          |   |     |               |   |
| Net income                                                                           |   | $              | 149,222  |   |          | $      | 171,519  |               |   | $ | 241,280 |   |
| Adjustments to net income to reconcile to net cash provided by operating activities: |   |           |     |   |          |   |     |               |   |   |   |   |
| Depreciation, depletion and amortization                                             |   |           | 139,951  |   |          |   | 275,011  |               |   |   | 394,919 |   |
| Accretion of asset retirement obligations                                            |   |           | 2,180    |   |          |   | 4,392    |               |   |   | 6,638 |   |
| Unrealized gain on derivative transactions                                           |   |           | (96,431  | )      |          |   | (139,180 | )                  |   |   | (240,409 | ) |
| Changes in operating assets and liabilities:                                         |   |           |     |   |          |   |     |               |   |   |   |   |
| Decrease in accounts receivable                                                      |   |           | 9,496    |   |          |   | 14,910   |               |   |   | 19,100 |   |
| Decrease in crude oil inventory                                                      |   |           | 9,412    |   |          |   | 9,337    |               |   |   | 12,030 |   |
| Increase in other assets                                                             |   |           | (1,917   | )      |          |   | (3,835   | )                  |   |   | (5,753 | ) |
| Increase (decrease) in accounts payable and accrued expenses                         |   |           | 1,561    |   |          |   | (1,185   | )                  |   |   | (1,090 | ) |
| (Increase) decrease in Due from Managing General Partner, net                        |   |           | (33,690  | )      |          |   | 35,464   |               |   |   | 33,462 |   |
| Net cash provided by operating activities                                            |   |           | 179,784  |   |          |   | 366,433  |               |   |   | 460,177 |   |
|                                                                                 |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash flows from investing activities:                                                |   |           |     |   |          |   |     |               |   |   |   |   |
| Capital expenditures for natrual gas and crude oil properties                        |   |           | (44      | )      |          |   | (260     | )                  |   |   | (4,380 | ) |
| Net cash used in investing activities                                                |   |           | (44      | )      |          |   | (260     | )                  |   |   | (4,380 | ) |
|                                                                                 |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash flows from financing activities:                                                |   |           |     |   |          |   |     |               |   |   |   |   |
| Distributions to Partners                                                            |   |           | (179,764 | )      |          |   | (366,221 | )                  |   |   | (446,455 | ) |
| Net cash used in financing activities                                                |   |           | (179,764 | )      |          |   | (366,221 | )                  |   |   | (446,455 | ) |
|                                                                                 |   |           |     |   |          |   |     |               |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                 |   |           | (24      | )      |          |   | (48      | )                  |   |   | 9,342 |   |
| Cash and cash equivalents, beginning of year                                         |   |           | 935      |   |          |   | 935      |               |   |   | 935 |   |
| Cash and cash equivalents, end of period                                             |   | $              | 911      |   |          | $      | 887      |               |   | $ | 10,277 |   |

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Table of Contents

|                                                                               |   | Three          |     |   | Six           |   |     | Nine               |   |
|------------------------------------------------------------------------------------|--------|----------------|----------|--------|---------------|--------|----------|--------------------|--------|
|                                                                               |   | Months Ended   |     |   | Months Ended  |   |     | Months Ended       |   |
|                                                                               |   | March 31, |     |   | June 30, |   |     | September 30, |   |
|                                                                               |   | 2009           |     |   | 2009          |   |     | 2009               |   |
| Cash flows from operating activities:                                              |   |           |     |   |          |   |     |               |   |
| Net loss                                                                           |   | $              | (114,452 | )      |          | $      | (348,562 | )                  |   | $ | (543,295 | ) |
| Adjustments to net loss to reconcile to net cash provided by operating activities: |   |           |     |   |          |   |     |               |   |   |   |   |
| Depreciation, depletion and amortization                                           |   |           | 144,018  |   |          |   | 299,857  |               |   |   | 444,044 |   |
| Accretion of asset retirement obligations                                          |   |           | 1,412    |   |          |   | 2,824    |               |   |   | 4,236 |   |
| Unrealized loss on derivative transactions                                         |   |           | 129,104  |   |          |   | 331,786  |               |   |   | 483,511 |   |
| Changes in operating assets and liabilities:                                       |   |           |     |   |          |   |     |               |   |   |   |   |
| Decrease in accounts receivable                                                    |   |           | 14,686   |   |          |   | 12,040   |               |   |   | 5,815 |   |
| (Increase) decrease in crude oil inventory                                         |   |           | (6,542   | )      |          |   | (4,629   | )                  |   |   | 4,311 |   |
| Increase in other assets                                                           |   |           | (1,918   | )      |          |   | (3,837   | )                  |   |   | (5,116 | ) |
| Decrease in accounts payable and accrued expenses                                  |   |           | (10,922  | )      |          |   | (10,145  | )                  |   |   | (11,684 | ) |
| (Increase) decrease in Due from Managing General Partner, net                      |   |           | (2,826   | )      |          |   | 71,479   |               |   |   | 343,397 |   |
| Net cash provided by operating activities                                          |   |           | 152,560  |   |          |   | 350,813  |               |   |   | 725,219 |   |
|                                                                               |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash flows from investing activities:                                              |   |           |     |   |          |   |     |               |   |   |   |   |
| Capital expenditures for natural gas and crude oil properties                      |   |           | (14      | )      |          |   | (14      | )                  |   |   | (2,269 | ) |
| Net cash used in investing activities                                              |   |           | (14      | )      |          |   | (14      | )                  |   |   | (2,269 | ) |
|                                                                               |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash flows from financing activities:                                              |   |           |     |   |          |   |     |               |   |   |   |   |
| Distributions to Partners                                                          |   |           | (152,240 | )      |          |   | (350,486 | )                  |   |   | (738,626 | ) |
| Net cash used in financing activities                                              |   |           | (152,240 | )      |          |   | (350,486 | )                  |   |   | (738,626 | ) |
|                                                                               |   |           |     |   |          |   |     |               |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                               |   |           | 306      |   |          |   | 313      |               |   |   | (15,676 | ) |
| Cash and cash equivalents, beginning of year                                       |   |           | 16,634   |   |          |   | 16,634   |               |   |   | 16,634 |   |
| Cash and cash equivalents, end of period                                           |   | $              | 16,940   |   |          | $      | 16,947   |               |   | $ | 958 |   |
|                                                                               |   |           |     |   |          |   |     |               |   |   |   |   |
| Supplemental cash flow information:                                                |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash payments for:                                                                 |   |           |     |   |          |   |     |               |   |   |   |   |
| Interest                                                                           |   | $              | -        |   |          | $      | -        |               |   | $ | 3,691 |   |

