EX-10.6 8 d417562dex106.htm EX-10.6 EX-10.6

Exhibit 10.6

FORM OF SECOND AMENDMENT TO AGREEMENT

THIS SECOND AMENDMENT TO AGREEMENT (this “Amendment), dated as of                     , 2017 (the “Execution Date), but effective for all purposes as of July 7, 2015 (the “Effective Date”), is by and between CNX THERMAL HOLDINGS LLC, a Delaware limited liability company (“CTH”), CONSOL PENNSYLVANIA COAL COMPANY LLC, a Delaware limited liability company (“CPCC”), CONRHEIN COAL COMPANY, a Pennsylvania general partnership (“Conrhein,” and together with CTH and CPCC, “Coal Party”), CNX GAS COMPANY LLC, a Virginia limited liability company (“Gas Party”), and each party designated as a subsidiary of CONSOL Energy Inc. (“CEI”) on Schedule 1 attached hereto (collectively, the “CEI Subsidiaries”). All of the foregoing persons, excluding CEI, are referred to herein separately as a “Party” and collectively as the “Parties.”

RECITALS

WHEREAS, the Parties and CEI entered into that certain Amendment and Restatement of Master Cooperation Agreement on July 7, 2015 concerning the Pennsylvania Mine Complex, Gas Interests, and Subsidiary Surface Rights, as defined in the Agreement, which was amended by that certain First Amendment to Amendment and Restatement of Master Cooperation and Safety Agreement dated January 7, 2016, and effective July 31, 2015 (the “Agreement”);

WHEREAS, following execution of the Agreement, it has been determined that certain provisions and definitions contained therein and certain Exhibits attached thereto require amendment and modification;

WHEREAS, the Parties are entering into this Amendment for the purpose of making such necessary amendments and modification.

NOW, THEREFORE, in consideration of the premises and of the mutual covenants, agreements, conditions, and obligations set forth herein, the Parties hereby agree as follows:

1. Defined Terms. For purposes hereof, the capitalized terms used herein and not otherwise defined shall have the meanings set forth in the Agreement.

2. Recitals. The Parties acknowledge and agree the accuracy of the foregoing recitals, which are hereby incorporated herein by reference.

3. Amendment. Effective as of the Effective Date, the Agreement shall be amended as follows:

(i) Replacement of Exhibits E and F. Exhibits E and F to the Agreement are hereby deleted in their entirety and replaced with the Exhibits E and F attached hereto and incorporated herein; provided, however, the Parties agree that the intent of Exhibit E (i.e., Non-Protected Wells) is to list, as of the Effective Date of the Agreement, any existing Well on a location that was in the Coal Area at the time such Well was permitted, the intent of Exhibit F (i.e., Protected Wells) is to list as of the Effective Date of the Agreement any existing Well on a location that was in the Non-Coal Area at the time such Well was permitted, and no presumption of accuracy

 

Page 1 of 3

shall be given to Exhibits E and F. The Parties further agree that to the extent any such existing Well is incorrectly included on, or omitted from, Exhibit E or Exhibit F, the intent of the Parties and the facts as they existed as of the Effective Date of the Agreement (including the location of such Well and the Coal Area) shall be controlling in determining whether any such Well is Protected or Non-Protected, with no obligation to further amend Exhibits E and F unless otherwise agreed in writing by the Parties.

(ii) New Definitions. The following new definitions are hereby added to Appendix I, Definitions:

“CNX/NBL Termination Agreement” shall mean that certain Termination and Release Agreement dated December 1, 2016, by and among CNX Gas Company LLC, CONSOL Energy Inc., Noble Energy, Inc., the eight (8) Water Parties listed on Schedule 1(a) thereof, and the seventeen (17) Surface Parties listed on Schedule 1(b) thereof.

“Post-Plugging Well Valuation” has the meaning set forth in Schedule 3.3(a).

“Valuation Amount” has the meaning set forth in Schedule 3.3(a).

(iii) Replacement of Schedule 3.3(a), Part I, paragraph 1). Part I, paragraph 1), of Schedule 3.3(a), is hereby deleted in its entirety and replaced with the following:

 

  1) Wells that are classified as a Protected Well will utilize a “Valuation Amount” based on the present value, discounted at eight percent (8%) from the most recent Reserves Database prior to the Protected Well being taken out of production (the “Producing Well Valuation Amount”). This will be based on the current forecast along with the current future pricing at current operating costs with a three percent (3%) escalation and will have a valuation date equal to the first calendar day of the first month after the month in which such Protected Well is taken off production. If Coal Party is successful at receiving regulatory approval, a portion of a lateral is plugged from either inside the mine or from the surface, and the production is reduced from prior volumes, then the “Valuation Amount” will be equal to the Valuation Amount as described above, less the Post Plugging Valuation Amount. The “Post Plugging Valuation Amount” will include the same assumptions as above, except for the production forecast being adjusted to post-plugging volumes. Coal Party is responsible for all costs associated with the plugging and mine through.

