Supplemental Gas Data (unaudited):

The following information was prepared in accordance with the FASB's Accounting Standards Update No. 2010-03, “Extractive Activities-Oil and Gas (Topic 932).”

Capitalized Costs:



	As of December 31,
	2016			2015
Proved gas properties	$	2,016,916		$	1,922,602
Unproved gas properties	1,116,282			1,421,083
Intangible drilling costs	3,583,565			3,452,989
Gas wells and related equipment	791,996			785,744
Gas gathering assets	1,138,299			1,147,173
Gas well plugging	176,961			115,121
Total Property, Plant and Equipment	8,824,019			8,844,712
Accumulated Depreciation, Depletion and Amortization	(3,099,622		)	(2,691,005		)
Net Capitalized Costs	$	5,724,397		$	6,153,707

Costs incurred for property acquisition, exploration and development (*):



	For the Years Ended December 31,
	2016		2015		2014
Property acquisitions
Proved properties	$	—	$	—	$	—
Unproved properties	1,537		76,676		119,597
Development	138,813		666,315		952,733
Exploration	32,259		95,371		45,006
Total	$	172,609	$	838,362	$	1,117,336

__________


(*)	Includes costs incurred whether capitalized or expensed.

Results of Operations for Producing Activities:



	For the Years Ended December 31,
	2016			2015			2014
Natural Gas, NGLs and Oil Sales	$	793,673		$	728,458		$	1,007,381
(Loss) Gain on Commodity Derivative Instruments	(141,021		)	392,942			23,193
Purchased Gas Sales	43,256			14,450			8,999
Total Revenue	695,908			1,135,850			1,039,573
Lease Operating Expense	96,434			121,847			139,242
Production, Ad Valorem, and Other Fees	31,049			30,438			39,418
Transportation, Gathering and Compression	374,350			343,403			239,591
Purchased Gas Costs	42,717			10,721			7,251
Impairment of Exploration and Production Properties	—			828,905			—
Other Costs	14,519			10,120			22,718
DD&A	417,853			370,374			323,600
Total Costs	976,922			1,715,808			771,820
Pre-tax Operating Income / (Loss)	(281,014		)	(579,958		)	267,753
Income Taxes / (Benefit)	(69,308		)	(250,220		)	45,162
Results of Operations for Producing Activities excluding Corporate and Interest Costs	$	(211,706	)	$	(329,738	)	$	222,591

The following is production, average sales price and average production costs, excluding ad valorem and severance taxes, per unit of production:



	For the Years Ended December 31,
	2016		2015		2014
Production (MMcfe)	394,387		328,657		235,714
Total average sales price before effects of financial settlements (per Mcfe)	$	2.01	$	2.22	$	4.27
Average effects of financial settlements (per Mcfe)	$	0.62	$	0.60	$	0.10
Total average sales price including effects of financial settlements (per Mcfe)	$	2.63	$	2.82	$	4.37
Average lifting costs, excluding ad valorem and severance taxes (per Mcfe)	$	0.24	$	0.37	$	0.59

During the years ended December 31, 2016, 2015 and 2014, we drilled 36.0, 132.8, and 180.3 net development wells, respectively. There were no net dry development wells in 2016, 2015, or 2014.

During the year ended December 31, 2016, there were no net exploratory wells. During the years ended December 31, 2015 and 2014, we drilled 2.5 and 8.5 net exploratory wells, respectively. There were no net dry exploratory wells in 2016, 2015, or 2014.

At December 31, 2016, there were 15.0 net development wells and no exploratory wells that have been partially drilled but not turned in-line. Additionally there are 65.5 net developmental wells that are drilled but uncompleted and 3.0 net developmental wells and no net exploratory well that have been completed and are awaiting final tie-in to production.

We are committed to provide 431.4 Bcf of gas under existing sales contracts or agreements over the course of the next four years. We expect to produce sufficient quantities from existing proved developed reserves to satisfy these commitments.

