3,921
edits
Changes
SW: reorg
{{#badges: CoalSwarm | WaterEnergy |Navbar-Coaldata| WaterEnergy }}
'''CONSOL Energy''' is a Cannonsburg, Pennsylvania-based coal and gas company.
CONSOL is one of the biggest producers of coal in the U.S., with the majority of mines located in West Virginia. (Detailed information about its coal production can be found below at the CONSOL Coal Production section.) It is also involved in the controversial practice of [[fracking]] for methane gas in the Northeastern U.S. in the [[Marcellus Shale]] region.
An ABC News report noted that 2012 Presidential candidate [[Rick Santorum]] was a lobbyist for Consol.<ref>Matthew Rosk and Brian Moss, [http://abcnews.go.com/Blotter/rick-santorum-stealth-lobbyist/story?id=15298204#.TwnW-EqZNpw "Rick Santorum, 'Stealth Lobbyist'"] ABC News, January 5, 2012.</ref>
==Executive Summary==
CONSOL Energy is one of the biggest coal producers in the U.S. and also one of the fastest growing [[fracking]] companies in the [[Marcellus Shale]] region of the U.S. since it began drilling there in 2008. It owns 760,000 acres in the Marcellus area, concentrating on drilling in Pennsylvania and West Virginia.
It has been reporting annual revenues of between $3.7 billion and $5.4 billion a year over the past four years. Its CEO has an annual compensation of $12.87 million. CONSOL/CNX and its executives have also been very active in making partisan political donations, predominantly in favor of Republicans. This company, headquartered in Cannonsburg, Pennsylvania, has invested significant funds in elections in Pennsylvania and West Virginia, states with large shale deposits, and its PAC was a major spender in the election of the new governor of Pennsylvania, Tom Corbett.
===Lobbying===
An ABC News report noted that 2012 Presidential candidate [[Rick Santorum]] was a lobbyist for Consol.<ref>Matthew Rosk and Brian Moss, [http://abcnews.go.com/Blotter/rick-santorum-stealth-lobbyist/story?id=15298204#.TwnW-EqZNpw "Rick Santorum, 'Stealth Lobbyist'"] ABC News, January 5, 2012.</ref>
[http://www.opensecrets.org/lobby/clientsum.php?lname=CONSOL+Energy&year=2010 Open Secrets] reported that CONSOL spent $3.1 million on lobbying in 2010, and $870,000 in 2011, as of July. Tommy Johnson is the principle lobbyist for CONSOL.
At a 2012 debate, Republican presidential candidate [[Rick Santorum]] said he helped a local company fight government regulations on greenhouse gas emissions: "My grandfather was a coal miner. So I contacted a local coal company from my area. I said, look, I want to join you in that fight." The local company, according to ''Mother Jones,'' was Consol Energy, and Santorum was paid $142,500 from 2010 to August 2011 for his counseling work. Before that, Consol donated more than $73,800 to Santorum during his time as a legislator. In 2006, Santorum authored a provision for a tax bill that would have created a tax credit for [[synfuel]], which included [[coalbed methane]], of which Consol is a "leading producer" of the product. Former Santorum staffers Tommy Johnson and Kevin Roy became lobbyists for Consol after he lost his Senate seat.<ref>Kate Sheppard and Adam Serwer, [http://motherjones.com/politics/2012/01/rick-santorum-coal-buddies "Rick Santorum's Big Coal Buddies"] Mother Jones, January 11, 2012.</ref>
==Revenue and Profits==
In March 2009, William Bruno, a retired 30-year veteran of CONSOL energy, released his book, [http://www.thekingrat.com/bio.html "The King Rat and His Court: Lessons in Corporate Greed].
