Consol announces closure on WV mine sales - WBOY.com: Clarksburg, Morgantown: News, Sports, Weather

Consol closes on WV mine sale deal

Posted: Updated:
  • BusinessBusinessMore>>

  • Annual Business Summit will focus on advanced careers

    Annual Business Summit will focus on advanced careers

    Saturday, August 23 2014 1:00 PM EDT2014-08-23 17:00:15 GMT
    From Aug. 27-29, business, industry, financial and political leaders from throughout the Mountain State will gather for the West Virginia Chamber of Commerce Annual Meeting and Business Summit. The topic of advanced career placement will be discussed in an education session led by Senate Education Committee Chairman Bob Plymale, D-Wayne.
    From Aug. 27-29, business, industry, financial and political leaders from throughout the Mountain State will gather for the West Virginia Chamber of Commerce Annual Meeting and Business Summit. The topic of advanced career placement will be discussed in an education session led by Senate Education Committee Chairman Bob Plymale, D-Wayne.
  • Judge rules rental owner waited too long

    Judge rules rental owner waited too long

    Saturday, August 23 2014 10:00 AM EDT2014-08-23 14:00:16 GMT
    The owner of three Clarksburg rental properties demolished because of alleged code violations waited too long to challenge the validity of the city's building ordinances, Harrison County Circuit Judge James A. Matich has ruled.
    The owner of three Clarksburg rental properties demolished because of alleged code violations waited too long to challenge the validity of the city's building ordinances, Harrison County Circuit Judge James A. Matich has ruled.
  • Business plan: WV is halfway through its 40-year plan to revitalize state's economy

    Business plan: WV is halfway through its 40-year plan to revitalize state's economy

    Saturday, August 23 2014 9:00 AM EDT2014-08-23 13:00:22 GMT
    West Virginia has come a long way since former President John F. Kennedy visited the hillsides in 1963. The state has seen much success, but still has much progress to make.
    West Virginia has come a long way since former President John F. Kennedy visited the hillsides in 1963. The state has seen much success, but still has much progress to make.
  • EnergyEnergyMore>>

  • Exports could save U.S. coal, study says

    Exports could save U.S. coal, study says

    Saturday, August 23 2014 10:30 AM EDT2014-08-23 14:30:08 GMT
    Exporting coal from the United States to power plants in South Korea instead of burning it for power generation domestically could reduce greenhouse gas emissions by 21 percent, according to a recent study led by Duke University.
    Exporting coal from the United States to power plants in South Korea instead of burning it for power generation domestically could reduce greenhouse gas emissions by 21 percent, according to a recent study led by Duke University.
  • Q&A: Mike McCown reflects on his time in oil and gas industry

    Q&A: Mike McCown reflects on his time in oil and gas industry

    Saturday, August 23 2014 9:00 AM EDT2014-08-23 13:00:24 GMT
    Recently selected as the Oil and Gas Man of the Year, awarded by Energy Speaks and the Independent Oil and Gas Association of West Virginia for the 46th Annual West Virginia Oil and Gas Festival, Mike McCown has dedicated his life to the oil and gas industry.
    Recently selected as the Oil and Gas Man of the Year, awarded by Energy Speaks and the Independent Oil and Gas Association of West Virginia for the 46th Annual West Virginia Oil and Gas Festival, Mike McCown has dedicated his life to the oil and gas industry.
  • WV receives more than $500K in mine health and safety training grants

    WV receives more than $500K in mine health and safety training grants

    Friday, August 22 2014 11:00 AM EDT2014-08-22 15:00:51 GMT
    The U.S. Department of Labor's Mine Safety and Health Administration has allocated $8,348,423 in health and safety training grants for 46 states in fiscal year 2014, the department announced Aug. 21.
    The U.S. Department of Labor's Mine Safety and Health Administration has allocated $8,348,423 in health and safety training grants for 46 states in fiscal year 2014, the department announced Aug. 21.

Consol Energy Inc. announced Dec. 5 it had closed on its late-October agreement to sell its Consolidation Coal Company subsidiary to a Murray Energy Corporation at a value of $3.5 billion.

The sale includes all five of its longwall coal mines in West Virginia.

Consol announced Dec. 2 it had passed the federal antitrust waiting period.

Included in the proposed sale are Consol's Shoemaker Mine in Benwood, Robinson Run Mine near Mannington, Loveridge Mine in Fairview, McElroy near Moundsville and Blacksville No. 2, which straddles the West Virginia-Pennsylvania border.

Murray Energy also will acquire 1.1 billion tons of Consol's high quality, low-sulfur Pittsburgh No. 8 seam reserves in addition to its river and dock operations, a network of 21 towboats and 600 barges that transported 19.3 million tons of coal and other commodities along the upper Ohio River system last year.

"The completion of this complex transaction this year enables us to enter 2014 with our focus of achieving our gas growth production targets of 210-225 Bcfe for 2014 and 30 percent annual gas production growth in 2015 and 2016," said Consol Chairman and CEO J. Brett Harvey.

The total consideration paid in the transaction includes $850 million in cash paid at the closing and future payments expected to total nearly $18.4 million in value, resulting from the retention of a royalty on select reserves and tolling fees at Consol's Baltimore Terminal.

Murray Energy also is acquiring $2.4 billion on Consol's balance sheet liabilities as well as Consol's UMWA 1974 Pension Trust obligations, which currently value about $94.1 million.