----

----

|                                                           |   |                                 |
|----------------------------------------------------------------|--------|--------------------------------------|
| West Virginia                                                  |   | 55-0825013                           |
| (State or other jurisdiction of incorporation or organization) |   | (I.R.S. Employer Identification No.) |
|                                                           |   |                                 |

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

----

----

----

|                                 |   |                                                                                        | Page   |
|--------------------------------------|--------|---------------------------------------------------------------------------------------------|--------|
| PART I – FINANCIAL INFORMATION |
|                                 |   |                                                                                        |   |
|                                 |   | Special Note Regarding Forward-Looking Statements                                           | 1      |
| Item 1.                              |   | Financial Statements (unaudited)                                                            |   |
|                                 |   | Condensed Balance Sheets (unaudited)                                                        | 3      |
|                                 |   | Condensed Statements of Operations (unaudited)                                              | 4      |
|                                 |   | Condensed Statements of Cash Flows (unaudited)                                              | 5      |
|                                 |   | Notes to Unaudited Condensed Financial Statements                                           | 6      |
| Item 2.                              |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 11     |
| Item 3.                              |   | Quantitative and Qualitative Disclosures About Market Risk                                  | 21     |
| Item 4.                              |   | Controls and Procedures                                                                     | 21     |
|                                 |   |                                                                                        |   |
| PART II – OTHER INFORMATION    |
|                                 |   |                                                                                        |   |
| Item 1.                              |   | Legal Proceedings                                                                           | 23     |
| Item 1A.                             |   | Risk Factors                                                                                | 23     |
| Item 2.                              |   | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 23     |
| Item 3.                              |   | Defaults Upon Senior Securities                                                             | 23     |
| Item 4.                              |   | [Removed and Reserved]                                                                      | 23     |
| Item 5.                              |   | Other Information                                                                           | 23     |
| Item 6.                              |   | Exhibits Index                                                                              | 24     |
|                                 |   |                                                                                        |   |
|                                 |   | SIGNATURES                                                                                  | 25     |

----

Index

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

|   | · | the availability of funding for the consideration payable by PDC and its wholly-owned subsidiary to consummate the prospective mergers of the 2005 partnerships and the timing of consummating these mergers, if at all; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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

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

----

Index

----

Index

Item 1.     Financial Statements (unaudited)

| PDC 2003-B Limited Partnership                                                      |   |
|-------------------------------------------------------------------------------------|--------|
| Condensed Balance Sheets                                                            |   |
| (unaudited)                                                                         |   |
|                                                                                |   |
|                                                                                |   |   |   |   |   |   |
|                                                                                |   | March 31, |   |   | December 31, |   |
|                                                                                |   | 2011 |   |   |   | 2010* |   |
| Assets                                                                              |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |
| Current assets:                                                                     |   |   |   |   |   |   |   |
| Cash and cash equivalents                                                           |   | $ | 152,149 |   |   | $ | 57,127 |   |
| Accounts receivable                                                                 |   |   | 92,414 |   |   |   | 127,657 |   |
| Crude oil inventory                                                                 |   |   | 27,752 |   |   |   | 21,075 |   |
| Due from Managing General Partner-derivatives                                       |   |   | 287,048 |   |   |   | 274,292 |   |
| Total current assets                                                                |   |   | 559,363 |   |   |   | 480,151 |   |
|                                                                                |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Natural gas and crude oil properties, successful efforts method, at cost            |   |   | 14,135,344 |   |   |   | 14,134,724 |   |
| Less:  Accumulated depreciation, depletion and amortization               |   |   | (8,631,872 | ) |   |   | (8,488,523 | ) |
|     Natural gas and crude oil properties, net                   |   |   | 5,503,472 |   |   |   | 5,646,201 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Due from Managing General Partner-derivatives                                       |   |   | 368,267 |   |   |   | 430,200 |   |
| Other assets                                                                        |   |   | 52,158 |   |   |   | 49,227 |   |
|         Total noncurrent assets             |   |   | 5,923,897 |   |   |   | 6,125,628 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Total Assets                                                                        |   | $ | 6,483,260 |   |   | $ | 6,605,779 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Liabilities and Partners' Equity                                                    |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                |   |   |   |   |   |   |   |   |
| Accounts payable and accrued expenses                                               |   | $ | 77,741 |   |   | $ | 93,665 |   |
| Due to Managing General Partner-derivatives                                         |   |   | 287,209 |   |   |   | 240,522 |   |
| Due to Managing General Partner-other, net                                          |   |   | 192,601 |   |   |   | 157,809 |   |
| Total current liabilities                                                           |   |   | 557,551 |   |   |   | 491,996 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Due to Managing General Partner-derivatives                                         |   |   | 289,326 |   |   |   | 325,668 |   |
| Asset retirement obligations                                                        |   |   | 233,263 |   |   |   | 229,847 |   |
| Total liabilities                                                                   |   |   | 1,080,140 |   |   |   | 1,047,511 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Commitments and contingent liabilities                                              |   |   |   |   |   |   |   |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Partners' equity:                                                                   |   |   |   |   |   |   |   |   |
|    Managing General Partner                                          |   |   | 1,083,321 |   |   |   | 1,114,350 |   |
|    Limited Partners -  867.33 units issued and outstanding |   |   | 4,319,799 |   |   |   | 4,443,918 |   |
| Total Partners' equity                                                              |   |   | 5,403,120 |   |   |   | 5,558,268 |   |
|                                                                                |   |   |   |   |   |   |   |   |
| Total Liabilities and Partners' Equity                                              |   | $ | 6,483,260 |   |   | $ | 6,605,779 |   |

