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 it recognizes the lease bonus as a cost recovery with any excess above its cost basis in the mineral being treated as a gain. The excess of lease bonus above the mineral 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.

Sales of natural gas, oil and NGL are recognized when production is sold to a purchaser and control has 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 six months ended March 31, 2021 and 2020:

	Three Months Ended March 31, 2021						Six Months Ended March 31, 2021
	Royalty Interest		Working Interest		Total		Royalty Interest		Working Interest		Total
Natural gas revenue	$	2,366,427	$	2,006,670	$	4,373,097	$	3,556,592	$	4,275,306	$	7,831,898
Oil revenue		1,717,069		1,427,852		3,144,921		2,814,021		2,671,966		5,485,987
NGL revenue		410,851		416,956		827,807		641,189		811,730		1,452,919
Natural gas, oil and NGL sales	$	4,494,347	$	3,851,478	$	8,345,825	$	7,011,802	$	7,759,002	$	14,770,804


	Three Months Ended March 31, 2020						Six Months Ended March 31, 2020
	Royalty Interest		Working Interest		Total		Royalty Interest		Working Interest		Total
Natural gas revenue	$	1,057,610	$	1,444,976	$	2,502,586	$	2,330,724	$	3,685,305	$	6,016,029
Oil revenue		2,548,648		1,641,643		4,190,291		3,961,859		3,693,944		7,655,803
NGL revenue		196,311		328,430		524,741		419,088		720,536		1,139,624
Natural gas, oil and NGL sales	$	3,802,569	$	3,415,049	$	7,217,618	$	6,711,671	$	8,099,785	$	14,811,456

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 three and six months ended March 31, 2021 and 2020, revenue recognized in these reporting periods related to performance obligations satisfied in prior reporting periods for existing wells was immaterial and 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 to us. Through cash received on new wells, in the 2021 second quarter, the Company identified several producing properties on our minerals that had production dates prior to the 2021 second quarter. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the second quarter 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, we have recorded a change in estimate for new wells to Natural gas, oil and NGL sales totaling $562,428 of which $246,405 related to the production periods before October 1, 2020, and $316,023 related to the first quarter of 2021.

Through the use of new technological platforms as well as cash received on new wells, in the 2020 second quarter, the Company identified several producing properties on our minerals that had production dates prior to the 2020 second quarter. Estimates of the natural gas and oil sales related to those properties were made and are reflected in the second quarter 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 identifying additional new wells on Company acreage, we have recorded a change in estimate for new wells to Natural gas, oil and NGL sales totaling $1,140,171 of which $651,681 related to the production periods before October 1, 2019, and $488,490 related to first quarter of 2020.