Most of our development wells and proved acreage are located in Virginia, West Virginia and Pennsylvania. Some leases are beyond their primary term, but these leases are extended in accordance with their terms as long as certain drilling commitments or other term commitments are satisfied. The following table sets forth, at December 31, 2016, the number of producing wells, developed acreage and undeveloped acreage:



	Gross	Net(1)
Producing Gas Wells (including gob wells)	17,314	12,846
Producing Oil Wells	189	30
Acreage Position:
Proved Developed Acreage	549,816	541,282
Proved Undeveloped Acreage	34,467	30,038
Unproved Acreage	4,804,804	3,745,533
Total Acreage	5,389,087	4,316,853

____________


(1)	Net acres include acreage attributable to our working interests of the properties. Additional adjustments (either increases or decreases) may be required as we further develop title to and further confirm our rights with respect to our various properties in anticipation of development. We believe that our assumptions and methodology in this regard are reasonable.

Proved Oil and Gas Reserves Quantities:

Annually, the preparation of natural gas reserves estimates are completed in accordance with CONSOL Energy's prescribed internal control procedures, which include verification of input data into a gas reserves forecasting and economic evaluation software, as well as multi-functional management review. The input data verification includes reviews of the price and cost assumptions used in the economic model to determine the reserves. Also, the production volumes are reconciled between the system used to calculate the reserves and other accounting/measurement systems. The technical employee responsible for overseeing the preparation of the reserve estimates is a petroleum engineer with over 10 years of experience in the oil and gas industry. Our 2016 gas reserves results, which are reported in the Supplemental Gas Data year ended December 31, 2016 Form 10-K, were audited by Netherland, Sewell & Associates, Inc. The technical person primarily responsible for overseeing the audit of our reserves is a registered professional engineer in the state of Texas with over 15 years of experience in the oil and gas industry. The gas reserves estimates are as follows:



					Condensate		Consolidated
	Natural Gas		NGLs		& Crude Oil		Operations
	(MMcf)		(Mbbls)		(Mbbls)		(MMcfe)
Balance December 31, 2013 (a)	5,585,107		21,546		2,806		5,731,214
Revisions (b)	(46,560	)	40,363		3,756		218,168
Price Changes	15,512		—		—		15,512
Extensions and Discoveries (c)	979,801		18,459		1,314		1,098,436
Production	(216,260	)	(2,578	)	(664	)	(235,714	)
Balance December 31, 2014 (a)	6,317,600		77,790		7,212		6,827,616
Revisions (d)	1,052,978		45,993		6,662		1,368,909
Price Changes	(2,866,123	)	(45,675	)	(3,208	)	(3,159,421	)
Extensions and Discoveries (e)	840,800		13,916		1,707		934,542
Production	(285,041	)	(5,812	)	(1,458	)	(328,657	)
Balance December 31, 2015 (a)	5,060,214		86,212		10,915		5,642,989
Revisions (f)	21,280		(20,669	)	481		(99,849	)
Price Changes	(179,914	)	(1,647	)	(35	)	(190,009	)
Extensions and Discoveries (g)	643,688		10,960		1,783		720,146
Production	(358,474	)	(5,119	)	(867	)	(394,387	)
Purchases of Reserves In-Place (h)	1,352,759		13,177		1,970		1,443,642
Sales of Reserves In-Place (h)	(711,155	)	(22,382	)	(4,240	)	(870,884	)
Balance December 31, 2016 (a)	5,828,398		60,532		10,007		6,251,648

Proved developed reserves (i):
December 31, 2014	2,979,906		32,405		4,061		3,198,706
December 31, 2015	3,310,894		59,196		5,180		3,697,152
December 31, 2016	3,478,464		30,666		3,474		3,683,302

Proved undeveloped reserves:
December 31, 2014	3,337,694		45,385		3,151		3,628,910
December 31, 2015	1,749,320		27,016		5,736		1,945,837
December 31, 2016	2,349,934		29,866		6,536		2,568,346

__________

(a)

Proved developed and proved undeveloped gas reserves are defined by SEC Rule 4.10(a) of Regulation S-X. Generally, these reserves would be commercially recovered under current economic conditions, operating methods and government regulations. CONSOL Energy cautions that there are many inherent uncertainties in estimating proved reserve quantities, projecting future production rates and timing of development expenditures. Proved oil and gas reserves are estimated quantities of natural gas which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions and government regulations. Proved developed reserves are reserves expected to be recovered through existing wells, with existing equipment and operating methods.