| *Derived from audited 2010 balance sheet |
|------------------------------------------|

----

Index

| PDC 2003-B Limited Partnership                                                                  |   |
|-------------------------------------------------------------------------------------------------|--------|
| Condensed Statements of Operations                                                              |   |
| (unaudited)                                                                                     |   |
|                                                                                            |   |
|                                                                                            |   |
|                                                                                            |   | Three months ended March 31, |   |
|                                                                                            |   | 2011 |   |   | 2010 |   |
| Revenues:                                                                                       |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil sales                                                           |   | $ | 249,752 |   |   | $ | 366,034 |   |
| Commodity price risk management (loss) gain, net                                                |   |   | (45,782 | ) |   |   | 367,050 |   |
| Total revenues                                                                                  |   |   | 203,970 |   |   |   | 733,084 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                                                   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production costs                                                |   |   | 92,666 |   |   |   | 99,246 |   |
| Direct costs - general and administrative                                                       |   |   | 48,059 |   |   |   | 72,565 |   |
| Depreciation, depletion and amortization                                                        |   |   | 143,349 |   |   |   | 172,624 |   |
| Accretion of asset retirement obligations                                                       |   |   | 3,416 |   |   |   | 3,219 |   |
| Total operating costs and expenses                                                              |   |   | 287,490 |   |   |   | 347,654 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| (Loss) income from operations                                                                   |   |   | (83,520 | ) |   |   | 385,430 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Interest income                                                                                 |   |   | 21 |   |   |   | 7 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Net (loss) income                                                                               |   | $ | (83,499 | ) |   | $ | 385,437 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Net (loss) income allocated to partners                                                         |   | $ | (83,499 | ) |   | $ | 385,437 |   |
|     Less:  Managing General Partner interest in net (loss) income |   |   | (16,700 | ) |   |   | 77,087 |   |
| Net (loss) income allocated to Investor Partners                                                |   | $ | (66,799 | ) |   | $ | 308,350 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Net (loss) income per Investor Partner unit                                                     |   | $ | (77 | ) |   | $ | 356 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| Investor Partner units outstanding                                                              |   |   | 867.33 |   |   |   | 867.33 |   |