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Table of Contents

|                                                                                        |   | Three          |     |   | Six           |   |     | Nine               |   |
|---------------------------------------------------------------------------------------------|--------|----------------|----------|--------|---------------|--------|----------|--------------------|--------|
|                                                                                        |   | Months Ended   |     |   | Months Ended  |   |     | Months Ended       |   |
|                                                                                        |   | March 31, |     |   | June 30, |   |     | September 30, |   |
|                                                                                        |   | 2008           |     |   | 2008          |   |     | 2008               |   |
| Cash flows from operating activities:                                                       |   |           |     |   |          |   |     |               |   |
| Net (loss) income                                                                           |   | $              | (6,620   | )      |          | $      | (140,543 | )                  |   | $ | 458,006 |   |
| Adjustments to net (loss) income to reconcile to net cash provided by operating activities: |   |           |     |   |          |   |     |               |   |   |   |   |
| Depreciation, depletion and amortization                                                    |   |           | 146,600  |   |          |   | 249,152  |               |   |   | 377,026 |   |
| Accretion of asset retirement obligations                                                   |   |           | 1,335    |   |          |   | 2,670    |               |   |   | 4,005 |   |
| Unrealized loss (gain) on derivative transactions                                           |   |           | 130,856  |   |          |   | 297,207  |               |   |   | (166,268 | ) |
| Changes in operating assets and liabilities:                                                |   |           |     |   |          |   |     |               |   |   |   |   |
| Increase in accounts receivable                                                             |   |           | (72,623  | )      |          |   | (32,775  | )                  |   |   | (12,551 | ) |
| Increase in crude oil inventory                                                             |   |           | (32,552  | )      |          |   | (16,326  | )                  |   |   | (28,348 | ) |
| Increase in other assets                                                                    |   |           | (1,919   | )      |          |   | (3,837   | )                  |   |   | (5,755 | ) |
| Increase in accounts payable and accrued expenses                                           |   |           | 15,986   |   |          |   | 10,329   |               |   |   | 13,392 |   |
| Increase in Due from Managing General Partner, net                                          |   |           | (120,602 | )      |          |   | (46,748  | )                  |   |   | (153,343 | ) |
| Net cash provided by operating activities                                                   |   |           | 60,461   |   |          |   | 319,129  |               |   |   | 486,164 |   |
|                                                                                        |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash flows from investing activities:                                                       |   |           |     |   |          |   |     |               |   |   |   |   |
| Capital expenditures for natural gas and crude oil properties                               |   |           | (2,689   | )      |          |   | (11,544  | )                  |   |   | (18,313 | ) |
| Net cash used in investing activities                                                       |   |           | (2,689   | )      |          |   | (11,544  | )                  |   |   | (18,313 | ) |
|                                                                                        |   |           |     |   |          |   |     |               |   |   |   |   |
| Cash flows from financing activities:                                                       |   |           |     |   |          |   |     |               |   |   |   |   |
| Distributions to Partners                                                                   |   |           | (56,817  | )      |          |   | (305,980 | )                  |   |   | (465,088 | ) |
| Net cash used in financing activities                                                       |   |           | (56,817  | )      |          |   | (305,980 | )                  |   |   | (465,088 | ) |
|                                                                                        |   |           |     |   |          |   |     |               |   |   |   |   |
| Net increase in cash and cash equivalents                                                   |   |           | 955      |   |          |   | 1,605    |               |   |   | 2,763 |   |
| Cash and cash equivalents, beginning of year                                                |   |           | 13,861   |   |          |   | 13,861   |               |   |   | 13,861 |   |
| Cash and cash equivalents, end of period                                                    |   | $              | 14,816   |   |          | $      | 15,466   |               |   | $ | 16,624 |   |

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Table of Contents

|                                                                                      |   | As of               |    |
|-------------------------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                                      |   | March 31, 2010 |    |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
|                                                                                      |   |                |    |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales revenues collected from the Partnership's third-party customers |   | $                   | 91,718  |   |   | $ | 49,924 |   |   | $ | 59,841 |   |   | $ | 65,527 |   |
| Commodity Price Risk Management, Realized Gain                                            |   |                | 45,689  |   |   |   | 7,846 |   |   |   | 11,795 |   |   |   | 16,576 |   |
| Other (1)                                                                                 |   |                | (33,049 | ) |   |   | (22,566 | ) |   |   | (34,430 | ) |   |   | (176,745 | ) |
| Total Due from (to) Managing General Partner-other, net                                   |   | $                   | 104,358 |   |   | $ | 35,204 |   |   | $ | 37,206 |   |   | $ | (94,642 | ) |

|                                                                                      |   | As of               |    |
|-------------------------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                                      |   | March 31, 2009 |    |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
|                                                                                      |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales revenues collected from the Partnership's third-party customers |   | $                   | 90,442  |   |   | $ | 89,752 |   |   | $ | 57,064 |   |   | $ | 61,460 |   |
| Commodity Price Risk Management, Realized Gain                                            |   |                | 125,445 |   |   |   | 82,568 |   |   |   | 46,264 |   |   |   | 54,701 |   |
| Other (1)                                                                                 |   |                | 196,667 |   |   |   | 165,929 |   |   |   | (36,997 | ) |   |   | (45,493 | ) |
| Total Due from Managing General Partner-other, net                                        |   | $                   | 412,554 |   |   | $ | 338,249 |   |   | $ | 66,331 |   |   | $ | 70,668 |   |

