CONFORMED COPY



SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



[]ANNUAL REPORT PURSUANT TO SECTION 13 or 15 (d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2001

Commission File Number 033-63635-08

[]Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 for the transaction period from to

PDC 1997-D LIMITED PARTNERSHIP

(Exact name of registrant as specified in its charter)



|                                |                    
|------------------------------- | -------------------
|West Virginia                   | 31-1514713         
|(State or other jurisdiction of | (I.R.S. Employer   
|incorporation or organization)  | Identification No.)
|                                |                    

103 East Main Street, Bridgeport, West Virginia 26330

(Address of principal executive offices) (zip code)

Registrant's telephone number, including area code (304) 842-3597

SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT: NONE

SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:

General and Limited Partnership Interests

(Title of class)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes XNo

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

PART I

ITEM 1. BUSINESS.

General

PDC 1997-D Limited Partnership ("the Partnership") is a limited partnership formed on December 30, 1997 pursuant to the West Virginia Uniform Limited Partnership Act. Petroleum Development Corporation ("PDC") serves as Managing General Partner of the Partnership.

Since the commencement of operations on December 30, 1997, the Partnership has been engaged in onshore, domestic gas exploration exclusively in the northern Appalachian and Michigan Basins. A total of 11 limited partners contributed initial capital of $159,000; a total of 1,050 additional general partners contributed initial capital of $18,360,579; and PDC (Managing General Partner) contributed $4,028,009 in capital as a participant in accordance with contribution provisions of the Limited Partnership Agreement (the Agreement).

Under the terms of the Agreement, the allocation of revenues is as follows:



|                                        | Allocation
of Revenues
|--------------------------------------- | ----------------------
|Additional General and
Limited Partners | 80%                   
|                                        | ==                    
|Managing General Partner                | 20%                   
|                                        | ==                    

Operating and direct costs are allocated and charged to the additional general and limited partners and the Managing General Partner in the same percentages as revenues are allocated. Leasehold, drilling and completion costs, and equipment costs are borne 80% by the additional general and limited partners and 20% by the Managing General Partner.

Employees

The Partnership has no employees, however, PDC has approximately 90 employees which include a staff of geologists, petroleum engineers, landmen and accounting personnel who administer all of the Partnership's operations.

Plan of Operations

The Partnership participated in the drilling of 101 gross wells and will continue to operate and produce its 94 gross productive wells. The Partnership does not have unexpended initial capital and no additional drilling activity is planned.

See Item 2 herein for information concerning the Partnership's gas wells.

















2



Markets for Oil and Gas

The availability of a market for any oil and gas produced from the operations of the Partnership will depend upon a number of factors beyond the control of the Partnership which cannot be accurately predicted. These factors include the proximity of the Partnership wells to and the capacity of natural gas pipelines, the availability and price of competitive fuels, fluctuations in seasonal supply and demand, and government regulation of supply and demand created by its pricing and allocation restrictions. Oversupplies of gas can be expected to occur from time to time and may result in the Partnership's wells being shut-in or curtailed. Increased imports of oil and natural gas have occurred and are expected to continue. The effects of such imports could adversely impact the market for domestic oil and natural gas.

Derivatives and Hedging Activities

The Managing General Partner utilizes commodity based derivative instruments as hedges to manage a portion of the Partnership's exposure to price volatility stemming from natural gas production. These instruments consist of natural gas futures and option contracts traded on the New York Mercantile Exchange. The futures and option contracts hedge committed and anticipated natural gas sales, generally forecasted to occur within a 12 month period. The Managing General Partner does not hold or issue derivatives for trading or speculative purposes and permits utilization of hedges only if there is an underlying physical position.

The Managing General Partner has extensive experience with the use of financial hedges to reduce the risk and impact of natural gas price changes. These hedges are used to "lock in" fixed prices from time to time for the Managing General Partner and its various limited partnerships' share of production. In order for future contracts to serve as effective hedges, there must be sufficient correlation to the underlying hedged transaction. While hedging can help provide price protection if spot prices drop, hedges can also limited upside potential.

Despite the measure taken by the Managing General Partner to attempt to control price risk, the Partnership remains subject to price fluctuations for natural gas sold in the spot market. The Managing General Partner continues to evaluate the potential for reducing these risks by entering into hedge transactions. In addition, the Managing General Partner may also close out any portion of hedges that may exist from time to time.

Competition

The Partnership competes in marketing its gas with numerous companies and individuals, many of which have financial resources, staffs and facilities substantially greater than those of the Partnership or Petroleum Development Corporation.

State Regulations

State regulatory authorities have established rules and regulations requiring permits for well operations, reclamation bonds and reports concerning operations. States also have statutes and regulations concerning the spacing of wells, environmental matters and conservation, and have established regulations concerning the unitization and pooling of oil and gas properties and maximum rates of production from oil and gas wells. The Partnership believes it has complied in all material respects with applicable state regulations.

3



Federal Regulations

Regulation of Liquid Hydrocarbons. Liquid hydrocarbons (including crude oil and natural gas liquids) were subject to federal price and allocation controls until January 1981 when controls were effectively eliminated by executive order of the President. As a result, to the extent the Partnership sells oil produced from its properties, those sales are at unregulated market prices.

Although it appears unlikely under present circumstances that controls will be reimposed upon liquid hydrocarbons, it is possible Congress may enact such legislation at a future date. The impact of such legislation on the Partnership would be minimal since the partnership expects to sell only small quantities of liquid hydrocarbons, if any.