----

Index

| PDC 2003-B Limited Partnership                                                              |
|---------------------------------------------------------------------------------------------|
| Condensed Statements of Cash Flows                                                          |
| (unaudited)                                                                                 |
|                                                                                        |   |   |   |   |   |   |
|                                                                                        |   |   |   |   |   |   |
|                                                                                        |   | Three months ended March 31, |   |
|                                                                                        |   | 2011 |   |   | 2010 |   |
| Cash flows from operating activities:                                                       |   |   |   |   |   |   |
| Net (loss) income                                                                           |   | $ | (83,499 | ) |   | $ | 385,437 |   |
| Adjustments to net (loss) income to reconcile to net cash provided by operating activities: |   |   |   |   |   |   |   |   |
| Depreciation, depletion and amortization                                                    |   |   | 143,349 |   |   |   | 172,624 |   |
| Accretion of asset retirement obligations                                                   |   |   | 3,416 |   |   |   | 3,219 |   |
| Unrealized loss (gain) on derivative transactions                                           |   |   | 59,522 |   |   |   | (210,000 | ) |
| Changes in operating assets and liabilities:                                                |   |   |   |   |   |   |   |   |
| Decrease in accounts receivable                                                             |   |   | 35,243 |   |   |   | 29,096 |   |
| (Increase) decrease in crude oil inventory                                                  |   |   | (6,677 | ) |   |   | 2,014 |   |
| Increase in other assets                                                                    |   |   | (2,931 | ) |   |   | (3,342 | ) |
| (Decrease) increase in accounts payable and accrued expenses                           |   |   | (15,924 | ) |   |   | 100 |   |
| Increase (decrease) in Due to Managing General Partner - other, net                         |   |   | 34,792 |   |   |   | (97,720 | ) |
| Net cash provided by operating activities                                                   |   |   | 167,291 |   |   |   | 281,428 |   |
|                                                                                        |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                       |   |   |   |   |   |   |   |   |
|     Capital expenditures for natural gas and crude oil properties       |   |   | (620 | ) |   |   | (740 | ) |
| Net cash used in investing activities                                                       |   |   | (620 | ) |   |   | (740 | ) |
|                                                                                        |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                       |   |   |   |   |   |   |   |   |
| Distributions to Partners                                                                   |   |   | (71,649 | ) |   |   | (280,681 | ) |
| Net cash used in financing activities                                                       |   |   | (71,649 | ) |   |   | (280,681 | ) |
|                                                                                        |   |   |   |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                   |   |   | 95,022 |   |   |   | 7 |   |
| Cash and cash equivalents, beginning of period                                              |   |   | 57,127 |   |   |   | 57,505 |   |
| Cash and cash equivalents, end of period                                                    |   | $ | 152,149 |   |   | $ | 57,512 |   |

----

Index

----

Index

|                                                                                                  |   | March 31, |     |   | December 31, |   |
|-------------------------------------------------------------------------------------------------------|--------|-----------|----------|--------|--------------|--------|
|                                                                                                  |   | 2011      |     |   | 2010         |   |
|                                                                                                  |   |      |     |   |         |   |
| Natural gas, NGLs and crude oil sales revenues collected from the Partnership's third-party customers |   | $         | 80,629   |   |         | $      | 83,273 |   |
| Commodity price risk management, realized gain                                                        |   |      | 7,374    |   |         |   | 39,716 |   |
| Other (1)                                                                                             |   |      | (280,604 | )      |         |   | (280,798 | ) |
| Total Due to Managing General Partner-other, net                                                      |   | $         | (192,601 | )      |         | $      | (157,809 | ) |

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

|                                       |   | Three months ended March 31, |   |
|--------------------------------------------|--------|------------------------------|--------|
|                                       |   | 2011                         |   |   | 2010 |   |
|                                       |   |                         |   |   |   |   |
| Well operations and maintenance            |   | $                            | 73,011 |   |   | $ | 86,024 |   |
| Gathering, compression and processing fees |   |                         | 7,492  |   |   |   | 9,313 |   |
| Direct costs - general and administrative  |   |                         | 48,059 |   |   |   | 72,565 |   |
| Cash distributions (1)                     |   |                         | 17,711 |   |   |   | 64,260 |   |

|   | (1) | Cash distributions include $3,382 and $8,123 during the three months ended March 31, 2011 and 2010, respectively, related to equity cash distributions on Investor Partner units repurchased by PDC. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                        |   | March 31, 2011                       |    |   | December 31, 2010                    |
|---------------------------------------------|--------|--------------------------------------|---------|--------|--------------------------------------|
|                                        |   | Quoted Prices in Active Markets |    |   | Significant Unobservable Inputs |   |   |   |   |   | Quoted Prices in Active Markets |   |   | Significant  Unobservable Inputs |   |   |   |   |
|                                        |   | Level 1                              |    |   | Level 3                              |   |   | Total |   |   | Level 1 |   |   | Level 3 |   |   | Total |   |
|                                        |   |                                 |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                     |   |                                 |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Commodity based derivatives           |   | $                                    | 647,641 |   |                                 | $ | 7,674 |   |   | $ | 655,315 |   |   | $ | 676,975 |   |   | $ | 27,517 |   |   | $ | 704,492 |   |
|  Total assets                          |   |                                 | 647,641 |   |                                 |   | 7,674 |   |   |   | 655,315 |   |   |   | 676,975 |   |   |   | 27,517 |   |   |   | 704,492 |   |
|                                        |   |                                 |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                |   |                                 |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Commodity based derivatives           |   |                                 | -       |   |                                 |   | (88,917 | ) |   |   | (88,917 | ) |   |   | - |   |   |   | (71,891 | ) |   |   | (71,891 | ) |
|  Basis protection derivative contracts |   |                                 | -       |   |                                 |   | (487,618 | ) |   |   | (487,618 | ) |   |   | - |   |   |   | (494,299 | ) |   |   | (494,299 | ) |
|  Total liabilities                     |   |                                 | -       |   |                                 |   | (576,535 | ) |   |   | (576,535 | ) |   |   | - |   |   |   | (566,190 | ) |   |   | (566,190 | ) |
|                                        |   |                                 |    |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Net asset (liability)                 |   | $                                    | 647,641 |   |                                 | $ | (568,861 | ) |   | $ | 78,780 |   |   | $ | 676,975 |   |   | $ | (538,673 | ) |   | $ | 138,302 |   |