|                                                                                      |   | As of               |    |
|-------------------------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                                      |   | March 31, 2008 |    |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
|                                                                                      |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural gas and oil sales revenues collected from the Partnership's third-party customers |   | $                   | 215,777 |   |   | $ | 193,847 |   |   | $ | 250,730 |   |   | $ | 110,636 |   |
| Commodity Price Risk Management, Realized (Loss) Gain                                     |   |                | (14,115 | ) |   |   | (60,564 | ) |   |   | 9,018 |   |   |   | 101,795 |   |
| Other (1)                                                                                 |   |                | 152,797 |   |   |   | 147,322 |   |   |   | 127,452 |   |   |   | 197,297 |   |
| Total Due from Managing General Partner-other, net                                        |   | $                   | 354,459 |   |   | $ | 280,605 |   |   | $ | 387,200 |   |   | $ | 409,728 |   |

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Table of Contents

|   | (1) | All other unsettled transactions, excluding derivative instruments, between the Partnership and the Managing General Partner. Except as noted below, the majority of these are operating costs or general and administrative costs which have not been deducted from distributions. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                       |   | Quarter Ended       |   |
|--------------------------------------------|--------|---------------------|--------|
|                                       |   | March 31, 2010 |   |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
| Transaction                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Well operations and maintenance            |   | $                   | 63,329 |   |   | $ | 51,320 |   |   | $ | 51,652 |   |   | $ | 69,099 |   |
| Gathering, compression and processing fees |   |                | 7,252  |   |   |   | 6,538 |   |   |   | 6,392 |   |   |   | 6,344 |   |
| Direct costs - general and administrative  |   |                | 1,822  |   |   |   | 4,450 |   |   |   | 7,856 |   |   |   | 194,104 |   |
| Cash distributions*                        |   |                | 26,288 |   |   |   | 25,801 |   |   |   | 7,490 |   |   |   | 568 |   |

|                                       |   | Quarter Ended       |   |
|--------------------------------------------|--------|---------------------|--------|
|                                       |   | March 31, 2009 |   |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
| Transaction                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Well operations and maintenance            |   | $                   | 80,651 |   |   | $ | 77,661 |   |   | $ | 89,808 |   |   | $ | 42,516 |   |
| Gathering, compression and processing fees |   |                | 6,504  |   |   |   | 6,096 |   |   |   | 6,018 |   |   |   | 7,462 |   |
| Direct costs - general and administrative  |   |                | 2,028  |   |   |   | 4,759 |   |   |   | 360 |   |   |   | 11,093 |   |
| Cash distributions*                        |   |                | 34,125 |   |   |   | 44,668 |   |   |   | 88,479 |   |   |   | 27,359 |   |

|                                       |   | Quarter Ended       |   |
|--------------------------------------------|--------|---------------------|--------|
|                                       |   | March 31, 2008 |   |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
| Transaction                                |   |                |   |   |   |   |   |   |   |   |   |   |
| Well operations and maintenance            |   | $                   | 42,216 |   |   | $ | 79,099 |   |   | $ | 48,584 |   |   | $ | 72,772 |   |
| Gathering, compression and processing fees |   |                | 7,235  |   |   |   | 4,758 |   |   |   | 5,219 |   |   |   | 5,145 |   |
| Direct costs - general and administrative  |   |                | 3,731  |   |   |   | 2,231 |   |   |   | 7,559 |   |   |   | 12,492 |   |
| Cash distributions*                        |   |                | 12,281 |   |   |   | 53,942 |   |   |   | 35,664 |   |   |   | 39,320 |   |

|               |   |   |   |   |   |   |   |   |   |
|--------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Three months ended |   | 2010   |   |   | 2009   |   |   | 2008   |   |
|               |   |   |   |   |   |   |   |   |   |
| March 31           |   |   | 7,148  |   |   |   | 3,677  |   |   |   | 917 |   |
| June 30            |   |   | 7,482  |   |   |   | 5,019  |   |   |   | 4,110 |   |
| September 30       |   |   | 3,424  |   |   |   | 10,851 |   |   |   | 3,842 |   |
| December 31        |   |   | 979    |   |   |   | 5,917  |   |   |   | 4,237 |   |

----

Table of Contents

|   | · | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.  Included in Level 1 are the Partnership’s commodity derivative instruments for New York Mercantile Exchange, or NYMEX, based natural gas swaps. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 2 – Inputs other than quoted prices included within Level 1 that are either directly or indirectly observable for the asset or liability, including (i) quoted prices for similar assets or liabilities in active markets, (ii) quoted prices for identical or similar assets or liabilities in inactive markets, (iii) inputs other than quoted prices that are observable for the asset or liability and (iv) inputs that are derived from observable market data by correlation or other means. |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Level 3 – Unobservable inputs for the asset or liability, including situations where there is little, if any, market activity for the asset or liability.  Included in Level 3 are the Partnership’s commodity derivative instruments for Colorado Interstate Gas, or CIG, based natural gas swaps, crude oil swaps, natural gas and crude oil collars and the Partnership’s natural gas basis protection derivative instruments. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                     |   | Quarter ended                  |    |
|------------------------------------------|--------|--------------------------------|---------|
|                                     |   | March 31, 2010                 |    |   | March 31, 2009 |   |   | March 31, 2008 |   |
|                                     |   | Quoted Prices inActive Markets |    |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |
|                                     |   | Level 1                   |    |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |
| Assets:.                                 |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   | $                              | 247,788 |   |   | $ | 27,387 |   |   | $ | 275,175 |   |   | $ | - |   |   | $ | 405,938 |   |   | $ | 405,938 |   |   | $ | - |   |   | $ | 8,307 |   |   | $ | 8,307 |   |
| Total assets                             |   |                           | 247,788 |   |   |   | 27,387 |   |   |   | 275,175 |   |   |   | - |   |   |   | 405,938 |   |   |   | 405,938 |   |   |   | - |   |   |   | 8,307 |   |   |   | 8,307 |   |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   |                           | -       |   |   |   | (17,840 | ) |   |   | (17,840 | ) |   |   | (8,961 | ) |   |   | (245 | ) |   |   | (9,206 | ) |   |   | - |   |   |   | (163,391 | ) |   |   | (163,391 | ) |
| Basis protection derivative contracts    |   |                           | -       |   |   |   | (287,065 | ) |   |   | (287,065 | ) |   |   | - |   |   |   | (129,965 | ) |   |   | (129,965 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Total liabilities                        |   |                           | -       |   |   |   | (304,905 | ) |   |   | (304,905 | ) |   |   | (8,961 | ) |   |   | (130,210 | ) |   |   | (139,171 | ) |   |   | - |   |   |   | (163,391 | ) |   |   | (163,391 | ) |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments |   | $                              | 247,788 |   |   | $ | (277,518 | ) |   | $ | (29,730 | ) |   | $ | (8,961 | ) |   | $ | 275,728 |   |   | $ | 266,767 |   |   | $ | - |   |   | $ | (155,084 | ) |   | $ | (155,084 | ) |

