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Scotia Howard Weil 2017 Energy Conference Presentation

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From the safety of our employees to the environment and communities in which we work and live, CONSOL Energy’s corporate responsibility efforts are rooted in our core values and woven throughout the fabric of our corporate culture.

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Our greatest goal: No accidents. Ever.

For nearly 8 years, CONSOL Energy has operated under an Absolute ZERO value system based on the premise that ZERO accidents is normal and that an accident – any accident – is uncharacteristic and inconsistent with our values.

Heath, Safety, and Environmental Affairs Quick Facts

CONSOL employs 104 HSE professionals
CONSOL invested more than $167 million in capital and expense for HSE compliance and expenditures
CONSOL has 4 emergency response mine rescue stations and 8 mine rescue teams.
100% of employees received safety training in 2015.
Total number of environmental permits in 2015:
178 coal permits
412 gas permits
151 miles of pipeline permitted

Our Health, Safety, and Environmental Affairs (HSE) Departments were strategically aligned in 2015 under the direction of the Senior Vice President – Health, Safety, and Environmental Affairs, to strengthen the support for and oversight of our core values of Safety and Compliance.

Health & Well-Being

CONSOL’s Well-Being Program was established to improve the health and well-being of our employees through more effective health risk assessments followed by individualized education and support. We strive to provide tools that can enable early detection of health issues for our full-time employees and their spouses. In 2015, we completed our fifth year of the Well-Being Program. This year 80% of full-time employees chose to further take charge of their health by completing both the health and lifestyle assessment and diagnostic lab screening. CONSOL’s participating population (both employees and spouses) also utilized the increased number of onsite lab-work events, with 62% attending an onsite event.

For the fifth consecutive year, our employees have demonstrated a desire to become more engaged in lifestyle changes including diet and nutrition, exercise and fitness, and shape and weight. Favorable trends this year included reduction in soft drink consumption, obtaining universal vaccines and sleep apnea improvement. Our employees continue to utilize the CONSOL Employee Wellness Portal as an informational tool to ensure success in these lifestyle changes. It is the goal of the Well-Being Program to ensure that these desires become actionable behaviors with an end result of improved health and wellness.


At CONSOL, Safety has no rank; every employee is empowered to stop unsafe behavior and must have the responsibility to “See Something, Say Something, Do Something.” This program has expanded to include contractor safety.

The expectation of Absolute ZERO resulted in CONSOL having one it’s best annual safety performances. CONSOL employees experienced ZERO fatalities in 2015, a 39% reduction in the total number of exceptions, and a 17% improvement in the TRIR over the prior year. The reduction in fatal potential, or the severity of an accident, of CONSOL employees and contractors improved over 20% in 2015. We attribute this outstanding advancement to our efforts around a behavioral based safety culture, known at Positively CONSOL, along with intensified safety awareness training.


In 2012, we launched COSH (CONSOL Occupational Safety and Health), an occupational safety and health management system compliant with the OHSAS 18001:2007 standard. COSH is the framework that houses CONSOL’s safety policies and procedures and supports our quest for Absolute ZERO.

Policies, strategies, standards, internal controls, performance indicators and targets, along with technical systems and tools, to help manage risk and improve OSH performance are developed by Operational Safety Teams and are subject to approval by Corporate HSE. Full company oversight and review is provided by Corporate HSE Department.

In 2015, all CONSOL business units conducted a series of self-audits focusing on items identified by the management teams for heightened awareness.

CONSOL completed the review of both gas and coal safety policies, and also established a website for access by our contractors in 2015. The contractor website provides up-to-date materials pertaining to policies, Job Safety Awareness (JSAs), audit results, and other relevant priority information necessary to work safely on CONSOL property.

Our ACE (Accident Cause Elimination) process was strengthened with the addition of the Behavior Science PIC/NIC™ Process, which integrates a multi-person evaluation into the process to help determine specific behaviors associated with the event. The ACEs are shared throughout CONSOL and with others working on our locations

CONSOL Energy Occupational Safety & Health Policy Statement

CONSOL Energy operates within the established process that Absolute ZERO is the expected norm relative to Safety and Health. Management’s expectation regarding this philosophy is that all employees, contractors and visitors on CONSOL Energy property shall conduct themselves in a manner to work injury and incident free.

The Board of Directors, Executive Team, and Management of CONSOL Energy have established Safety as our top value. To support this value we have authorized all employees, contractors or visitors that are on CONSOL Energy property to stop the normal course of operation if people feel that their safety or the safety of others is being compromised. Through this empowerment it is expected that everyone exhibit active caring for others by speaking up and / or taking action when he or she sees a situation that may cause harm to themselves, others or property.

