Allocation of Partners' Interest. The following table presents the participation of the Investor Partners and the Managing General Partner in the revenues and costs of this Partnership: | | | | | | | | | | | | Managing | | | Investor | | General | | | Partners | | Partner | Partnership Revenue: | | | | | Crude oil, natural gas and NGLs sales | | 80 | % | | 20 | % | Preferred cash distribution (a) | | 100 | % | | — | % | Commodity price risk management gain (loss) | | 80 | % | | 20 | % | Sale of productive properties | | 80 | % | | 20 | % | Sale of equipment | | — | % | | 100 | % | Interest income | | 80 | % | | 20 | % | | | | | | Partnership Operating Costs and Expenses: | | | | | Crude oil, natural gas and NGLs production and well | | | | | operations costs (b) | | 80 | % | | 20 | % | Depreciation, depletion and amortization expense | | 80 | % | | 20 | % | Accretion of asset retirement obligations | | 80 | % | | 20 | % | Direct costs - general and administrative (c) | | 80 | % | | 20 | % |
| | (a) | To the extent that Investor Partners receive preferred cash distributions, the allocations for Investor Partners will be increased accordingly and the allocation for the Managing General Partner will likewise be decreased. See Performance Standard Obligation of Managing General Partner below. |
| | (b) | Represents operating costs incurred after the completion of productive wells, including monthly per-well charges paid to the Managing General Partner. |
| | (c) | The Managing General Partner receives monthly reimbursement from this Partnership for direct costs - general and administrative incurred by the Managing General Partner on behalf of this Partnership. |
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