|                                     |   | Quarter ended                  |    |
|------------------------------------------|--------|--------------------------------|---------|
|                                     |   | June 30, 2010                  |    |   | June 30, 2009 |   |   | June 30, 2008 |   |
|                                     |   | Quoted Prices inActive Markets |    |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |
|                                     |   | Level 1                        |    |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |
| Assets:.                                 |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   | $                              | 223,987 |   |   | $ | 32,388 |   |   | $ | 256,375 |   |   | $ | 10 |   |   | $ | 252,443 |   |   | $ | 252,453 |   |   | $ | - |   |   | $ | 213 |   |   | $ | 213 |   |
| Total assets                             |   |                           | 223,987 |   |   |   | 32,388 |   |   |   | 256,375 |   |   |   | 10 |   |   |   | 252,443 |   |   |   | 252,453 |   |   |   | - |   |   |   | 213 |   |   |   | 213 |   |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   |                           | -       |   |   |   | (10,105 | ) |   |   | (10,105 | ) |   |   | (16,522 | ) |   |   | (540 | ) |   |   | (17,062 | ) |   |   | - |   |   |   | (321,648 | ) |   |   | (321,648 | ) |
| Basis protection derivative contracts    |   |                           | -       |   |   |   | (233,251 | ) |   |   | (233,251 | ) |   |   | - |   |   |   | (171,306 | ) |   |   | (171,306 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Total liabilities                        |   |                           | -       |   |   |   | (243,356 | ) |   |   | (243,356 | ) |   |   | (16,522 | ) |   |   | (171,846 | ) |   |   | (188,368 | ) |   |   | - |   |   |   | (321,648 | ) |   |   | (321,648 | ) |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments |   | $                              | 223,987 |   |   | $ | (210,968 | ) |   | $ | 13,019 |   |   | $ | (16,512 | ) |   | $ | 80,597 |   |   | $ | 64,085 |   |   | $ | - |   |   | $ | (321,435 | ) |   | $ | (321,435 | ) |

|                                     |   | Quarter ended                  |    |
|------------------------------------------|--------|--------------------------------|---------|
|                                     |   | September 30, 2010             |    |   | September 30, 2009 |   |   | September 30, 2008 |   |
|                                     |   | Quoted Prices inActive Markets |    |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |
|                                     |   | Level 1                        |    |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |
| Assets:.                                 |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   | $                              | 326,464 |   |   | $ | 29,348 |   |   | $ | 355,812 |   |   | $ | 505 |   |   | $ | 164,731 |   |   | $ | 165,236 |   |   | $ | - |   |   | $ | 211,643 |   |   | $ | 211,643 |   |
| Total assets                             |   |                           | 326,464 |   |   |   | 29,348 |   |   |   | 355,812 |   |   |   | 505 |   |   |   | 164,731 |   |   |   | 165,236 |   |   |   | - |   |   |   | 211,643 |   |   |   | 211,643 |   |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   |                           | -       |   |   |   | (16,397 | ) |   |   | (16,397 | ) |   |   | (21,376 | ) |   |   | (10,926 | ) |   |   | (32,302 | ) |   |   | - |   |   |   | (69,603 | ) |   |   | (69,603 | ) |
| Basis protection derivative contracts    |   |                           | -       |   |   |   | (225,167 | ) |   |   | (225,167 | ) |   |   | - |   |   |   | (220,574 | ) |   |   | (220,574 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Total liabilities                        |   |                           | -       |   |   |   | (241,564 | ) |   |   | (241,564 | ) |   |   | (21,376 | ) |   |   | (231,500 | ) |   |   | (252,876 | ) |   |   | - |   |   |   | (69,603 | ) |   |   | (69,603 | ) |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments |   | $                              | 326,464 |   |   | $ | (212,216 | ) |   | $ | 114,248 |   |   | $ | (20,871 | ) |   | $ | (66,769 | ) |   | $ | (87,640 | ) |   | $ | - |   |   | $ | 142,040 |   |   | $ | 142,040 |   |

