FAIR VALUE MEASUREMENTS

The following table categorizes the assets and liabilities in the Consolidated Balance Sheets that are accounted for at fair value on a recurring basis in periods subsequent to initial recognition.



(Thousands)	Quoted Prices in Active Markets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Effects of Netting and Cash Margin Receivables /Payables			Total
As of September 30, 2013
Assets
U. S. Stock/Bond Mutual Funds	$	14,500	$	—	$	—	$	—		$	14,500
NYMEX/ICE natural gas contracts	4,333		330		—		(2,145		)	$	2,518
OTCBB natural gas contracts	—		232		—		(232		)	—
NYMEX gasoline and heating oil contracts	105		—		—		(105		)	$	—
Natural gas commodity contracts	—		1,129		150		(495		)	$	784
Total	$	18,938	$	1,691	$	150	$	(2,977	)	$	17,802
Liabilities
NYMEX/ICE natural gas contracts	$	3,687	$	321	$	—	$	(4,008	)	$	—
OTCBB natural gas contracts	—		5,443		—		(232		)	$	5,211
NYMEX gasoline and heating oil contracts	—		—		—		—			$	—
Natural gas commodity contracts	—		1,140		40		(495		)	$	685
Total	$	3,687	$	6,904	$	40	$	(4,735	)	$	5,896
As of September 30, 2012
Assets
U. S. Stock/Bond Mutual Funds	$	13,187	$	—	$	—	$	—		$	13,187
NYMEX/ICE natural gas contracts	7,411		994		—		(8,405		)	$	—
NYMEX gasoline and heating oil contracts	344		—		—		(344		)	$	—
Natural gas commodity contracts	—		3,060		113		(299		)	$	2,874
Total	$	20,942	$	4,054	$	113	$	(9,048	)	$	16,061
Liabilities
NYMEX/ICE natural gas contracts	$	12,253	$	1,891	$	—	$	(14,144	)	$	—
NYMEX gasoline and heating oil contracts	—		—		—		—			$	—
Natural gas commodity contracts	—		428		4		(299		)	$	133
Total	$	12,253	$	2,319	$	4	$	(14,443	)	$	133

The mutual funds included in Level 1 are valued based on exchange-quoted market prices of identical securities. Derivative instruments included in Level 1 are valued using quoted market prices on the NYMEX. Derivative instruments classified in Level 2 include physical commodity derivatives that are valued using Over The Counter Bulletin Board (OTCBB), broker, or dealer quotation services whose prices are derived principally from, or are corroborated by, observable market inputs. Also included in Level 2 are certain derivative instruments that have values that are similar to, and correlate with, quoted prices for exchange-traded instruments in active markets. Derivative instruments included in Level 3 are valued using generally unobservable inputs that are based upon the best information available and reflect management’s assumptions about how market participants would price the asset or liability. The Company’s policy is to recognize transfers between the levels of the fair value hierarchy, if any, as of the beginning of the interim reporting period in which circumstances change or events occur to cause the transfer. The following is a reconciliation of the Level 3 beginning and ending net derivative balances:



(Thousands)	2013			2012
Beginning of period	$	109		$	13
Settlements	(269		)	(54		)
Net losses related to derivatives not held at end of period	(99		)	(68		)
Net gains related to derivatives still held at end of period	369			218
End of period	$	110		$	109

The mutual funds are included in the Other investments line of the Consolidated Balance Sheets. Derivative assets and liabilities, including receivables and payables associated with cash margin requirements, are presented net in the Consolidated Balance Sheets when a legally enforceable netting agreement exists between the Company and the counterparty to a derivative contract. For additional information on derivative instruments, see Note 11, Derivative Instruments and Hedging Activities.