4. Status of CNX/NBL SUA. The Parties hereby acknowledge and agree (i) that, effective as of December 1, 2016, the CNX/NBL SUA terminated by its own terms, except as to certain provisions thereof that expressly survived such termination, (ii) that the surviving provisions of the CNX/NBL SUA, and not the Agreement (as amended), shall apply to and govern the rights and obligations of the Coal Party and the Gas Party with respect to (A) any Marcellus Formation wells in the Pennsylvania Mine Area that existed as of December 1, 2016, that were either drilled pursuant to the CNX/NBL SUA (and are, thus, subject thereto) or drilled prior to the effective date of the CNX/NBL SUA (i.e., September 30, 2011) and became subject to the JDA (as

 

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defined in the CNX/NBL SUA), and (B) any Easements in the Pennsylvania Mine Area granted pursuant to the CNX/NBL SUA prior to December 1, 2016, or within the six-month (6-mo.) period thereafter provided for in Section 4 of the CNX/NBL Termination Agreement (or the surface facilities or operations permitted under any such easement Easement), and (iii) the Agreement (as amended) shall apply to and govern the rights and obligations of the Coal Party and the Gas Party with respect to all other Wells and Non-Well Facilities of Gas Party in the Pennsylvania Mine Area, pursuant to the terms and conditions thereof.

5. Ratification. Except as set forth herein, all other terms and conditions of the Agreement remain unchanged and said Agreement as amended by this Amendment is hereby ratified and confirmed by the Parties and, to the extent necessary, CEI.

6. Counterparts. This Amendment may be executed in any number of counterparts and by any or each Party hereto on a separate counterpart, each of which, when so executed and delivered, shall be deemed to be an original and all of which, when taken together, shall constitute but one and the same instrument.

[Remainder of page intentionally left blank; signature page follows]

 

Page 3 of 3

IN WITNESS WHEREOF, this Amendment has been signed by each of the Parties on the Execution Date.

 

GAS PARTY:
CNX GAS COMPANY LLC

 

Name: William D. Gillenwater
Title:   Attorney-in-Fact
COAL PARTY:
CNX THERMAL HOLDINGS LLC

 

Name: William D. Gillenwater
Title:   Vice President

 

[Signature Page to Second Amendment to Agreement] – Page 1

CONRHEIN COAL COMPANY
By:   MTB LLC,
its general partner

 

Name:   William D. Gillenwater
Title:   Vice President, MTB LLC
By:   CONSOL Mining Holding Company LLC,
its general partner

 

Name:   William D. Gillenwater
Title:   Vice President, CONSOL Mining Holding Company LLC
CONSOL PENNSYLVANIA COAL COMPANY LLC

 

Name:   William D. Gillenwater
Title:   Vice President
CEI SUBSIDIARIES:
CNX GAS CORPORATION

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact

 

[Signature Page to Second Amendment to Agreement] – Page 2

CONSOL AMONATE FACILITY LLC

 

Name: William D. Gillenwater
Title:   Vice President
CONSOL AMONATE MINING COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
CONSOL MINING COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
CONSOL MINING HOLDING COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
R&PCC LLC

 

Name: William D. Gillenwater
Title:   Vice President

 

[Signature Page to Second Amendment to Agreement] – Page 3

CNX LAND LLC

 

Name: William D. Gillenwater
Title:   Vice President
CNX RCPC LLC

 

Name: William D. Gillenwater
Title:   Vice President
CNX MARINE TERMINALS LLC

 

Name: William D. Gillenwater
Title:   Attorney-in-Fact
CONSOL ENERGY SALES COMPANY LLC

 

Name: William D. Gillenwater
Title:   Attorney-in-Fact
CNX WATER ASSETS LLC

 

Name: William D. Gillenwater
Title:   Attorney-in-Fact

 

[Signature Page to Second Amendment to Agreement] – Page 4

CONSOL OF KENTUCKY LLC

 

Name: William D. Gillenwater
Title:   Vice President
HELVETIA COAL COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
ISLAND CREEK COAL COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
LAUREL RUN MINING COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
LEATHERWOOD, LLC

 

Name: William D. Gillenwater
Title:   Vice President

 

[Signature Page to Second Amendment to Agreement] – Page 5

MTB LLC

 

Name: William D. Gillenwater
Title:   Vice President
TERRA FIRMA COMPANY

 

Name: William D. Gillenwater
Title:   Vice President
WINDSOR COAL COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
WOLFPEN KNOB DEVELOPMENT COMPANY LLC

 

Name: William D. Gillenwater
Title:   Vice President
CONSOL FINANCIAL INC.

