FAIR VALUE OF FINANCIAL ASSETS AND FINANCIAL LIABILITIES (Tables)

6 Months Ended

Jun. 30, 2011

FairValueDisclosuresAbstract

Fair value of assets and liabilities

For financial assets and financial liabilities measured at fair value on a recurring basis, information about the fair value measurements for each major category is as follows (in thousands):

As of June 30, 2011	Total		Level 1		Level 2		Level 3
Assets
Available-for-Sale Securities (A)	$	7,116	$	20	$	7,096	$	-
Derivatives – Energy Related Assets (B)		31,959		10,400		16,915		4,644
	$	39,075	$	10,420	$	24,011	$	4,644
Liabilities
Derivatives – Energy Related Liabilities (B)	$	22,833	$	6,962	$	12,989	$	2,882
Derivatives – Other (C)		7,493		-		7,493		-
	$	30,326	$	6,962	$	20,482	$	2,882

As of December 31, 2010	Total		Level 1		Level 2		Level 3
Assets
Available-for-Sale Securities (A)	$	6,720	$	6,720	$	-	$	-
Derivatives – Energy Related Assets (B)		51,069		21,204		24,878		4,987
	$	57,789	$	27,924	$	24,878	$	4,987
Liabilities
Derivatives – Energy Related Liabilities (B)	$	50,938	$	19,513	$	23,275	$	8,150
Derivatives – Other (C)		7,404		-		7,404		-
	$	58,342	$	19,513	$	30,679	$	8,150

(A) Available-for-Sale Securities include securities that are traded in active markets and securities that are not traded publicly.  The securities traded in active markets are valued using the quoted principal market close prices that are provided by the trustees and are categorized in Level 1 in the fair value hierarchy.  The remaining securities consist of funds that are not publicly traded.  These funds, which consist of stocks and bonds that are traded individually in active markets, are valued using quoted prices for similar assets and are categorized in Level 2 in the fair value hierarchy.

(B) Derivatives – Energy Related Assets and Liabilities are traded in both exchange-based and non-exchange-based markets. Exchange-based contracts are valued using unadjusted quoted market sources in active markets and are categorized in Level 1 in the fair value hierarchy. Certain non-exchange-based contracts are valued using indicative price quotations available through brokers or over-the-counter, on-line exchanges and are categorized in Level 2. These price quotations reflect the average of the bid-ask mid-point prices and are obtained from sources that management believes provide the most liquid market. For non-exchange-based derivatives that trade in less liquid markets with limited pricing information, model inputs generally would include both observable and unobservable inputs. In instances where observable data is unavailable, management considers the assumptions that market participants would use in valuing the asset or liability. This includes assumptions about market risks such as liquidity, volatility and contract duration. Such instruments are categorized in Level 3 as the model inputs generally are not observable. Management reviews and corroborates the price quotations to ensure the prices are observable which includes consideration of actual transaction volumes, market delivery points, bid-ask spreads and contract duration.

(C) Derivatives – Other are valued using quoted prices on commonly quoted intervals, which are interpolated for periods different than the quoted intervals, as inputs to a market valuation model. Market inputs can generally be verified and model selection does not involve significant management judgment.

Changes in fair value of significant unobservable inputs

The changes in fair value measurements of Derivatives – Energy Related Assets and Liabilities for the three and six months ended June 30, 2011, using significant unobservable inputs (Level 3), are as follows (in thousands):

	Three Months Ended			Six Months Ended
	June 30, 2011			June 30, 2011
Balance at beginning of period	$	(616	)	$	(3,163	)
Total gains and losses (realized/unrealized) included in earnings		1,565			(586	)
Transfers in and/or out of Level 3, net		-			-
Settlements		813			5,511
Balance at June 30, 2011	$	1,762		$	1,762