|                                     |   | Quarter ended                  |    |
|------------------------------------------|--------|--------------------------------|---------|
|                                     |   | December 31, 2010              |    |   | December 31, 2009 |   |   | December 31, 2008 |   |
|                                     |   | Quoted Prices inActive Markets |    |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |   | Quoted Prices inActive Markets |   |   | SignificantUnobservable Inputs |   |   |   |   |
|                                     |   | Level 1                        |    |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |
| Assets:.                                 |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   | $                              | 295,930 |   |   | $ | 12,277 |   |   | $ | 308,207 |   |   | $ | 71,475 |   |   | $ | 81,467 |   |   | $ | 152,942 |   |   | $ | - |   |   | $ | 418,485 |   |   | $ | 418,485 |   |
| Total assets                             |   |                           | 295,930 |   |   |   | 12,277 |   |   |   | 308,207 |   |   |   | 71,475 |   |   |   | 81,467 |   |   |   | 152,942 |   |   |   | - |   |   |   | 418,485 |   |   |   | 418,485 |   |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                             |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity based derivatives              |   |                           | -       |   |   |   | (26,987 | ) |   |   | (26,987 | ) |   |   | (5,193 | ) |   |   | (18,570 | ) |   |   | (23,763 | ) |   |   | - |   |   |   | - |   |   |   | - |   |
| Basis protection derivative contracts    |   |                           | -       |   |   |   | (216,543 | ) |   |   | (216,543 | ) |   |   | - |   |   |   | (255,340 | ) |   |   | (255,340 | ) |   |   | - |   |   |   | (22,614 | ) |   |   | (22,614 | ) |
| Total liabilities                        |   |                           | -       |   |   |   | (243,530 | ) |   |   | (243,530 | ) |   |   | (5,193 | ) |   |   | (273,910 | ) |   |   | (279,103 | ) |   |   | - |   |   |   | (22,614 | ) |   |   | (22,614 | ) |
|                                     |   |                           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments |   | $                              | 295,930 |   |   | $ | (231,253 | ) |   | $ | 64,677 |   |   | $ | 66,282 |   |   | $ | (192,443 | ) |   | $ | (126,161 | ) |   | $ | - |   |   | $ | 395,871 |   |   | $ | 395,871 |   |

----

Table of Contents

|                                                                                                                                            |   | Three months ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                            |   | March 31, 2010     |     |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
| Fair value, net liability beginning of period                                                                                                   |   | $                  | (192,443 | ) |   | $ | (277,518 | ) |   | $ | (210,968 | ) |   | $ | (212,216 | ) |
| Changes in fair value included in statement of operations line item:                                                                            |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management gain (loss), net                                                                                                |   |               | (20,024  | ) |   |   | 51,907 |   |   |   | (7,517 | ) |   |   | (21,456 | ) |
| Settlements                                                                                                                                     |   |               | (65,051  | ) |   |   | 14,643 |   |   |   | 6,269 |   |   |   | 2,419 |   |
| Fair value, net liability end of period                                                                                                         |   | $                  | (277,518 | ) |   | $ | (210,968 | ) |   | $ | (212,216 | ) |   | $ | (231,253 | ) |
|                                                                                                                                            |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gain (loss) relating to assets (liabilities) still held as of end of period included in statement of operations line item: |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management gain (loss), net                                                                                                |   | $                  | (24,889  | ) |   | $ | 48,913 |   |   | $ | (19,970 | ) |   | $ | (28,167 | ) |

|                                                                                                                                            |   | Three months ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                            |   | March 31, 2009     |     |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
| Fair value, net asset (liability) beginning of period                                                                                           |   | $                  | 395,871  |   |   | $ | 275,728 |   |   | $ | 80,597 |   |   | $ | (66,769 | ) |
| Changes in fair value included in statement of operations line item:                                                                            |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management (loss) gain, net                                                                                                |   |               | 5,302    |   |   |   | (112,563 | ) |   |   | (76,441 | ) |   |   | (53,566 | ) |
| Settlements                                                                                                                                     |   |               | (125,445 | ) |   |   | (82,568 | ) |   |   | (70,925 | ) |   |   | (72,108 | ) |
| Fair value, net asset (liability) end of period                                                                                                 |   | $                  | 275,728  |   |   | $ | 80,597 |   |   | $ | (66,769 | ) |   | $ | (192,443 | ) |
|                                                                                                                                            |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gain (loss) relating to assets (liabilities) still held as of end of period included in statement of operations line item: |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management (loss) gain, net                                                                                                |   | $                  | (15,826  | ) |   | $ | (129,987 | ) |   | $ | (81,702 | )  |   | $ | (41,372 | ) |

|                                                                                                                                            |   | Three months ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                            |   | March 31, 2008     |     |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
| Fair value, net (liability) asset beginning of period                                                                                           |   | $                  | (24,228  | ) |   | $ | (155,084 | ) |   | $ | (321,435 | ) |   | $ | 142,040 |   |
| Changes in fair value included in statement of operations line item:                                                                            |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management (loss) gain, net                                                                                                |   |               | (144,971 | ) |   |   | (226,915 | ) |   |   | 472,493 |   |   |   | 355,626 |   |
| Settlements                                                                                                                                     |   |               | 14,115   |   |   |   | 60,564 |   |   |   | (9,018 | ) |   |   | (101,795 | ) |
| Fair value, net (liability) asset end of period                                                                                                 |   | $                  | (155,084 | ) |   | $ | (321,435 | ) |   | $ | 142,040 |   |   | $ | 395,871 |   |
|                                                                                                                                            |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Change in unrealized gain (loss) relating to assets (liabilities) still held as of end of period included in statement of operations line item: |   |               |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management (loss) gain, net                                                                                                |   | $                  | -        |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

Table of Contents

|   | · | Collars contain a fixed floor price (put) and ceiling price (call).  If the index price falls below the fixed put strike price, PDC, as Managing General Partner receives the market price from the purchaser and receives the difference between the put strike price and index price from the counterparty.  If the index price exceeds the fixed call strike price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the call strike price and index price to the counterparty.  If the index price is between the put and call strike price, no payments are due to or from the counterparty. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Swaps are arrangements that guarantee a fixed price.  If the index price is below the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and receives the difference between the index price and the fixed contract price from the counterparty.  If the index price is above the fixed contract price, PDC, as Managing General Partner, receives the market price from the purchaser and pays the difference between the index price and the fixed contract price to the counterparty.  If the index price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Basis protection swaps are arrangements that guarantee a price differential for natural gas from a specified delivery point.  For CIG basis protection swaps, which traditionally have negative differentials to NYMEX, PDC, as Managing General Partner, receives a payment from the counterparty if the price differential is greater than the stated terms of the contract and pays the counterparty if the price differential is less than the stated terms of the contract.  If the market price and contract price are the same, no payment is due to or from the counterparty. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Table of Contents

