|                                             | United      States                                                                            |
|--------------------------------------------------|-----------------------------------------------------------------------------------------------|
|                                             | Securities      and Exchange Commission                                                       |
|                                             | Washington,      D.C. 20549                                                                   |
|                                             |                                                                                          |
|                                             | Form      10-KSB                                                                              |
| (Mark      One)                                  |
|                                             |                                                                                          |
| R                                                | ANNUAL REPORT UNDER SECTION 13      OR 15 (d) OF THESECURITIES EXCHANGE ACT OF      1934      |
|                                             |                                                                                          |
| For      the fiscal year ended December 31, 2007 |
|                                             |                                                                                          |
| o                                                | TRANSITION      REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|                                             |                                                                                          |
|                                             |                                                                                          |
|                                             | For      the transition period from _____ to _____                                            |
|                                             |                                                                                          |
|                                             | Commission      file number 333-105811                                                        |
|                                             |                                                                                          |
|                                             | ATLAS      AMERICA PUBLIC #12-2003 Limited Partnership                                        |
|                                             | (Name      of small business issuer in itscharter)                                            |

| Delaware                                                                                                                         |   | 54-2113989                                     |
|----------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|
| (State      or other jurisdiction of                                                                                             |   | (I.R.S.      Employer                          |
| Incorporation      or organization)                                                                                              |   | Identification      No)                        |
|                                                                                                                             |   |                                           |
| Westpointe      Corporate Center One                                                                                             |   |                                           |
| 1550      Coraopolis Heights Road, 2nd Floor                                                                                     |   |                                           |
| Moon      Township, PA                                                                                                           |   | 15108                                          |
| (address      of principal executive offices)                                                                                    |   | (Zip      Code)                                |
|                                                                                                                             |   |                                           |
| Issuer's      telephone number (412)      262-2830                                                                               |   |                                           |
|                                                                                                                             |   |                                           |
| Securities      registered under Section 12(b) of the Exchange Act.                                                              |
|                                                                                                                             |   |                                           |
| Title      of each class                                                                                                         |   | Name      of each exchange on which registered |
| None                                                                                                                             |   | None                                           |
|                                                                                                                             |   |                                           |
| Securities      registered under Section 12(g) of the Exchange Act Investor General      Partner Units and Limited Partner Units |
| (Title      of Class)                                                                                                            |

| PART      I                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |                                                                                             | PAGE   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      1:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Description      of Business                                                                     | 3-5    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      2:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Description      of Properties                                                                   | 6-9    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      3:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Legal      Proceedings                                                                           | 9      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      4:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Submission      of Matters to a Vote of Security Holders                                         | 9      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| PART      II                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      5:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Market      for Registrant's Common Equity and Related Security Holder      Matters              | 10     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      6:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Management's      Discussion and Analysis of Financial Condition or Plan of      Operations      | 10-16  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      7:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Financial      Statements                                                                        | 17-33  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      8:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Changes      in and Disagreements with Accountants on Accounting and Financial      Disclosure   | 33     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      8A:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Controls      and Procedures                                                                     | 33-34  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      8B:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Other      Information                                                                           | 34     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| PART      III                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |                                                                                             |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      9:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | Directors,      Executive Officers and Significant Employees, Compliance with Section      (16a) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | of      the Exchange Act                                                                         | 34-37  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      10:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Executive      Compensation                                                                      | 37     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      11:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Security      Ownership of Certain Beneficial Owners and Management                              | 37     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      12:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Certain      Relationships and Related Party Transactions                                        | 37-38  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      13:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Exhibits                                                                                         | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| Item      14:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | Principal      Accountant Fees and Services                                                      | 38     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |                                                                                             |   |
| SIGNATURES                                                                                                                                             | 39     |

| ·   | well      tending routine maintenance andadjustment; |
|--------------------|------------------------------------------------------|

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

| ·   | preparing      reports to us and to governmentagencies. |
|--------------------|---------------------------------------------------------|

| ·   | new      well permit and well registration requirements, procedures and      fees; |
|--------------------|------------------------------------------------------------------------------------|

| ·   | minimum      well spacing requirements; |
|--------------------|-----------------------------------------|

| ·   | restriction      on well locations and underground gasstorage; |
|--------------------|----------------------------------------------------------------|

| ·   | certain      well site restoration, groundwater protection and safety      measures; |
|--------------------|--------------------------------------------------------------------------------------|

| ·   | landowner      notification requirements; |
|--------------------|-------------------------------------------|

| ·   | certain      bonding or other security measures; |
|--------------------|--------------------------------------------------|

| ·   | various      reporting requirements; |
|--------------------|--------------------------------------|

| ·   | well      plugging standards and procedures;and |
|--------------------|-------------------------------------------------|

| ·   | broad      enforcement powers. |
|--------------------|--------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Number      of Producing |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Wells                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Gross                    |   |   | Net |   |
| Gas                                                                                                       |   |                     | 216    |   |   |   | 204.25 |   |
| Oil                                                                                                       |   |                     | 5      |   |   |   | 5.00 |   |
| Total                                                                                                                              |   |                     | 221    |   |   |   | 209.25 |   |

