Property, Plant and Equipment

6 Months Ended

Jun. 30, 2014

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

PROPERTY, PLANT AND EQUIPMENT:

	June 30, 2014		December 31, 2013
Coal and other plant and equipment	$	3,711,184	$	3,681,051
Intangible drilling cost	2,228,806		1,937,336
Proven gas properties	1,683,052		1,670,404
Unproven gas properties	1,493,708		1,463,406
Coal properties and surface lands	1,407,518		1,409,408
Gas gathering equipment	1,074,265		1,058,008
Gas wells and related equipment	780,212		688,548
Airshafts	443,657		397,466
Mine development	416,296		354,607
Leased coal lands	388,033		388,020
Coal advance mining royalties	387,199		381,348
Other gas assets	124,903		126,239
Gas advance royalties	22,134		22,668
Total Property Plant and Equipment	14,160,967		13,578,509
Less: Accumulated DD&A	4,384,209		4,136,247
Total Net PP&E	$	9,776,758	$	9,442,262

Industry Participation Agreements

CONSOL Energy has two significant industry participation agreements (referred to as "joint ventures" or "JVs") that provided drilling and completion carries for our retained interests.

CNX Gas Company LLC (CNX Gas Company), a wholly owned subsidiary of CONSOL Energy, is party to a joint development agreement with Hess Ohio Developments, LLC (Hess) with respect to approximately 144 thousand net Utica Shale acres in Ohio in which each party has a 50% undivided interest. Under the agreement, as amended, Hess is obligated to pay a total of approximately $335,000 in the form of a 50% drilling carry of certain CONSOL Energy working interest obligations as the acreage is developed. As of June 30, 2014, Hess’ remaining carry obligation is $175,582.  

CNX Gas Company is party to a joint development agreement with Noble Energy, Inc. (Noble) with respect to approximately 696 thousand net Marcellus Shale oil and gas acres in West Virginia and Pennsylvania, in which each party owns a 50% undivided interest. Under the agreement, as amended, Noble Energy is obligated to pay a total of approximately $1,884,000 in the form of a one-third drilling carry of certain of CONSOL Energy’s working interest obligations as the property is developed, subject to certain limitations. These limitations include the suspension of the carry if average Henry Hub natural gas prices are below $4.00 per million British thermal units (MMbtu) for three consecutive months. Due to the increase in average natural gas prices, the carry is in effect beginning March 1, 2014, and will remain effective until average natural gas prices are below $4.00/MMbtu for three consecutive months. Restrictions also include a $400,000 annual maximum on Noble Energy's carried cost obligation. As of June 30, 2014, Noble Energy’s remaining carry obligation is $1,816,095.