Natural Gas Regulation. Sale of natural gas by the Partnership is subject to regulation of production, transportation and pricing by governmental regulatory agencies. Generally, the regulatory agency in the state where a producing well is located regulates production activities and, in addition, the transportation of gas sold intrastate. The Federal Energy Regulatory Commission (FERC) regulates the operation and cost of interstate pipeline operators who transport gas. Currently the price of gas to be sold by the Partnership is not regulated by any state or federal agency.

Proposed Regulation. Numerous proposals concerning energy are being considered by the United States Congress, various state legislatures and regulatory agencies. The possible outcome and effect of these proposals cannot be accurately predicted.

Environmental and Safety Regulation. The Partnership believes that it complies, in all material respects, with all legislation and regulations affecting its operations in the drilling and production of oil and gas wells and the discharge of wastes. To date, compliance with such provisions and regulations has not had a material effect upon the Partnership's expenditures for capital equipment, its operations or its competitive position. The cost of such compliance is not anticipated to be material in the future.

ITEM 2. PROPERTIES.

Drilling Activity

The following table sets forth the results of drilling activity from December 30, 1997 (date of inception) to December 31, 2001, of the Partnership which was conducted in the Continental United States.

|                                | Development Wells
|------------------------------- | -----------------
|                                | Gross Wells      
|Productive                      | Dry              
|Period Ended
December 31, 2001. |                  
|94                              | 7                
|                                | ==               



The Partnership has not participated in any exploratory wells. No additional drilling activity is planned.













4





Summary of Productive Wells

The table below shows the number of the Partnership's gross and net wells by state as of December 31, 2001.



|              | Natural Gas Wells
|------------- | -----------------
|Location      | Gross            
|Michigan      | 36               
|Pennsylvania  | 55               
|West Virginia | 3                
|Total         | 94               
|              | ==               

A "productive well" is a well producing, or capable of producing, oil and gas in commercial quantities. For purposes of the above table, a "gross well" is one in which the Partnership has a working interest and a "net well" is a gross well multiplied by the Partnership's working interest to which it is entitled under its drilling agreement.

Title to Properties

The Partnership's interests in producing acreage are in the form of assigned direct interests in leases. Such properties are subject to customary royalty interests generally contracted for in connection with the acquisition of properties and could be subject to liens incident to operating agreements, liens for current taxes and other burdens. The Partnership believes that none of these burdens materially interfere with the use of such properties in the operation of the Partnership's business.

As is customary in the oil and gas industry, little or no investigation of title is made at the time of acquisition of undeveloped properties (other than a preliminary review of local mineral records). Investigations are generally made, including in most cases receiving a title opinion of legal counsel, before commencement of drilling operations. A thorough examination of title has been made with respect to all of the Partnership's producing properties and the Partnership believes that it has generally satisfactory title to such properties.

ITEM 3. LEGAL PROCEEDINGS.

The Managing General Partner as driller/operator is not party to any legal action that would materially affect the Managing General Partner's or Partnership's operations or financial statements.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.

None.

PART II



ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY AND SECURITY HOLDER MATTERS.

At December 31, 2001, PDC 1997-D Limited Partnership had one Managing General Partner, 11 Limited Partners who fully paid for 7.95 units at $20,000 per unit of limited partnership interests and a total of 1,050 Additional General Partners who fully paid for 918.02895 units at $20,000 per unit of additional general partnership interests. No established public trading market exists for the interests.

Limited and additional general partnership interests are transferable, however no assignee of an interest in the Partnership can become a substituted partner without the written consent of the transferor and the Managing General Partner.

5



ITEM 6. SELECTED FINANCIAL DATA.

The selected financial data presented below has been derived from audited financial statements of the Partnership appearing elsewhere herein.

|                                 |                            | Years Ended December 31,
|-------------------------------- | -------------------------- | ------------------------
|                                 |                            | 2001                    
|Oil and Gas Sales                | $1,518,411                 | 1,408,168               
|Costs and Expenses               | 1,994,381                  | 1,126,726               
|Net Income (Loss)                | (470,619)                  | 287,450                 
|Allocation of Net Income (Loss): |                            |                         
|                                 | Managing General Partner   | (94,124)                
|                                 | Limited and Additional     |                         
|                                 | General Partners           | (376,495)               
|                                 | Per Limited and Additional |                         
|                                 | General Partner Unit       | (407)                   
|Total Assets                     | 4,151,268                  | 5,444,462               
|Distributions:                   |                            |                         
|                                 | Managing General Partner   | 41,558                  
|                                 | Limited and Additional     |                         
|                                 | General Partners           | 778,251                 

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Liquidity and Capital Resources

The Partnership was funded with initial Limited and Additional General Partner contributions of $18,519,579 and the Managing General Partner contributed $4,028,009 in accordance with the Agreement. Syndication and management fee costs of $2,407,545 were incurred leaving available cash of $20,140,043 for Partnership activities.

The Partnership began exploration and development activities subsequent to the funding of the Partnership and completed these activities by December 31, 1998. One hundred and one wells have been drilled, ninety-four of which have been completed as producers. No additional wells will be drilled.

The Partnership had working capital at December 31, 2001 of $157,814.

Operations are expected to be conducted with available funds and revenues generated from oil and gas activities. No bank borrowings are anticipated.

