PROPERTY, PLANT AND EQUIPMENT:



	March 31, 2017		December 31, 2016
E&P Property, Plant and Equipment
Intangible drilling cost	$	3,465,645	$	3,583,565
Proved gas properties	1,982,134		2,016,916
Unproved gas properties	1,045,437		1,116,282
Gas gathering equipment	1,127,614		1,138,299
Gas wells and related equipment	763,248		791,996
Other gas assets	189,481		190,406
Gas advance royalties	13,186		13,762
Total E&P Property, Plant and Equipment	$	8,586,745	$	8,851,226
Less: Accumulated Depreciation, Depletion and Amortization	3,126,778		3,106,296
Total E&P Property, Plant and Equipment - Net	$	5,459,967	$	5,744,930

PA Mining Operations Property, Plant and Equipment
Coal and other plant and equipment	$	2,318,308	$	2,307,668
Coal properties and surface lands	458,976		458,398
Airshafts	372,656		371,752
Mine development	326,152		326,152
Coal advance mining royalties	16,108		16,224
Leased coal lands	26,556		26,566
Total PA Mining Operations and Other Property, Plant and Equipment	$	3,518,756	$	3,506,760
Less: Accumulated Depreciation, Depletion and Amortization	1,810,108		1,768,712
Total PA Mining Operations and Other Property, Plant and Equipment - Net	$	1,708,648	$	1,738,048

Other Property, Plant and Equipment
Coal and other plant and equipment	531,692		532,919
Coal properties and surface lands	481,037		481,126
Airshafts	10,002		10,003
Mine development	17,988		17,988
Coal advance mining royalties	311,205		310,530
Leased coal lands	60,836		60,836
Total Other Property, Plant and Equipment	$	1,412,760	$	1,413,402
Less: Accumulated Depreciation, Depletion and Amortization	758,456		755,941
Total Other Property, Plant and Equipment - Net	$	654,304	$	657,461

Total Company Property, Plant and Equipment - Continuing Operations	$	13,518,261	$	13,771,388
Less - Total Company Accumulated Depreciation, Depletion and Amortization	5,695,342		5,630,949
Total Company Property, Plant and Equipment - Held for Sale - Net	163,622		—
Total Property, Plant and Equipment of Continuing Operations - Net	$	7,986,541	$	8,140,439

Property, Plant and Equipment Held for Sale

In February 2017, the Company approved a plan to sell subsidiaries Knox Energy LLC and Coalfield Pipeline Company (“Knox”). Knox met all of the criteria to be classified as held for sale in February 2017. The potential disposal of Knox did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and is, therefore, not classified as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360). As part of the required evaluation under the held for sale guidance, the asset’s book value is to be evaluated and adjusted to the lower of its carrying amount or fair value less cost to sell. The Company determined that the approximate fair value less costs to sell Knox was less than the carrying value of the net assets which resulted in an impairment of $137,865 in February 2017, included in Impairment of Exploration and Production Properties within the Other Gas segment of the Consolidated Statements of Income. The sale of Knox closed in the second quarter of 2017 (see Note 18 Subsequent Events for additional information).

In March 2017, the Company approved a plan to sell approximately 6,300 net undeveloped acres of the Utica-Point Pleasant Shale in Jefferson, Belmont and Guernsey counties, Ohio. This transaction closed in the second quarter of 2017 (see Note 18 Subsequent Events for additional information). Additionally, a plan to sell 12 producing wells, 15 DUCs, and approximately 15,500 net developed and undeveloped acres in Doddridge and Wetzel Counties in West Virginia was approved. These assets met all of the criteria to be classified as held for sale in the first quarter of 2017. The potential disposal of these assets did not represent a strategic shift that will have a major effect on the Company’s operations and financial results and is, therefore, not classified as discontinued operations in accordance with ASU 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant and Equipment (Topic 360). As part of the required evaluation under the held for sale guidance, the Company determined that the approximate fair value less costs to sell exceeded the carrying value of the net assets and thus no impairment charge was recorded. The final sale of these assets will be subject to our ability to negotiate acceptable terms and conditions and the Company anticipates completing the sale of these assets before year-end.

Industry Participation Agreements

CONSOL Energy had two significant industry participation agreements (referred to as "joint ventures" or "JVs") that provided drilling and completion carries for the Company's retained interests.

CNX Gas Company is party to a joint development agreement with Hess Ohio Developments, LLC (Hess) with respect to approximately 155 thousand net Utica Shale acres in Ohio in which each party has a 50% undivided interest. Under the agreement, as amended, Hess was obligated to pay a total of approximately $335,000 in the form of a 50% drilling carry of certain CONSOL Energy working interest obligations as the acreage is developed. As of December 31, 2016, Hess' entire carry obligation has been met.

CNX Gas Company was party to a joint development agreement with Noble Energy, Inc. (Noble) with respect to approximately 700 thousand net Marcellus Shale oil and gas acres in West Virginia and Pennsylvania, in which each party owned a 50% undivided interest. On October 29, 2016, CNX Gas entered into an Exchange Agreement with Noble Energy, which terminated the joint development agreement related to the jointly owned gas assets held in connection with the joint venture with Noble and divided such jointly owned gas assets among CNX Gas and Noble Energy. The transactions contemplated by the Exchange Agreement were closed on December 1, 2016 with an effective date of October 1, 2016. As part of the exchange: each party now owns and operates a 100% interest in properties and wells in two separate operating areas; each party has independent control and flexibility with respect to the scope and timing of future development over its operating area; and all acreage operated by CONSOL Energy and Noble Energy, Inc. in their respective operating areas will remain fully dedicated to CONE Midstream Partners LP. The exchange was accounted for as a mineral conveyance, thus no gain or loss was recorded in connection with the transaction.