Consol CEO 'Would Love' to Sell Water
Pittsburgh Post-Gazette
5 May 2010
By Elwin Green,
Consol Energy Inc., which has operated for decades as a leading coal
producer, has now become a leading natural gas producer and could even
enter the water business.
At least that's the scenario laid out by president and CEO J. Brett
Harvey in comments during and after the company's annual meeting
Tuesday at the Airport Hyatt Regency.
Referring to Consol's recent acquisition of Richmond, Va.-based
Dominion Resources' Appalachian natural gas business, Mr. Harvey said,
"This was a move for this company that changed Consol Energy forever."
The $3.5 billion deal added 500,000 acres to Consol's footprint in the
Marcellus Shale geologic formation, and the Cecil-based company now
expects that natural gas production will account for 35 percent of its
income.
In a news meeting afterward, Mr. Harvey said Consol's long experience
with treating water from its coal mines has given it an edge in
treating the water that it uses in drilling for Marcellus Shale natural
gas, an edge that could produce a whole new line of business.
"We're probably one of the biggest water treatment companies in the
state," he said. And with plans to spend $200 million to $300 million
in the next five years to expand its water treatment facilities, "I'd
love to be in position where I'm selling water to all my competitors."
The only shareholder comment at the meeting came from individual
shareholder Mordecai Treblow, a retired chemist. Consol has offered to
buy the shares that it does not own of its spinoff company, CNX Gas
Corp., for $38.25 a share; but Mr. Treblow, a shareholder in both
companies, suggested Consol offer CNX shareholders the opportunity to
convert their shares to Consol shares.
Mr. Harvey thought it was a good idea. "We would rather have exchanged
shares," but he noted that CNX shareholders had rebuffed such an offer
two years ago.
Consol's meeting immediately followed the annual meeting for CNX.
In addition to his titles at Consol, Mr. Harvey is chairman and CEO at
CNX.
In both meetings, all 11 members of the Consol board and four members
of the CNX board were approved for another term.
No shareholder proposals were offered at either meeting.
In brief comments at both meetings, Mr. Harvey praised the respective
companies for their safety records, saying at the CNX meeting, "Every
employee believes that he has the right to stop the process and make it
safe, and they feel that right as a value."
Elwin Green: 412-263-1969.