|                                                                                                                                                                    |   | Three months ended |     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------|----------|
|                                                                                                                                                                    |   | March 31, 2011     |     |   | March 31, 2010 |   |
| Fair value, net liability, beginning of year                                                                                                                            |   | $                  | (538,673 | ) |   | $ | (433,464 | ) |
| Changes in fair value included in statement of operations line item - Commodity price risk management, net                                                         |   |               | (54,234  | ) |   |   | (46,775 | ) |
| Settlements                                                                                                                                                             |   |               | 24,046   |   |   |   | (157,050 | ) |
| Fair value, net liability, end of period                                                                                                                                |   | $                  | (568,861 | ) |   | $ | (637,289 | ) |
| Change in unrealized loss relating to assets (liabilities) still held as of March 31, 2011 and 2010, respectively,  included in statement of operations line item: |   |               |     |   |   |   |   |   |
|  Commodity price risk management, net                                                                                                                              |   | $                  | (53,473  | ) |   | $ | (62,204 | ) |

----

Index

|                                                           |                                   |      |                                          |   | Fair Value |    |
|----------------------------------------------------------------|----------------------------------------|-----------|-----------------------------------------------|--------|------------|---------|
|                                                           |                                   |      | Balance Sheet                                 |   | March 31,  |    |   | December 31, |   |
| Derivative instruments not designated as hedge  (1): |                                   | Line Item |                                          | 2011   |       |    | 2010 |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |
| Derivative Assets:                                             | Current                                |      |                                          |   |       |    |   |   |   |
|                                                           |     Commodity contracts |      | Due from Managing General Partner-derivatives |   | $          | 287,048 |   |   | $ | 274,292 |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
|                                                           | Non Current                            |      |                                          |   |       |    |   |   |   |   |   |
|                                                           | Commodity contracts                    |      | Due from Managing General Partner-derivatives |   |       | 368,267 |   |   |   | 430,200 |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
| Total Derivative Assets                                        |                                   |      |                                          |   | $          | 655,315 |   |   | $ | 704,492 |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
| Derivative Liabilities:                                        | Current                                |      |                                          |   |       |    |   |   |   |   |   |
|                                                           | Commodity contracts                    |      | Due to Managing General Partner-derivatives   |   |  $    | 88,917  |   |   |  $ | 71,891 |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
|                                                           | Basis protection contracts             |      | Due to Managing General Partner-derivatives   |   |       | 198,292 |   |   |   | 168,631 |   |
|                                                           | Non Current                            |      |                                          |   |       |    |   |   |   |   |   |
|                                                           | Commodity contracts                    |      | Due to Managing General Partner-derivatives   |   |       | -       |   |   |   | - |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
|                                                           | Basis protection contracts             |      | Due to Managing General Partner-derivatives   |   |       | 289,326 |   |   |   | 325,668 |   |
|                                                           |                                   |      |                                          |   |       |    |   |   |   |   |   |
| Total Derivative Liabilities                                   |                                   |      |                                          | $      | 576,535    |    |   | $ | 566,190 |   |

|   | (1) | As of March 31, 2011 and December 31, 2010, none of the Partnership’s derivative instruments were designated as hedges. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------|