==Coal exports==
* [[Spring Branch 3 Mine]] is a proposed surface coal mine by [[CONSOL Energy]] for Mingo County, West Virginia.<ref>[http://water.epa.gov/lawsregs/guidance/wetlands/lrh-2009-00428.cfm "Surface Coal Mining Activities Enhanced Coordination Procedures - LRH-2009-00428"] EPA, accessed February 2011.</ref> In February 2011, CONSOL Energy reached a deal with the U.S. Environmental Protection Agency for a [[Clean Water Act]] Section 404 permit covering the company’s proposed mine.<ref name=kwj>Ken Ward Jr., [http://blogs.wvgazette.com/coaltattoo/2011/03/01/consol-makes-deal-gets-epa-permit/ "CONSOL makes deal, gets EPA permit approval"] Coal Tattoo, March 1, 2011.</ref>
==Coal legal Legal and regulatory issues==
===2011: Consol to pay over $200 million in Clean Water violations===
In December 2009, CONSOL announced it was idling two mines in West Virginia - the [[AMVEST-Terry Eagle|Little Eagle Coal Co. mine]] and the [[AMVEST-Fola Complex|Fola Coal Co. mine]]. In a lawsuit brought by the [[Ohio Valley Environmental Coalition]] (OVEC), a federal judge suspended CONSOL's Clean Water Act permit for part of the operations. Without these operations, CONSOL said it was unable to meet the requirements of its coal sales contracts.<ref>[http://www.reuters.com/article/idUSN0815794120091208?type=marketsNews "Consol idling two mines, blames environmentalists,"] Reuters, December 8, 2009.</ref> On December 28, 2009, U.S. District Judge Robert Chambers changed his ruling to allow CONSOL to continue mining at the sites while the legal dispute over the company's fill permits continued..<ref>[http://abcnews.go.com/Business/wireStory?id=9447529 "Fed. Judge Allows Coal Company to Continue Mining,"] Associated Press, December 30, 2009.</ref>
The settlement covers alleged violations at six Consol operations over the past four years. The government cited chronic problems with chloride discharges into the Monongahela watershed from the Blacksville, Loveridge, Robinson Run and Four States mines, and into the Ohio River from the Shoemaker and Windsor mines.<ref name=ttl/>
"Legal claims were filed in June in U.S. District Court in Abingdon, Virginia on behalf of two landowners by attorneys seeking class action status to represent thousands of property holders in six southwest counties" in 2010. <ref>[http://www.pittsburghlive.com/x/pittsburghtrib/news/s_686677.html "Pittsburgh Tribune, Lawsuit against EQT, Consol seeks billions for Virginia gas drilling"], Pittsburgh Tribune.com 2010</ref> [[EQT]] Corp. and Consol Energy are being sued for allegedly drilling thousands of wells in southwest Virginia's coalbed to remove methane gas without obtaining legal claim to the resource from the landowners, contending the mineral rights were held by the coal companies. "An attorney for the landowners estimated the companies realized billions of dollars from southwest Virginia drilling while the escrow account totals about $26 million from 800 individual accounts. In Buchanan County alone one year, Consol's gas subsidiary, CNX Gas Co., realized $1 billion in revenues from natural gas drilling."<ref>[http://www.pittsburghlive.com/x/pittsburghtrib/news/s_686677.html "Pittsburgh Tribune, Lawsuit against EQT, Consol seeks billions for Virginia gas drilling"], Pittsburgh Tribune.com 2010</ref> Landowners are asking for billions in back royalty payments.