|              |   |                |   |   |               |   |    |                |   |   |                 |   |   | Average                    |   |
|-------------------|--------|---------------------|--------|--------|--------------------|--------|---------|---------------------|--------|--------|----------------------|--------|--------|----------------------------|--------|
| Year              |   |                |   |   |               |   |    | Average             |   |   | Production      Cost |   |
| Ended             |   | Production          |   |   | Sales      Price   |   |    | (Lifting      Cost) |   |
| December      31, |   | Oil      (bbls) (1) |   |   | Gas      (mcf) (1) |   |    | per      bbl (1)    |   |   | per      mcf (1)     |   |   | per      mcfe (1)      (2) |   |
| 2007              |   |                | 2,100  |   |               |   | 706,500 |                |   | $      | 63.96                |   |   | $                          | 8.74   |   |   | $ | 2.42 |   |
| 2006              |   |                | 2,300  |   |               |   | 918,100 |                |   | $      | 61.77                |   |   | $                          | 9.12   |   |   | $ | 1.91 |   |

| (1)   | “Mcf”      means one thousand cubic feet of natural gas.  “Mcfe” means a      thousand cubic feet equivalent.  Oil production is converted to      mcfe at the rate of six mcf per barrel(“bbl”). |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | Lifting      costs include labor to operate the wells and related equipment, repairs      and maintenance, materials and supplies, property taxes, insurance and      gathering charges. |
|-----------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | December      31, |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007              |   |   | 2006 |   |
| Natural      gas (per      mcf)                                                                       |   | $                 | 7.62   |   |   | $ | 6.37 |   |
| Oil      (per      bbl)                                                                               |   |              | 90.75  |   |   |   | 57.26 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | At      December 31, |       |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007                 |       |   | 2006 |   |
| Natural      gas reserves – Proved Reserves (Mcf) (1)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |                 |       |   |   |   |
| Proved      developed reserves      (2)                                                                                                    |   |                 | 5,269,600  |   |   |   | 5,801,300 |   |
| Total      proved reserves of natural gas                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |                 | 5,269,600  |   |   |   | 5,801,300 |   |
| Oil      reserves – Proved Reserves (Bbl) (1)(4)                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |                 |       |   |   |   |   |   |
| Proved      developed reserves      (2)                                                                                                    |   |                 | 3,300      |   |   |   | 2,900 |   |
| Total      proved reserves of      oil                                                                                                                                   |   |                 | 3,300      |   |   |   | 2,900 |   |
| Total      proved reserves      (Mcfe)                                                                            |   |                 | 5,289,400  |   |   |   | 5,818,700 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |                 |       |   |   |   |   |   |
| PV-10      estimate of cash flows of proved reserves (3)(4):                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |                 |       |   |   |   |   |   |
| Proved      developed      reserves                                                                                                        |   | $                    | 11,961,900 |   |   | $ | 12,080,500 |   |
| Total      PV-10      estimate                                                                                                                                           |   | $                    | 11,961,900 |   |   | $ | 12,080,500 |   |
| PV-10      estimate per limited partner unit (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | $                    | 1,932      |   |   | $ | 2,028 |   |
| Undiscounted      estimate per limited partner unit (5)                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | $                    | 3,327      |   |   | $ | 3,437 |   |

| (1)   | “Proved      reserves” generally means the estimated quantities of crude oil, natural      gas, and natural gas liquids which geological and engineering data      demonstrate with reasonable certainty to be recoverable in future years      from known reservoirs under existing economic and operating conditions,      i.e., prices and costs as of the date the estimate is made. Prices include      consideration of changes in existing prices provided only by contractual      arrangements, but not on escalations based upon future      conditions.  Reservoirs are considered proved if economic      production is supported by either actual production or conclusive      formation test.  The area of a reservoir considered proved      includes:  that portion delineated by drilling and defined by      gas-oil and/or oil-water contacts, if any; and the immediately adjoining      portions not yet drilled, but which can be reasonably judged as      economically productive on the basis of available geological and      engineering data. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | “Proved      developed oil and gas reserves” generally means reserves that can be      expected to be recovered through existing wells with existing equipment      and operating methods. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)   | “The      present value of estimated future net cash flows is calculated by      discounting estimated future net cash flows by 10%    annually. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

| (4)   | Please      see Regulation S-X rule 4-10 for complete definitions of each reserve      category. |
|-----------------|--------------------------------------------------------------------------------------------------|

| (5)   | This      value per $10,000 unit is determined by following the methodology used for      determining our proved reserves using the data discussed      above.  However, this value does not necessarily reflect the      fair market value of a unit, and each unit is illiquid.  Also      the value of a unit for purposes of presentment of the unit to our MGP for      purchase is different, because it is calculated under a formula set forth      in the partnership agreement. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|         |   | Developed      Acreage |   |
|--------------|--------|------------------------|--------|
| Location     |   | Gross      (1)         |   |   | Net      (2) |   |
| Pennsylvania |   |                   | 4,507  |   |   |   | 4,368 |   |

| (1)   | A      “gross” acre is an acre in which we own a working  interest. |
|-----------------|---------------------------------------------------------------------------------|

| (2)   | A      “net” acre equals the actual working interest we own in one gross acre      divided by one hundred.  For example, a 50% working interest in      an acre is one gross acre, but a .50 netacre. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | our      managing general partner consent; |
|--------------------|--------------------------------------------|

| ·   | the      transfer not result in materially adverse tax consequences to us;      and |
|--------------------|-------------------------------------------------------------------------------------|

| ·   | the      transfer not violate federal or state securities  laws. |
|--------------------|------------------------------------------------------------------|

| ·   | the      assignor gives the assignee theright; |
|--------------------|------------------------------------------------|

| ·   | our      managing general partner consents to the  substitution; |
|--------------------|------------------------------------------------------------------|

| ·   | the      assignee pays to us all costs and expenses incurred in connection with the      substitution; and |
|--------------------|------------------------------------------------------------------------------------------------------------|

