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United States
Securities and Exchange Commission
 Washington, D.C. 20549
 Form 10-K
  þ
    
    ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the fiscal year ended December 31, 2009
 o
    
    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 For the transition period from
 _____ 
to
 _____
 Commission file number 333-67522
 ATLAS AMERICA PUBLIC #10 LTD.
  Pennsylvania
    
    25-1891457(State or other jurisdiction of
    
    (I.R.S. EmployerIncorporation or organization)
    
    Identification No.)Westpointe Corporate Center One1550 Coraopolis Heights Road, 2nd FloorMoon Township, PA
    
    15108(Address of principal executive offices)
    
    (Zip Code)
 (412) 262-2830
  Title of each class
    
    Name of each exchange on which registeredNone
    
    None
 
 Yes o No þ
 Yes o No þ
 þ o
 þ
  Large accelerated filer o
    
    Accelerated filer o
    
    Non-accelerated filer o
    
    Smaller reporting company þ
 o þ




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##### 



ATLAS AMERICA PUBLIC #10 LTD.
(A PENNSYLVANIA LIMITED PARTNERSHIP)
INDEX TO ANNUAL REPORT
ON FORM 10-K
 PAGEPART IItem 1: Business
    
    
    3-5Item 2: Properties
    
    
    5-10Item 3: Legal Proceedings
    
    
    10Item 4: (Removed and Reserved)
    
    
    10PART IIItem 5: Market for Registrants Common Equity and Related Security Holder Matters
    
    
    10-11Item 7: Managements Discussion and Analysis of Financial Condition or Plan of Operations
    
    
    11-14Item 8: Financial Statements
    
    
    15-35Item 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
    
    
    35Item 9A: Controls and Procedures
    
    
    35-36Item 9B: Other Information
    
    
    36PART IIIItem 10: Directors and Executive Officers of the Registrant
    
    
    36-38Item 11: Executive Compensation
    
    
    38Item 12: Security Ownership of Certain Beneficial Owners and Management
    
    
    38-39Item 13: Certain Relationships and Related Party Transactions
    
    
    39Item 14: Principal Accountant Fees and Services
    
    
    39PART IVItem 15: Exhibits
    
    
    40SIGNATURES
    
    
    41Exhibit 23.1Exhibit 31.1Exhibit 31.2Exhibit 32.1Exhibit 32.2Exhibit 99.1
   2




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The matters discussed within this report include forward-looking statements. These statements
may be identified by the use of forward-looking terminology such as anticipate, believe,
continue, could, estimate, expect, intend, may, might, plan, potential,
predict, should, or will, or the negative thereof or other variations thereon or comparable
terminology. In particular, statements about our expectations, beliefs, plans, objectives,
assumptions or future events or performance contained in this report are forward-looking
statements. We have based these forward-looking statements on our current expectations,
assumptions, estimates and projections. While we believe these expectations, assumptions, estimates
and projections are reasonable, such forward-looking statements are only predictions and involve
known and unknown risks and uncertainties, many of which are beyond our control. These and other
important factors may cause our actual results, performance or achievements to differ materially
from any future results, performance or achievements expressed or implied by these forward-looking
statements.
 
 PART I
 
 ITEM 1. DESCRIPTION OF BUSINESS
 General.
       3




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
    
    well tending, routine maintenance and adjustment;
    
    reading meters, recording production, pumping, maintaining appropriate books and
records; and
    
    preparation of reports for us and government agencies.
  Markets and Competition .
  Governmental Regulation.
 Regulation of oil and gas producing activities .
  4




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
    
    new well permit and well registration requirements, procedures and fees;
    
    minimum well spacing requirements;
    
    restrictions on well locations and underground gas storage;
    
    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.
 Environmental and Safety Regulation .
  Where can you find more information
  
 
 ITEM 2. DESCRIPTION OF PROPERTIES
 Drilling Activity
 Summary of Producing Wells.
 Number of Producing WellsGross
    
    
    NetGas
    
    
    104
    
    
    
    100.15Oil
    
    
    3
    
    
    
    3Total
    
    
    107
    
    
    
    103.15
  5




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##### Table of Contents



Production.
 AverageAverage
    
    
    Production CostYear Ended
    
    Production
    
    
    Sales Price
    
    
    (Lifting Cost)December 31,
    
    Oil (bbls)(1)
    
    
    Gas (mcf)(1)
    
    
    per bbl(1)
    
    
    per mcf(1)
    
    
    per mcfe(1) (2)2009
    
    
    1,200
    
    
    
    264,200
    
    
    $
    68.13
    
    
    $
    7.75
    
    
    $
    3.172008
    
    
    1,700
    
    
    
    337,200
    
    
    $
    97.09
    
    
    $
    9.43
    
    
    $
    2.63
 
 (1)
    
    Mcf represents one thousand cubic feet of natural gas. Mcfe represents 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, production taxes, insurance and
gathering charges. Natural Gas and Oil Reserve Information.
 