"A CXG investor filed a lawsuit in Delaware State Court on behalf of current investors in CNX Gas Corporation who purchased their CXG shares before March 21, 2010 over an alleged breach of their fiduciary duties by CONSOL Energy, Inc. According to the complaint, the plaintiff alleges that CONSOL Energy, as the controlling shareholder of CNX Gas Corp, seeks to take over the remaining outstanding CXG shares through an unfair process and for an unfair price."<ref>[http://www.prlog.org/10606748-cnx-gas-corporation-investors-file-lawsuit-against-consol-energy-inc.html "CNX Gas Corporation investors file lawsuit against CONSOL Energy, Inc"], PR Log.com</ref>
A Mt. Pleasant, Pennsylvania family filed a lawsuit against Consol Energy for underpayment of methane gas royalties. They are seeking class-action status, which could include more than 1,000 plaintiffs. "The plaintiffs said they entered into separate lease agreements with the company under which they would receive royalties based on the amount of gas collected each month from their land. The company is accused of breaching the leases by taking "volumetric deductions" and calculating royalties using a price that was less than the price paid to the companies."<ref>[http://www.pittsburghlive.com/x/pittsburghtrib/news/westmoreland/s_711492.html "Pittsburgh Tribune, Mt. Pleasant couple sue Consol over gas royalties"], Pittsburgh Tribune.com 2010</ref> The family leased oil and gas rights to [[Dominion]] Exploration & Production Inc. for property in Fayette County, Pennsylvania. Consol acquired Dominion's rights to the lease in 2010.
Consol has paid $29,428,489 in coal mining fines between 2000 - 2009. 20,899 violations and 23 deaths have also taken place in CONSOL mines since 2000, tying its fatality record with that of [[Massey Energy]].<ref>Jacob Fenton, Giovanni Russonello, [http://investigativereportingworkshop.org/investigations/coal-truth/htmlmulti/coal-mine-deaths-fatalities-fines-and-violations/ "Coal mine deaths, fines and significant violations for the 10 largest coal mine controllers, 2000-2009."], Nov. 22, 2010. InvestigativeReportingWorkshop.org</ref>
Consol Energy was cited for a violation by the Mine Safety and Health Administration that contributed to the death of a West Virginia coal miner in 2010. The MSHA report stated "Consol failed to adequately support a section of a rock wall that fell on miner Jesse Adkins at its Loveridge No. 22 mine July 29. The accident occurred while Consol was mining outside the coal seam through an area of solid rock. Consol didn't install bolts to strengthen rock walls in the area. Adkins, 39, was pinned between a piece of heavy equipment and a 23-foot-long, 4-foot wide chunk of rock at the Marion County mine."<ref>[http://w3.nexis.com:80/new/results/docview/docview.do?docLinkInd=true&risb=21_T11371017308&format=GNBFI&sort=BOOLEAN&startDocNo=1&resultsUrlKey=29_T11371017311&cisb=22_T11371017310&treeMax=true&treeWidth=0&csi=304481&docNo=6 "Feds cite Consol over fatal W.Va. mine accident"], Nexis Search</ref> MSHA hasn't assessed a fine for the violation yet.
In September 2010, several thousand fish washed up along the banks of Dunkard Creek in Monongalia County, West Virginia. "Environmental officials in Pennsylvania and at the federal Environmental Protection Agency say mining discharges from Consol Energy’s Blacksville No. 2 mine created the conditions for the algae to bloom."<ref>[http://www.wvpubcast.org/newsarticle.aspx?id=14504 "Dunkard Creek fish kill topic at Monongahela River Summit"], West Virginia News Cast.org</ref>
In fracking violations, the [http://www.dep.state.pa.us/dep/deputate/minres/oilgas/OGInspectionsViolations/OGInspviol.htm Pennsylvania Department of Environmental Protection Web site] shows that CONSOL/CNX Energy has 9 violations since 2008. Many were health and environmental safety violations. Here is a list of the most frequent ones: "Polluting waters by allowing discharge into waters of the Commonwealth"; "Failure to properly control or dispose of industrial or residual waste to prevent pollution of waters"; "Potential for polluting substances reaching waters".
