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Energy2011 CONSOLCorporate Responsibility ReportAboutCONSOL EnergyCONSOL Energyby the Numbershh1864began coal mining operationshh1The largest U.S. producer of coal fromunderground mineshh4.5 Billiontons of proven and recoverable coalreserveshh3.5 Trillioncontrolled cubic feet of net provedreserves of gashh62.6 Milliontons of coal produced in 2011hh1,522average number of employees hiredannually since 2007hh5,567,839hours worked by CONSOL Energy’s GasDivision without a lost-time accidenthh17safety awards presented toCONSOL Energy operations in 20118CONSOL Energy, a publicly ownedPittsburgh-based producer of coal andnatural gas, is one of the leading diversifiedenergy companies in the United States ofAmerica. CONSOL Energy’s corporateheadquarters are located in Cecil Township,Pennsylvania; the recently constructed buildingis a Leadership in Energy and EnvironmentalDesign (LEED) certified building andCONSOL Energy is one of the anchor tenantsof Southpointe, a business park comprisedprimarily of energy companies that havebeen attracted to the region as a result of theMarcellus Shale discovery in 2008.CONSOL Energy’s premium Appalachiancoals are sold worldwide to electricitygenerators and steel makers, and our NaturalGas Division has grown from a pure-playcoalbed methane producer to a full-fledgedexploration and production operation. Weare a leading producer in the Marcellus Shaleand we conduct an active explorationprogram in the Utica Shale.Since our founding in 1860 and our first activemining operations in 1864, CONSOL Energyhas powered the nation with affordable,abundant, reliable domestic energy. Today,

CONSOL EnergyCorporate Responsibility ReportCONSOL Energy’s more than 9,000 employeeshelp generate the fuels – coal and natural gas –that comprise two thirds of the nation’s powersupply. Our energy supports the American wayof life by helping deliver electricity 24/7, creatingfamily-sustaining jobs and keeping our nationcompetitive in the global marketplace. Ourstrong record of environmental stewardshipand our commitment to community havehelped enable us to become the dynamic andaccomplished energy company we are today.CONSOL Energy maintains the largestprivate research and development facility inthe U.S. industry that is devoted exclusivelyto coal and energy utilization and production.In addition to supporting the production ofCONSOL Energy’s coal and gas operations, italso focuses on energy development, improvingenergy efficiency and reducing pollution. Thisfacility was borne out of our core values –Safety, Compliance and ContinuousImprovement – and enables us to identifyopportunities and implement solutions that drivesafety, production, and utilization of our strategicresources in smarter, more efficient ways.2011CONSOL Energy’s coal mines are highlytechnical operating environments that requirespecialized training. The days of pick axes andshovels have been replaced with technologicallyadvanced processes such as longwall1 mining,enhanced safety protocols, digital technologiesand sophisticated communications technologiessuch as those employed at CONSOL Energy’scentralized Communications Center atcorporate headquarters. These advances havehelped make the mining process safer andmore productive, more than doubling resourcerecovery.CONSOL Energy’s natural gas operationsinclude coal bed methane extraction,conventional and shale gas exploration andproduction, all of which require expertiseand technology that continues to evolveand advance. From safety to environmentalprotocols, techniques and equipment, advancesin these areas are continuous, improvingrecovery, enhancing safety, and providing moreenvironmentally protective methods. In longwall underground coal mining, a long wall of coal is mined in a single pass. Ninety-one percentof our coal came from mines equipped with longwall mining systems, which have their own hydraulicroof supports for overlying rock that advance with the machine as mining progresses. Rock that isno longer supported by the coal that has been removed is allowed to fall behind the operation in acontrolled manner.19