 

Name: William D. Gillenwater
Title:   Attorney-in-Fact

 

[Signature Page to Second Amendment to Agreement] – Page 6

CONSOL OF CANADA LLC

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact
CONSOL ENERGY CANADA LTD

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact
CARDINAL STATES GATHERING COMPANY
By:   CNX GAS COMPANY LLC,
its general partner

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact, CNX GAS COMPANY LLC
By:   CNX GAS CORPORATION,
its general partner

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact, CNX GAS CORPORATION

 

[Signature Page to Second Amendment to Agreement] – Page 7

CNX COAL RESOURCES LP
By:   CNX COAL RESOURCES GP LLC,
  its general partner

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact, CNX Coal Resources GP LLC
CNX COAL RESOURCES GP LLC

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact
CNX OPERATING LLC

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact
CONSOL MINING CORPORATION

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact

 

[Signature Page to Second Amendment to Agreement] – Page 8

The Person set forth below hereby executes this Amendment as of the Execution Date solely with respect to its acknowledgment, ratification, and agreement with the provisions of Section 8.16 of the Agreement.

 

CONSOL ENERGY INC.

 

Name:   William D. Gillenwater
Title:   Attorney-in-Fact

 

[Signature Page to Second Amendment to Agreement] – Page 9

Exhibit E

Non-Protected Wells

 

API

   

FARM NAME

   

STATE

3705901741

    B.H. MCNAY n94    PA

3705901744

    J.V. CHESS    PA

3705924112

    GH-80    PA

3705924214

    GH-90    PA

3705924215

    GH-75    PA

3705924260

    GH-94    PA

3705924329

    GH-93    PA

3705924380

    GH-100    PA

3705924726

    NV-87    PA

3705924754

    GH-63    PA

3705924871

    NV-79    PA

3705925033

    NV-89    PA

3705925055

    NV-86    PA

3705925064

    NV-85    PA

3705925413

    GHBD-1    PA

3712523259

    NV-38    PA

3712523616

    CONSOL    PA

3712523755

    NV-80    PA

4705101057

    MC-50    WV

4705101059

    MC-51    WV

4705101114

    MC-68    WV

4705101124

    MC-53    WV

 

EXHIBIT E – PAGE 1

Exhibit F

Protected Wells

 

API

   

FARM NAME

   

STATE

3705901230

    WILLIAM BLAIR    PA

3705901731

    PETER ASHBY    PA

3705901732

    O.E.BURNS    PA

3705901733

    H.T. STOUT    PA

3705901734

    J.P. MCKERRIHAN    PA

3705901735

    M.B. DURBIN 2    PA

3705901736

    M.B. DURBIN 3    PA

3705901737

    F.P. ROSS 1    PA

3705901738

    F.P. ROSS 2    PA

3705901740

    J.F. GRAHAM    PA

3705901742

    J.B. MCNAY    PA

3705901745

    S.C CHESS    PA

3705923724

    GH-1    PA

3705923725

    GH-2    PA

3705923936

    GREENE HILL/GREENON    PA

3705923938

    GH-3    PA

3705923939

    GH-4    PA

3705923940

    GH-5    PA

3705924052

    GH-6    PA

3705924098

    GH-15    PA

3705924099

    GH-16    PA

3705924105

    GH-29    PA

3705924106

    GH-18    PA

3705924107

    GH-42    PA

3705924115

    GH-39    PA

3705924145

    CONSOL PA COAL    PA

3705924146

    CONSOL PA COAL CO    PA

3705924147

    CONSOL PA COAL CO    PA

3705924175

    GH-65    PA

3705924182

    GH-38    PA

3705924224

    GH-20    PA

3705924226

    GH-91    PA

3705924227

    GH-41    PA

3705924273

    GH-40    PA

3705924292

    GH-81    PA

3705924293

    GH-89    PA

3705924316

    GH-43    PA

3705924358

    GH-74    PA

3705924361

    GH-48    PA

3705924362

    CONSOL PA COAL    PA

3705924366

    GH-49    PA

3705924367

    GH-19    PA

3705924378

    GH-67    PA

 

EXHIBIT F – PAGE 1

API

   

FARM NAME

   