(b)	Revisions for 2014 are primarily due to efficiencies in operations and well optimization and had the total effect of positive revisions. Additionally, the 2014 revisions include a reclassification of ethane volumes from natural gas to NGLs.


(c)	Extensions and Discoveries in 2014 are primarily due to the addition of wells on our Marcellus and Utica Shale acreage. We also included Marcellus Shale wells which are more than one offset location away due to continued use of reliable technology.


(d)	The upward revisions in 2015 are attributable to efficiencies in operations and well performance.


(e)	Extensions and Discoveries in 2015 are due mainly to the high grading of locations which resulted in the addition of wells on our Marcellus and Utica Shale acreage more than one offset location away with continued use of reliable technology.


(f)	The net downward revisions for 2016 are primarily due to changes in plans related to future locations.


(g)	Extensions and Discoveries in 2016 are due to the addition of wells on our Marcellus and Utica Shale acreage more than one offset location away with continued use of reliable technology.


(h)	Purchases and Sales of Reserves In-Place in 2016 is the result of our fourth quarter realignment of the Marcellus Shale properties as part of dissolving our joint venture with Noble Energy.


(i)	Included in our proved developed reserves at December 31, 2016 are producing wells with negative undiscounted cash flows that represent 199.3 Bcfe of natural gas and equivalents which represents 3.2% of our total reserves quantities. These consist primarily of conventional wells and the company includes these wells in our reserves as we continue to produce the properties.



	For the Year
	Ended
	December 31,
	2016
Proved Undeveloped Reserves (MMcfe)
Beginning proved undeveloped reserves	1,945,837
Undeveloped reserves transferred to developed(a)	(211,876	)
Disposition of reserves in place	(199,401	)
Acquisition of reserves in place	547,680
Price Changes	(188,066	)
Plan and other revisions (b)	4,906
Extension and discoveries (c)	669,266
Ending proved undeveloped reserves(d)(e)	2,568,346

_________


(a)	During 2016, various exploration and development drilling and evaluations were completed. Approximately, $58,694 of capital was spent in the year ended December 31, 2016 related to undeveloped reserves that were transferred to developed.

(b) Plan and other revisions are due to high grading of locations. These changes along with upward revisions attributable to efficiencies in operations and well performance had the total affect of a positive revision.


(c)	Extensions and discoveries are due mainly to the high grading of locations which resulted in the addition of wells on our Marcellus and Utica Shale acreage more than one offset location away with continued use of reliable technology.

(d)

Included in proved undeveloped reserves at December 31, 2016 are approximately 215,861 MMcfe of reserves that have been reported for more than five years. These reserves specifically relate to GOB (a rubble zone formed in the cavity created by the extraction of coal) production due to a complex fracture being generated in the overburden strata above the mined seam. Mining operations take a significant amount of time and our GOB forecasts are consistent with the future plans of the Buchanan Mine that was sold in March 2016 to Coronado IV LLC (See Note 2 - Discontinued Operations for more information) with the rights to this gas being retained by the Company. Evidence also exists that supports the continual operation of the mine beyond the current plan, unless there was an extreme circumstance resulting from an external factor. These reasons constitute the specific circumstances that exist to continue recognizing these reserves for CONSOL Energy.

(e)

Included in proved undeveloped reserves at December 31, 2016 are 175 gross proved undeveloped locations that generate positive future net revenue but have negative present worth discounted at 10 percent as of December 31, 2016, representing 58.9% of our total proved undeveloped reserves. Additionally, the 1,511.8 Bcfe of natural gas and equivalents attributable to these locations represent approximately 24.2% of our total proved reserves. The Company includes these well sites in its current drilling plans and currently intends to drill these sites as our economic modeling of these well locations generate positive future cash flows.

At December 31, 2016 there were no wells pending the determination of proved reserves.

The following table represents the capitalized exploratory well cost activity as indicated:



	December 31,
	2016		2015		2014
Costs reclassified to wells, equipment and facilities based on the determination of proved reserves	$	40,917	$	17,179	$	27,453
Costs expensed due to determination of dry hole or abandonment of project	$	—	$	—	$	2,041

CONSOL Energy's proved natural gas reserves are located in the United States.