Results of Operations

2001 Compared to 2000

Oil and gas sales increased 7.83% in 2001 compared to 2000 due to higher average sales prices of natural gas offset in part by decreased sales volumes. The net loss of $470,619 in 2001 was primarily due to the impairment charge for oil and gas properties of $567,403. This impairment resulted from net capitalized costs exceeding estimated undiscounted future net cash flow. The impairment was based on estimated fair value which considered future discounted cash flows. This charge did not affect cash distributions to the partners which increased from $703,232 in 2000 to $819,809 in 2001.









6



2000 Compared to 1999

Oil and gas sales decreased 1.8% in 2000 compared to 1999 due to decreased sales volumes offset in part by higher average sales prices of natural gas. The net loss of $3,972,609 in 1999 was primarily due to the impairment charge for oil and gas properties of $3,444,089. This impairment resulted from capitalized costs exceeding estimated undiscounted future net cash flow. The impairment was based on estimated fair value which considered future discounted cash flows. This charge did not affect cash distributions to the partners which increased from $677,178 in 1999 to $703,232 in 2000.

The Partnership's revenues from natural gas sales will be affected by changes in prices. Natural gas prices are subject to general market conditions which drive the pricing changes.

The principal effects of inflation upon the Partnership relate to the costs required to drill, complete and operate oil and gas wells. The Partnership expects these costs to remain somewhat stable over the next year.

Critical Accounting Policies

Certain accounting policies are very important to the portrayal of the Partnership's financial condition and results of operations and require Management's most subjective or complex judgements. The policies are as follows.

Impairment of Long-Lived Assets

The Partnership assesses impairment of capitalized costs of proved oil and gas properties by comparing net capitalized costs to undiscounted future net cash flows on a field-by-field basis using expected prices. Prices utilized in each year's calculation for measurement purposes and expected costs are held constant throughout the estimated life of the properties. If net capitalized costs exceed undiscounted future net cash flow, the measurement of impairment is based on estimated fair value which would consider future discounted cash flows.

The judgments used in applying the above policies are based on management's evaluation of the relevant facts and circumstances as of the date of the financial statements. Actual results may differ from those estimates. See additional discussions in this Management's Discussion and Analysis.

New Accounting Standards



Statement of Financial Accounting Standards No. 141, "Business Combinations" ("SFAS No. 141") and Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets" ("SFAS No. 142") were issued in July 2001. SFAS No. 141 requires that all business combinations entered into subsequent to June 30, 2001 be accounted for under the purchase method of accounting and establishes specific criteria for the recognition of intangible assets separately from goodwill. SFAS No. 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at least annually in accordance with the provisions of SFAS 142. SFAS 142 also requires that intangible assets with definite useful lives be amortized over their respective estimated useful lives to their estimated residual value, and subsequently reviewed for impairment. The Partnership does not believe that the adoption of these statements will have a material effect on its financial position, results of operations, or cash flows.

7

In June 2001, the FASB issued SFAS 143, "Accounting for Asset Retirement Obligations" ("SFAS No. 143"). SFAS No. 143 requires the Partnership to record the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. The Partnership also records a corresponding asset which is depreciated over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation will be adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The Partnership is required to adopt SFAS No. 143 on January 1, 2003. At this time, the Partnership cannot reasonably estimate the effect of the adoption of this Statement on either its financial position, results of operations, or cash flows.

In August, 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS No. 144"). SFAS No. 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. SFAS No. 144 requires companies to separately report discontinued operations and extends that reporting to a component of an entity that either has been disposed of (by sale, abandonment, or in a distribution to owners) or is classified as held for sale. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Partnership is required to adopt SFAS No. 144 on January 1, 2002. The Partnership does not believe that the adoption of this statement will have a material effect on its financial position, results of operations or cash flows.

Item 7.a.  Quantitative and Qualitative Disclosure About Market Risk.

Market-Sensitive Instruments and Risk Management

The Partnership's primary market risk exposure is commodity price risk. This exposure is discussed in detail below:

Commodity Price Risk

The Managing General Partner of the Partnership utilizes commodity-based derivative instruments as hedges to manage a portion of the Partnership's exposure to price risk from its natural gas sales. These instruments consist of NYMEX-traded natural gas futures contracts and option contracts. These hedging arrangements have the effect of locking in for specified periods (at predetermined prices or ranges of prices) the prices the Partnership will receive for the volume to which the hedge relates. As a result, while these hedging arrangements are structured to reduce the Partnership's exposure to decreases in price associated with the hedging commodity, they also limit the benefit the Partnership might otherwise have received from price increases associated with the hedged commodity. The Partnership's policy prohibits the use of natural gas future and option contracts for speculative purposes. As of December 31, 2001,











8

the Partnership had no future contracts or options contracts. As of December 31, 2000, the Partnership had entered into a series of natural gas future contracts and options contracts. Open future contracts maturing in 2001 were for sale of 243,584 dt of natural gas with a weighted average price of $2.98 dt resulting in a total contract amount of $726,000, and a fair market value of ($939,547). Open option contracts maturing in 2001 are for the sale of 324,778 dt with a weighted average floor price of $3.68 dt and a fair value of $(108,070).

Disclosure of Limitations

As the information above incorporates only those exposures that exist at December 31, 2001, it does not consider those exposures or positions which could arise after that date. As a result, the Partnership's ultimate realized gain or loss with respect to commodity price fluctuations will depend on the exposures that arise during the period, the Partnership's hedging strategies at the time and commodity prices at the time.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA:

The response to this Item is set forth herein in a separate section of this Report, beginning on Page F-1.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND

FINANCIAL DISCLOSURE.