    
    Introduce a new definition of oil and gas producing activities. This new
definition allows companies to include in their reserve base volumes from
unconventional resources. Such unconventional resources include bitumen extracted
from oil sands and oil and gas extracted from coal beds and shale formations.
 
    
    Report oil and gas reserves using an unweighted average price using the prior
12-month period, based on the closing prices on the first day of each month, rather
than year-end pricing. This should maximize the comparability of reserve estimates
among companies and mitigate the distortion of the estimates that arises when using a
single pricing date.
 
    
    Permit companies to disclose their probable and possible reserves on a voluntary
basis. Current rules limit disclosure to only proved reserves.
 
    
    Update and revise reserve definitions to reflect changes in the oil and gas
industry and new technologies. New updated definitions include by geographic area
and reasonable certainty.
 
    
    Permit the use of new technologies to determine proved reserves if those
technologies have been demonstrated empirically to lead to reliable conclusions about
reserves volumes.
 
    
    Require additional disclosures regarding the qualifications of the chief technical
person who oversees the companys overall reserve estimation process. Additionally,
disclosures are required related to internal controls over reserve estimation, as
well as a report addressing the independence and qualifications of a companys
reserves preparer or auditor based on Society of Petroleum Engineers criteria.
   6




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December 31,2009
    
    
    2008Natural gas (per mcf)
    
    $
    3.87
    
    
    $
    5.71Oil (per bbl)
    
    
    61.18
    
    
    
    44.80
   7




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At December 31,2009
    
    
    2008Natural gas reserves  Proved Reserves (Mcf) (1)(4):Proved developed reserves (2)
    
    
    2,454,600
    
    
    
    3,486,100Total proved reserves of natural gas
    
    
    2,454,600
    
    
    
    3,486,100Oil reserves:  Proved Reserves (Bbl) (1)(4)Proved developed reserves (2)
    
    
    9,500
    
    
    
    13,200Total proved reserves of oil
    
    
    9,500
    
    
    
    13,200Total proved reserves (Mcfe)
    
    
    2,511,600
    
    
    
    3,565,300PV-10 estimate of cash flows of proved reserves (3)(4):Proved developed reserves
    
    $
    2,703,400
    
    
    $
    6,237,600Total PV-10 estimate
    
    $
    2,703,400
    
    
    $
    6,237,600PV-10 estimate per limited partner unit (5)
    
    $
    861
    
    
    $
    1,987Undiscounted estimate per limited partner unit (5)
    
    $
    1,370
    
    
    $
    3,481
 
 (1)
    
    Proved reserves generally refers to 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 by
contractual arrangements, but not escalations based on 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 refers to 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.  Title to Properties
  8




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Acreage
 Developed AcreageLocation
    
    Gross(1)
    
    
    Net(2)Pennsylvania
    
    
    2,857
    
    
    
    2,795Ohio
    
    
    580
    
    
    
    580Total
    
    
    3,437
    
    
    
    3,375
 
 (1)
    
    A gross acre is an acre in which we own a working interest.(2)
    
    A net acre represents 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 net acre. Delivery Commitments .
     9




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ITEM 3. LEGAL PROCEEDINGS
   
 ITEM 4. (REMOVED AND RESERVED)
  
 PART II
 
 ITEM 5. MARKET FOR REGISTRANTS COMMON EQUITY AND RELATED SECURITY HOLDER MATTERS
 Market Information.
 
    
    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 the right;
 
    
    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.
  Holders.
 Distributions.
   10




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
    
    $996,200 and $1,605,400 to our limited partners; and
 
    
    $468,800 and $755,500 to our managing general partner, respectively.
 
 ITEM 7.
    
    MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATIONS
  General .
  Results of Operations.
 Years Ended December 31,2009
    
    
    2008Production revenues (in thousands):Gas
    
    $
    2,048
    
    
    $
    3,181Oil
    
    
    79
    
    
    
    165Total
    
    $
    2,127
    
    
    $
    3,346Production volumes:Gas (mcf/day) (1)
    
    
    724
    
    
    
    921Oil (bbls/day) (1)
    
    
    3
    
    
    
    5Total (mcfe/day) (1)
    
    
    742
    
    
    
    951Average sales price:Gas (per mcf) (1) (2)
    
    $
    7.75
    
    
    $
    9.43Oil (per bbl) (1) (3)
    
    $
    68.13
    
    
    $
    97.09Average production costs:As a percent of revenues
    
    
    40
    %
    
    
    27
    %Per mcfe (1)
    
    $
    3.17
    
    
    $
    2.63Depletion per mcfe
    
    $
    3.43
    
    
    $
    2.79
 
 (1)
    
    Mcf represents thousand cubic feet, mcfe represents thousand cubic feet
equivalent and bbls represents barrels. Bbls are converted to mcfe using the ratio of
six mcfs to one bbl.(2)
    
    The average sales price are calculated by including total revenue and dividing by
the total volume for the period. The average sales prices was $4.94 and $9.79 for the
years ended December 31, 2009 and 2008, respectively.(3)
    
    The average sales price are calculated by including total revenue and dividing by
the total volume for the period. The average sales price per bbl was $55.98 and $99.66
for the years ended December 31, 2009 and 2008, respectively.  11




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Natural Gas Revenues.
  Oil Revenues .
 Expenses.
     12




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Liquidity and Capital Resources .
    Critical Accounting Policies .
 Impairment of Long-Lived Assets.
 Fair Value of Financial Instruments
  Level 1 
 Level 2 
 Level 3
  13




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Reserve Estimates .
 Asset Retirement Obligations
 Working Interest .
  14




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ITEM 8. FINANCIAL STATEMENTS
 REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
 
     
  15




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ATLAS AMERICA PUBLIC #10 LTD.
BALANCE SHEETS
DECEMBER 31,
 2009
    
    
    2008ASSETSCurrent assets:Cash and cash equivalents
    
    $
    86,300
    
    
    $
    165,600Accounts receivable-affiliate
    
    
    396,100
    
    
    
    659,700Short-term hedge receivable due from affiliate
    
    
    340,000
    
    
    
    634,600Total current assets
    
    
    822,400
    
    
    
    1,459,900Oil and gas properties, net
    
    
    8,629,900
    
    
    
    12,649,300Long-term hedge receivable due from affiliate
    
    
    279,400
    
    
    
    415,000$
    9,731,700
    
    
    $
    14,524,200LIABILITIES AND PARTNERS CAPITALCurrent liabilities:Accrued liabilities
    
    $
    20,900
    
    
    $
    26,800Short-term hedge liability due to affiliate
    
    
    4,100
    
    
    
    54,300Total current liabilities
    
    
    25,000
    
    
    
    81,100Asset retirement obligation
    
    
    1,138,400
    
    
    
    950,600Long-term hedge liability due to affiliate
    
    
    43,300
    
    
    
    48,900Partners capital:Managing general partner
    
    
    1,462,200
    
    
    
    2,103,500Limited partners (2,135 units)
    
    
    6,647,000
    
    
    
    10,393,700Accumulated other comprehensive income
    
    
    415,800
    
    
    
    946,400Total partners capital
    
    
    8,525,000
    
    
    
    13,443,600$
    9,731,700
    
    
    $
    14,524,200
   16




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ATLAS AMERICA PUBLIC #10 LTD.
STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2009 AND 2008
 2009
    
    
    2008REVENUESNatural gas and oil
    
    $
    2,126,700
    
    
    $
    3,346,200Interest income
    
    
    600
    
    
    
    5,500Total revenues
    
    
    2,127,300
    
    
    
    3,351,700COSTS AND EXPENSESProduction
    
    
    859,100
    
    
    
    912,400Depletion
    
    
    929,200
    
    
    
    968,900Impairment of oil and gas properties
    
    
    3,064,800
    
    
    
    Accretion of asset retirement obligation
    
    
    57,000
    
    
    
    48,100General and administrative
    
    
    140,200
    
    
    
    140,200Total expenses
    
    
    5,050,300
    
    
    
    2,069,600Net (loss) earnings
    
    $
    (2,923,000
    )
    
    $
    1,282,100Allocation of net (loss) earnings:Managing general partner
    
    $
    (172,500
    )
    
    $
    561,400Limited partners
    
    $
    (2,750,500
    )
    
    $
    720,700Net (loss) earnings per limited partnership unit
    
    $
    (1,288
    )
    