Energy2011 CONSOLCorporate Responsibility ReportCorporate Governance atCONSOL EnergyOur Commitment to Corporate GovernanceCONSOL Energy’s Board of Directors andmanagement team firmly believe that soundprinciples of corporate governance areessential in making good decisions on behalfof our shareholders, employees, and otherstakeholders. We believe that corporategovernance goes hand in hand with strongfinancial performance.Our board of directors regularly reviewsour governance policies to ensure that weare in compliance with applicable laws andregulations, as well as best practices. Wemaintain a corporate governance page on ourwebsite at www.consolenergy.com. Linked to ourcorporate governance page are our Corporate10Governance Guidelines, Code of Ethicsand Business Conduct - Board, Code ofEthics and Business Conduct - Employees,and charters for each of our board committees.Board of DirectorsCONSOL Energy is governed by a Boardof Directors of eleven members, a majorityof whom are independent under New YorkStock Exchange rules. J. Brett Harvey servesas our Chief Executive Officer and Chairmanof the Board, which enables us to centralizeboard leadership and provide effectivecommunication to the other members of theBoard. We believe that Mr. Harvey’s role asChief Executive Officer and Chairman of theBoard furthers decisive leadership, ensures clearaccountability and enhances the corporation’sability to communicate its message and strategy

CONSOL EnergyCorporate Responsibility Reportto the corporation’s shareholders, employees,customers and suppliers.In connection with the Board’s decision tocombine the role of Chief Executive Officerand Chairman into one position, the Boarddetermined that it was appropriate and necessaryto appoint a Lead Independent Director, whomust be an independent director who has servedwith the Corporation for at least one year. TheLead Independent Director has several duties,including presiding at all meetings of the Boardat which the Chairman is not present, and atexecutive sessions of the independent directors.We believe that the number of independentdirectors that make up our Board, along with theindependent oversight of the Board by our LeadIndependent Director, benefits the Corporation,as well as the shareholders.Board CommitteesOur Board has five standing committees: Audit,Compensation, Nominating and CorporateGovernance, Finance, and Health, Safetyand Environmental. Although we are proudof all of our committees, we are particularlyproud of our Health, Safety and EnvironmentalCommittee, which we voluntarily formedin 2009. This Committee, which consistsof five directors, provides oversight ofCONSOL Energy’s policies and managementsystems with respect to health, safety andenvironmental matters. Our Health, Safetyand Environmental Committee is generallyresponsible for overseeing management’smonitoring and enforcement of thecorporation’s policies to protect the health andsafety of employees, contractors, customers, thepublic and the environment. The committee isalso responsible for reviewing with managementthe quality of the corporation’s procedures foridentifying, assessing, monitoring and managingthe principal risks in our business that areassociated with health, safety, and the protection2011of the environment, and for reporting thecommittee’s findings to the board.Selection of Board MembersIn assessing the Board’s membership needs,the Nominating and Corporate GovernanceCommittee generally seeks to maintain a boardcomprised of individuals who are competent inthe following areas:hhGeneral industry knowledge;hhAccounting and finance;hhAbility to make sound business decisions;hhManagement;hhLeadership;hhKnowledge of international markets;hhBusiness strategy;hhCrisis management;hhCorporate governance; andhhRisk managementDirectors must have experience in positionswith a high degree of responsibility andleadership experience in the companiesor institutions with which they are or havebeen affiliated. Directors are selected basedupon contributions that they can make toCONSOL Energy.CONSOL Energy does not maintain aseparate policy regarding the diversity of itsboard members. However, consistent withits charter, the Nominating and CorporateGovernance Committee, and ultimately theboard, seeks directors with diverse personaland professional backgrounds, experience andperspectives that, when combined, provide adiverse portfolio of experience and knowledgethat will well serve CONSOL Energy’sgovernance and strategic needs.11

