CONSOL Energy, VCCER Announce Research Project Aimed at Identifying Coal Seam Carbon Storage Alternatives

CONSOL Energy, VCCER Announce Research Project Aimed at Identifying Coal Seam
                         Carbon Storage Alternatives

PR Newswire

BUCHANAN COUNTY, Va., Feb. 4, 2013

BUCHANAN COUNTY, Va., Feb. 4, 2013 /PRNewswire/ --CONSOL Energy (NYSE: CNX)
and the Virginia Center for Coal and Energy Research (VCCER) at Virginia Tech
announced today their collaborative efforts on a research project to be
conducted in Buchanan County, Va., with funding from the U.S. Department of
Energy's National Energy Technology Laboratory (NETL).

The project is one of the carbon storage alternatives being explored by the
NETL and will test the potential of unmineable coal seams to store carbon
dioxide. CONSOL Energy will donate the use of three coalbed methane wells in
the pilot project to be conducted by VCCER and NETL.

"We are pleased to be a part of this important research, which will serve to
further define carbon storage alternatives and continue our collaborative
efforts to develop clean coal technologies," said Steve Winberg, vice
president of CONSOL Energy's research and development department.

Representatives of VCCER, CONSOL Energy and Cardno MM&A (formerly Marshall
Miller & Associates, a Southwest Virginia geological and mining consulting
firm) were in attendance at the February meeting of the Buchanan County Board
of Supervisors today to explain the project and its significance to members of
the board and the public.

Using three coalbed methane wells donated by CONSOL Energy's CNX Gas Virginia
operations, plans are to inject and store up to 20,000 tons of carbon dioxide
(CO[2]) into underlying coal seams at the identified site this fall. CO[2
]is a naturally occurring odorless, colorless atmospheric gas. It is exhaled
every time we breathe and one of its common uses is in the carbonation of
drinks, including sodas.

The injection will be performed during a one-year period and builds on a
recently completed 1,000-ton injection test that took place in neighboring
Russell County, Va. in 2009. CNX Gas, VCCER and NETL also participated in that
test.

For this current research program, a comprehensive plan to monitor the
injected CO[2] has been established by VCCER and NETL to allow understanding
of the feasibility of CO[2] storage in unmineable coal seams and to explore
the potential for enhanced coal bed methane recovery (ECBM). It is expected
that the coal seam will adsorb the carbon dioxide and potentially release even
more methane for collection and use, as occurred in the smaller scale test in
Russell County. The current test is part of a larger effort funded by NETL for
carbon capture, utilization, and storage (CCUS) projects.

CCUS is the process of capturing CO[2] from large stationary sources, such as
power plants, using that CO[2] to produce more oil or natural gas from an
existing field and simultaneously storing the CO2 in a way that prevents its
release to the atmosphere.

"The research will test the ability to inject CO[2] into coal seams that
cannot be mined, as well as the potential to enhance coalbed methane
recovery," said Dr. Michael Karmis, director of the Virginia Center for Coal
and Energy Research and the Stonie Barker Professor of Mining and Minerals
Engineering at Virginia Tech. "I must praise the tremendous cooperation of the
gas operator, CONSOL Energy's CNX Gas; and the mineral owner, Harrison-Wyatt,
LLC, whose generosity helps make this most important research possible."

For this pilot test, the three existing coalbed methane wells to be utilized
will be converted for CO[2] injection and three new wells will be drilled to
monitor reservoir pressure, gas composition and the CO[2 ]path. The targeted
coal seams are in the Pocahontas and Lee formations and range from 900 to
2,200 feet in depth and from 0.7 – 2.5 feet in thickness. The pilot project is
expected to begin in Fall of 2013.

"The results of this test will be vital to assess the potential of geologic
storage in Appalachian coal seams as a safe and permanent method to mitigate
greenhouse gas emissions while enhancing coalbed methane recovery," Karmis
explained.

The technical research team for the Buchanan County site is comprised of
researchers from the Virginia Center for Coal and Energy Research at Virginia
Tech; Cardno MM&A; CONSOL Energy's Research and Development department; the
Virginia Department of Mines, Minerals, and Energy; Southern States Energy
Board; Gerald R. Hill Ph.D., Inc.; Geological Survey of Alabama; Sandia
Technologies; and Det Norske Veritas.

About CONSOL Energy

CONSOL Energy Inc. (NYSE: CNX) is a Pittsburgh-based producer of coal and
natural gas. It has 12 bituminous coal mining complexes in four states and
reports proven and probable coal reserves of 4.5 billion tons. The company's
premium Appalachian coals are sold worldwide to electricity generators and
steelmakers. In natural gas, CONSOL has transformed itself from a pure-play
coalbed methane producer to a full-fledged exploration and production company.
The company is a leading producer in the Marcellus Shale, has an active
exploration program in the Utica Shale and has proved natural gas reserves of
over 3.5 trillion cubic feet. Operational safety is the company's top core
value and CONSOL boasts a record of almost two times better than the industry
average for underground bituminous coal mines. In 2011, the company recorded
its best safety record since it was founded in 1860. CONSOL Energy is a
member of the Standard & Poor's 500 Equity Index and the Fortune 500.
Additional information about CONSOL Energy can be found at its Web site:
www.consolenergy.com.

