CONSOL Energy Receives Favorable Ruling on its Fola Operations
December 29 2009 - 1:21PM
PR Newswire (US)
Judge Chambers Grants CONSOL Energy Request to Continue Mining
PITTSBURGH, Dec. 29 /PRNewswire-FirstCall/ -- CONSOL Energy Inc.
(NYSE: CNX) has received notice that Judge Robert C. Chambers, of
the United States District Court for the Southern District of West
Virginia, Huntington Division, has ruled that CONSOL's Fola
Operations near Bickmore, W.Va., can continue to operate past the
judge's previously imposed deadline of January 23, 2010. Judge
Chambers yesterday granted CONSOL subsidiary Fola Coal Company's
motion for judicial relief of his previous ruling of November 24,
2009, that found deficiencies in the permit notification process by
the U.S. Army Corp of Engineers. This resulted in the setting aside
of a previously approved permit for Fola that had been issued in
January, 2008. But at that same time, Judge Chambers also stayed
his November 24th ruling for 60 days -- until January 23, 2010 --
to give Fola an opportunity to appeal or seek other relief. "We are
very pleased by Judge Chambers' ruling, which is welcome news to
our nearly 500 Fola employees and their families, especially during
this Holiday Season," said Nicholas J. DeIuliis, CONSOL Energy
executive vice president and chief operating officer. "This ruling
will allow us to re-focus our attention on operating the Fola
Complex safely, efficiently and in an environmentally sound
manner." Due to the judge's November ruling, Fola Coal Company
subsequently issued a WARN notice on December 8 to its
approximately 500 employees at the Fola operations, that mining
operations would cease on January 23, 2010 and layoffs would begin
on February 7, 2010. Approximately 104 workers at the Little Eagle
Mine and 378 at Fola's Ike Fork Mine would have been affected by
the layoff. Fola's motion which was filed on December 17th sought
Judge Chambers' approval to continue operating in six valley fills
that were already being affected by surface mining operations under
previous approvals issued from the court. These surface mining
activities were allowed to continue by Judge Chambers during the
litigation process in several orders issued since March 2008.
Monday's order by Judge Chambers allows Fola to continue using
these six valley fill areas. "We also want to give our sincere
thanks to Governor Joe Manchin and his administration, along with
U.S. Senator Jay Rockefeller, U.S. Reps. Nick Rahall and Shelley
Moore Capito for their efforts to keep Fola operating and to
preserve jobs in central West Virginia," noted DeIuliis. "Most
especially, we want to thank the employees and management of the
Fola Operations for their diligence and support in this effort."
CONSOL Energy Inc., a high-Btu bituminous coal and natural gas
company, is a member of the Standard & Poor's 500 Equity Index
and the Fortune 500. It has 12 bituminous coal mining complexes in
six states and reports proven and probable coal reserves of 4.5
billion tons. It is also a majority owner of CNX Gas Corporation, a
leading Appalachian gas producer, with proved reserves of over 1.4
trillion cubic feet. Additional information about CONSOL Energy can
be found at its web site: http://www.consolenergy.com/.