|                                                   |   | Three months ended March 31,                                                  |    |
|--------------------------------------------------------|--------|-------------------------------------------------------------------------------|---------|
|                                                   |   | 2011                                                                          |    |   | 2010 |   |
| Statement of operations line item                      |   | Reclassification of Realized Loss (Gain) Included in Prior Periods Unrealized |    |   | Realized and Unrealized Gain (Loss) For the Current Period |   |   | Total |   |   | Reclassification of Realized Loss (Gain) Included in Prior Periods Unrealized |   |   | Realized and Unrealized Gain For the Current Period |   |   | Total |   |
|                                                   |   |                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commodity price risk management, net                   |   |                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Realized gain                                          |   | $                                                                             | 10,762  |   |   | $ | 2,978 |   |   | $ | 13,740 |   |   | $ | 145,222 |   |   | $ | 11,828 |   |   | $ | 157,050 |   |
| Unrealized (loss) gain                                 |   |                                                                          | (10,762 | ) |   |   | (48,760 | ) |   |   | (59,522 | ) |   |   | (145,222 | ) |   |   | 355,222 |   |   |   | 210,000 |   |
| Total commodity price risk management (loss) gain, net |   | $                                                                             | -       |   |   | $ | (45,782 | ) |   | $ | (45,782 | ) |   | $ | - |   |   | $ | 367,050 |   |   | $ | 367,050 |   |

----

Index

----

Index

Item 2.     Management’s Discussion and Analysis of Financial Condition and Results of Operations

----

Index

----

Index

----

Index

|                                                                        |   | Three months ended March 31, |    |
|-----------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                        |   | 2011                         |    |   | 2010 |   |   | Change |   |
| Number of producing wells (end of period)                                   |   |                         | 23      |   |   |   | 25 |   |   |   | (2 | ) |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Production(1)                                                               |   |                         |    |   |   |   |   |   |   |   |   |   |
| Natural gas (Mcf)                                                           |   |                         | 32,060  |   |   |   | 38,001 |   |   |   | -16 | % |
| NGLs (Bbl)                                                                  |   |                         | 576     |   |   |   | 770 |   |   |   | -25 | % |
| Crude oil (Bbl)                                                             |   |                         | 1,301   |   |   |   | 2,138 |   |   |   | -39 | % |
| Natural gas equivalents (Mcfe)(2)                                           |   |                         | 43,322  |   |   |   | 55,449 |   |   |   | -22 | % |
| Average Mcfe per day                                                        |   |                         | 481     |   |   |   | 616 |   |   |   | -22 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Natural Gas, NGLs and Crude Oil Sales                                       |   |                         |    |   |   |   |   |   |   |   |   |   |
| Natural gas                                                                 |   | $                            | 107,390 |   |   | $ | 175,624 |   |   |   | -39 | % |
| NGLs                                                                        |   |                         | 30,279  |   |   |   | 35,004 |   |   |   | -13 | % |
| Crude oil                                                                   |   |                         | 112,083 |   |   |   | 155,406 |   |   |   | -28 | % |
| Total natural gas, NGLs and crude oil sales                                 |   | $                            | 249,752 |   |   | $ | 366,034 |   |   |   | -32 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Realized Gain (Loss) on Derivatives, net                                    |   |                         |    |   |   |   |   |   |   |   |   |   |
| Natural gas                                                                 |   | $                            | 32,033  |   |   | $ | 133,191 |   |   |   | -76 | % |
| Crude oil                                                                   |   |                         | (18,293 | ) |   |   | 23,859 |   |   |   | -177 | % |
| Total realized gain on derivatives, net                                     |   | $                            | 13,740  |   |   | $ | 157,050 |   |   |   | -91 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Average Selling Price (excluding realized gain  (loss) on derivatives) |   |                         |    |   |   |
| Natural gas (per Mcf)                                                       |   | $                            | 3.35    |   |   | $ | 4.62 |   |   |   | -28 | % |
| NGLs (per Bbl)                                                              |   |                         | 52.57   |   |   |   | 45.46 |   |   |   | 16 | % |
| Crude oil (per Bbl)                                                         |   |                         | 86.15   |   |   |   | 72.69 |   |   |   | 19 | % |
| Natural gas equivalents (per Mcfe)                                          |   |                         | 5.77    |   |   |   | 6.60 |   |   |   | -13 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Average Selling Price (including realized gain (loss)  on derivatives) |   |                         |    |   |   |
| Natural gas (per Mcf)                                                       |   | $                            | 4.35    |   |   | $ | 8.13 |   |   |   | -46 | % |
| NGLs (per Bbl)                                                              |   |                         | 52.57   |   |   |   | 45.46 |   |   |   | 16 | % |
| Crude oil (per Bbl)                                                         |   |                         | 72.09   |   |   |   | 83.85 |   |   |   | -14 | % |
| Natural gas equivalents (per Mcfe)                                          |   |                         | 6.08    |   |   |   | 9.43 |   |   |   | -36 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Average cost per Mcfe                                                       |   |                         |    |   |   |   |   |   |   |   |   |   |
| Natural gas, NGLs and crude oil production cost(3)                          |   | $                            | 2.14    |   |   | $ | 1.79 |   |   |   | 20 | % |
| Depreciation, depletion and amortization                                    |   |                         | 3.31    |   |   |   | 3.11 |   |   |   | 6 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Operating costs and expenses:                                               |   |                         |    |   |   |   |   |   |   |   |   |   |
| Direct costs - general and administrative                                   |   | $                            | 48,059  |   |   | $ | 72,565 |   |   |   | -34 | % |
| Depreciation, depletion and amortization                                    |   |                         | 143,349 |   |   |   | 172,624 |   |   |   | -17 | % |
|                                                                        |   |                         |    |   |   |   |   |   |   |   |   |   |
| Cash distributions                                                          |   | $                            | 71,649  |   |   | $ | 280,681 |   |   |   | -74 | % |