Compliance with all applicable federal, state and local regulations is paramount in our business endeavors second only to safety. This commitment is applicable to all facets of compliance. It is also expected that there is conformance with all CONSOL Energy Occupational Safety and Health requirements.

The Board commits funding, support and oversight to each business unit to allow the management teams to accomplish these Safety and Compliance standards. These values and commitments are incorporated into both short and long term planning.

It is the expectation of CONSOL Energy to continually build the Occupational Safety and Health system by continual improvement gained through self-review, auditing and benchmarking with other safety leaders. Done on a continual basis, a formalized audit process is conducted annually and provided to the Absolute ZERO Advisory Board for its review to determine whether or not Occupational Safety and Health objectives and performance measures are being met. It is the responsibility of senior leadership to ensure that this policy is communicated, understood and implemented throughout CONSOL Energy. All employees are responsible for understanding the impact of this policy on their day-to-day work practices and are expected to apply and support the principles stated above.

Safety Technology

Because of the nature of our operations, most risks relate directly to the work carried out on-site. For this reason, our efforts are concentrated on investments that increase operational safety. In 2015, the total investment in safety reached $52 million, including investments in these areas:

For our E&P Operations:

  • Installation of automatic shutdown devices (fire wire) for flowback and production facilities. These shutdown devices activate automatically in the event of a fire.
  • Design of a burst disk system for flow lines leading to the flare stack for air drilling (also known as tophole drilling). The new system added another layer of safety in the event of over pressurization of flow lines, by controlling the release of pressurization into a safe area.

For our Coal Operations:

  • Proximity detection equipment continues to be installed on miner section equipment at Enlow Fork and Harvey Mines. Bailey Mine has completed installation and the equipment is in operation on all miner sections. Proximity detection installation will continue over the next three years.
  • Utilizing new technology to monitor rock dusting at underground locations. A Coal Dust Explosibility Meter (CDEM) allows real-time readings of the incombustible content of rock dust samples, making it easier for us to respond quickly to identify issues and to increase response time to MSHA sampling requirements.

Our Performance in 2015

During 2015, 98% of the Company’s employees worked the entire year without a reportable accident. Our overall recordable incident rate for 2015 was 1.35, a 17% reduction from the previous year. Our E&P Operations experienced only two exceptions for the entire year.

For Coal Operations, safety performance was approximately two times better than the bituminous underground industry average based on preliminary MSHA data. (2015 CONSOL Coal 1.89, MSHA Preliminary for bituminous underground mines (Jan-Dec ’15) is 4.62). Unfortunately these accomplishments were tempered by the fatal injury of one of our contractors on CONSOL property. This incident serves as a reminder why Absolute ZERO is our expectation, because we want every employee and contractor to return safely home to their families at the end of their work day.

A summary of our safety performance is below.

Indicator 2011 2012 2013* 2014* 2015** Company-wide 2015 Coal 2015 E&P 2015 Cone
Total Recordable Injury Frequency Rate (employees) 1.49 1.3 1.72 1.62 1.35 1.89 0.48 0
Total Recordable Injury Frequency Rate (contractors) 1.4 1.19 0.92 1.4 1.22 1.79 0.93 1.19
Lost Work Day incident rate (employees) 1.04 0.95 1.38 1.28 1.07 1.55 0 0
Work related fatalities (employees) 1 3 0 1 0 0 0 0
Work-related fatalities (contractors) 1 0 0 0 1 0 0 0

*Note: 2013, 2014, and 2015 data for our Coal Operations does not include data from our discontinued operations that were included in the assets sold to Murray Energy Corporation in 2013.

**Includes E&P Operations, CONE, Coal Operations, CNXC, and Corporate.

Safety Regulatory Compliance

In 2015, CONSOL’s E&P Operations received zero citations from the U.S. Occupational Safety and Health Administration (OSHA) under the U.S. Department of Labor.

Our Coal Operations’ MSHA violations have been trending upwards in the past three years, which is unacceptable. In order to reverse the trend, we have implemented Safety Violation Reduction Plans at each mine site. These plans focus on the top five most frequently cited categories at each location, and form corrective action plans. These plans are reviewed quarterly and appropriate adjustments are made.

Coal Operations 2011 2012 2013* 2014* 2015*
Total MSHA Violations 4,960 4,363 870 1,011 1,314
S&S 1,608 1,371 232 273 349
Orders 38 35 2 5 1

*Note: 2013, 2014, and 2015 data for our Coal Operations does not include data from our discontinued operations that were included in the assets sold to Murray Energy Corporation in 2013.



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