NONE.

Part III

ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE COMPANY.

The Partnership has no directors or executive officers. The Partnership is managed by Petroleum Development Corporation (the Managing General Partner). Petroleum Development Corporation's common stock is traded in the NASDAQ National Market and Form 10-K for 2001 has been filed with the Securities and Exchange Commission.

ITEM 11. MANAGEMENT REMUNERATIONS AND TRANSACTIONS.

NON-APPLICABLE.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT.

NON-APPLICABLE.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS.

Pursuant to the authorization contained in the Limited Partnership Agreement, PDC receives fees for services rendered and reimbursement of certain expenses from the Partnership. The following table presents compensation or reimbursements by the Partnership to PDC or other related parties during the periods listed below:

|                           | Periods Ended December 31,
|-------------------------- | --------------------------
|                           | 2001                      
|Lifting costs              | $746,808                  
|Tax return preparation     | 8,975                     
|Direct administrative cost | 2,689                     













9



PART IV

ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K.

(a)  (1) Financial Statements

See Index to Financial Statements on F-2

(2) Financial Statement Schedules

See Index to Financial Statements on page F-2. All financial statement schedules are omitted because they are not required, inapplicable, or the information is included in the Financial Statements or Notes thereto.



































































































10

CONFORMED COPY

SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

| | PDC 1997-D Limited Partnership By
its Managing General Partner
Petroleum Development Corporation
| | ------------------------------------------------------------------------------------------------
| | By/s/ James N. Ryan
James N. Ryan, Chairman                                                     
| | March 27, 2002                                                                                  

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated:

|                                         |                                                                                               |               
|---------------------------------------- | --------------------------------------------------------------------------------------------- | --------------
|Signature                                | Title                                                                                         | Date          
|/s/ James N. RyanJames N. Ryan           | Chairman, Chief Executive
Officer and Director                                                | March 27, 2002
|                                         |                                                                                               |               
|/s/ Steven R. WilliamsSteven R. Williams | President and Director                                                                        | March 27, 2002
|                                         |                                                                                               |               
|/s/ Dale G. RettingerDale G. Rettinger   | Executive Vice President,
Treasurer and Director
(principal financial and
accounting officer) | March 27, 2002
|                                         |                                                                                               |               
|/s/ Roger J. MorganRoger J. Morgan       | Secretary and Director                                                                        | March 27, 2002

























































11





























PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Financial Statements for Annual Report

on Form 10-K to Securities and Exchange

Commission

Years Ended December 31, 2001, 2000 and 1999

(With Independent Auditors' Report Thereon)













































































F-1



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)





Index to Financial Statements



|                                                                                                       |    
|------------------------------------------------------------------------------------------------------ | ---
|Independent Auditors' Report                                                                           | F-3
|Balance Sheets - December 31, 2001 and 2000                                                            | F-4
|Statements of Operations - Years Ended December 31, 2001,                                              |    
|2000 and 1999                                                                                          | F-5
|Statements of Partners' Equity and Comprehensive Income -
Years Ended December 31, 2001, 2000 and 1999 | F-6
|Statements of Cash Flows - Years Ended December 31, 2001,
2000 and 1999                                | F-7
|Notes to Financial Statements                                                                          | F-8
|                                                                                                       |    





All financial statement schedules have been omitted because they are not applicable or not required or for the reason that the required information is shown in the financial statements or notes thereto.









































































F-2



















Independent Auditors' Report





To the Partners

PDC 1997-D Limited Partnership:

We have audited the financial statements of PDC 1997-D Limited Partnership (a West Virginia limited partnership) as listed in the accompanying index. These financial statements are the responsibility of the Partnership's management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of PDC 1997-D Limited Partnership as of December 31, 2001 and 2000, and the results of its operations and its cash flows for the years ended December 31, 2001, 2000 and 1999, in conformity with accounting principles generally accepted in the United States of America.

As discussed in note 1 to the financial statements, the Partnership changed its method of accounting for derivative instruments and hedging activities in 2001.



KPMG LLP





Pittsburgh, Pennsylvania

March 11, 2002































F-3



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Balance Sheets

December 31, 2001 and 2000



|Assets                                                      | 2001       | 2000     
|----------------------------------------------------------- | ---------- | ---------
|                                                            |            |          
|Cash                                                        | $    3,264 | 4,958    
|Accounts receivable - oil and gas revenues                  | 179,512    | 243,577  
|Total current assets                                        | 182,776    | 248,535  
|                                                            |            |          
|Oil and gas properties, successful efforts
method (Note 5): | 7,034,497  | 7,601,900
|Less accumulated depreciation, depletion,
and amortization  | 3,066,005  | 2,405,973
|                                                            | 3,968,492  | 5,195,927
|                                                            |            |          
|                                                            | $4,151,268 | 5,444,462
|                                                            | ========   | ======== 
|Current Liabilities and Partners' Equity                    |            |          
|                                                            |            |          
|Current liabilities:                                        |            |          
|Accrued expenses                                            | $24,962    | 27,728   
|Total current liabilities                                   | 24,962     | 27,728   
|                                                            |            |          
|Partners' equity                                            | 4,126,306  | 5,416,734
|                                                            |            |          
|                                                            | $4,151,268 | 5,444,462
|                                                            | =========  | =========





See accompanying notes to financial statements.























