----

Index

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

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

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

|   | · | Bbl – One barrel or 42 U.S. gallons liquid volume |
|--------|--------|---------------------------------------------------------|

|   | · | MBbl – One thousand barrels |
|--------|--------|-----------------------------------|

|   | · | Mcf – One thousand cubic feet |
|--------|--------|-------------------------------------|

|   | · | MMcf – One million cubic feet |
|--------|--------|-------------------------------------|

|   | · | Mcfe – One thousand cubic feet of natural gas equivalents |
|--------|--------|-----------------------------------------------------------------|

|   | · | MMcfe – One million cubic feet of natural gas equivalents |
|--------|--------|-----------------------------------------------------------------|

|   | · | MMbtu – One million British Thermal Units |
|--------|--------|-------------------------------------------------|

----

Index

|                                                                                           |   | Three months ended March 31, |          |
|------------------------------------------------------------------------------------------------|--------|------------------------------|---------------|
| Commodity price risk management, net                                                           |   | 2011                         |          |   | 2010 |   |
| Realized gain (loss)                                                                           |   |                         |          |   |   |   |
| Natural gas                                                                                    |   | $                            | 32,033        |   |   | $ | 133,191 |   |
| Crude oil                                                                                      |   |                         | (18,293       | ) |   |   | 23,859 |   |
| Total realized gain, net                                                                       |   |                         | 13,740        |   |   |   | 157,050 |   |
|                                                                                           |   |                         |          |   |   |   |   |   |
| Unrealized gain (loss)                                                                         |   |                         |          |   |   |   |   |   |
|     Reclassification of realized gain included in prior periods unrealized |   |                         | (10,762  | ) |   |   | (145,222  | ) |
| Unrealized (loss) gain for the period                                                          |   |                         | (48,760       | ) |   |   | 355,222 |   |
| Total unrealized (loss) gain, net                                                              |   |                         | (59,522       | ) |   |   | 210,000 |   |
| Commodity price risk management (loss) gain, net                                               |   | $                            | (45,782       | ) |   | $ | 367,050 |   |

