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Physical settlement is OK. In the worst case scenario, you get a notice that you have 10,000 mmBtu of natural gas held at an oil depot in Louisiana in your name, and an invoice for storage costs. If you messed up, you can still break the contract at a price. And if you forgot about it altogether, they will still eventually sell the natural gas to repay you less the storage costs.
Difficult part is if you *really* want to take delivery.
The first thing I'd watch out about is that it is tempting to associate the natural gas market with the crude oil market, as you would imagine fundamental relationships exist between them. However, the economic drivers of both markets are very different, because the US consumption is completely met by North American production. If you are using any crude oil-based indicators as an exogenous factor in your trading models, then you could be finding completely spurious relationships.