F-4



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Statements of Operations

Years Ended December 31, 2001, 2000 and 1999

|                                                                  | 2001        | 2000      | 1999       
|----------------------------------------------------------------- | ----------- | --------- | -----------
|Revenues:                                                         |             |           |            
|Sales of oil and gas                                              | $1,518,411  | 1,408,168 | 1,433,490  
|Interest income                                                   | 5,351       | 6,008     | 4,879      
|                                                                  | 1,523,762   | 1,414,176 | 1,438,369  
|                                                                  |             |           |            
|Expenses (note 3):                                                |             |           |            
|Lifting cost                                                      | 746,808     | 656,821   | 732,408    
|Independent audit fee                                             | 6,689       | 6,340     | 6,155      
|Franchise taxes                                                   | 1,785       | 2,030     | 1,919      
|Tax return preparation                                            | 8,975       | 11,620    | 11,285     
|Direct administrative cost                                        | 2,689       | 2,808     | 3,099      
|Independent engineering cost                                      | -           | -         | 2,380      
|Loss on impairment of
oil and gas properties                      | 567,403     | -         | 3,444,089  
|Depreciation, depletion
and amortization                          | 660,032     | 447,107   | 1,209,643  
|                                                                  |             |           |            
|                                                                  | 1,994,381   | 1,126,726 | 5,410,978  
|                                                                  |             |           |            
|Net income (loss)                                                 | $(470,619)  | 287,450   | (3,972,609)
|                                                                  |             |           |            
|Net income (loss) per
limited and additional
general partner unit | $     (407) | 248       | (3,432)    
|                                                                  | ========    | ========  | ========   







See accompanying notes to financial statements.













































F-5









PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Statements of Partners' Equity and Comprehensive Income

Years Ended December 31, 2001, 2000 and 1999







|                                                                       | Limited and
additional
general
partners | Managing
general
partner | Accumulated
other
Comprehensive
Income | Total      
|---------------------------------------------------------------------- | --------------------------------------- | ------------------------ | -------------------------------------- | -----------
|                                                                       |                                         |                          |                                        |            
|Balance, December 31, 1998                                             | $ 8,385,841                             | 2,096,462                |                                        | 10,482,303 
|                                                                       |                                         |                          |                                        |            
|Net loss                                                               | (3,178,088)                             | (794,521)                |                                        | (3,972,609)
|Distributions to partners                                              | (616,016)                               | (61,162)                 |                                        | (677,178)  
|Balance, December 31, 1999                                             | 4,591,737                               | 1,240,779                |                                        | 5,832,516  
|                                                                       |                                         |                          |                                        |            
|Net income                                                             | 229,960                                 | 57,490                   |                                        | 287,450    
|Distributions to partners                                              | (668,092)                               | (35,140)                 |                                        | (703,232)  
|Balance, December 31, 2000                                             | 4,153,605                               | 1,263,129                |                                        | 5,416,734  
|                                                                       |                                         |                          |                                        |            
|Distributions to partners                                              | (778,251)                               | (41,558)                 | -                                      | (819,809)  
|                                                                       |                                         |                          |                                        |            
|Comprehensive loss:                                                    |                                         |                          |                                        |            
|Net loss                                                               | (376,495)                               | (94,124)                 |                                        | (470,619)  
|Cumulative effect of change
in accounting principle -
January 1, 2001  |                                         |                          | (1,047,617)                            |            
|Change in fair value of
outstanding hedging
positions                  |                                         |                          | 531,424                                |            
|Reclassification
adjustment for settled
contracts included in
net loss |                                         |                          | 516,193                                |            
|Other comprehensive loss                                               |                                         |                          | -                                      | -          
|Comprehensive loss                                                     |                                         |                          |                                        | (470,619)  
|                                                                       |                                         |                          |                                        |            
|Balance December 31, 2001                                              | $2,998,859                              | 1,127,447                | -                                      | 4,126,306  
|                                                                       | =========                               | ==========               | ==========                             | ========== 

See accompanying notes to financial statements.



















F-6



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Statements of Cash Flows

Years Ended December 31, 2001, 2000 and 1999

|                                                                                           | 2001       | 2000      | 1999       
|------------------------------------------------------------------------------------------ | ---------- | --------- | -----------
|Cash flows from operating activities:                                                      |            |           |            
|Net income (loss)                                                                          | $(470,619) | 287,450   | (3,972,609)
|Adjustments to reconcile net
income (loss) to net cash provided
from operating activities: |            |           |            
|Depreciation, depletion and
Amortization                                                   | 660,032    | 447,107   | 1,209,643  
|Loss on impairment of oil and
gas properties                                               | 567,403    | -         | 3,444,089  
|Changes in operating assets
and liabilities:                                               |            |           |            
|Decrease (increase) in
accounts receivable
- oil and gas revenues                          | 64,065     | (17,882)  | (11,606)   
|(Decrease) increase in
accrued expenses                                                    | (2,766)    | (11,027)  | 8,303      
|                                                                                           |            |           |            
|Net cash provided from
operating activities                                                | 818,115    | 705,648   | 677,820    
|                                                                                           |            |           |            
|Cash flow from financing activities:                                                       |            |           |            
|Distributions to partners                                                                  | (819,809)  | (703,232) | (677,178)  
|                                                                                           |            |           |            
|Net cash used by
financing activities                                                      | (819,809)  | (703,232) | (677,178)  
|                                                                                           |            |           |            
|Net (decrease) increase in cash                                                            | (1,694)    | 2,416     | 642        
|Cash at beginning of period                                                                | 4,958      | 2,542     | 1,900      
|Cash at end of period                                                                      | $   3,264  | 4,958     | 2,542      
|                                                                                           | ========   | ========  | ========   











See accompanying notes to financial statements.



