| ·   | the      assignee executes and delivers the instruments which our managing general      partner requires to effect the substitution and to confirm his or her      agreement to be bound by the terms of our partnership      agreement. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | $3,205,300      and $6,084,300 to our limited partners;and |
|--------------------|------------------------------------------------------------|

| ·   | $1,721,800      and $3,268,400 to our managing generalpartner. |
|--------------------|----------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                             |   | Years      Ended  |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                             |   | December      31, |   |
|                                                                                                                                                                                                                                                                                                                                                                                                             |   | 2007              |   |   | 2006 |   |
| Production      revenues (in thousands):                                                                                                                                                                                                                                                                                                                                                                         |   |              |   |   |   |   |
| Gas                                                                                                                 |   | $                 | 6,151  |   |   | $ | 8,369 |   |
| Oil                                                                                                                 |   | $                 | 132    |   |   | $ | 141 |   |
| Total                                                                                                               |   | $                 | 6,283  |   |   | $ | 8,510 |   |
| Production      volumes:                                                                                                                                                                                                                                                                                                                                                                                         |   |              |   |   |   |   |   |   |
| Gas      (mcf/day) (2)                                                                                              |   |              | 1,936  |   |   |   | 2,515 |   |
| Oil      (bbls/day) (2)                                                                                             |   |              | 6      |   |   |   | 6 |   |
| Total      (mcfe/day) (2)                                                                                           |   |              | 1,972  |   |   |   | 2,551 |   |
| Average      sales price:                                                                                                                                                                                                                                                                                                                                                                                        |   |              |   |   |   |   |   |   |
| Gas      (per mcf) (1)(2)                                                                                           |   | $                 | 8.71   |   |   | $ | 9.12 |   |
| Oil      (per bbl) (2)                                                                                              |   | $                 | 63.96  |   |   | $ | 61.77 |   |
| Average      production costs:                                                                                                                                                                                                                                                                                                                                                                                   |   |              |   |   |   |   |   |   |
| As      a percent of      sales                                                                                     |   |              | 28     | % |   |   | 21 | % |
| Per      mcfe (2)                                                                                                   |   | $                 | 2.42   |   |   | $ | 1.91 |   |
| Depletion      per      mcfe                                                               |   | $                 | 4.67   |   |   | $ | 4.11 |   |

| (1)   | The      average sales price per mcf before the effects of hedging was $7.61 and      $8.19 for the years ended December 31, 2007 and 2006,      respectively. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | “Mcf”      means thousand cubic feet; “mcfe” means thousand cubic feet equivalent and      “bbls” means barrels.  Bbls are converted to mcfe using the      ratio of six mcfs to one bbl. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fixed      Price Swaps |               |   |                 |    |   |             |   |   |                 |   |
|------------------------|--------------------|--------|----------------------|---------|--------|------------------|--------|--------|----------------------|--------|
|                   | Twelve      Month  |   |                 |    |   | Average          |   |   | Fair      Value      |   |
|                   | Period      Ending |   | Volumes              |    |   | Fixed      Price |   |   | Asset/               |   |
|                   | December      31,  |   | (per      MMBTU) (1) |    |   | (per      MMBTU) |   |   | (Liability)      (2) |   |
|                   |               |   |                 |    |   |             |   |   |                 |   |
|                   | 2008               |   |                 | 440,600 |   |             | $      | 8.69   |                 |   | $ | 389,600 |   |
|                   | 2009               |   |                 | 427,600 |   |             |   | 8.31   |                 |   |   | (75,100 | ) |
|                   | 2010               |   |                 | 244,800 |   |             |   | 7.61   |                 |   |   | (213,800 | ) |
|                   | 2011               |   |                 | 130,600 |   |             |   | 7.37   |                 |   |   | (131,200 | ) |
|                   |               |   |                 |    |   |             |   |   |                 |   | $ | (30,500 | ) |

| Costless      Collars |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|-----------------------|--------------------|--------|---------------------|--------|----------------------|---------|--------|----------------------|--------------------|--------|----------------------|--------|
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | Twelve      Month  |   |                |   |                 |    |   | Average              |               |   | Fair      Value      |   |
|                  | Period      Ending |   | Option              |   | Volumes              |    |   | Floor      & Cap |               |   | Asset/               |   |
|                  | December      31,  |   | Type                |   | (per      MMBTU) (1) |    |   | (per      MMBTU)     |               |   | (Liability)      (2) |   |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |
|                  | 2008               |   | Puts      purchased |   |                 | 42,400  |   |                 | $                  | 7.50   |                 |   | $ | 10,000 |   |
|                  | 2008               |   | Calls      sold     |   |                 | 42,400  |   |                 |               | 9.40   |                 |   |   | — |   |
|                  | 2010               |   | Puts      purchased |   |                 | 78,300  |   |                 |               | 7.75   |                 |   |   | — |   |
|                  | 2010               |   | Calls      sold     |   |                 | 78,300  |   |                 |               | 8.75   |                 |   |   | (25,800 | ) |
|                  | 2011               |   | Puts      purchased |   |                 | 195,800 |   |                 |               | 7.50   |                 |   |   | — |   |
|                  | 2011               |   | Calls      sold     |   |                 | 195,800 |   |                 |               | 8.45   |                 |   |   | (95,000 | ) |
|                  | 2012               |   | Puts      purchased |   |                 | 19,600  |   |                 |               | 7.00   |                 |   |   | — |   |
|                  | 2012               |   | Calls      sold     |   |                 | 19,600  |   |                 |               | 8.37   |                 |   |   | (12,800 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   | $ | (123,600 | ) |
|                  |               |   |                |   |                 |    |   |                 |               |   |                 |   |   |   |   |
|                  |               |   |                |   |                 |    |   |                 | Net      Liability |   |                 | $      | (154,100 | ) |

| (1)   | MMBTU      represents million British ThermalUnits. |
|-----------------|-----------------------------------------------------|

| (2)   | Fair      value based on forward NYMEX natural gasprices. |
|-----------------|-----------------------------------------------------------|

opinion on these financialstatements based on our audits.

