Industry Feature CONSOL 2 Fall 2006
<strong>WVU</strong> ENGINEERING AND MINERAL RESOURCES Volume 2 Issue 2 CONSOL Energy: CONTINUING A TRADITION OF LEADERSHIP By Peter B. Lilly, Chief Operating Officer, CONSOL Energy Inc. Peter B. Lilly, Chief Operating Officer, CONSOL Energy Inc. West Virginia is my home state, as I was born and raised in Beckley. It is also the state in which CONSOL Energy has continuously operated longer than in any other. Founded in 1860, CONSOL Energy’s predecessor – Consolidation Coal Company – acquired the coal and property holdings <strong>of</strong> Fairmont Coal Company in 1903, and began its long association with West Virginia. In that first year, the company produced 3.8 million tons <strong>of</strong> coal from 37 mines. Today, CONSOL Energy and its subsidiary companies account for more than 30 million tons <strong>of</strong> coal from eight mining complexes in West Virginia – making our company the state’s second largest producer, with about 20 percent <strong>of</strong> the state’s annual coal production and nearly 2,800 employees in the state. Nationally, CONSOL Energy is the largest producer <strong>of</strong> high- Btu, bituminous coal in the United States, with more than 7,200 employees mining nearly 70 million tons <strong>of</strong> coal from 17 mining complexes in six states: Kentucky, Ohio, Pennsylvania, Utah, Virginia and, <strong>of</strong> course, West Virginia. Our company operates more longwall mining systems than any other U.S. producer. And, through our publicly traded subsidiary, CNX Gas Corporation, CONSOL Energy is one <strong>of</strong> the nation’s largest producers <strong>of</strong> coalbed methane. In addition to coal and gas production, CONSOL Energy has various subsidiaries that support its business activities. CNX Land Resources Inc. develops property held by the company. Another subsidiary, Fairmont Supply Company, is a distributor <strong>of</strong> mining and industrial supplies. We also maintain the largest private research facilities devoted exclusively to coal and energy utilization and production, located in South Park, Pa. Computers and fiber-optic equipment are used to monitor all aspects <strong>of</strong> a modern underground mine, from the producing coal face to the loadout. Here employees use computers to oversee the operation <strong>of</strong> a CONSOL preparation plant in West Virginia. CONSOL Energy’s terminal in the Port <strong>of</strong> Baltimore provides coal transshipment from rail to ocean-sized vessels, and our river operations include 18 towboats and 650 barges with the capacity to ship 24 million tons <strong>of</strong> coal annually. Obviously, much has changed since the early years <strong>of</strong> CONSOL more than 146 years ago. In fact, much has changed in the entire coal and energy industries during my own career, which began in the late 1970s. Today’s modern mining equipment is not only larger and more powerful; it is also technologically sophisticated. Computer driven and remotely controlled, current mining equipment puts into the hands <strong>of</strong> today’s coal miners and mine managers the tools to be more productive than we could have dreamed about 25 years ago. » 3