Forward-Looking Statements

Various statements in this release, including those that express a belief,
expectation or intention, may be considered forward-looking statements (as
defined in Section 21E of the Exchange Act) that involve risks and
uncertainties that could cause actual results to differ materially from
projected results. Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. The
forward-looking statements may include projections and estimates concerning
the timing and success of specific projects and our future production,
revenues, income and capital spending. When we use the words "believe,"
"intend," "expect," "may," "should," "anticipate," "could," "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 press release, if any, speak only as of the date of this
press release; we disclaim any obligation to update these statements. 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, contingencies and
uncertainties relate to, among other matters, the following: deterioration in
economic conditions in any of the industries in which our customers operate,
or sustained uncertainty in financial markets cause conditions we cannot
predict; an extended decline in prices we receive for our coal and gas
affecting our operating results and cash flows; our customers extending
existing contracts or entering into new long-term contracts for coal; our
reliance on major customers; our inability to collect payments from customers
if their creditworthiness declines; the disruption of rail, barge, gathering,
processing and transportation facilities and other systems that deliver our
coal and gas to market; a loss of our competitive position because of the
competitive nature of the coal and gas industries, or a loss of our
competitive position because of overcapacity in these industries impairing our
profitability; coal users switching to other fuels in order to comply with
various environmental standards related to coal combustion emissions; the
impact of potential, as well as any adopted regulations relating to greenhouse
gas emissions on the demand for coal and natural gas, as well as the impact of
any adopted regulations on our coal mining operations due to the venting of
coalbed methane which occurs during mining; foreign currency fluctuations
could adversely affect the competitiveness of our coal abroad; the risks
inherent in coal and gas operations being subject to unexpected disruptions,
including geological conditions, equipment failure, timing of completion of
significant construction or repair of equipment, fires, explosions, accidents
and weather conditions which could impact financial results; our focus on new
gas development projects and exploration for gas in areas where we have little
or no proven gas reserves; decreases in the availability of, or increases in,
the price of commodities and services used in our mining and gas operations,
as well as our exposure under "take or pay" contracts we entered into with
well service providers to obtain services of which if not used could impact
our cost of production; obtaining and renewing governmental permits and
approvals for our coal and gas operations; the effects of government
regulation on the discharge into the water or air, and the disposal and
clean-up of, hazardous substances and wastes generated during our coal and gas
operations; the effects of stringent federal and state employee health and
safety regulations, including the ability of regulators to shut down a mine or
well; the potential for liabilities arising from environmental contamination
or alleged environmental contamination in connection with our past or current
coal and gas operations; the effects of mine closing, reclamation, gas well
closing and certain other liabilities; uncertainties in estimating our
economically recoverable coal and gas reserves; defects may exist in our chain
of title and we may incur additional costs associated with perfecting title
for coal or gas rights on some of our properties or failing to acquire these
additional rights we may have to reduce our estimated reserves; the outcomes
of various legal proceedings, which are more fully described in our reports
filed under the Securities Exchange Act of 1934; the impacts of various
asbestos litigation claims; increased exposure to employee related long-term
liabilities; increased exposure to multi-employer pension plan 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 recent 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 exceeding total service and interest cost in
a plan year; acquisitions and joint ventures that we recently have completed
or entered into 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 and divestitures we anticipate
may not occur or produce anticipated proceeds including joint venture partners
paying anticipated carry obligations; the anti-takeover effects of our rights
plan could prevent a change of control; increased exposure on our financial
performance due to the degree we are leveraged; replacing our natural gas
reserves, which if not replaced, will cause our gas reserves and gas
production to decline; our ability to acquire water supplies needed for gas
drilling, or our ability to dispose of water used or removed from strata in
connection with our gas operations at a reasonable cost and within applicable
environmental rules; our hedging activities may prevent us from benefiting
from price increases and may expose us to other risks; changes in federal or
state income tax laws, particularly in the area of percentage depletion and
intangible drilling costs, could cause our financial position and
profitability to deteriorate; and other factors discussed in the 2011 Form
10-K under "Risk Factors," as updated by any subsequent Form 10-Qs, which are
on file at the Securities and Exchange Commission.



SOURCE CONSOL Energy

Website: http://www.consolenergy.com
Contact: Cathy St. Clair, +1-276-498-8239; or Nino Ripepi, VCCER,
+1-540-231-5458
 
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