audit to obtain reasonableassurance about whether the financial statements are free of materialmisstatement. ThePartnership is not required to have, nor were we engaged to perform an 
audit of its internal control over financial reporting. Our 
audit included consideration of internal control over financialreporting as a basis for designing 
audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Partnership’s internalcontrol over financial reporting. Accordingly, we expressno such 
opinion. An 
audit also includes examining, on a test basis, evidence supportingthe amounts and disclosures in the financial statements, assessing theaccounting principles used and significant estimates made by management, as wellas evaluating the overall financial statement presentation. We believe that ouraudits provide a reasonable basis for our 
opinion.

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | 2007   |       |   | 2006   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| ASSETS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |       |   |   |   |
| Current      assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |
| Cash      and cash      equivalents                                                                                                       |   | $      | 750,100    |   |   | $      | 1,041,200 |   |
| Accounts      receivable-affiliate                                                                                                        |   |   | 1,125,400  |   |   |   | 1,319,600 |   |
| Short-term      hedge receivable due from affiliate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   | 409,300    |   |   |   | 1,176,900 |   |
| Total      current      assets                                                                                                                                     |   |   | 2,284,800  |   |   |   | 3,537,700 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |   |   |
| Oil      and gas properties,      net                                                                                                     |   |   | 30,036,600 |   |   |   | 33,479,600 |   |
| Long-term      hedge receivable due from affiliate                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 61,200     |   |   |   | 1,016,100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 32,382,600 |   |   | $      | 38,033,400 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |   |   |
| LIABILITIES      AND PARTNERS' CAPITAL                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |       |   |   |   |   |   |
| Current      liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Accrued      liabilities                                                                                                                  |   | $      | 18,300     |   |   | $      | 18,000 |   |
| Short-term      hedge liability due to      affiliate                                                                                     |   |   | 9,700      |   |   |   | 7,300 |   |
| Total      current      liabilities                                                                                                                                |   |   | 28,000     |   |   |   | 25,300 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |   |   |
| Asset      retirement      obligation                                                                                                     |   |   | 1,976,000  |   |   |   | 1,949,500 |   |
| Long-term      hedge liability due to      affiliate                                                                                      |   |   | 614,900    |   |   |   | 163,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |       |   |   |   |   |   |
| Partners'      capital:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |       |   |   |   |   |   |
| Managing      general      partner                                                                                                        |   |   | 9,548,500  |   |   |   | 10,158,200 |   |
| Limited      partners (4,024      units)                                                                                                  |   |   | 20,450,900 |   |   |   | 23,908,300 |   |
| Accumulated      other comprehensive (loss) income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | (235,700   | )      |   |   | 1,828,600 |   |
| Total      partners'      capital                                                                                                                                            |   |   | 29,763,700 |   |   |   | 35,895,100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   | $      | 32,382,600 |   |   | $      | 38,033,400 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | 2007   |      |   | 2006   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| REVENUES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |      |   |   |   |
| Natural      gas and      oil                                                                                                               |   | $      | 6,283,100 |   |   | $      | 8,510,100 |   |
| Interest      income                                                                                                                        |   |   | 41,100    |   |   |   | 51,500 |   |
| Total      revenues                                                                                                                                                            |   |   | 6,324,200 |   |   |   | 8,561,600 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |   |   |
| COSTS      AND EXPENSES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |      |   |   |   |   |   |
| Production                                                                                                                                  |   |   | 1,740,900 |   |   |   | 1,780,800 |   |
| Depletion                                                                                                                                   |   |   | 3,360,300 |   |   |   | 3,830,400 |   |
| Impairment      of oil and gas      properties                                                                                              |   |   | —   |   |   |   | 3,466,200 |   |
| Accretion      of asset retirement      obligation                                                                                          |   |   | 117,000   |   |   |   | 113,800 |   |
| General      and      administrative                                                                                                        |   |   | 246,000   |   |   |   | 226,000 |   |
| Total      expenses                                                                                                                                                            |   |   | 5,464,200 |   |   |   | 9,417,200 |   |
| Net      earnings      (loss)                                                                                                               |   | $      | 860,000   |   |   | $      | (855,600 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |      |   |   |   |   |   |
| Allocation      of net earnings (loss):                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |      |   |   |   |   |   |
| Managing      general      partner                                                                                                                                             |   | $      | 1,112,100 |   |   | $      | 1,429,100 |   |
| Limited      partners                                                                                                                                                          |   | $      | (252,100  | )      |   | $      | (2,284,700 | ) |
| Net      loss per limited partnership      unit                                                                                             |   | $      | (63       | )      |   | $      | (568 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | December      31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   | 2007              |       |   | 2006 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              |       |   |   |   |
| Net      earnings      (loss)                                                                                                                                  |   | $                 | 860,000    |   |   | $ | (855,600 | ) |
| Other      comprehensive (loss) income:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |              |       |   |   |   |   |   |
| Unrealized      holding (loss) gain on hedging      contracts                                                                                                  |   |              | (1,288,500 | ) |   |   | 3,370,400 |   |
| Less:      reclassification adjustment for gains realized in net    earnings                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |              | (775,800   | ) |   |   | (979,500 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |              | (2,064,300 | ) |   |   | 2,390,900 |   |
| Comprehensive      (loss)      income                                                                                                                          |   | $                 | (1,204,300 | ) |   | $ | 1,535,300 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       | Accumulated        |   |   |       |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|------------|--------|----------|--------|------------|--------------------|--------|--------|------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                   |   | Managing |       |   |     |   |       | Other              |   |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   | General  |       |   | Limited  |   |       | Comprehensive      |   |   |       |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   | Partner  |       |   | Partners |   |       | (Loss)      Income |   |   | Total      |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |
| Balance      at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                      |   | $        | 11,997,500 |   |     | $      | 32,277,300 |               |   | $      | (562,300   | )      |   | $ | 43,712,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Participation      in revenue and expenses:                                                                                                                                                                                                                                                                                                                                                            |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Net      production      revenues                                                               |   |     | 2,355,300  |   |     |   | 4,374,000  |               |   |   | —    |   |   |   | 6,729,300 |   |
| Interest      income                                                                            |   |     | 18,000     |   |     |   | 33,500     |               |   |   | —    |   |   |   | 51,500 |   |
| Impairment      of oil and gas properties                                                                                                                                                                                                                                                                                                                                                              |   |     | (392,000   | )      |     |   | (3,074,200 | )                  |   |   | —    |   |   |   | (3,466,200 | ) |
| Depletion                                                                                       |   |     | (433,300   | )      |     |   | (3,397,100 | )                  |   |   | —    |   |   |   | (3,830,400 | ) |
| Accretion      of asset retirement obligation                                                                                                                                                                                                                                                                                                                                                          |   |     | (39,800    | )      |     |   | (74,000    | )                  |   |   | —    |   |   |   | (113,800 | ) |
| General      and      administrative                                                            |   |     | (79,100    | )      |     |   | (146,900   | )                  |   |   | —    |   |   |   | (226,000 | ) |
