Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control of the product has been transferred. Oil is priced on the delivery date based upon prevailing prices published by purchasers with certain adjustments related to oil quality and physical location. The price the Company receives for natural gas and NGL is tied to a market index, with certain adjustments based on, among other factors, whether a well delivers to a gathering or transmission line, quality and heat content of natural gas, and prevailing supply and demand conditions, so that the price of natural gas fluctuates to remain competitive with other available natural gas supplies. These market indices are determined on a monthly basis. Each unit of commodity is considered a separate performance obligation; however, as consideration is variable, the Company utilizes the variable consideration allocation exception permitted under the standard to allocate the variable consideration to the specific units of commodity to which they relate.

The following table presents the disaggregation of the Company's natural gas, oil and NGL revenues for the three and nine months ended September 30, 2023 and 2022:


	Three Months Ended September 30, 2023						Nine Months Ended September 30, 2023
	Royalty Interest		Working Interest		Total		Royalty Interest		Working Interest		Total
Natural gas revenue	$	4,046,566	$	431,075	$	4,477,641	$	13,404,030	$	1,543,985	$	14,948,015
Oil revenue		3,409,201		360,536		3,769,737		9,501,963		1,409,903		10,911,866
NGL revenue		417,530		234,183		651,713		1,308,708		818,913		2,127,621
Natural gas, oil and NGL sales	$	7,873,297	$	1,025,794	$	8,899,091	$	24,214,701	$	3,772,801	$	27,987,502


	Three Months Ended September 30, 2022						Nine Months Ended September 30, 2022
	Royalty Interest		Working Interest		Total		Royalty Interest		Working Interest		Total
Natural gas revenue	$	11,558,049	$	4,031,399	$	15,589,448	$	25,636,594	$	11,441,033	$	37,077,627
Oil revenue		3,066,799		1,627,432		4,694,231		8,957,326		5,597,490		14,554,816
NGL revenue		786,696		757,659		1,544,355		2,170,033		2,370,991		4,541,024
Natural gas, oil and NGL sales	$	15,411,544	$	6,416,490	$	21,828,034	$	36,763,953	$	19,409,514	$	56,173,467

The Company records revenue in the month production is delivered to the purchaser. As a non-operator, the Company has limited visibility into the timing of when new wells start producing, and production statements may not be received for 30 to 90 days or more after the date production is delivered. As a result, the Company is required to estimate the amount of production delivered to the purchaser and the price that will be received for the sale of the product. The expected sales volumes and prices for these properties are estimated and recorded within the natural gas, oil and NGL sales receivables line item on the Company’s balance sheets. The difference between the Company's estimates and the actual amounts received for natural gas, oil and NGL sales is recorded in the quarter that payment is received from the third party. For the quarters ended September 30, 2023 and 2022, revenue recognized during the reporting period related to performance obligations satisfied in prior reporting periods for existing wells was considered a change in estimate.

As noted above, as a non-operator, there are instances when the Company is limited by the information operators provide. Through cash received on new wells, in the quarters ended September 30, 2023 and 2022, the Company identified several producing properties on its minerals that had production dates prior to the quarters ended September 30, 2023 and 2022. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the natural gas, oil and NGL sales on the Company’s Statements of Operations and on the Company’s Balance Sheets in natural gas, oil and NGL sales receivables.

In connection with obtaining more relevant information on new wells on Company acreage during the quarters ended September 30, 2023 and September 30, 2022, the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $570,630 of which $8,265 related to the production periods before January 1, 2023 and $562,365 related to the six months ended June 30, 2023, and the Company recorded a change in estimate for new wells to natural gas, oil and NGL sales totaling $943,654 of which $128,528 related to the production periods before January 1, 2022 and $815,126 related to the six months ended June 30, 2022.

The Company generates lease bonus revenue by leasing its mineral interests to exploration and production companies. A lease agreement represents the Company’s contract with a third party and generally conveys the rights to any natural gas, oil or NGL discovered, grants the Company a right to a specified royalty interest and requires that drilling and completion operations commence within a specified time period. Control is transferred to the lessee and the Company has satisfied its performance obligation when the lease agreement is executed, such that revenue is recognized when the lease bonus payment is received. The Company accounts for its lease bonuses as conveyances in accordance with the guidance set forth in ASC 932 (Extractive Activities—Oil and Gas), and upon leasing, it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral interests being treated as a gain. The excess of lease bonus above the mineral interests basis is shown in the lease bonuses and rental income line item on the Company’s Statements of Operations.

See Note 9 for discussion of the Company’s accounting for derivative contracts.