Energy2011 CONSOLCorporate Responsibility ReportOur 2011 Board of Directors:J. Brett Harvey Chairman of the Board and Chief Executive Officer.John Whitmire Vice Chairman of the Board and member of the Finance and ealth,Safety and Environmental Committees.Philip W. Baxter Lead Independent Director and member of the Audit andCompensation Committees.James E. Altmeyer, Sr. Chairman of the Health, Safety and Environmental Committee andmember of the Finance Committee.William E. Davis Chairman of the Nominating and Corporate GovernanceCommittee and member of the Health, Safety and EnvironmentalCommittee.Raj K. Gupta Chairman of the Audit Committee and member of the Health,Safety and Environmental Committee.Patricia A. Hammick Member of the Finance and Nominating and CorporateGovernance Committees.David C. Hardesty, Jr. Member of the Finance and Health, Safety and EnvironmentalCommittees.John T. Mills Member of the Audit and Compensation Committees.William P. Powell Chairman of the Compensation Committee and member of theNominating and Corporate Governance Committee.Joseph T. Williams Chairman of the Finance Committee and member of theCompensation Committee.Corporate Governance PrinciplesCONSOL Energy’s Board of Directors operates in accordance with these principles:hhCONSOL Energy holds an annual election of directors, and each director must receive amajority of votes cast. Directors who fail to receive sufficient votes must submit a letter ofresignation to the boardhhAt least a majority of the board must be independenthhThe Audit, Compensation, and Nominating and Corporate Governance Committees arecomprised entirely of independent directors12

CONSOL EnergyCorporate Responsibility Report2011hhThe board and each of its committees have the authority to hire independent advisorshhEach member of the Audit Committee has been deemed an audit committee financialexpert for purposes of the Securities and Exchange Commission ruleshhOur directors meet regularly in executive session without the presence ofmanagementhhOur directors and officers are subject to stock ownership guidelinesCommunication with the Board of DirectorsShareholders and other interested persons who wish to communicate with the Boardmay do so by writing to the Board at CONSOL Energy Inc., 1000 CONSOL EnergyDrive, Canonsburg, PA 15317, or by sending an e-mail to directors@consolenergy.com. Information concerning communications with the Board is also included onCONSOL Energy’s website at www. consolenergy.com.CONSOL Energy’sExecutive OfficersFront Row – Nicholas J. DeIuliis – President, J. Brett Harvey – Chief Executive Officer and Chairman, William J. Lyons –Executive Vice President and Chief Financial Officer. Back Row - Robert F. Pusateri – Executive Vice President – EnergySales and Transportation Services, P. Jerome Richey – Executive Vice President – Corporate Affairs and Chief Legal Officerand Corporate Secretary, Robert P. King – Executive Vice President – Business Advancement and Support Services.13

Energy2011 CONSOLCorporate Responsibility ReportGuidingprinciplesCore ValuesCONSOL Energy operates based on three corevalues and two strategic priorities collectivelyknown as the Big Five within the company. Ourcore values are the foundation of the company’sidentity and are the basis for how we manageand conduct our business rovementUnit CostThe evolution of CONSOL Energy’s corevalues began in 2006 with a third-party surveyof employees. A senior management teamconvened in March 2007 to review the results,and the message was sobering: the company14needed a revolutionary change in its safety culture.This launched the decoupling of safety functionsfrom compliance functions. Safety must trumpeverything, and our Absolute ZERO programbecame our standard. Four initiatives werelaunched that revolutionized the safetyperformance and culture at CONSOL Energy.These initiatives entailed a world-class trainingprogram, incentives, and rewards to recognize safeconduct, the decoupling of safety from compliance,and a team was formed to eliminate unsafe acts.This process is a living process of continuousimprovement which is described in more detail inthe safety section of this report.CONSOL Energy is not content with just beingin compliance. Our desire to be world classdrives us to identify policies and strategies tofurther our performance beyond compliancestandards. CONSOL Energy is increasingits focus on environmental compliance tofurther improve our operations, and we areincreasing our employee awareness through