| Net      earnings      (loss)                                                                                            |   |     | 1,429,100  |   |     |   | (2,284,700 | )                  |   |   | —    |   |   |   | (855,600 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Other      comprehensive      income                                                            |   |     | —    |   |     |   | —    |               |   |   | 2,390,900  |   |   |   | 2,390,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Distributions      to      partners                                                             |   |     | (3,268,400 | )      |     |   | (6,084,300 | )                  |   |   | —    |   |   |   | (9,352,700 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                      |   | $        | 10,158,200 |   |     | $      | 23,908,300 |               |   | $      | 1,828,600  |   |   | $ | 35,895,100 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Participation      in revenue and expenses:                                                                                                                                                                                                                                                                                                                                                            |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Net      production      revenues                                                               |   |     | 1,589,800  |   |     |   | 2,952,400  |               |   |   | —    |   |   |   | 4,542,200 |   |
| Interest      income                                                                            |   |     | 14,400     |   |     |   | 26,700     |               |   |   | —    |   |   |   | 41,100 |   |
| Depletion                                                                                       |   |     | (365,000   | )      |     |   | (2,995,300 | )                  |   |   | —    |   |   |   | (3,360,300 | ) |
| Accretion      of asset retirement obligation                                                                                                                                                                                                                                                                                                                                                          |   |     | (41,000    | )      |     |   | (76,000    | )                  |   |   | —    |   |   |   | (117,000 | ) |
| General      and      administrative                                                            |   |     | (86,100    | )      |     |   | (159,900   | )                  |   |   | —    |   |   |   | (246,000 | ) |
| Net      earnings      (loss)                                                                                            |   |     | 1,112,100  |   |     |   | (252,100   | )                  |   |   | —    |   |   |   | 860,000 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Other      comprehensive      loss                                                              |   |     | —    |   |     |   | —    |               |   |   | (2,064,300 | )      |   |   | (2,064,300 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Distributions      to      partners                                                             |   |     | (1,721,800 | )      |     |   | (3,205,300 | )                  |   |   | —    |   |   |   | (4,927,100 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                   |   |     |       |   |     |   |       |               |   |   |       |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                      |   | $        | 9,548,500  |   |     | $      | 20,450,900 |               |   | $      | (235,700   | )      |   | $ | 29,763,700 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | 2007   |       |   | 2006   |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|
| Cash      flows from operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |
| Net      earnings      (loss)                                                                                                                                  |   | $      | 860,000    |   |   | $      | (855,600 | ) |
| Adjustments      to reconcile net earnings (loss) to net cash provided by      operatingactivities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |       |   |   |   |   |   |
| Depletion                                                                                                                                                                               |   |   | 3,360,300  |   |   |   | 3,830,400 |   |
| Impairment      of oil and gas      properties                                                                                                                                          |   |   | —    |   |   |   | 3,466,200 |   |
| Non-cash      loss on derivative      value                                                                                                                                             |   |   | 112,000    |   |   |   | — |   |
| Accretion      of asset retirement      obligation                                                                                                                                      |   |   | 117,000    |   |   |   | 113,800 |   |
| Decrease      in accounts receivable –      affiliate                                                                                                                             |   |   | 194,200    |   |   |   | 1,930,100 |   |
| Increase      (decrease) in accrued      liabilities                                                                                                                                    |   |   | 300        |   |   |   | (15,000 | ) |
| Net      cash provided by operating      activities                                                                                                                                     |   |   | 4,643,800  |   |   |   | 8,469,900 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
| Cash      flows from investing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Proceeds      from sale of tangible      equipment                                                                                                                                      |   |   | —    |   |   |   | 1,200 |   |
| Purchase      of tangible      equipment                                                                                                                                                |   |   | (7,800     | )      |   |   | (15,900 | ) |
| Net      cash used in investing      activities                                                                                                                                         |   |   | (7,800     | )      |   |   | (14,700 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
| Cash      flows from financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
| Distributions      to      partners                                                                                                                                                     |   |   | (4,927,100 | )      |   |   | (9,352,700 | ) |
| Net      cash used in financing      activities                                                                                                                                         |   |   | (4,927,100 | )      |   |   | (9,352,700 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
| Net      decrease in cash and cash      equivalents                                                                                                                                     |   |   | (291,100   | )      |   |   | (897,500 | ) |
| Cash      and cash equivalents at beginning of      period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 1,041,200  |   |   |   | 1,938,700 |   |
| Cash      and cash equivalents end of      period                                                                                                                                       |   | $      | 750,100    |   |   | $      | 1,041,200 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
| Supplemental Schedule      of non-cash investing and financing activities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |       |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |       |   |   |   |   |   |
| Asset      retirement obligation      revision                                                                                                                 |   | $      | (90,500    | )      |   | $      | (59,200 | ) |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | December      31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | 2007              |        |   | 2006 |   |
| Mineral      interest in properties:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |        |   |   |   |
| Proved      properties                                                                                                                                                                   |   | $                 | 1,169,700   |   |   | $ | 1,169,700 |   |
| Wells      and related      equipment                                                                                                                                                    |   |              | 52,709,800  |   |   |   | 52,792,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              | 53,879,500  |   |   |   | 53,962,200 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |              |        |   |   |   |   |   |
| Accumulated      depletion of oil and gas      properties                                                                                             |   |              | (23,842,900 | ) |   |   | (20,482,600 | ) |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $                 | 30,036,600  |   |   | $ | 33,479,600 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | Years      Ended  |      |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|-----------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | December      31, |      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   | 2007              |      |   | 2006 |   |
| Asset      retirement obligation at beginning of      year                                                                                             |   | $                 | 1,949,500 |   |   | $ | 1,894,900 |   |
| Revisions      in      estimates                                                                                                                       |   |              | (90,500   | ) |   |   | (59,200 | ) |
| Accretion      expense                                                                                                                                 |   |              | 117,000   |   |   |   | 113,800 |   |
| Asset      retirement obligation at end of      year                                                                                                   |   | $                 | 1,976,000 |   |   | $ | 1,949,500 |   |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Managing |   |   |     |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|--------|--------|----------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | General  |   |   | Limited  |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | Partner  |   |   | Partners |   |
| Organization      and offering      costs                                                                                              |   |     | 100    | %      |     |   | 0 | % |
| Lease      costs                                                                                                                       |   |     | 100    | %      |     |   | 0 | % |
| Revenues      (1)                                                                                                                      |   |     | 35     | %      |     |   | 65 | % |
| Operating      costs, administrative costs, direct and all other costs (2)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |     | 35     | %      |     |   | 65 | % |
| Intangible      drilling      costs                                                                                                    |   |     | 0      | %      |     |   | 100 | % |
| Tangible      equipment      costs                                                                                                     |   |     | 69.55  | %      |     |   | 30.45 | % |

