Production of natural gas liquids is classified as follows:

• Contract Production. Natural gas liquids accruing to a company because of its ownership of liquids extraction facilities that it uses to extract liquids from gas belonging to others, thereby earning a portion of the resultant liquids.
• Leasehold Production. Natural gas liquids produced, extracted, and credited to a company's interest.
• Contract Reserves. Natural gas liquid reserves corresponding to the contract production defined above.
• Leasehold Reserves. Natural gas liquid reserves corresponding to leasehold production defined above.