|                                               |   | As of          |     |
|----------------------------------------------------|--------|----------------|----------|
|                                               |   | March 31, 2010 |     |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
|                                               |   |           |     |   |   |   |   |   |   |   |   |   |
| Derivative net assets (liabilities)                |   |           |     |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil sales activities:        |   |           |     |   |   |   |   |   |   |   |   |   |
| Fixed-price natural gas swaps                      |   | $              | 247,788  |   |   | $ | 223,987 |   |   | $ | 326,464 |   |   | $ | 295,930 |   |
| Natural gas collars                                |   |           | 12,320   |   |   |   | 12,263 |   |   |   | 21,937 |   |   |   | 12,275 |   |
| Natural gas basis protection swaps                 |   |           | (287,065 | ) |   |   | (233,251 | ) |   |   | (225,167 | ) |   |   | (216,543 | ) |
| Fixed-price crude oil swaps                        |   |           | (2,773   | ) |   |   | 10,020 |   |   |   | (8,986 | ) |   |   | (26,985 | ) |
|                                               |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Estimated net fair value of derivative instruments |   | $              | (29,730  | ) |   | $ | 13,019 |   |   | $ | 114,248 |   |   | $ | 64,677 |   |

|                                               |   | As of          |     |
|----------------------------------------------------|--------|----------------|----------|
|                                               |   | March 31, 2009 |     |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
|                                               |   |           |     |   |   |   |   |   |   |   |   |   |
| Derivative net assets (liabilities)                |   |           |     |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil sales activities:        |   |           |     |   |   |   |   |   |   |   |   |   |
| Fixed-price natural gas swaps                      |   | $              | 50,621   |   |   | $ | 38,828 |   |   | $ | 27,831 |   |   | $ | 95,331 |   |
| Natural gas collars                                |   |           | 199,747  |   |   |   | 127,755 |   |   |   | 53,467 |   |   |   | 25,590 |   |
| Natural gas basis protection swaps                 |   |           | (129,965 | ) |   |   | (171,306 | ) |   |   | (220,574 | ) |   |   | (255,340 | ) |
| Fixed-price crude oil swaps                        |   |           | 146,364  |   |   |   | 68,808 |   |   |   | 51,636 |   |   |   | 8,258 |   |
|                                               |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Estimated net fair value of derivative instruments |   | $              | 266,767  |   |   | $ | 64,085 |   |   | $ | (87,640 | ) |   | $ | (126,161 | ) |

|                                               |   | As of          |     |
|----------------------------------------------------|--------|----------------|----------|
|                                               |   | March 31, 2008 |     |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
|                                               |   |           |     |   |   |   |   |   |   |   |   |   |
| Derivative net assets (liabilities)                |   |           |     |   |   |   |   |   |   |   |   |   |
| Natural gas and crude oil sales activities:        |   |           |     |   |   |   |   |   |   |   |   |   |
| Fixed-price natural gas swaps                      |   | $              | (101,391 | ) |   | $ | (133,777 | ) |   | $ | 129,783 |   |   | $ | 122,116 |   |
| Natural gas collars                                |   |           | (11,122  | ) |   |   | - |   |   |   | 73,407 |   |   |   | 130,116 |   |
| Natural gas basis protection swaps                 |   |           | -        |   |   |   | - |   |   |   | - |   |   |   | (22,614 | ) |
| Crude oil floors                                   |   |           | (10,033  | ) |   |   | (6,656 | ) |   |   | - |   |   |   | - |   |
| Fixed-price crude oil swaps                        |   |           | (32,538  | ) |   |   | (181,002 | ) |   |   | (61,150 | ) |   |   | 166,253 |   |
|                                               |   |           |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Estimated net fair value of derivative instruments |   | $              | (155,084 | ) |   | $ | (321,435 | ) |   | $ | 142,040 |   |   | $ | 395,871 |   |

----

Table of Contents

| Derivative instruments not                                   | Balance Sheet                                   |   | As of               |    |
|--------------------------------------------------------------|-------------------------------------------------|--------|---------------------|---------|
|  designated as hedge  (1):                    | Line Item                                       |   | March 31, 2010 |    |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Derivative Assets:                                           |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner - derivatives |   | $                   | 99,134  |   |   | $ | 89,989 |   |   | $ | 134,925 |   |   | $ | 119,434 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner - derivatives |   |                | 176,041 |   |   |   | 166,386 |   |   |   | 220,887 |   |   |   | 188,773 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Assets                                      |                                            |   |                | 275,175 |   |   |   | 256,375 |   |   |   | 355,812 |   |   |   | 308,207 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative Liabilities:                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner - derivatives   |   |                | 4,213   |   |   |   | 4,627 |   |   |   | 11,797 |   |   |   | 26,987 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner - derivatives   |   |                | 79,232  |   |   |   | 63,308 |   |   |   | 67,237 |   |   |   | 73,582 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner - derivatives   |   |                | 13,627  |   |   |   | 5,478 |   |   |   | 4,600 |   |   |   | - |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner - derivatives   |   |                | 207,833 |   |   |   | 169,943 |   |   |   | 157,930 |   |   |   | 142,961 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Liabilities                                 |                                            |   |                | 304,905 |   |   |   | 243,356 |   |   |   | 241,564 |   |   |   | 243,530 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments - (liability) asset |                                            | $      | (29,730             | )       |   | $ | 13,019 |   |   | $ | 114,248 |   |   | $ | 64,677 |   |