| (1)   | Subject      to the MGP's subordination obligation, substantially all partnership      revenues will be shared in the same percentage as capital contributions      are to the total partnership capital contributions, except that the MGP      will receive an additional 7% of the partnership revenues, which may not      exceed 35%. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)   | These      costs will be charged to the partners in the same ratio as the related      production revenues are credited. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------|

| ·   | Administrative      costs which are included in general and administrative expenses in the      Partnership's Statements of Operations are at $75 per well per      month.  Administrative costs incurred in 2007 and 2006 were      $180,800 and $183,900,respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Monthly      well supervision fees which are included in production expenses in the      Partnership's Statements of Operations are payable at $301 and $289 per      well per month in 2007 and 2006, respectively, for operating and      maintaining the wells.  Well supervision fees incurred in 2007      and 2006 were $726,500 and $708,700,  respectively. |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Transportation      fees which are included in production expenses in the Partnership's      Statements of Operations are payable at rates ranging from $ .29-$.35 per      one thousand cubic feet ("Mcf") to 13% of the natural gas sales price.      Transportation fees incurred in 2007 and 2006 were $744,300 and $758,900,      respectively. |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | Direct      costs which are included in production and general administrative expenses      in the Partnership's Statements of Operations are payable to the MGP and      its affiliates as reimbursement for all costs expended on the      Partnership's behalf. Direct costs incurred in 2007 and 2006 were $335,300      and $355,300, respectively. |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Fixed      Price Swaps |               |   |                 |    |   |             |   |   |                 |   |
|------------------------|--------------------|--------|----------------------|---------|--------|------------------|--------|--------|----------------------|--------|
|                   | Twelve      Month  |   |                 |    |   | Average          |   |   | Fair      Value      |   |
|                   | Period      Ending |   | Volumes              |    |   | Fixed      Price |   |   | Asset/               |   |
|                   | December      31,  |   | (per      MMBTU) (1) |    |   | (per      MMBTU) |   |   | (Liability)      (2) |   |
|                   |               |   |                 |    |   |             |   |   |                 |   |
|                   | 2008               |   |                 | 440,600 |   |             | $      | 8.69   |                 |   | $ | 389,600 |   |
|                   | 2009               |   |                 | 427,600 |   |             |   | 8.31   |                 |   |   | (75,100 | ) |
|                   | 2010               |   |                 | 244,800 |   |             |   | 7.61   |                 |   |   | (213,800 | ) |
|                   | 2011               |   |                 | 130,600 |   |             |   | 7.37   |                 |   |   | (131,200 | ) |
|                   |               |   |                 |    |   |             |   |   |                 |   | $ | (30,500 | ) |