STATE

3705924379

    GH-68    PA

3705924392

    GH-54    PA

3705924403

    GH-56    PA

3705924404

    GH-17    PA

3705924405

    GH-51    PA

3705924411

    GH-10    PA

3705924477

    GH-12    PA

3705924478

    GH-13    PA

3705924487

    GH-88    PA

3705924501

    GH-32    PA

3705924505

    GH-66    PA

3705924506

    GH-9    PA

3705924529

    GH-31    PA

3705924534

    GH-82    PA

3705924536

    GH-83    PA

3705924537

    GH-36    PA

3705924547

    GH-21    PA

3705924573

    CNX1    PA

3705924586

    GH-26    PA

3705924587

    GH-87    PA

3705924588

    GH-27    PA

3705924596

    GH-72    PA

3705924601

    GH-25    PA

3705924628

    GH-50    PA

3705924629

    GH-8    PA

3705924633

    GH-73    PA

3705924637

    GH-104    PA

3705924657

    GH-34    PA

3705924658

    GH-33    PA

3705924664

    GH-23    PA

3705924689

    GH-30    PA

3705924710

    GH-24    PA

3705924713

    GH-28    PA

3705924760

    GH-35    PA

3705924768

    GH-37    PA

3705924772

    GH-22    PA

3705924811

    GH-109    PA

3705924812

    GH-109    PA

3705924813

    GH-110    PA

3705924814

    GH-110    PA

3705924832

    CONSOL    PA

3705924857

    GH-45    PA

3705924867

    GH-18    PA

3705924920

    GH12CV    PA

3705924923

    GH-5    PA

3705924945

    GH-3    PA

3705924946

    GH-7    PA

 

EXHIBIT F – PAGE 2

API

   

FARM NAME

   

STATE

3705924970

    GH-15    PA

3705924975

    GH-44    PA

3705925008

    GH-69    PA

3705925016

    GH-84    PA

3705925017

    GH-122    PA

3705925025

    GH-85    PA

3705925026

    GH-71    PA

3712523142

    NV-61    PA

3712523163

    NV-65    PA

3712523207

    NV-35    PA

3712523228

    NV-70    PA

3712523229

    NV-71    PA

3712523235

    NV-42    PA

3712523236

    NV-36    PA

3712523237

    NV-43    PA

3712523238

    NV-72    PA

3712523250

    NV-58    PA

3712523251

    NV-57    PA

3712523324

    NV-33    PA

3712523340

    NV-99    PA

3712523354

    NV-51    PA

3712523365

    NV-73    PA

3712523441

    NV-60    PA

4705101126

    MC-46    WV

4705101130

    MC-122    WV

4705101132

    MC-102    WV

4705101135

    MC-47    WV

4705101146

    MC-52    WV

 

EXHIBIT F – PAGE 3

Schedule 1

CEI Subsidiaries

 

1. CNX Gas Corporation

 

2. CONSOL Amonate Facility LLC

 

3. CONSOL Amonate Mining Company LLC

 

4. CONSOL Mining Company LLC

 

5. CONSOL Mining Holding Company LLC

 

6. R&PCC LLC

 

7. CNX Land LLC

 

8. CNX RCPC LLC

 

9. CNX Marine Terminals LLC (successor to CNX Marine Terminals Inc.)

 

10. CONSOL Energy Sales Company LLC (successor to CONSOL Energy Sales Company)

 

11. CNX Water Assets LLC

 

12. CONSOL of Kentucky LLC (successor to CONSOL of Kentucky Inc.)

 

13. Helvetia Coal Company LLC (successor to Helvetia Coal Company)

 

14. Island Creek Coal Company LLC (successor to Island Creek Coal Company)

 

15. Laurel Run Mining Company LLC (successor to Laurel Run Mining Company)

 

16. Leatherwood, LLC (successor to Leatherwood Inc.)

 

17. MTB LLC

 

18. Terra Firma Company

 

19. Windsor Coal Company LLC (successor to Windsor Coal Company)

 

20. Wolfpen Knob Development Company LLC

(successor to Wolfpen Knob Development Company)

 

21. CONSOL Financial Inc.

 

22. CONSOL of Canada LLC (successor to CONSOL of Canada Inc.)

 

23. CONSOL Energy Canada Ltd.

 

24. Cardinal States Gathering Company

 

25. CNX Coal Resources LP

 

26. CNX Coal Resources GP LLC

 

27. CNX Operating LLC

 

28. CONSOL Mining Corporation

NOTE: CONSOL Buchanan Mining Company LLC is no longer a CEI Subsidiary.

NOTE: The following former CEI Subsidiaries were merged into other CEI Subsidiaries:

 

  •   CONSOL of Central Pennsylvania LLC merged into MTB LLC, the survivor

 

  •   CONSOL of Ohio LLC merged into CNX Land LLC, the survivor

 

  •   CNX Funding Corporation merged into CONSOL Financial Inc., the survivor

 

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