----

Index

|                            |   | Collars        |   |   | Fixed-Price Swaps              |   |   | CIG Basis Protection Swaps |   |   |                      |   |
|---------------------------------|--------|----------------|--------|--------|--------------------------------|--------|--------|----------------------------|--------|--------|---------------------------|--------|
| Commodity/Index                 |   | Quantity (Gas- |   |   | Weighted AverageContract Price |   |   | Quantity(Gas-Mmbtu(1)      |   |   | Weighted Average Contract |   |   | Quantity (Gas- |   |   | Weighted Average Contract |   |   | Fair Value at March 31, |   |
|                            |   | Mmbtu(1))      |   |   | Floors                         |   |   | Ceilings                   |   |   |  Oil-Bbls)           |   |   | Price |   |   |  Mmbtu(1)) |   |   |  Price |   |   | 2011(2) |   |
|                            |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Natural Gas                     |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                            |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                           |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 04/01 - 06/30/2011              |   |           | -      |   |                           | $      | -      |                       |   | $      | -                         |   |   |   | 35,391 |   |   | $ | 6.78 |   |   |   | 35,391 |   |   | $ | (1.88 | ) |   | $ | 34,342 |   |
| 07/01 - 09/30/2011              |   |           | -      |   |                           |   | -      |                       |   |   | -                         |   |   |   | 34,795 |   |   |   | 6.73 |   |   |   | 34,795 |   |   |   | (1.88 | ) |   |   | 25,520 |   |
| 10/01 - 12/31/2011              |   |           | -      |   |                           |   | -      |                       |   |   | -                         |   |   |   | 33,790 |   |   |   | 6.78 |   |   |   | 33,790 |   |   |   | (1.88 | ) |   |   | 18,343 |   |
| 01/01 - 03/31/2012              |   |           | 2,176  |   |                           |   | 6.00   |                       |   |   | 8.27                      |   |   |   | 30,401 |   |   |   | 6.98 |   |   |   | 32,577 |   |   |   | (1.88 | ) |   |   | 10,552 |   |
| 04/01 - 12/31/2012              |   |           | 4,441  |   |                           |   | 6.00   |                       |   |   | 8.27                      |   |   |   | 89,594 |   |   |   | 6.98 |   |   |   | 94,034 |   |   |   | (1.88 | ) |   |   | 46,151 |   |
| 2013                            |   |           | -      |   |                           |   | -      |                       |   |   | -                         |   |   |   | 115,337 |   |   |   | 7.12 |   |   |   | 115,337 |   |   |   | (1.88 | ) |   |   | 32,790 |   |
| Total Natural Gas               |   |           | 6,617  |   |                           |   |   |                       |   |   |                      |   |   |   | 339,308 |   |   |   |   |   |   |   | 345,924 |   |   |   |   |   |   |   | 167,698 |   |
|                            |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Crude Oil                       |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NYMEX                           |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 04/01 - 06/30/2011              |   |           | -      |   |                           |   | -      |                       |   |   | -                         |   |   |   | 805 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (28,514 | ) |
| 07/01 - 09/30/2011              |   |           | -      |   |                           |   | -      |                       |   |   | -                         |   |   |   | 825 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (29,837 | ) |
| 10/01 - 12/31/2011              |   |           | -      |   |                           |   | -      |                       |   |   | -                         |   |   |   | 846 |   |   |   | 70.75 |   |   |   | - |   |   |   | - |   |   |   | (30,567 | ) |
| Total Crude Oil                 |   |           | -      |   |                           |   |   |                       |   |   |                      |   |   |   | 2,476 |   |   |   |   |   |   |   | - |   |   |   |   |   |   |   | (88,918 | ) |
|                            |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Natural Gas and Crude Oil |   |           |   |   |                           |   |   |                       |   |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | $ | 78,780 |   |

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

|   | (2) | Approximately 1% of the fair value of the Partnership’s derivative assets and all of the Partnership’s derivative liabilities were measured using significant unobservable inputs (Level 3); see Note 4, Fair Value of Financial Instruments, to the accompanying unaudited condensed financial statements included in this report. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

----

|   | · | Cash and cash equivalents increased by $95,000 between March 31, 2011 and December 31, 2010. |
|--------|--------|----------------------------------------------------------------------------------------------|

|   | · | Accounts receivable decreased by $38,000 between March 31, 2011 and December 31, 2010. |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | Realized derivative gains receivables decreased by $32,000 between March 31, 2011 and December 31, 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

|   | · | Unrealized derivative gains receivables decreased by $34,000 between March 31, 2011 and December 31, 2010. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | Crude oil inventory increased by approximately $7,000 between March 31, 2011 and December 31, 2010. |
|--------|--------|-----------------------------------------------------------------------------------------------------|

|   | · | Accounts payable and accrued expenses decreased by $16,000 between March 31, 2011 and December 31, 2010. |
|--------|--------|----------------------------------------------------------------------------------------------------------|

----

Index

|   | · | A decrease in natural gas, NGLs and crude oil sales receipts of $0.1 million, or 24%, |
|--------|--------|---------------------------------------------------------------------------------------|

|   | · | A decrease in commodity price risk management realized gains receipts of $0.1 million, |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | A decrease in production costs and direct costs – general and administrative payments of $0.1 million. |
|--------|--------|--------------------------------------------------------------------------------------------------------------|

|  Quarter   |   | Managing        |   |   | Investor      |   |    |          |   |
|-----------------|--------|-----------------|--------|--------|---------------|--------|---------|---------------|--------|
|  ended     |   | General Partner |   |   | Partners      |   |    | Total         |   |
|  March 31, |   | Distributions   |   |   | Distributions |   |    | Distributions |   |
|            |   |            |   |   |          |   |    |          |   |
| 2011            |   | $               | 14,329 |   |          | $      | 57,320  |          |   | $ | 71,649 |   |
|            |   |            |   |   |          |   |    |          |   |   |   |   |
| 2010            |   | $               | 56,137 |   |          | $      | 224,544 |          |   | $ | 280,681 |   |
|            |   |            |   |   |          |   |    |          |   |   |   |   |