    $
    338
   17




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ATLAS AMERICA PUBLIC #10 LTD.
STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
YEARS ENDED DECEMBER 31, 2009 AND 2008
 December 31,2009
    
    
    2008Net (loss) earnings
    
    $
    (2,923,000
    )
    
    $
    1,282,100Other comprehensive income (loss):Unrealized holding gain on hedging contracts
    
    
    226,400
    
    
    
    913,100Less: reclassification adjustment for (gains) losses
realized in net earnings
    
    
    (757,000
    )
    
    
    124,700Total other comprehensive income (loss)
    
    
    (530,600
    )
    
    
    1,037,800Comprehensive income (loss)
    
    $
    (3,453,600
    )
    
    $
    2,319,900
   18




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ATLAS AMERICA PUBLIC #10 LTD.
STATEMENTS OF CHANGES IN PARTNERS CAPITAL
YEARS ENDED DECEMBER 31, 2009 AND 2008
 AccumulatedManaging
    
    
    
    
    
    
    OtherGeneral
    
    
    Limited
    
    
    ComprehensivePartner
    
    
    Partners
    
    
    Income (Loss)
    
    
    TotalBalance at December 31, 2007
    
    
    2,297,600
    
    
    
    11,278,400
    
    
    
    (91,400
    )
    
    
    13,484,600Participation in revenue and expenses:Net production revenues
    
    
    778,800
    
    
    
    1,655,000
    
    
    
    
    
    
    
    2,433,800Interest income
    
    
    1,700
    
    
    
    3,800
    
    
    
    
    
    
    
    5,500Depletion
    
    
    (158,900
    )
    
    
    (810,000
    )
    
    
    
    
    
    
    (968,900
    )Accretion of asset retirement obligation
    
    
    (15,400
    )
    
    
    (32,700
    )
    
    
    
    
    
    
    (48,100
    )General and administrative
    
    
    (44,800
    )
    
    
    (95,400
    )
    
    
    
    
    
    
    (140,200
    )Net earnings
    
    
    561,400
    
    
    
    720,700
    
    
    
    
    
    
    
    1,282,100Other comprehensive income
    
    
    
    
    
    
    
    
    
    
    1,037,800
    
    
    
    1,037,800Distributions to partners
    
    
    (755,500
    )
    
    
    (1,605,400
    )
    
    
    
    
    
    
    (2,360,900
    )Balance at December 31, 2008
    
    $
    2,103,500
    
    
    $
    10,393,700
    
    
    $
    946,400
    
    
    $
    13,443,600Participation in revenue and expenses:Net production revenues
    
    
    405,600
    
    
    
    862,000
    
    
    
    
    
    
    
    1,267,600Interest income
    
    
    200
    
    
    
    400
    
    
    
    
    
    
    
    600Depletion
    
    
    (119,800
    )
    
    
    (809,400
    )
    
    
    
    
    
    
    (929,200
    )Impairment of oil and gas properties
    
    
    (395,400
    )
    
    
    (2,669,400
    )
    
    
    
    
    
    
    (3,064,800
    )Accretion of asset retirement obligation
    
    
    (18,200
    )
    
    
    (38,800
    )
    
    
    
    
    
    
    (57,000
    )General and administrative
    
    
    (44,900
    )
    
    
    (95,300
    )
    
    
    
    
    
    
    (140,200
    )Net loss
    
    
    (172,500
    )
    
    
    (2,750,500
    )
    
    
    
    
    
    
    (2,923,000
    )Other comprehensive loss
    
    
    
    
    
    
    
    
    
    
    (530,600
    )
    
    
    (530,600
    )Distributions to partners
    
    
    (468,800
    )
    
    
    (996,200
    )
    
    
    
    
    
    
    (1,465,000
    )Balance at December 31, 2009
    
    $
    1,462,200
    
    
    $
    6,647,000
    
    
    $
    415,800
    
    
    $
    8,525,000
   19




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ATLAS AMERICA PUBLIC #10 LTD.
STATEMENTS OF CASH FLOWS
YEARS ENDED DECEMBER 31, 2009 AND 2008
 2009
    
    
    2008Cash flows from operating activities:Net (loss) earnings
    
    $
    (2,923,000
    )
    
    $
    1,282,100Adjustments to reconcile net earnings to net cash provided by operating activities:Depletion
    
    
    929,200
    
    
    
    968,900Impairment of oil and gas properties
    
    
    3,221,000
    
    
    
    Non-cash gain on derivative
    
    
    (156,200
    )
    
