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Derivatives Hedges and Financial Instruments
3 Months Ended
Mar. 31, 2022
Derivative Instruments And Hedging Activities Disclosure [Abstract]  
Derivatives Hedges and Financial Instruments

6.  Derivatives, Hedges and Financial Instruments

Natural Gas Contracts

Periodically, we entered into certain forward natural gas contracts (“natural gas contracts”), which are accounted for on a mark-to-market basis. We are utilizing these natural gas contracts as economic hedges for risk management purposes but are not designated as hedging instruments. At March 31, 2022 and December 31, 2021, we had no outstanding natural gas contracts. When present the valuations of the natural gas contracts are classified as Level 2.

For the three months ended March 31, 2021, we recognized a gain of $2.7 million (includes a realized gain of $1.5 million), (none for the three months ended March 31, 2022). The gain is classified as a reduction of cost of sales.