F-7

PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements

Years Ended December 31, 2001, 2000 and 1999

(1) Summary of Significant Accounting Policies

Partnership Financial Statement Presentation Basis

The financial statements include only those assets, liabilities and results of operations of the partners which relate to the business of PDC 1997-D Limited Partnership (the Partnership). The statements do not include any assets, liabilities, revenues or expenses attributable to any of the partners' other activities.

Oil and Gas Properties

The Partnership follows the successful efforts method of accounting for the cost of exploring for and developing oil and gas reserves. Under this method, costs of development wells, including equipment and intangible drilling costs related to both producing wells and developmental dry holes, and successful exploratory wells are capitalized and amortized on an annual basis to operations by the units-of-production method using estimated proved developed reserves determined at year end by the Managing General Partner's petroleum engineers at December 31, 2001 and 2000, and by an independent petroleum engineer, Wright & Company, Inc. at December 31, 1999. If a determination is made that an exploratory well has not discovered economically producible reserves, then its costs are expensed as dry hole costs.

The Partnership assesses impairment of capitalized costs of proved oil and gas properties by comparing net capitalized costs to undiscounted future net cash flows on a field-by-field basis using expected prices. Prices utilized in each year's calculation for measurement purposes and expected costs are held constant throughout the estimated life of the properties. If net capitalized costs exceed undiscounted future net cash flow, the measurement of impairment is based on estimated fair value which would consider future discounted cash flows. During 2001, 2000 and 1999 the loss on impairment of oil and gas properties as reflected in the Statement of Operations amounted to $567,403, $0 and $3,444,089, respectively.

Based on the Managing General Partner's experience, management believes site restoration, dismantlement and abandonment costs, net of salvage to be immaterial in relation to operating costs. These costs are being expensed when incurred.

Income Taxes

Since the taxable income or loss of the Partnership is reported in the separate tax returns of the partners, no provision has been made for income taxes on the Partnership's books.

Under federal income tax laws, regulations and administrative rulings, certain types of transactions may be accorded varying interpretations. Accordingly, the Partnership's tax return and, consequently, individual tax returns of the partners may be changed to conform to the tax treatment resulting from a review by the Internal Revenue Service.

(Continued)

F-8

PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued



Derivatives Financial Instruments

The Managing General Partner utilizes commodity based derivative instruments as hedges to manage a portion of the Partnership's exposure to price volatility stemming from natural gas production. These instruments consist of natural gas futures and option contracts traded on the New York Mercantile Exchange. The futures and option contracts hedge committed and anticipated natural gas sales generally forecasted to occur within a 12 month period. The Managing General Partner does not hold or issue derivatives for trading or speculative purposes.

As of December 31, 2001, the Partnership had no futures contracts or options contracts for the sale of natural gas.

All derivatives are recognized on the Partnership's balance sheet at their fair value. On the date the derivative contract is entered into, the Managing General Partner designates the derivative as either a hedge of a forecasted transaction or the variability of cash flows to be received or paid related to a recognized asset or liability ("cash flow" hedge), or a non-hedging derivative. The Managing General Partner formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as cash-flow hedges to specific firm commitments or forecasted transactions. The Managing General Partner also formally assesses, both at the hedge's inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Partnership discontinues hedge accounting prospectively. No hedging activities were discontinued during 2001.

Changes in fair value of a derivative that is highly effective and that is designated and qualifies as a cash-flow hedge are recorded in accumulated other comprehensive income, until earnings are affected by the variability in cash flows of the designated hedged item. Changes in the fair value of non-hedging derivatives are reported in current-period earnings. The Partnership discontinues hedge accounting prospectively when it is determined that the derivative is no longer effective in offsetting changes in the cash flows of the hedged item, the derivative expires or is sold, terminated, or exercised. Additionally, if the derivative is dedesignated as a hedging instrument, because it is unlikely that a forecasted transaction will occur, a hedged firm commitment no longer meets the definition of a firm commitment, or management determines that designation of the derivative as a hedging instrument is no longer appropriate, hedge accounting will discontinue.



















F-9



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued

For the years ended December 31, 2000 and 1999, prior to adoption of Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Certain Hedging Activities" and SFAS No. 138, "Accounting for Certain Hedging Activities", gains and losses related to qualifying hedges of firm commitments or anticipated transactions through the use of natural gas futures and option contracts were deferred and recognized in income or as adjustments of carrying amounts when the underlying hedged transaction occurred. In order for futures contracts to qualify as a hedge, there must have been sufficient correlation to the underlying hedged transaction.

The Partnership adopted the provisions of SFAS 133/138 effective January 1, 2001. The natural gas futures and options are derivatives pursuant to SFAS 133/138. The Partnership's derivatives are treated as hedges of committed and/or anticipated transactions. On adoption of this Statement on January 1, 2001, the Partnership recorded a net transition adjustment of ($1,047,617) which was recorded in accumulated other comprehensive income (AOCI). During the year ended December 31, 2001, the Partnership reclassified $516,193, from AOCI into oil and gas sales relating to settled contracts.