    
    Accretion of asset retirement obligation
    
    
    57,000
    
    
    
    48,100Decrease in accounts receivable  affiliate
    
    
    263,600
    
    
    
    6,500(Decrease) increase in accrued liabilities
    
    
    (5,900
    )
    
    
    8,500Net cash provided by operating activities
    
    
    1,385,700
    
    
    
    2,314,100Cash flows from financing activities:Distributions to Partners
    
    
    (1,465,000
    )
    
    
    (2,360,900
    )Net cash used in financing activities
    
    
    (1,465,000
    )
    
    
    (2,360,900
    )Net decrease in cash and cash equivalents
    
    
    (79,300
    )
    
    
    (46,800
    )Cash and cash equivalents at beginning of period
    
    
    165,600
    
    
    
    212,400Cash and cash equivalents at end of period
    
    $
    86,300
    
    
    $
    165,600Supplemental Schedule of non-cash investing and financing activities:Asset retirement obligation revision
    
    $
    130,800
    
    
    $
    101,000
   20




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2009 AND 2008
 NOTE 1  DESCRIPTION OF BUSINESS
   NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
  Use of Estimates
  Accounts Receivable and Allowance for Possible Losses
   21




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Revenue Recognition
   Fair Value of Financial Instruments
  Supplemental Cash Flow Information
  Concentration of Credit Risk
  Comprehensive Income (Loss)
   22




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Working Interest
  Oil and Gas Properties
   December 31,2009
    
    
    2008Natural gas and oil properties:Proved properties:Leasehold interest
    
    $
    338,500
    
    
    $
    338,500Wells and related equipment
    
    
    25,472,700
    
    
    
    25,341,90025,811,200
    
    
    
    25,680,400Accumulated depletion
    
    
    (17,181,300
    )
    
    
    (13,031,100
    )$
    8,629,900
    
    
    $
    12,649,300
  23




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
   Asset Retirement Obligation
  Environmental Matters
    24




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Major Customers
  Income Taxes
  Recently Adopted Accounting Standards
   
    
    Introduce a new definition of oil and gas producing
activities. This new definition allows companies to include
in their reserve base volumes from unconventional resources.
Such unconventional resources include bitumen extracted from
oil sands and oil and gas extracted from coal beds and shale
formations;
 
    
    Report oil and gas reserves using an unweighted average
price using the prior 12-month period, based on the closing
prices on the first day of each month, rather than year-end
pricing. This should maximize the comparability of reserve
estimates among companies and mitigate the distortion of the
estimates that arises when using a single pricing date;
 
    
    Permit companies to disclose their probable and possible
reserves on a voluntary basis. Current rules limit
disclosure to only proved reserves;
 
    
    Update and revise reserve definitions to reflect changes in
the oil and gas industry and new technologies. New updated
definitions include by geographic area and reasonable
certainty.
  25




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards (Continued)
 
    
    Permit the use of new technologies to determine proved
reserves if those technologies have been demonstrated
empirically to lead to reliable conclusions about reserves
volumes; and
 
    
    Require additional disclosures regarding the qualifications
of the chief technical person who oversees the companys
overall reserve estimation process. Additionally,
disclosures are required with regard to internal controls
over reserve estimation, as well as a report addressing the
independence and qualifications of a companys reserves
preparer or auditor based on Society of Petroleum Engineers
criteria.
      26




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##### Table of Contents



ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 2  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
 Recently Adopted Accounting Standards (Continued)
    NOTE 3  PARTICIPATION IN REVENUES AND COSTS
  ManagingGeneral
    
    
    LimitedPartner
    
    
    PartnersOrganization and offering costs
    
    
    100
    %
    
    
    0
    %Lease costs
    
    
    100
    %
    
    
    0
    %Revenues (1)
    
    
    32
    %
    
    
    68
    %Operating costs, administrative costs, direct and all other costs (2)
    
    
    32
    %
    
    
    68
    %Intangible drilling costs
    
    
    0
    %
    
    
    100
    %Tangible equipment costs
    
    
    66
    %
    
    
    34
    %
 
 (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.(2)
    
    These costs will be charged to the partners in the same ratio as the related
production revenues are credited.  27




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##### Table of Contents



ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 4  CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
  
    
    Administrative costs which are included in general and administrative expenses in
the Partnerships Statements of Operations are payable at $75 per well per month.
Administrative costs incurred in 2009 and 2008 were $88,200 and $87,800, respectively.
 
