COMMITMENTS AND CONTINGENT LIABILITIES:

The Coal Business is subject to various lawsuits and claims with respect to such matters as personal injury, wrongful death, damage to property, exposure to hazardous substances, governmental regulations including environmental remediation, employment and contract disputes and other claims and actions arising out of the normal course of business. Prior to the separation and distribution, ParentCo accrued the estimated loss for these lawsuits and claims when the loss was probable and reasonably estimable. ParentCo's estimated accruals as of September 30, 2017 related to these pending claims, individually and in the aggregate, are immaterial to the financial position, results of operations or cash flows of the Coal Business as of September 30, 2017. It is possible that the aggregate loss in the future with respect to these lawsuits and claims could ultimately be material to CONSOL Energy Inc.'s financial position, results of operations or cash flows; however, such amounts cannot be reasonably estimated. The amount claimed against ParentCo's Coal Business as of September 30, 2017 is disclosed below when an amount is expressly stated in the lawsuit or claim, which is not often the case.

Fitzwater Litigation: Three nonunion retired coal miners have sued ParentCo, Fola Coal Company (AMVEST), Consolidation Coal Company and CONSOL of Kentucky Inc. (COK) in West Virginia Federal Court alleging ERISA violations in the termination of retiree health care benefits. The Plaintiffs contend they relied to their detriment on oral statements and promises of “lifetime health benefits” allegedly made by various members of management during Plaintiffs’ employment and that they were allegedly denied access to Summary Plan Documents that clearly reserved to the Company the right to modify or terminate the ParentCo Retiree Health and Welfare Plan. Pursuant to Plaintiffs' amended complaint filed on April 24, 2017, Plaintiffs request that retiree health benefits be reinstated and seek to represent a class of all nonunion retirees who were associated with AMVEST and COK areas of operation. The Company believes it has meritorious defense and intends to vigorously defend this suit.

Casey Litigation: The Company has become aware of (but not served with) a Complaint filed on August 23, 2017, on behalf of two nonunion retired coal miners against ParentCo, CONSOL Buchanan Mining Co., Inc. and Consolidation Coal Company in West Virginia Federal Court alleging ERISA violations in the termination of retiree health care benefits. Filed by the same lawyers who filed the Fitzwater litigation, and raising nearly identical claims, the Plaintiffs contend they relied to their detriment on oral promises of “lifetime health benefits” allegedly made by various members of management during Plaintiffs’ employment and that they were not provided with copies of Summary Plan Documents clearly reserving to the Company the right to modify or terminate the Retiree Health and Welfare Plan. Plaintiffs request that retiree health benefits be reinstated for them and their dependents and seek to represent a class of all nonunion retirees of any ParentCo subsidiary that operated or employed individuals in McDowell or Mercer Counties, West Virginia, or Buchanan or Tazewell Counties, Virginia whose retiree welfare benefits were terminated.

Other Matters: The Company is a defendant in certain other legal proceedings arising out of the conduct of the Coal Business. In the opinion of management, based upon an investigation of these matters and discussion with legal counsel, the ultimate outcome of such other legal proceedings and compliance reviews, individually and in the aggregate, is not expected to have a material adverse effect on the Company’s financial position, results of operations or liquidity. Employee-related financial guarantees have primarily been provided to support the United Mine Workers’ of America’s 1992 Benefit Plan and various state workers’ compensation self-insurance programs. Environmental financial guarantees have primarily been provided to support various performance bonds related to reclamation and other environmental issues. Coal and other financial guarantees have primarily been provided to support various sales contracts. Other guarantees have been extended to support insurance policies, legal matters, full and timely payments of mining equipment leases, and various other items necessary in the normal course of business.

At September 30, 2017, ParentCo has provided the following financial guarantees, unconditional purchase obligations and letters of credit to certain third parties with respect to the Coal Business, as described by major category in the following table. These amounts represent the maximum potential of total future payments that ParentCo's Coal Business could be required to make under these instruments. These amounts have not been reduced for potential recoveries under recourse or collateralization provisions. Generally, recoveries under reclamation bonds would be limited to the extent of the work performed at the time of the default. No amounts related to these financial guarantees and letters of credit are recorded as liabilities in the financial statements. CONSOL Energy Inc. management believes that these guarantees will expire without being funded, and therefore, the commitments will not have a material adverse effect on financial condition.



	Amount of Commitment Expiration Per Period
	Total Amounts Committed		Less Than 1 Year		1-3 Years		3-5 Years		Beyond 5 Years
Letters of Credit:
Employee-Related	$	83,836	$	46,214	$	37,622	$	—	$	—
Environmental	998		998		—		—		—
Other	9,846		1,204		8,642		—		—
Total Letters of Credit	94,680		48,416		46,264		—		—
Surety Bonds:
Employee-Related	109,660		106,980		2,680		—		—
Environmental	477,152		467,991		9,161		—		—
Other	6,777		6,602		174		1		—
Total Surety Bonds	593,589		581,573		12,015		1		—
Guarantees:
Other	36,314		9,752		15,858		9,875		829
Total Guarantees	36,314		9,752		15,858		9,875		829
Total Commitments	$	724,583	$	639,741	$	74,137	$	9,876	$	829

The Company regularly evaluates the likelihood of default for all guarantees based on an expected loss analysis and records the fair value, if any, of its guarantees as an obligation in the combined financial statements.