As of December 31, 2000 the Partnership had futures contracts for the sale of 243,584 dt of natural gas and option contracts for the sale of 324,778 dt of natural gas. While these contracts have nominal carrying value, their fair value, represented by the estimated amount that would be received (paid) upon termination of the contracts, based on market quotes, was a fair value of ($1,047,617).



By using derivative financial instruments to hedge exposures to changes in commodity prices, the Managing General Partner exposes the Partnership to credit risk and market risk. Credit risk is the failure of the counterparty to perform under the terms of the derivative contract. When the fair value of a derivative contract is positive, the counterparty owes the Partnership, which creates repayment risk. The Managing General Partner minimizes the credit or repayment risk in derivative instruments by entering into transactions with high-quality counterparties.

Use of Estimates

The Partnership has made a number of estimates and assumptions relating to the reporting of assets and liabilities and revenues and expenses and the disclosure of contingent assets and liabilities to prepare these financial statements in conformity with generally accepted accounting principles. Actual results could differ from those estimates. Estimates which are particularly significant to the financial statements include estimates of oil and gas reserves and future cash flows from oil and gas properties which are used in assessing impairment of long-lived assets.













F-10

PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued



New Accounting Standards

Statement of Financial Accounting Standards No. 141, "Business Combinations" ("SFAS No. 141") and Statement of Financial Accounting Standards No. 142, "Goodwill and Other Intangible Assets" ("SFAS No. 142") were issued in July 2001. SFAS No. 141 requires that all business combinations entered into subsequent to June 30, 2001 be accounted for under the purchase method of accounting and establishes specific criteria for the recognition of intangible assets separately from goodwill. SFAS No. 142 requires that goodwill and intangible assets with indefinite useful lives no longer be amortized, but instead tested for impairment at least annually in accordance with the provisions of SFAS 142. SFAS 142 also requires that intangible assets with definite useful lives be amortized over their respective estimated useful lives to their estimated residual value, and subsequently reviewed for impairment. The Partnership does not believe that the adoption of these statements will have a material effect on its financial position, results of operations, or cash flows.

In June 2001, the FASB issued SFAS 143, "Accounting for Asset Retirement Obligations" ("SFAS No. 143"). SFAS No. 143 requires the Partnership to record the fair value of an asset retirement obligation as a liability in the period in which it incurs a legal obligation associated with the retirement of tangible long-lived assets that result from the acquisition, construction, development and/or normal use of the assets. The Partnership also records a corresponding asset which is depreciated over the life of the asset. Subsequent to the initial measurement of the asset retirement obligation, the obligation will be adjusted at the end of each period to reflect the passage of time and changes in the estimated future cash flows underlying the obligation. The Partnership is required to adopt SFAS No. 143 on January 1, 2003. At this time, the Partnership cannot reasonably estimate the effect of the adoption of this Statement on either its financial position, results of operations, or cash flows.

In August, 2001, the FASB issued SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets" ("SFAS No. 144"). SFAS No. 144 addresses financial accounting and reporting for the impairment or disposal of long-lived assets. This Statement requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. SFAS No. 144 requires companies to separately report discontinued operations and extends that reporting to a component of an entity that either has been disposed of (by sale, abandonment, or in a distribution to owners) or is classified as held for sale. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. The Partnership is required to adopt SFAS No. 144 on January 1, 2002. The Partnership does not believe that the adoption of this statement will have a material effect on its financial position, results of operations or cash flows.



F-11

PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued

(2)  Organization

The Partnership was organized as a limited partnership on December 30, 1997 in accordance with the laws of the State of West Virginia for the purpose of engaging in the drilling, completion and operation of oil and gas development and exploratory wells in the Northern Appalachian and Michigan Basins.

Purchasers of partnership units subscribed to and fully paid for 7.95 units of limited partner interests and 918.02895 units of additional general partner interests at $20,000 per unit (Investor Partners). Petroleum Development Corporation has been designated the Managing General Partner of the Partnership. Although costs, revenues and cash distributions allocable to the limited and additional general partners are shared pro rata based upon the amount of their subscriptions, including the Managing General Partner to the extent of its capital contributions, there are significant differences in the federal income tax effects and liability associated with these different types of units in the Partnership.

Upon completion of the drilling phase of the Partnership's wells, all additional general partners units are converted into units of limited partner interests and thereafter become limited partners of the Partnership. Limited partners do not have any rights to convert their units into units of additional general partner interests in the Partnership.

In accordance with the terms of the Partnership Agreement (the Agreement), the Managing General Partner manages all activities of the Partnership and acts as the intermediary for substantially all Partnership transactions.

(3)	Transactions with Managing General Partner and Affiliates

The Partnership's transactions with the Managing General Partner include the following:



|                           | Years Ended December 31
|-------------------------- | -----------------------
|                           | 2001                   
|Lifting costs              | $746,808               
|Tax return preparation     | 8,975                  
|Direct administrative cost | 2,689                  





























F-12



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued



(4)  Allocation

The following table summarizes the participation of the Managing General Partner and the Investor Partners, taking account of the Managing General Partner's capital contribution equal to a minimum of 20% of the Initial Operating Capital, in the costs and revenues of the Partnership.