    
    Monthly well supervision fees which are included in production expenses in the
Partnerships Statements of Operations are payable at $329 per well per month in 2009
and 2008, respectively, for operating and maintaining the wells. Well supervision fees
incurred in 2009 and 2008 were $386,400 and $384,700, respectively.
 
    
    Transportation fees which are included in production expenses in the Partnerships
Statements of Operations are generally payable at 13% of the natural gas sales price.
Transportation fees incurred in 2009 and 2008 were $248,400 and $382,300, 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 2009 and 2008 were $276,300 and $198,000, respectively.
  NOTE 5  COMMITMENTS
   NOTE 6  SUBORDINATION BY MANAGING GENERAL PARTNER
   28




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##### Table of Contents



ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 7  DERIVATIVE INSTRUMENTS
   Fair Value of Derivative Instruments:
 Asset Derivatives
    
    
    Liability DerivativesDerivatives in
    
    
    
    Fair Value
    
    
    
    
    Fair ValueCash Flow
    
    Balance Sheet
    
    December 31,
    
    
    December 31,
    
    
    Balance Sheet
    
    December 31,
    
    
    December 31,Hedging Relationships
    
    Location
    
    2009
    
    
    2008
    
    
    Location
    
    2009
    
    
    2008Commodity contracts:
    
    Current assets
    
    $
    340,000
    
    
    $
    634,600
    
    
    Current liabilities
    
    $
    (4,100
    )
    
    $
    (54,300
    )Long-term assets
    
    
    279,400
    
    
    
    415,000
    
    
    Long-term liabilities
    
    
    (43,300
    )
    
    
    (48,900
    )Total derivatives
    
    
    
    $
    619,400
    
    
    $
    1,049,600
    
    
    
    
    $
    (47,400
    )
    
    $
    (103,200
    )
 Effects of Derivative Instruments on Statements of Operations:
 Gain
    
    
    
    
    
    
    Gain (Loss)Recognized in OCI on Derivative
    
    
    
    
    
    
    Reclassified from OCI into Income(Effective Portion)
    
    
    Location of Gain/(Loss)
    
    
    (Effective Portion)Derivatives in
    
    Twelve Months Ended
    
    
    Reclassified from Accumulated
    
    
    Twelve Months EndedCash Flow
    
    December 31,
    
    
    December 31,
    
    
    OCI into Income
    
    
    December 31,
    
    
    December 31,Hedging Relationship
    
    2009
    
    
    2008
    
    
    (Effective Portion)
    
    
    2009
    
    
    2008Commodity contracts
    
    $
    226,400
    
    
    $
    913,100
    
    
    Natural gas and oil revenue
    
    $
    757,000
    
    
    $
    (124,700
    )
  29




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 7  DERIVATIVE INSTRUMENTS (Continued)
    Natural Gas Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    
    194,100
    
    
    $
    7.34
    
    
    $
    297,7002011
    
    
    101,500
    
    
    
    6.98
    
    
    
    89,6002012
    
    
    80,600
    
    
    
    7.22
    
    
    
    67,3002013
    
    
    43,600
    
    
    
    7.08
    
    
    
    18,200$
    472,800
  30




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 7  DERIVATIVE INSTRUMENTS (Continued)
 Natural Gas Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (MMbtu)(1)
    
    
    (per MMbtu)(1)
    
    
    Asset(2)2010
    
    Puts purchased
    
    
    13,500
    
    
    $
    7.84
    
    
    $
    33,1002010
    
    Calls sold
    
    
    13,500
    
    
    
    9.01
    
    
    
    2011
    
    Puts purchased
    
    
    59,100
    
    
    
    6.45
    
    
    
    38,1002011
    
    Calls sold
    
    
    59,100
    
    
    
    7.63
    
    
    
    2012
    
    Puts purchased
    
    
    30,500
    
    
    
    6.51
    
    
    
    13,8002012
    
    Calls sold
    
    
    30,500
    
    
    
    7.71
    
    
    
    2013
    
    Puts purchased
    
    
    28,400
    
    
    
    6.58
    
    
    
    8,1002013
    
    Calls sold
    
    
    28,400
    
    
    
    7.79
    
    
    
    $
    93,100
 Crude Oil Fixed Price Swaps
 Production
    
    
    
    
    
    AveragePeriod Ending
    
    Volumes
    
    
    Fixed Price
    
    
    Fair ValueDecember 31,
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset(3)2010
    
    
    200
    
    
    $
    97.40
    
    
    $
    3,8002011
    
    
    200
    
    
    
    77.46
    
    
    