----

Index

Item 3.     Quantitative and Qualitative Disclosures About Market Risk

Item 4.     Controls and Procedures

----

Index

----

Index

Item 1.     Legal Proceedings

Item 1A.  Risk Factors

Item 2.     Unregistered Sales of Equity Securities and Use of Proceeds

|                                                                                  |   | Total Number ofUnits Repurchased |   |   | Average Price Paid perUnit |   |
|---------------------------------------------------------------------------------------|--------|----------------------------------|--------|--------|----------------------------|--------|
|                                                                                  |   |                             |   |   |
| Period                                                                                |   |                             |   |   |
|                                                                                  |   |                             |   |   |                       |   |
| January 1−31, 2011                                                              |   |                             | 0.75   |   |                       | $      | 2,900 |   |
| February 1−28, 2011                                                             |   |                             | 1.25   |   |                       |   | 2,548 |   |
| March 1−31, 2011                                                                |   |                             | -      |   |                       |   | - |   |
|      Total first quarter Unit Repurchase Program repurchases |   |                             | 2.00   |   |                       |   |   |   |

Item 3.     Defaults Upon Senior Securities

Item 4.     [Removed and Reserved]

Item 5.     Other Information

----

Index

Item 6.     Exhibits Index

|                            |   |                                                                                                                                                                                                                                                                                          |   |   Incorporated by Reference |   |            |   |
|---------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------|--------|-----------------|--------|
|  Exhibit  Number |   |   Exhibit Description                                                                                                                                                                                                                                                               |   |   Form                 |   | SEC File Number |   |  Exhibit |   |  Filing Date |   | Filed Herewith |   |
| 31.1                            |   | Certification by Chief Executive Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership, pursuant to Rule 13a-14(a)/15d-14(c) of the Exchange Act Rules, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.        |   |                             |   |            |   |   |   |   |   | X |   |
|                            |   |                                                                                                                                                                                                                                                                                          |   |                             |   |            |   |   |   |   |   |   |   |
| 31.2                            |   | Certification by Chief Financial Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership, pursuant to Rule 13a-14(a)/15d-14(c) of the Exchange Act Rules, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.        |   |                             |   |            |   |   |   |   |   | X |   |
|                            |   |                                                                                                                                                                                                                                                                                          |   |                             |   |            |   |   |   |   |   |   |   |
| 32.1                            |   | Certifications by Chief Executive Officer and Chief Financial Officer of Petroleum Development Corporation (dba PDC Energy), the Managing General Partner of the Partnership, pursuant to Title 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |   |                             |   |            |   |   |   |   |   | X |   |

----

Index

SIGNATURES

| Signature                 |   | Title                                              |   | Date         |
|---------------------------|--------|----------------------------------------------------|--------|--------------|
|                      |   |                                               |   |         |
| /s/ Richard W. McCullough |   | Chairman and Chief Executive Officer               |   | May 10, 2011 |
| Richard W. McCullough     |   | Petroleum Development Corporation (dba PDC Energy) |   |         |
|                      |   | Managing General Partner of the Registrant         |   |         |
|                      |   | (Principal executive officer)                      |   |         |
|                      |   |                                               |   |         |
| /s/ Gysle R. Shellum      |   | Chief Financial Officer                            |   | May 10, 2011 |
| Gysle R. Shellum          |   | Petroleum Development Corporation (dba PDC Energy) |   |         |
|                      |   | Managing General Partner of the Registrant         |   |         |
|                      |   | (Principal financial officer)                      |   |         |
|                      |   |                                               |   |         |
| /s/ R. Scott Meyers       |   | Chief Accounting Officer                           |   | May 10, 2011 |
| R. Scott Meyers           |   | Petroleum Development Corporation (dba PDC Energy) |   |         |
|                      |   | Managing General Partner of the Registrant         |   |         |
|                      |   | (Principal accounting officer)                     |   |         |

----