Certain Relationships and Related Party Transactions

9 Months Ended

Sep. 30, 2017

CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS

The Partnership has entered into the following significant transactions with the MGP and its affiliates as provided under its Partnership Agreement. Administrative costs, which are included in general and administrative expenses in the Partnership’s condensed statements of operations, are payable at $75 per well per month. Monthly well supervision fees, which are included in production expenses in the Partnership’s condensed statements of operations, are payable at $975 per well per month for Marcellus wells and for all other wells a fee of $392 is charged per well per month for operating and maintaining the wells. Well supervision fees are proportionately reduced to the extent the Partnership does not acquire 100% of the working interest in a well. Transportation fees are included in production expenses in the Partnership’s condensed statements of operations and are generally payable at 16% of the natural gas sales price. Direct costs, which are included in production and general administrative expenses in the Partnership’s condensed statements of operations, are payable to the MGP and its affiliates as reimbursement for all costs expended on the Partnership’s behalf.

The following table provides information with respect to these costs and the periods incurred:



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Administrative fees	$	13,500	$	14,200	$	41,200	$	42,600
Supervision fees	175,400		184,900		535,600		554,300
Transportation fees	184,500		172,500		708,300		523,000
Direct costs	128,800		122,800		390,500		534,900
Total	$	502,200	$	494,400	$	1,675,600	$	1,654,800

The MGP and its affiliates perform all administrative and management functions for the Partnership, including billing revenues and paying expenses. Accounts receivable trade-affiliate on the Partnership’s balance sheets includes the net production revenues due from the MGP.

DGOC Series 18C LP 10-Q