| Derivative instruments not                                   | Balance Sheet                                   |   | As of               |    |
|--------------------------------------------------------------|-------------------------------------------------|--------|---------------------|---------|
|  designated as hedge  (1):                    | Line Item                                       |   | March 31, 2009 |    |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Derivative Assets:                                           |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner - derivatives |   | $                   | 347,646 |   |   | $ | 230,403 |   |   | $ | 153,994 |   |   | $ | 82,309 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner - derivatives |   |                | 58,292  |   |   |   | 22,050 |   |   |   | 11,242 |   |   |   | 70,633 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Assets                                      |                                            |   |                | 405,938 |   |   |   | 252,453 |   |   |   | 165,236 |   |   |   | 152,942 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative Liabilities:                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner - derivatives   |   |                | -       |   |   |   | 3,489 |   |   |   | 19,076 |   |   |   | 5,329 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner - derivatives   |   |                | -       |   |   |   | 14,587 |   |   |   | 42,293 |   |   |   | 65,522 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner - derivatives   |   |                | 9,206   |   |   |   | 13,573 |   |   |   | 13,226 |   |   |   | 18,434 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner - derivatives   |   |                | 129,965 |   |   |   | 156,719 |   |   |   | 178,281 |   |   |   | 189,818 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Liabilities                                 |                                            |   |                | 139,171 |   |   |   | 188,368 |   |   |   | 252,876 |   |   |   | 279,103 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments - asset (liability) |                                            | $      | 266,767             |    |   | $ | 64,085 |   |   | $ | (87,640 | ) |   | $ | (126,161 | ) |

| Derivative instruments not                                   | Balance Sheet                                   |   | As of               |    |
|--------------------------------------------------------------|-------------------------------------------------|--------|---------------------|---------|
|  designated as hedge  (1):                    | Line Item                                       |   | March 31, 2008 |    |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Derivative Assets:                                           |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner - derivatives |   | $                   | -       |   |   | $ | - |   |   | $ | 145,258 |   |   | $ | 301,886 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due from Managing General Partner - derivatives |   |                | 8,307   |   |   |   | 213 |   |   |   | 66,385 |   |   |   | 116,599 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Assets                                      |                                            |   |                | 8,307   |   |   |   | 213 |   |   |   | 211,643 |   |   |   | 418,485 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative Liabilities:                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Current                                                      |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner - derivatives   |   |                | 140,981 |   |   |   | 226,509 |   |   |   | 33,483 |   |   |   | - |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non Current                                                  |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity contracts                                          | Due to Managing General Partner - derivatives   |   |                | 22,410  |   |   |   | 95,139 |   |   |   | 36,120 |   |   |   | - |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basis protection contracts                                   | Due to Managing General Partner - derivatives   |   |                | -       |   |   |   | - |   |   |   | - |   |   |   | 22,614 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Derivative Liabilities                                 |                                            |   |                | 163,391 |   |   |   | 321,648 |   |   |   | 69,603 |   |   |   | 22,614 |   |
|                                                         |                                            |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net fair value of derivative instruments - (liability) asset |                                            | $      | (155,084            | )       |   | $ | (321,435 | ) |   | $ | 142,040 |   |   | $ | 395,871 |   |

|   | (1) | As of December 31, 2010, 2009 and 2008, none of the Partnership’s derivative instruments were designated as hedges. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                       |   | Three months ended  |    |
|----------------------------------------------------------------------------|--------|---------------------|---------|
|                                                                       |   | March 31, 2010 |    |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
| Commodity price risk management, net                                       |   |                |    |   |   |   |   |   |   |   |   |   |
| Realized gain                                                              |   |                |    |   |   |   |   |   |   |   |   |   |
| Natural Gas                                                                |   | $                   | 56,270  |   |   | $ | 621 |   |   | $ | 2,323 |   |   | $ | 15,190 |   |
| Crude Oil                                                                  |   |                | 8,781   |   |   |   | 9,375 |   |   |   | 10,620 |   |   |   | 4,928 |   |
| Total realized gain, net                                                   |   |                | 65,051  |   |   |   | 9,996 |   |   |   | 12,943 |   |   |   | 20,118 |   |
|                                                                       |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)                                                     |   |                |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of realized gain included in prior periods unrealized (1) |   |                | (60,184 | ) |   |   | (7,507 | ) |   |   | (5,657 | ) |   |   | (20,919 | ) |
| Unrealized gain (loss) for the period (1)                                  |   |                | 156,615 |   |   |   | 50,256 |   |   |   | 106,886 |   |   |   | (28,652 | ) |
| Total unrealized gain (loss), net                                          |   |                | 96,431  |   |   |   | 42,749 |   |   |   | 101,229 |   |   |   | (49,571 | ) |
| Commodity price risk management gain (loss), net                           |   | $                   | 161,482 |   |   | $ | 52,745 |   |   | $ | 114,172 |   |   | $ | (29,453 | ) |

|                                                                       |   | Three months ended  |     |
|----------------------------------------------------------------------------|--------|---------------------|----------|
|                                                                       |   | March 31, 2009 |     |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
| Commodity price risk management, net                                       |   |                |     |   |   |   |   |   |   |   |   |   |
| Realized gain                                                              |   |                |     |   |   |   |   |   |   |   |   |   |
| Natural gas                                                                |   | $                   | 93,866   |   |   | $ | 61,761 |   |   | $ | 55,776 |   |   | $ | 62,336 |   |
| Crude Oil                                                                  |   |                | 31,579   |   |   |   | 20,807 |   |   |   | 15,149 |   |   |   | 9,772 |   |
| Total realized gain, net                                                   |   |                | 125,445  |   |   |   | 82,568 |   |   |   | 70,925 |   |   |   | 72,108 |   |
|                                                                       |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)                                                     |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of realized gain included in prior periods unrealized (1) |   |                | (104,072 | ) |   |   | (89,857 | ) |   |   | (71,282 | ) |   |   | (68,543 | ) |
| Unrealized (loss) gain for the period (1)                                  |   |                | (25,032  | ) |   |   | (112,825 | ) |   |   | (80,443 | ) |   |   | 30,022 |   |
| Total unrealized loss, net                                                 |   |                | (129,104 | ) |   |   | (202,682 | ) |   |   | (151,725 | ) |   |   | (38,521 | ) |
| Commodity price risk management (loss) gain, net                           |   | $                   | (3,659   | ) |   | $ | (120,114 | ) |   | $ | (80,800 | ) |   | $ | 33,587 |   |