|                                          | Investor
Partners | Managing
General
Partners
|----------------------------------------- | ----------------- | -------------------------
|Partnership Costs                         |                   |                          
|Broker-dealer Commissions and Expenses(1) | 100%              | 0%                       
|Management Fee                            | 100%              | 0%                       
|Undeveloped Lease Costs                   | 0%                | 100%                     
|Drilling and Completion Costs             | 80%               | 20%                      
|Tangible Equipment                        | 0%                | 100%                     
|Intangible Drilling and Development Costs | 100%              | 0%                       
|Operating Costs(2)                        | 80%               | 20%                      
|Direct Costs(3)                           | 80%               | 20%                      
|Administrative Costs                      | 0%                | 100%                     
|                                          |                   |                          
|Partnership Revenues                      |                   |                          
|                                          |                   |                          
|Sale of Oil and Gas Production(4)         | 80%               | 20%                      
|Sale of Productive Properties(5)          | 80%               | 20%                      
|Sale of Equipment                         | 0%                | 100%                     
|Sale of Undeveloped Leases .              | 80%               | 20%                      
|Interest Income                           | 80%               | 20%                      



(1)     Organization and Offering Costs, net of the Dealer Manager commissions, discounts, due diligence expenses, and wholesaling fees of the Partnership were paid by the Managing General Partner and not from Partnership funds. In addition, Organization and Offering Costs in excess of 10-1/2% of Subscriptions were paid by the Managing General Partner, without recourse to the Partnership.

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

(3)     The Managing General Partner receives monthly reimbursement from the Partnership for their direct costs incurred by the Managing General Partner on behalf of the Partnership.

















F-13



PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued



(4)     The revenues and expenses allocated to the partners are subject to a special provision in the partnership agreement, whereby the allocable share of revenues and expenses of the Investor Partners may be increased and the interest of the Managing General Partner may be decreased if certain cash distribution levels are not met. The shifting of the allocable share of revenues and expenses to the Investor Partners in the event that certain prescribed cash distribution levels are not attained may also serve to shift an increased amount of cash distributions to the Investor Partners and a decreased amount of cash distributions to the Managing General Partner.

(5)     In the event of the sale or other disposition of a productive well, a lease upon which such well is situated, or any equipment related to any such lease or well, the proceeds from such sale or disposition shall be allocated and credited to the Partners as oil and gas revenues are allocated. The term "proceeds" above does not include revenues from a royalty, overriding royalty, lease interest reserved, or other promotional consideration received by the Partnership in connection with any sale or disposition, which revenues shall be allocated to the Investor Partners and the Managing General Partner in the same percentages that oil and gas revenues are allocated. No such sales have occurred.

(6)     In accordance with the repurchase provision of the partnership prospectus, PDC may repurchase units from the investing partners which is entirely voluntary on the part of the partners. During 2001 PDC purchased a total of 1.25 units of partnership interest for a total ownership of 28.25 units as of December 31, 2001 which represents a 3.05% ownership of the Investor Partners share of limited and additional general partnership units. Therefore, costs and revenues and distributions for these purchased units are allocated to PDC in accordance with the Investor Partners allocation percentages disclosed in this table.

(5)  Costs Relating to Oil and Gas Activities

The Partnership is engaged solely in oil and gas activities, all of which are located in the continental United States. Information regarding aggregate capitalized costs and results of operations for these activities is located in the basic financial statements. Costs capitalized for these activities are as follows:



|                              | December 31,
|----------------------------- | ------------
|                              | 2001        
|Lease acquisition
costs       | $   520,022 
|Intangible  development costs | 16,216,034  
|Well equipment                | 3,383,987   
|Impairment charge             | (13,085,546)
|                              | $ 7,034,497 
|                              | ==========  

There were no costs incurred for the Partnership's oil and gas activities for the years ended December 31, 2001, 2000 and 1999.



F-14

PDC 1997-D LIMITED PARTNERSHIP

(A West Virginia Limited Partnership)

Notes to Financial Statements, Continued



(6)  Income Taxes

As a result of the differences in the treatment of certain items for income tax purposes as opposed to financial reporting purposes, primarily depreciation, depletion and amortization of oil and gas properties and the recognition of intangible drilling costs as an expense or capital item, the income tax basis of oil and gas properties differs from the basis used for financial reporting purposes. At December 31, 2001 and 2000, the income tax basis of the partnership's oil and gas properties was $1,803,265 and $2,252,730, respectively.



(7)  Supplemental Reserve Information (unaudited)

Proved oil and gas reserves of the Partnership have been estimated by the Managing General Partner's petroleum engineers at December 31, 2001 and 2000 and by an independent petroleum engineer, Wright & Company, Inc. at December 31, 1999. These reserves have been prepared in compliance with the Securities and Exchange Commission rules based on year-end prices, adjusted for hedging contracts. A copy of the reserve report has been made available to all partners. All of the partnership's reserves are proved developed. An analysis of the change in estimated quantities of proved developed oil and gas reserves is shown below:



|                                                  | Natural gas
(mcf)
|------------------------------------------------- | -----------------
|                                                  |                  
|Proved developed reserves as of
December 31, 1998 | 13,038,140       
|                                                  |                  
|Revisions of previous estimates                   | (6,050,704)      
|Production                                        | (674,436)        
|                                                  |                  
|Proved developed reserves as of
December 31, 1999 | 6,313,000        
|                                                  |                  
|Revisions of previous estimates                   | 592,510          
|Production                                        | (541,610)        
|                                                  |                  
|Proved developed reserves as of
December 31, 2000 | 6,363,900        
|                                                  |                  
|Revisions of previous estimates                   | (2,248,059)      
|Production                                        | (417,841)        
|                                                  |                  
|Proved developed reserves as of
December 31, 2001 | 3,698,000        
|                                                  | =========        















F-15