Canonsburg, PA (August 25, 2014) – CONSOL Energy Inc., along with Pennsylvania Governor Tom Corbett and Allegheny County Chief Executive Rich Fitzgerald, hosted a ceremony to mark commencement of natural gas development at Pittsburgh International Airport (PIT).
The event kicked off a sweeping exploration and production program expected to continue through 2018 and bring hundreds of millions of dollars in economic development activity to the region.
“Today marks the culmination of what was an exhaustive process, one that was thorough at all levels, and, ultimately, drove significant collaboration and constructive, open dialogue with all parties,” said CONSOL Energy President and CEO Nick DeIuliis.
“When you talk about public-private partnerships and the benefits such partnerships can generate, I believe this venture is and will be the gold standard. We intend to honor our 150-year legacy in this region by ensuring that this project is a model for safe and responsible shale gas development here in Southwestern Pennsylvania and beyond.”
“We are reinvigorating local communities all over the commonwealth by responsibly harvesting our energy resources,” commented Governor Tom Corbett. “Thanks to our ‘all of the above-and below’ energy strategy that is leading the way toward American energy independence, companies like CONSOL are investing in Pennsylvania and are creating family-sustaining jobs."
Including up-front bonus payments made to the Allegheny County Airport Authority, anticipated royalties and intended capital spend by CONSOL Energy of approximately $500 million, the plan is expected to provide investment of over $1 billion dollars to the greater Pittsburgh region over the life of the project.
“This project has been a great example of what a positive public-private partnership can look like in our community,” commented Allegheny County Chief Executive Rich Fitzgerald. “This partnership will generate $500 million in revenue for the airport as well as provide $500 million worth of jobs on public works projects in this region. It is a win-win, and I am proud that Allegheny County has played a part in making it happen.”
Federal Aviation Administration rules restrict how airports can spend drilling dollars and other non-aeronautical revenue. The start of CONSOL Energy’s drilling program at PIT represents a strategic move on the part of the airport to continue pursuing new revenue streams to generate non-aviation related income, with economic benefits already accruing.
“The Allegheny County Airport Authority has lowered airline rates twice since 2013 after accepting the initial CONSOL payment of $50M. Reducing operating costs for airlines serving Pittsburgh International Airport, will position PIT to become more competitive and marketable to major airlines and can contribute to improving air service in Pittsburgh,” said David Minnotte, Chairman, Allegheny County Airport Authority.
The ceremony took place on Pad 2, the first of six pads to be constructed on PIT property. CONSOL Energy plans to drill 45 Marcellus wells and will also explore the possibility of tapping other horizons from this location including the Devonian and Utica shales.
CONSOL Energy Inc. (NYSE: CNX) is a Pittsburgh-based producer of natural gas and coal. The company is one of the largest independent natural gas exploration, development and production companies, with operations centered in the major shale formations of the Appalachian basin. CONSOL Energy deploys an organic growth strategy focused on rapidly developing its resource base of 5.7 trillion cubic feet of proved natural gas reserves, while the company’s premium coal assets are sold to electricity generators and steelmakers both domestically and internationally. CONSOL Energy is a member of the Standard & Poor's 500 Equity Index and the Fortune 500.
Additional information may be found at www.consolenergy.com.