| Costless      Collars |               |   |                |   |                      |    |   |                 |               |   |                 |   |
|-----------------------|--------------------|--------|---------------------|--------|---------------------------|---------|--------|----------------------|--------------------|--------|----------------------|--------|
|                  |               |   |                |   |                      |    |   |                 |               |   |                 |   |
|                  | Twelve      Month  |   |                |   |                      |    |   | Average              |               |   | Fair      Value      |   |
|                  | Period      Ending |   | Option              |   | Volumes                   |    |   | Floor      & Cap |               |   | Asset/               |   |
|                  | December      31,  |   | Type                |   | (per      MMBTU)      (1) |    |   | (per      MMBTU)     |               |   | (Liability)      (2) |   |
|                  |               |   |                |   |                      |    |   |                 |               |   |                 |   |
|                  | 2008               |   | Puts      purchased |   |                      | 42,400  |   |                 | $                  | 7.50   |                 |   | $ | 10,000 |   |
|                  | 2008               |   | Calls      sold     |   |                      | 42,400  |   |                 |               | 9.40   |                 |   |   | — |   |
|                  | 2010               |   | Puts      purchased |   |                      | 78,300  |   |                 |               | 7.75   |                 |   |   | — |   |
|                  | 2010               |   | Calls      sold     |   |                      | 78,300  |   |                 |               | 8.75   |                 |   |   | (25,800 | ) |
|                  | 2011               |   | Puts      purchased |   |                      | 195,800 |   |                 |               | 7.50   |                 |   |   | — |   |
|                  | 2011               |   | Calls      sold     |   |                      | 195,800 |   |                 |               | 8.45   |                 |   |   | (95,000 | ) |
|                  | 2012               |   | Puts      purchased |   |                      | 19,600  |   |                 |               | 7.00   |                 |   |   | — |   |
|                  | 2012               |   | Calls      sold     |   |                      | 19,600  |   |                 |               | 8.37   |                 |   |   | (12,800 | ) |
|                  |               |   |                |   |                      |    |   |                 |               |   |                 |   | $ | (123,600 | ) |
|                  |               |   |                |   |                      |    |   |                 |               |   |                 |   |   |   |   |
|                  |               |   |                |   |                      |    |   |                 | Net      Liability |   |                 | $      | (154,100 | ) |

| (1)   | MMBTU      represents million British ThermalUnits. |
|-----------------|-----------------------------------------------------|

| (2)   | Fair      value based on forward NYMEX natural gasprices. |
|-----------------|-----------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                |   | December      31, 2007 |     |   | December      31, 2006 |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|----------|--------|------------------------|--------|
|                                                                                                                                                                                                                                                                                                |   | Book      Value        |     |   | Fair      Value        |   |   | Book      Value |   |   | Fair      Value |   |
| Assets                                                                                                                                                                                                                                                                                              |   |                   |     |   |                   |   |   |   |   |   |   |   |
| Derivative      instruments                                             |   | $                      | 470,500  |   |                   | $      | 470,500 |   |   | $ | 2,193,000 |   |   | $ | 2,193,000 |   |
|                                                                                                                                                                                                                                                                                                |   | $                      | 470,500  |   |                   | $      | 470,500 |   |   | $ | 2,193,000 |   |   | $ | 2,193,000 |   |
| Liabilities                                                                                                                                                                                                                                                                                         |   |                   |     |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Derivative      instruments                                             |   | $                      | (624,600 | )      |                   | $      | (624,600 | ) |   | $ | (170,800 | ) |   | $ | (170,800 | ) |
|                                                                                                                                                                                                                                                                                                |   | $                      | (154,100 | )      |                   | $      | (154,100 | ) |   | $ | 2,022,200 |   |   | $ | 2,022,200 |   |

| (1)   | Capitalized      Costs Related to Oil and Gas Producing  Activities |
|-----------------|---------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | At      December 31, |        |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|-------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   | 2007                 |        |   | 2006 |   |
| Mineral      interests in proved      properties                                                                                          |   | $                    | 1,169,700   |   |   | $ | 1,169,700 |   |
| Wells      and related      equipment                                                                                                     |   |                 | 52,709,800  |   |   |   | 52,792,500 |   |
| Accumulated      depletion                                                                                                                |   |                 | (23,842,900 | ) |   |   | (20,482,600 | ) |
| Net      capitalized      cost                                                                                                                                     |   | $                    | 30,036,600  |   |   | $ | 33,479,600 |   |

| (2)   | Oil      and Gas Reserve Information |
|-----------------|--------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | Natural      Gas |       |   | Oil    |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------|------------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | (Mcf)            |       |   | (Bbls) |   |
| Proved      developed reserves:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |             |       |   |   |   |
| Balance      at December 31, 2005                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 8,788,400  |   |   |   | 4,400 |   |
| Production                                                                                                                         |   |             | (918,100   | )      |   |   | (2,300 | ) |
| Revisions      to previous      estimates                                                                                          |   |             | (2,069,000 | )      |   |   | 800 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             |       |   |   |   |   |   |
| Balance      at December 31, 2006                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 5,801,300  |   |   |   | 2,900 |   |
| Production                                                                                                                         |   |             | (706,500   | )      |   |   | (2,100 | ) |
| Revisions      to previous      estimates                                                                                          |   |             | 174,800    |   |   |   | 2,500 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |             |       |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |             | 5,269,600  |   |   |   | 3,300 |   |

