7. Revenue Recognition

Revenues are comprised primarily of sales of natural gas along with the revenue generated from the Company’s ownership interest in the gas gathering system in the Auburn field in Northeastern Pennsylvania. Also included to a much lesser degree is natural gas, crude oil and NGLs from Oklahoma.

Upon adoption, we did not make any changes to our revenue reporting based on ASC 606 (Note 3).

The following table details revenue for the years ended December 31, 2019 and 2018:


	Year Ended December 31,
	2019		2018
Operating revenue
Natural gas	$	16,945,302	$	19,031,422
Natural gas liquids		110,394		295,142
Oil and condensate		314,267		376,079
Gathering and compression fees		9,320,373		9,981,562
Total operating revenue	$	26,690,336	$	29,684,205

Revenue is recorded in the month when contractual performance obligations are satisfied. However, settlement statements from the purchasers, and the related cash consideration are received within 30 days for natural gas, NGLs, oil, or condensate sold, and 60 days for gas gathering revenues. As a result, the Company must estimate the amount of production delivered to the customer and the consideration that will ultimately be received for sale of the natural gas, NGLs, oil, or condensate. Estimated revenue due to the Company is recorded within the receivables line item on the accompanying consolidated balance sheets until payment is received. The accounts receivable balances from contracts with customers within the accompanying balance sheets as of December 31, 2019 and 2018 were $2.4 million and $3.0 million, respectively.

The settlement statement from the operator of the Auburn GGS is received two months after transmission and compression has occurred. As a result, the Company must estimate the amount of production that was transmitted and compressed within the system. The accounts receivable balances from the operator of the Auburn GGS within the accompanying balance sheets as of December 31, 2019 and 2018 were $1.9 million and nil, respectively. The receivable balance was nil at December 31, 2018 as the Company had previously been overpaid by the operator.