CONSOL EnergyCorporate Responsibility Report2011SafetyEngagement of employees at all levels is not aneasy task. We address this challenge by trainingour employees, providing rewards for excellentsafety performance and by keeping employeesinformed through regular communicationsabout safety performance and initiatives. Wetake safety training seriously. Therefore, everyCONSOL Energy employee participates inEmployee Engagement with Ourmandatory annual safety training. DependingCore Valueson an employee’s work location, their trainingEmployee empowerment is critical for ourincludes required agency mandated annualsafety, compliance, and continuous improvement training, job specific training and an additionalefforts. Our Absolute ZERO culture reliesday of Absolute ZERO training.heavily on empowering all employees andcontractors with respect to safety, regardless of On-the-job training is provided by our safetymentors, supervisors, trainers, and safetytheir rank or type of contract. This means thatall CONSOL Energy employees and contractors professionals. We employ dedicated safetyprofessionals who observe our undergroundare empowered and expected to stop thenormal course of operations if he or she believes workforce on a regular basis and providefeedback and education on all unsafe actions.safety or compliance is being compromised.Additional training and awareness takes placeSafety trumps everything.through peer review teams made up of individualsenhanced training, and communication,proactively identifying best-in-class processesand methods in our operations, and improvingour transparency with stakeholders throughreporting of our annual performance. Best-inclass performance that demonstrates our CoreValues will directly translate to strong operationsand financial results.These employees are among more than 250 safety, health, andenvironmental professionals who provide support and strategic guidanceto our operations based upon our Core Values each and every day.15

Energy2011 CONSOLCorporate Responsibility Reportfrom the workforce. Every two months, theseteams observe every person working at our minesand their report goes to the safety mentorsfor discussion at site steering team meetings.The safety mentor program is most intensivein our mining operations where safety risks arehighest; however, CONSOL Energy has safetymentors across the organization.CONSOL Energy’s Safety Rewards programencourages a safe attitude in the workplace byproviding both office and operational employeesacross our businesses with monetary rewardsfor periods worked collectively at their locationwithout safety exceptions. The monetary valueincreases with the amount of time workedwithout exceptions.Communication is also fundamental tosafety across the company. We have variousways of communicating to and with ouremployees. At facilities across our organization,CONSOL Energy TV broadcasts the latestsafety information and reminds employees ofour primary core value. Our mining operationspublish quarterly newsletters informing theemployees on safety performance and safetymeasures. Weekly safety briefings are held atall our mines, gas operations, river operations,and at various corporate departments toinform employees and contractors of the latestsafety updates. Brief, daily “tailgate” safety andcompliance meetings are held at the beginning ofeach shift for coal and gas operations.Our emphasis on safety does not apply toour employees alone. We continuously focuson improving the safety performance of ourcontractors. Contractors are held to the samesafety standards as our employees, and ourcontracts are written to include safety programrequirements and performance. Contractorsare empowered and are expected to stopoperations in case of unsafe situations, just asour employees are. In addition, contractors whowork on CONSOL Energy sites are required tohave a written safety program. CONSOL Energyhas engaged a third party, ISNetworld , to helpmanage our contractor safety.ComplianceCompliance is our second core value and appliesto not only safety and environmental compliancebut compliance with all laws, regulations,permits, company policies, processes,procedures and agreements. It is relevant acrossthe entire spectrum of our enterprise and allCONSOL Energy employees are expectedand empowered to stop the normal course ofoperations if he or she believes compliance isbeing compromised. For areas of compliancein other aspects of the business, employees areexpected to perform their duties in a compliantmanner and bring potential areas of noncompliance to the attention of their supervisors.We have an auditing group that performsroutine audits across our operations to ensurecompliance with both regulations and businesspractices.Doing business ethically while complying withall laws and company policies is the standardhere at CONSOL Energy. We provide annualtraining and conduct an annual review withCONSOL Energy’s Code of Employee BusinessConduct and Ethics by surveying managementpersonnel and other employees who havesignificant influence, approval authorization, oraccess to significant confidential or proprietaryIn 2011, our training programs reached100% of our employees.16

CONSOL EnergyCorporate Responsibility Reportinformation. In addition to employees, ourethics code applies to consultants, independentcontractors and agents of the company. Weemphasize that it is CONSOL Energy’s policyto provide equal opportunity for all qualifiedpersons in a workplace in which harassment is

2011 Corporate Responsibility Report CONSOL Energy 4 This is CONSOL Energy’s first corporate responsibility report and it covers calendar year 2011. We intend to publish this report annually. Our objective is to help all our stakeholders— customers, employees, s