    6002012
    
    
    100
    
    
    
    76.86
    
    
    
    1002013
    
    
    100
    
    
    
    77.36
    
    
    
    100$
    4,600
 Crude Oil Costless Collars
 Production
    
    
    
    
    
    
    
    AveragePeriod Ending
    
    Option
    
    Volumes
    
    
    Floor & Cap
    
    
    Fair ValueDecember 31,
    
    Type
    
    (Bbl)(1)
    
    
    (per Bbl)(1)
    
    
    Asset (Liability)(3)2010
    
    Puts purchased
    
    
    100
    
    
    $
    85.00
    
    
    $
    1,3002010
    
    Calls sold
    
    
    100
    
    
    
    112.92
    
    
    
    2011
    
    Puts purchased
    
    
    100
    
    
    
    67.22
    
    
    
    2002011
    
    Calls sold
    
    
    100
    
    
    
    89.44
    
    
    
    2012
    
    Puts purchased
    
    
    100
    
    
    
    65.51
    
    
    
    1002012
    
    Calls sold
    
    
    100
    
    
    
    91.45
    
    
    
    2013
    
    Puts purchased
    
    
    100
    
    
    
    65.36
    
    
    
    2013
    
    Calls sold
    
    
    100
    
    
    
    93.44
    
    
    
    (100
    )$
    1,500Total Net Asset
    
    
    $
    572,000
 
 (1)
    
    MMBTU represents million British Thermal Units.(2)
    
    Fair value based on forward NYMEX natural gas prices.(3)
    
    Fair value based on forward WTI crude oil prices.  31




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 8  FAIR VALUE OF FINANCIAL INSTRUMENTS
  Level 1
    
    Unadjusted quoted prices in active markets for identical assets and
liabilities that the reporting entity has the ability to access at the measurement date.Level 2
    
    Inputs other than quoted prices included within Level 1 that are observable
for the asset and liability or can be corroborated with observable market data for
substantially the entire contractual term of the asset or liability.Level 3
    
    Unobservable inputs that reflect the entities own assumptions about the
assumptions that market participants would use in the pricing of the asset or liability
and are consequently not based on market activity, but rather through particular
valuation techniques.
 Assets and Liabilities Measured at Fair Value on a Recurring Basis
  December 31, 2009
    
    
    December 31, 2008Level 2
    
    
    Total
    
    
    Level 2
    
    
    TotalCommodity-based derivatives
    
    $
    572,000
    
    
    $
    572,000
    
    
    $
    946,400
    
    
    $
    946,400Total
    
    $
    572,000
    
    
    $
    572,000
    
    
    $
    946,400
    
    
    $
    946,400
 Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis
    32




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE 9  ASSET RETIREMENT OBLIGATION
    Years Ended December 31,2009
    
    
    2008Asset retirement obligation at beginning of year
    
    $
    950,600
    
    
    $
    801,500Revision in estimates
    
    
    130,800
    
    
    
    101,000Accretion expense
    
    
    57,000
    
    
    
    48,100Total asset retirement obligation at end of year
    
    $
    1,138,400
    
    
    $
    950,600
  33




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##### Table of Contents



ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE
10  NATURAL GAS AND OIL PRODUCING ACTIVITIES (UNAUDITED)
 (1) Capitalized Costs Related to Oil and Gas Producing Activities
  At December 31,2009
    
    
    2008Leasehold interests
    
    $
    338,500
    
    
    $
    338,500Wells and related equipment
    
    
    25,472,700
    
    
    
    25,341,900Accumulated depletion
    
    
    (17,181,300
    )
    
    
    (13,031,100
    )Net capitalized cost
    
    $
    8,629,900
    
    
    $
    12,649,300
 (2) Oil and Gas Reserve Information
      34




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ATLAS AMERICA PUBLIC #10 LTD.
NOTES TO FINANCIAL STATEMENTS  (Continued)
DECEMBER 31, 2009 AND 2008
 NOTE
10  NATURAL GAS AND OIL PRODUCING ACTIVITIES (UNAUDITED) (Continued)
 Natural Gas
    
    
    Oil(Mcf)
    
    
    (Bbls)Proved developed reserves:Balance at December 31, 2007
    
    
    4,024,600
    
    
    
    10,200Production
    
    
    (337,200
    )
    
    
    (1,700
    )Revisions to previous estimates
    
    
    (201,300
    )
    
    
    4,700Balance at December 31, 2008
    
    
    3,486,100
    
    
    
    13,200Production
    
    
    (264,200
    )
    