"The Environmental Protection Agency fined CNX $157,500 in 2010 for violations of the Safe Drinking Water Act stemming from improper use and faulty reporting at an underground injection well in Greene County facility for fracking fluids in Greene County. Consol uses the well to dispose of wastewater from its methane well drilling operations. CNX also accepted at least 100 truckloads of wastewater with total dissolved solids levels “significantly higher” than its federal permit allowed. The move also requires CNX to close down that disposal well."<ref>[http://dothemountain.wordpress.com/2009/09/25/is-the-morris-run-injection-wastewater-well-at-fault-for-dunkard-creek-fish-kill/ "Is the Morris Run Injection Wastewater Well at Fault for Dunkard Creek Fish Kill?"], Do the Mountain Blog</ref><ref>[http://sanfordnyinfo.blogspot.com/2010/10/brief-stats-on-gas-companies-drilling.html "SANFORDGAS.INFO"]</ref>
====Water pollution at Blacksville Mine====
Activists with DC Rising Tide interrupted an industry conference to denounce coal-to-liquids technologies. The protesters stood in the audience and gave loud speeches refuting the statements of executives from [[Chevron]], CONSOL Energy, [[World Coal Institute]], and World Petroleum Council. Displaying banners including "Coal kills" and "Renewable energy now," the activists called for an end to fossil fuels and for adoption of clean, renewable energy sources.<ref>[http://itsgettinghotinhere.org/2009/03/26/dc-rising-tide-disrupts-coal-to-liquids-conference/ "DC Rising Tide Disrupts Coal-to-Liquids Conference,"] It's Getting Hot in Here, March 26, 2009.</ref>
==ControversiesOther controversies==
On March 19, 2009, William Bruno, a retired 30-year veteran of CONSOL energy,<ref>http://phx.corporate-ir.net/phoenix.zhtml?c=66439&p=irol-newsArticle&ID=534175&highlight=%20</ref> released a book entitled, [http://www.thekingrat.com/bio.html "The King Rat and His Court: Lessons in Corporate Greed."]
Consol Energy provided the [[National Rifle Association]] access to its [[Blacksville 2 Mine]] in West Virginia to film a television advertisement with an anti-[[Barack Obama]] message.<ref>{{cite news| url=http://www.usatoday.com/news/politics/2008-09-22-589613148_x.htm?loc=interstitialskipcse | work=USA Today | title=UMW plans stoppage over NRA filming | date=2008-09-22 | accessdate=2010-04-30 | first=Tim | last=Huber}}</ref> 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 2 coal mine.<ref>{{cite news| url=http://thecaucus.blogs.nytimes.com/2008/10/02/mine-workers-protest-anti-obama-ad/?scp=1&sq=Obama%20campaign&st=cse | work=The New York Times | title=Mine Workers Protest Anti-Obama Ad | first=Steven | last=Greenhouse | date=2008-10-02 | accessdate=2010-04-30}}</ref>
==Methane Gas Drilling (Fracking)==
"CONSOL's Gas Division was formed in the first half of 2010 when it acquired the remaining 16.7% outstanding shares held by outside stockholders of CNX Gas Corporation, a former CONSOL spin-off company, as well as all of the exploration and production business of [[Dominion Resources]] Inc., located in the Appalachian Basin."<ref>[http://www.waytogoto.com/wiki/index.php/CNX_Gas_Corporation "WikiMarcellus CONSOL Information"]</ref> In June, 2010, Consol Energy completed its acquisition of CNX Gas shares as part of Consol's plan to expand its fracking business.<ref>[http://www.businessweek.com/ap/financialnews/D9G2GKDG0.htm "Bloomerg Business, Consol Energy completes acquisition of CNX Gas"], Bloomberg Business Week 2010</ref> CNX is run as the methane gas subsidiary of CONSOL Energy. CNX has over 230,000 acres in the Marcellus Shale area.<ref>[http://www.upstreamonline.com/live/article184493.ece "CNX adds to Marcellus stash"], UpStream Online.com</ref> On March 15, 2010, CONSOL announced the purchase of [[Dominion|Dominion’s]] Exploration and Production business for $3.475 billion.<ref>[http://dom.mediaroom.com/index.php?s=43&item=870 “Dominion agrees to sell its Appalachian E&P business for $3.475 billion”], Dominion press release, March 15, 2010.</ref> The sale included 193 employees currently working for Dominion.<ref>[http://phx.corporate-ir.net/phoenix.zhtml?c=66439&p=irol-newsArticle&ID=1402230&highlight= “CONSOL Energy to acquire Dominion’s Appalachian E&P business for $3.475 billion in cash”,] CONSOL Energy press release, March 15, 2010.</ref> CONSOL is looking for $4 billion to fund the purchase and further develop the operations. [[Bank of America]], [[Merrill Lynch]] and Stifel, Nicolaus & Company were financial advisors for CONSOL, while [[Barclays]] Capital Inc. advised Dominion. Legal counsel for CONSOL came from Wachtell, Lipton, Rosen & Katz and [[Akin Gump]] Strauss Hauer & Field LLP. Baker Botts LLP served as Dominion’s legal adviser.