| NAME                    |   | AGE    |   | POSITION OR      OFFICE                                                             |
|-------------------------|--------|--------|--------|-------------------------------------------------------------------------------------|
|                    |   |   |   |                                                                                |
| Freddie      M. Kotek   |   | 52     |   | Chairman      of the Board of Directors, Chief Executive Officer and      President |
| Frank      P. Carolas   |   | 48     |   | Executive      Vice President – Land and Geology and a Director               |
| Jeffrey      C. Simmons |   | 49     |   | Executive      Vice President – Operations and a Director                     |
| Jack      L. Hollander  |   | 51     |   | Senior      Vice President – Direct Participation Programs                    |
| Nancy      J. McGurk    |   | 52     |   | Senior      Vice President – Chief Accounting Officer                         |
| Michael      L. Staines |   | 58     |   | Senior      Vice President, Secretary and a Director                                |
| Matthew      A. Jones   |   | 46     |   | Chief      Financial Officer                                                        |

| ·   | the      approximate amount of an individual's professional time devoted to the      business and affairs of our managing general partner and Atlas America      have been aggregated because there is no reasonable method for them to      distinguish their activities between the two companies;  and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | for      those individuals who also hold senior positions with other affiliates of      our MGP, if it is stated that they devote approximately 100% of their      professional time to our MGP and Atlas America, it is because either the      other affiliates are not currently active in drilling new wells, such as      Viking Resources or Resource Energy, and the individuals are not required      to devote a material amount of their professional time to the affiliates,      or there is no reasonable method to distinguish their activities between      our MGP and Atlas America as compared with the other affiliates of our      MGP, such as Viking Resources or Resource  Energy. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |   | Description                                                                      |   | Location                                 |
|--------|--------|----------------------------------------------------------------------------------|--------|------------------------------------------|
|   |   |                                                                             |   |                                     |
| 4(a)   |   | Certificate      of Limited Partnership for  Atlas America             |   | Previously      filed in our Form S-1 on |
|   |   | Public      #12-2003 Limited Partnership                                         |   | June      3, 2003.                       |
|   |   |                                                                             |   |                                     |
| 4(b)   |   | Amended      and Restated Certificate and Agreement                              |   | Previously      filed in our Form S-1 on |
|   |   | of      Limited Partnership for Atlas America                                    |   | June      3, 2003                        |
|   |   | Public      #12-2003 Limited Partnership                                         |   |                                     |
|   |   |                                                                             |   |                                     |
| 4(c)   |   | Drilling      and Operating Agreement for Atlas America                          |   | Previously      filed in our Form S-1 on |
|   |   | Public      #12-2003 Limited Partnership                                         |   | June      3, 2003                        |
|   |   |                                                                             |
| 31.1   |   | Certification      Pursuant to Rule 13a-14(a)/15(d) – 14(a) Certification. |
|   |   |                                                                             |
| 31.2   |   | Certification      Pursuant to Rule 13a-14(a)/15(d) – 14(a) Certification. |
|   |   |                                                                             |
| 32.1   |   | Section      1350 Certification.                                                 |
|   |   |                                                                             |
| 32.2   |   | Section      1350 Certification.                                                 |

| In      accordance with Section 13 or 15(d) of the Exchange Act, the registrant      caused this report to be signed on its |
|-----------------------------------------------------------------------------------------------------------------------------|
| behalf      by the undersigned, thereunto duly authorized.                                                                  |
|                                                                                                                        |
| Atlas      America Public #12-2003 Limited Partnership                                                                      |
|                                                                                                                        |   |   |
|                                                                                                                        |   | Atlas      Resources, LLC, Managing General Partner |
|                                                                                                                        |   |   |
| Date:  March      28, 2008                                                                                        |   | By:/s/ Freddie M.      Kotek |
|                                                                                                                        |   | Freddie      M. Kotek, Chairman of the Board of Directors, Chief Executive      Officer |
|                                                                                                                        |   | and      President |
|                                                                                                                        |   |   |

| In      accordance with the Exchange Act, this report has been signed by the      following persons on behalf of the |
|----------------------------------------------------------------------------------------------------------------------|
| registrant      and in the capacities and on the dates indicated.                                                    |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      28, 2008                                                                                 |   | By:/s/ Freddie M.      Kotek |
|                                                                                                                 |   | Freddie      M. Kotek, Chairman of the Board of Directors, Chief Executive      Officer |
|                                                                                                                 |   | and      President |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      28, 2008                                                                                 |   | By:/s/ Frank P.      Carolas |
|                                                                                                                 |   | Frank      P. Carolas, Executive Vice President – Land and Geology |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      28, 2008                                                                                 |   | By:/s/ Jeffrey C.      Simmons |
|                                                                                                                 |   | Jeffrey      C. Simmons, Executive Vice President – Operations |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      28, 2008                                                                                 |   | By:/s/ Nancy J.      McGurk |
|                                                                                                                 |   | Nancy      J. McGurk, Vice President, and Chief Accounting Officer |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
|                                                                                                                 |   |   |
| Date:  March      28, 2008                                                                                 |   | By:/s/ Matthew A.      Jones |
|                                                                                                                 |   | Matthew      A. Jones, Chief Financial Officer |
|                                                                                                                 |   |   |