Forward-Looking Statements Various statements in this document,
including those that express a belief, expectation, or intention,
as well as those that are not statements of historical fact, are
forward-looking statements (as defined in Section 21E of the
Securities Exchange Act of 1934 and the Private Securities
Litigation Reform Act of 1995). The forward-looking statements may
include projections and estimates concerning the timing and success
of specific projects, our future production, revenues, income and
capital spending. When we use the words "believe," "intend,"
"expect," "may," "should," "anticipate," "could," "would," "will,"
"estimate," "plan," "predict," "project," or their negatives, or
other similar expressions, the statements which include those words
are usually forward-looking statements. When we describe strategy
that involves risks or uncertainties, we are making forward-looking
statements. The forward-looking statements in this document speak
only as of the date of this document; we disclaim any obligation to
update these statements unless required by securities law, and we
caution you not to rely on them unduly. We have based these
forward-looking statements on our current expectations and
assumptions about future events. While our management considers
these expectations and assumptions to be reasonable, they are
inherently subject to significant business, economic, competitive,
regulatory and other risks, contingencies and uncertainties, most
of which are difficult to predict and many of which are beyond our
control. These risks, uncertainties and contingencies include, but
are not limited to: the deteriorating economic conditions; an
extended decline in prices we receive for our coal and gas
affecting our operating results and cash flows; reliance on
customers honoring existing contracts, extending existing contracts
or entering into new long-term contracts for coal; reliance on
major customers; our inability to collect payments from customers
if their creditworthiness declines; the disruption of rail, barge
and other systems that deliver our coal; a loss of our competitive
position because of the competitive nature of the coal industry and
the gas industry, or a loss of our competitive position because of
overcapacity in these industries impairing our profitability; our
inability to hire qualified people to meet replacement or expansion
needs; coal users switching to other fuels in order to comply with
various environmental standards related to coal combustion; the
inability to produce a sufficient amount of coal to fulfill our
customers' requirements which could result in our customers
initiating claims against us; foreign currency fluctuations could
adversely affect the competitiveness of our coal abroad; the risks
inherent in coal mining being subject to unexpected disruptions,
including geological conditions, equipment failure, timing of
completion of significant construction or repair of equipment,
fires, accidents and weather conditions which could impact
financial results; increases in the price of commodities used in
our mining operations could impact our cost of production;
obtaining, maintaining and renewing governmental permits and
approvals for our operations; the effects of proposals to regulate
greenhouse gas emissions; the effects of government regulation; the
effects of stringent federal and state employee health and safety
regulations; the effects of mine closing, reclamation and certain
other liabilities; the effects of subsidence from longwall mining
operations on surface structures, water supplies, streams and
surface land; uncertainties in estimating our economically
recoverable coal and gas reserves; the outcomes of various legal
proceedings, which proceedings are more fully described in our
reports filed under the Securities Exchange Act of 1934; increased
exposure to employee related long-term liabilities; minimum funding
requirements by the Pension Protection Act of 2006 (the Pension
Act) coupled with the significant investment and plan asset losses
suffered during the current economic decline has exposed us to
making additional required cash contributions to fund the pension
benefit plans which we sponsor and the multi-employer pension
benefit plans in which we participate; lump sum payments made to
retiring salaried employees pursuant to our defined benefit pension
plan; our ability to comply with laws or regulations requiring that
we obtain surety bonds for workers' compensation and other
statutory requirements; acquisitions that we recently have made or
may make in the future including the accuracy of our assessment of
the acquired businesses and their risks, achieving any anticipated
synergies, integrating the acquisitions and unanticipated changes
that could affect assumptions we may have made; the anti-takeover
effects of our rights plan could prevent a change of control; risks
in exploring for and producing gas; new gas development projects
and exploration for gas in areas where we have little or no proven
gas reserves; the disruption of pipeline systems which deliver our
gas; the availability of field services, equipment and personnel
for drilling and producing gas; replacing our natural gas reserves
which if not replaced will cause our gas reserves and gas
production to decline; costs associated with perfecting title for
gas rights in some of our properties; location of a vast majority
of our gas producing properties in three counties in southwestern
Virginia, making us vulnerable to risks associated with having our
gas production concentrated in one area; other persons could have
ownership rights in our advanced gas extraction techniques which
could force us to cease using those techniques or pay royalties;
our ability to acquire water supplies needed for drilling, or our
ability to dispose of water used or removed from strata at a
reasonable cost and within applicable environmental rules; the
coalbeds and other strata from which we produce methane gas
frequently contain impurities that may hamper production; the
enactment of Pennsylvania severance tax on natural gas may impact
results of existing operations and impact the economic viability of
exploiting new gas drilling and production opportunities in
Pennsylvania; our hedging activities may prevent us from benefiting
from price increases and may expose us to other risks; and other
factors discussed in our Annual Report on Form 10-K for the fiscal
year ended December 31, 2008 under "Risk Factors," as updated by
any subsequent Form 10-Qs, which are on file at the Securities and
Exchange Commission. DATASOURCE: CONSOL Energy Inc. CONTACT: Joseph
A. Cerenzia, Director - Public Relations of CONSOL Energy Inc.,
+1-412-996-8823 Web Site: http://www.consolenergy.com/
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