|                                                                              |   | Three months ended  |     |
|-----------------------------------------------------------------------------------|--------|---------------------|----------|
|                                                                              |   | March 31, 2008 |     |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
| Commodity price risk management, net                                              |   |                |     |   |   |   |   |   |   |   |   |   |
| Realized gain (loss)                                                              |   |                |     |   |   |   |   |   |   |   |   |   |
| Natural Gas                                                                       |   | $                   | (6,930   | ) |   | $ | (47,726 | ) |   | $ | 24,194 |   |   | $ | 79,425 |   |
| Crude Oil                                                                         |   |                | (7,185   | ) |   |   | (12,838 | ) |   |   | (15,176 | ) |   |   | 22,370 |   |
| Total realized (loss) gain, net                                                   |   |                | (14,115  | ) |   |   | (60,564 | ) |   |   | 9,018 |   |   |   | 101,795 |   |
|                                                                              |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss)                                                            |   |                |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification of realized (gain) loss included in prior periods unrealized (1) |   |                | (14,185  | ) |   |   | 42,185 |   |   |   | 62,956 |   |   |   | (61,238 | ) |
| Unrealized (loss) gain for the period (1)                                         |   |                | (116,671 | ) |   |   | (208,536 | ) |   |   | 400,519 |   |   |   | 315,069 |   |
| Total unrealized (loss) gain, net                                                 |   |                | (130,856 | ) |   |   | (166,351 | ) |   |   | 463,475 |   |   |   | 253,831 |   |
| Commodity price risk management (loss) gain, net                                  |   | $                   | (144,971 | ) |   | $ | (226,915 | ) |   | $ | 472,493 |   |   | $ | 355,626 |   |

|   | (1) | Quarterly amounts presented on the line captioned “Unrealized (loss) gain for the period,” may be reclassified in subsequent quarterly periods, to amounts presented on the line captioned “Reclassification of realized (gains) losses included in prior periods unrealized.” For the years 2010, 2009 and 2008, quarterly amounts reclassified in subsequent quarters were $82,810, $31,869 and $3,833 respectively. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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Table of Contents

|                                                                     |   | As of               |       |
|--------------------------------------------------------------------------|--------|---------------------|------------|
|                                                                     |   | March 31, 2010 |       |   | June 30, 2010 |   |   | September 30, 2010 |   |   | December 31, 2010 |   |
|                                                                     |   |                |       |   |   |   |   |   |   |   |   |   |
| Leasehold costs                                                          |   | $                   | 337,478    |   |   | $ | 337,489 |   |   | $ | 337,489 |   |   | $ | 337,489 |   |
| Development costs                                                        |   |                | 8,397,265  |   |   |   | 8,397,470 |   |   |   | 8,401,590 |   |   |   | 8,406,983 |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |                | 8,734,743  |   |   |   | 8,734,959 |   |   |   | 8,739,079 |   |   |   | 8,744,472 |   |
| Less: Accumulated depreciation, depletion and amortization               |   |                | (5,626,003 | ) |   |   | (5,761,063 | ) |   |   | (5,880,971 | ) |   |   | (5,973,662 | ) |
| Natural gas and crude oil properties, net                                |   | $                   | 3,108,740  |   |   | $ | 2,973,896 |   |   | $ | 2,858,108 |   |   | $ | 2,770,810 |   |

|                                                                     |   | As of               |       |
|--------------------------------------------------------------------------|--------|---------------------|------------|
|                                                                     |   | March 31, 2009 |       |   | June 30, 2009 |   |   | September 30, 2009 |   |   | December 31, 2009 |   |
|                                                                     |   |                |       |   |   |   |   |   |   |   |   |   |
| Leasehold costs                                                          |   | $                   | 337,478    |   |   | $ | 337,478 |   |   | $ | 337,478 |   |   | $ | 337,478 |   |
| Development costs                                                        |   |                | 8,349,913  |   |   |   | 8,349,913 |   |   |   | 8,352,168 |   |   |   | 8,397,221 |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |                | 8,687,391  |   |   |   | 8,687,391 |   |   |   | 8,689,646 |   |   |   | 8,734,699 |   |
| Less: Accumulated depreciation, depletion and amortization               |   |                | (5,053,354 | ) |   |   | (5,209,193 | ) |   |   | (5,353,380 | ) |   |   | (5,486,052 | ) |
| Natural gas and crude oil properties, net                                |   | $                   | 3,634,037  |   |   | $ | 3,478,198 |   |   | $ | 3,336,266 |   |   | $ | 3,248,647 |   |

|                                                                     |   | As of               |       |
|--------------------------------------------------------------------------|--------|---------------------|------------|
|                                                                     |   | March 31, 2008 |       |   | June 30, 2008 |   |   | September 30, 2008 |   |   | December 31, 2008 |   |
|                                                                     |   |                |       |   |   |   |   |   |   |   |   |   |
| Leasehold costs                                                          |   | $                   | 337,478    |   |   | $ | 337,478 |   |   | $ | 337,478 |   |   | $ | 337,478 |   |
| Development costs                                                        |   |                | 8,331,844  |   |   |   | 8,340,699 |   |   |   | 8,347,468 |   |   |   | 8,349,899 |   |
| Natural gas and crude oil properties, successful efforts method, at cost |   |                | 8,669,322  |   |   |   | 8,678,177 |   |   |   | 8,684,946 |   |   |   | 8,687,377 |   |
| Less: Accumulated depreciation, depletion and amortization               |   |                | (4,524,475 | ) |   |   | (4,627,027 | ) |   |   | (4,754,901 | ) |   |   | (4,909,336 | ) |
| Natural gas and crude oil properties, net                                |   | $                   | 4,144,847  |   |   | $ | 4,051,150 |   |   | $ | 3,930,045 |   |   | $ | 3,778,041 |   |

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