Though lauded as an environmentally-friendly alternative to coal, fracking for gas has been linked to depleting drinking water resources of local communities and polluting the wells of the people living around drill sites. According to a 2010 article in Vanity Fair, "as use of the technique (fracking) has spread, it has been followed by incidents of water contamination and environmental degradation, and even devastating health problems." <ref>[http://www.vanityfair.com/business/features/2010/06/fracking-in-pennsylvania-201006 "A Colossal Fracking Mess"], Vanity Fair 2010.</ref> And according to data released to the EPA, [[Halliburton]], a major supplier of fracking fluid, admitted using 807,000 gallons of diesel-based chemicals in its fluids, in violation of an agreement drillers had with the EPA.<ref>[http://motherjones.com/blue-marble/2010/11/halliburton-fracking-epa "Fracking Halliburton"], Mother Jones.</ref>
===Front Groups===
Consul Energy is a supporter of several special interest groups that push for expanded drilling rights and limited or no regulation of [[fracking]].
Consol is involved in the following front groups, who donate to pro-fracking candidates and lobbyists: [[Marcellus Shale Coalition]],<ref>[http://www.consolenergy.com/Business/CNXGas.aspx "Natural gas exploration, development and production"], ConsolEnergy.com</ref> Energy In Depth,<ref>[http://www.energyindepth.org/about/ "Energy In Depth Members"]</ref> '''Nicholas DeIuliis''' of CNX is on the Board of Directors for the Independent Petroleum Association of America (IPAA),<ref>[http://www.ipaa.org/Blog/?p=630 "IPAA Members"]</ref> '''Gary Slagel''', a Chairman for CNX Gas is on the Executive Committee for The Pennsylvania Independent Oil and Gas Association (PIOGA),<ref>[http://www.pioga.org/about/boards-committees/ "PIOGA Member"]</ref> '''Gary Slagel''' and VP of Legal '''Kevin West''' are both on the Board of Directors for the West Virginia Oil and Natural Gas Association<ref>[http://www.wvonga.com/Default.aspx?&gv537__gvac=1&gv537__gvpi=0&tabid=162 "WVONGA Board Members"]</ref> and the Independent Oil and Gas Association of West Virginia.<ref>[http://www.iogawv.com/ "Independent Oil and Gas Association of West Virginia"]</ref>
==Coal Plants Sponsored by CONSOL==
* [[National Mining Association]]<ref>National Mining Association, [http://www.nma.org/about/membership_dir.asp#anchor_C "NMA Membership"], National Mining Association website, accessed July 2011.</ref>
* [[U.S. Chamber of Commerce]]; [[Nicholas J. DeIuliis]], the President of CONSOL Energy, is a member of the Board of Directors.<ref>U.S. Chamber of Commerce, [http://www.uschamber.com/about/board/board-directors "Board of Directors"], U.S. Chamber of Commerce website, accessed July 2011.</ref>
==Contact Information==