| Type | Public |
|---|---|
| Traded as | NYSE: CNX S&P 500 Component |
| Industry | Coal mining, Natural Gas Production |
| Founded | 1864 |
| Headquarters | Cecil Township, Pennsylvania, United States |
| Key people | J. Brett Harvey Chairman & CEO William J. Lyons CFO & Executive VP Nicholas J. DeIuliis President Robert F. Pusateri Executive VP Robert P. King Executive VP P. Jerome Richey, Secretary & Executive VP[1] |
| Products | Coal Natural gas Timber Electric power |
| Services | Transportation |
| Revenue | US$5.236 billion (2010) [2] |
| Employees | 8,827[2] |
| Subsidiaries | Fairmont Supply |
| Website | www.consolenergy.com |
Consol Energy Inc. (kuhn-sol), stylized as CONSOL Energy, is an American energy company with interests in coal and natural gas production headquartered in the suburb of Cecil Township, in the Southpointe complex, just outside of Pittsburgh, Pennsylvania.[3] Consol Energy is the leading producer of high-BTU bituminous coal in the United States and the U.S.'s largest underground coal mining company.[4] As of 2011, Consol had 4.4 billion tons of proven reserves, mainly in northern and central Appalachia and produced nearly 64 million tons of coal in 2010. The company has natural gas reserves totaling 3.7 trillion cu. ft. as of 2011 and employs more than 8,800 people.[4]
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The Consolidation Coal Company was established in 1864 and headquartered in Cumberland, Maryland, for the first 85 years (1864-1945) where the company became the largest bituminous coal company in the eastern United States.
The company's origin began in the early 19th century when a 14-foot (4.3 m) thick seam of bituminous coal referred to historically as "The Big Vein" was discovered in the Georges Creek Valley of Western Maryland. This coal region became famous during the industrial age for its clean-burning low sulfur content that made it ideal for powering ocean steamers, river boats, locomotives, and steam mills, and machines shops. However, coal production did not become important until the Baltimore and Ohio Railroad reached Cumberland in 1842. In 1850, the opening of the Chesapeake and Ohio Canal from Cumberland to Washington, D.C. provided another route for coal shipments. Over 21 million short tons of coal were transported on the canal before it closed in 1923. By 1850, almost 30 coal companies were mining the Georges Creek Valley, producing over 60 million tons of coal between 1854 to 1891. The Consolidated Coal Company was formed as a consolidation of the many coal mine and railroad companies of Western Maryland founded during the rush years. The Cumberland and Pennsylvania Railroad was owned by the Consolidation Coal Company.
Western Maryland's coal production rose about 1 million short tons in 1865, exceeded 4 million short tons by the turn of the century, and reached an all time high of about 6 million short tons in 1907. A small amount of the coal production in the early 1900s was premium smithing coal (as in blacksmith) that was specially processed and delivered in boxcars to customers throughout the United States and Canada.
Sharp declines in coal demand after 1920, reflecting downturns in the economy, recurrent labor problems and the extensive replacement of coal by petroleum, led to further consolidations and mergers in the coal industry. In 1945, Consolidated Coal Company merged with the Pittsburgh Coal Company, and the corporate headquarters was moved from Cumberland to Pittsburgh. In 1966 the Continental Oil Company (Conoco) purchased the assets of Consolidation Coal Company, and in 1981 DuPont purchased Conoco. The Consolidation Coal Company continued to exist as a subsidiary of Dupont until 1998 when the subsidiary was purchased from Dupont by Rheinbraun U.S.A. GmbH. As of 1999 the company has renamed itself to Consol Energy, reflecting the diversification of the business into other forms of energy.
Through its subsidiary, CNX Coal, the corporation manages coal mining operations, with bituminous coal mining complexes in six states. CNX Gas extracts methane gas for home use in the Appalachian and Illinois basins, and it is one of the nation's largest natural gas suppliers. CNX Land manages over 430,000 acres (170,000 ha) of forest land in the US and Canada, using the land both for timber production and energy use. CNX Ventures manages several East Coast power stations, while CNX Services provides transportation for raw materials.
Consol Energy also operates 22 boats and over 620 barges for transporting coal.[5]
Consol Energy has annual revenues of $102.2 billion. Customers include electric utilities and steel mills; Allegheny Energy is its largest customer.[6]
Consol Energy entered the S&P 500 on June 28, 2006, replacing Knight-Ridder.[7]
From 2005-2010, Consol Energy donated more than $45,000[8] to now acting governor, Tom Corbett, which some believe was a payoff in exchange for no severance tax and the repeal of environmental policies created to protect the environment from natural gas drilling[9].
In September 2009, several thousand fish were killed in Dunkard Creek, Monongalia County, West Virginia. After an investigation, the Environmental Protection Agency found that mining discharges from Consol Energy's Blacksville No. 2 mine created the conditions for a golden algae bloom, killing the fish.[10]
At the company's annual shareholder meeting on May 4, 2010, CONSOL Energy CEO, J. Brett Harvey, announced that CONSOL Energy is planning to develop mine water resources, stating, "I'd love to be in the position where I am selling water to all our competitors." With CNX and CXG's planned drilling expansion in Marcellus Shale, the use, treatment and disposal of water used in the drilling process is generating more controversy.[11]
Pennsylvania DEP and Environmentalists are charging that extremely salty well wastewater pollution in creeks and soil are the outcome of Marcellus Shale drilling and that, without state and federal regulation, the Dunkard Creek fish kill will be considered minor in comparison to the widespread environmental destruction on the horizon.[12]
On March 19, 2009, William Bruno, a retired 30-year veteran of CONSOL energy,[13] released his book,[14] "The King Rat and His Court; Lessons in Corporate Greed.". Although the book does not specifically name a company or people, controversy has arisen due to the fact that Mr. Bruno credits his 30 years of experience working in corporate offices and boardrooms in his author bio.
Consol Energy provided the National Rifle Association access to its Blacksville No. 2 coal mine in West Virginia to film a television advertisement with an anti-Barack Obama message.[15] The National Rifle Association intended to ask miners the question "How do you feel about having your Second Amendment rights taken away if Obama becomes president." Word spread among pro-Obama miners who contacted their union, the United Mine Workers of America, resulting in 440 miners taking the day off in a contract-sanctioned protest, and halted production at CONSOL's Blacksville No. 2 coal mine.[16]
Stephen G. Young, a vice president at CONSOL, gave $2,000 to Sen. Robert Byrd.[17]
CONSOL Energy is second only to Peabody Energy in the amount of contributions to lobbying in 2010.[18] In the first quarter of 2010, Consol has spent $1.02 million dollars influencing the U.S. House of Representatives and Congress,[19] on issues relating to the coal mining industry. In 2009, total spending for lobbying by Consol exceeded $3 million,[20] and in 2008 CONSOL Energy contributed more $4.0 million to lobbying.[21] Prior to 2008, Consol Energy's spending for lobbying activity was $0 – $90,000 annually.[22]
Significant portions of lobbying funds from CONSOL Energy have been directed against the "Employee Free Choice Act,[23]" which some labor groups use to claim CONSOL is "Anti-Union." [24]
Consol Energy has put its name to two sports facilities in its Pittsburgh-area home:
It is estimated that CONSOL Energy won the bid for naming rights at a cost between $2.0 - $4.0 million per year, for 21 years.[27]
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