    
    (1,200
    )Revisions to previous estimates
    
    
    (767,300
    )
    
    
    (2,500
    )Balance at December 31, 2009
    
    
    2,454,600
    
    
    
    9,500
 
 ITEM
9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL                 DISCLOSURE:
  
 ITEM 9A. CONTROLS AND PROCEDURES
 Conclusion Regarding the Effectiveness of Disclosure Controls and Procedures
   Managements Report on Internal Control over Financial Reporting
 Internal Control  Integrated
Framework
  35




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##### Table of Contents



ITEM 9B. OTHER INFORMATION
  
 PART III
 
 ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
 nd
 Executive Officers and Directors
 NAME
    
    AGE
    
    POSITION OR OFFICEFreddie M. Kotek
    
    
    54
    
    
    Chairman of the Board of Directors, Chief Executive Officer and PresidentFrank P. Carolas
    
    
    50
    
    
    Executive Vice President  Land and Geology and a DirectorJeffrey C. Simmons
    
    
    51
    
    
    Executive Vice President  Operations and a DirectorJack L. Hollander
    
    
    53
    
    
    Senior Vice President  Direct Participation ProgramsSean McGrath
    
    
    38
    
    
    Chief Accounting OfficerMatthew A. Jones
    
    
    48
    
    
    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 managing general partner 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 as compared with the other
affiliates of our MGP, such as Viking Resources or Resource Energy.
  36




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##### Table of Contents



Freddie M. Kotek
 Frank P. Carolas.
 Jeffrey C. Simmons.
 Jack L. Hollander.
  37




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##### Table of Contents



Sean P. McGrath
 Matthew A. Jones
 Audit Committee Financial Expert.
 Remuneration of Officers and Directors.
 Code of Business Conduct and Ethics. nd
 
 ITEM 11. EXECUTIVE COMPENSATION
  
 ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
   38




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##### Table of Contents



Organizational and Security Ownership of Beneficial Owners.
 
 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
 Oil and Gas Revenues.
 Administrative Costs.
 Direct Costs.
 Well Charges.
 Transportation Fees.
 Other Compensation.
 
 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
 Audit Fees.
 Procedures for Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of
Independent Auditor.
  39




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##### Table of Contents



PART IV
 
 ITEM 15. EXHIBITS
 EXHIBIT INDEX
 Description
    
    Location4(a)
    
    
    Certificate of Limited Partnership for Atlas America
Public #10 Ltd.
    
    Previously filed in
our Form SB-2/A on
October 26, 20014(b)
    
    
    Amended and Restated Certificate and Agreement
of Limited Partnership for Atlas America Public #10 Ltd. (1)
    
    Previously filed in
our Form SB-2/A on
October 26, 20014(c)
    
    
    Drilling and Operating Agreement for Atlas America
Public #10 Ltd. (1)
    
    Previously filed in
our Form SB-2/A on
October 26, 200123.1
    
    
    Consent of Wright and Company, Inc.31.1
    
    
    Rule 13a-14(a)/15(d)  14(a) Certification31.2
    
    
    Rule 13a-14(a)/15(d)  14(a) Certification32.1
    
    
    Section 1350 Certification32.2
    
    
    Section 1350 Certification99.1
    
    
    Summary Reserve Report
 
 (1)
    
    Filed on August 14, 2001 in the Form S-1 Registration Statement dated August 14, 2001, File No. 333-67522  40




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##### Table of Contents



SIGNATURES
   Atlas Resources, LLC, Managing
General PartnerDate:  March 30, 2010
    By:
    /s/ Freddie M. KotekFreddie M. Kotek Chairman of the Board of Directors,
 Chief Executive Officer and President  Date: March 30, 2010
    By:
    /s/ Freddie M. KotekFreddie M. Kotek, Chairman of the Board of Directors, 
Chief Executive Officer and PresidentDate:  March 30, 2010
    By:
    /s/ Frank P. CarolasFrank P. Carolas, Executive Vice President  Land and GeologyDate:  March 30, 2010
    By:
    /s/ Jeffrey C. SimmonsJeffrey C. Simmons, Executive Vice President  OperationsDate:  March 30, 2010
    By:
    /s/ Sean P. McGrathSean P. McGrath, Chief Accounting OfficerDate:  March 30, 2010
    By:
    /s/ Matthew A. JonesMatthew A. Jones, Chief Financial Officer Supplemental information to be furnished with reports filed pursuant to Section 15(d) of the
Exchange Act by Non-reporting Issuers
   41