Edgar Filing: CONSOL Energy Inc

Date: June 18, 2012

/s/ William J. Lyons

William J. Lyons

Plan Administrator

Form 11-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 11-K

x	ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

For the fiscal year ended December 31, 2011;

¨	TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from

Commission file number: 001-14901

A.	Full title of the plan and the address of the plan, if different from that of issuer named below:

CONSOL Energy Inc. Investment Plan for Salaried Employees

B.	Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

CONSOL Energy Inc.

CNX Center

1000 CONSOL Energy Drive

Canonsburg, PA 15317

Registrant’s telephone number including area code: 724-485-4000

CONSOL Energy Inc.

Investment Plan for

Salaried Employees

Index

December 31, 2011 and 2010


		Page(s)

Report of Independent Registered Public Accounting Firm			1

Financial Statements

Statements of Net Assets Available for Benefits			2

Statement of Changes in Net Assets Available For Benefits			3

Notes to Financial Statements			4-25

Supplemental Schedule

Schedule H, Part IV Line 4(i) Schedule of Assets Held for Investment Purposes at End of Year			27-39

Note:	Other Schedules required by Section 2520.103-10 of the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act (“ERISA”) of 1974 have been omitted because they are not applicable.

Signatures			40

Exhibit 23 – Consent of Independent Registered Public Accounting Firm

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Trustees, Investment Plan Committee, Audit Committee, and Participants

CONSOL Energy Inc. Investment Plan for Salaried Employees

We have audited the accompanying statements of net assets available for benefits of CONSOL Energy Inc. Investment Plan for Salaried Employees (the “Plan”) as of December 31, 2011 and 2010, and the related statement of changes in net assets available for benefits for the year ended December 31, 2011. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2011 and 2010, and the changes in net assets available for benefits for the year ended December 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental Schedule H, Part IV, Line 4(i) – Schedule of Assets Held for Investment Purposes at End of Year as of December 31, 2011 is presented for the purpose of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

/s/ ParenteBeard LLC

Pittsburgh, Pennsylvania

June 18, 2012

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Statements of Net Assets Available for Benefits


(in thousands of dollars)	December 31
	2011			2010
ASSETS

Investments at Fair Value
Stable Value Fund	$	615,718		$	606,905
Interests in Registered Investment Companies		224,810			257,178
Collective Trusts		75,225			52,928
E.I. DuPont de Nemours & Company Common Stock		34,873			43,881
CONSOL Stock Fund		148,510			188,764

		1,099,136			1,149,656


Receivables
Due from Broker for Securities Sold		161			591
Employer Contribution		72			0
Accrued Interest and Dividends		11			1
Notes Receivable from Participants		20,489			17,798

		20,733			18,390


Cash		68			485


Net Assets Reflecting All Investments at Fair Value		1,119,937			1,168,531


Adjustment from Fair Value to Contract Value for Fully Benefit-Responsive Investment Contracts Held in Stable Value Fund		(28,392	)		(20,656	)


NET ASSETS AVAILABLE FOR BENEFITS	$	1,091,545		$	1,147,875

The accompanying notes are an integral part of these financial statements.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Statement of Changes in Net Assets Available for Benefits


(in thousands of dollars)	For the Year Ended December 31, 2011

Additions, Less Loss on Investments:

Contributions:
Participants – Contributions	$	44,147
Participants – Rollovers		17,162
Employer		28,381

		89,690


Interest Income from Participants’ Notes Receivable		899


Income (Loss) on Investments:
Interest and Dividends		11,802
Net Depreciation in Fair Value of Investments		(46,190	)

		(34,388	)


Total Additions, Less Loss on Investments		56,201


Deductions from Net Assets Attributed to:
Benefits Paid to Participants		112,331
Administrative Expense		288

Total Deductions		112,619


Asset Transfers In		88


Net Decrease		(56,330	)

Net Assets Available for Benefits
Beginning of Year		1,147,875


END OF YEAR	$	1,091,545

The accompanying notes are an integral part of these financial statements.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

1.	DESCRIPTION OF PLAN

The following brief description of CONSOL Energy Inc. Investment Plan for Salaried Employees (the “Plan”) is provided for general information purposes only. Participants should refer to the Plan document for a more complete description of the Plan’s provisions.

General – The Plan is a defined-contribution plan covering salaried, operations and maintenance, production and maintenance, and warehouse and maintenance employees of CONSOL Energy Inc. and participating employers (“CONSOL Energy” or the “Company”). Eligible employees can participate in the Plan on the first day of the first full pay period following the later of the start of regular full-time employment or the date they first become eligible. In addition, employees classified as casual employees are eligible to participate in the Plan on the date during the 12 consecutive month period, commencing on the employee’s employment date or reemployment date, on which the employee actually completes 1,000 hours of service. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”).

During 2011 and 2010, the Plan offered CONSOL Energy common stock (“CONSOL Stock Fund”) as an investment option to Plan participants. The CONSOL Stock Fund is an Employee Stock Ownership Plan (“ESOP”) where participants can elect to have dividends paid out to them in cash instead of being reinvested in the CONSOL Stock Fund in their Plan account. For the years ended December 31, 2011 and 2010, approximately $47,000 and $31,000 in dividends from the CONSOL Stock Fund were paid to participants in cash, respectively.

Contributions – Each year participants can, with certain restrictions, contribute a maximum of 75% of eligible compensation to the Plan. Newly eligible employees automatically become participants in the Plan beginning with the first payroll deduction following forty-five days from the date they first become eligible (as defined by the Plan) and contribute at the rate of 6% of eligible compensation (4% for employees of Fairmont Supply Company and its subsidiaries, participating employers in the Plan that are a qualified separate line of business), unless the participant elects not to contribute. Under this automatic enrollment provision, participant assets are invested in accordance with a managed account feature offered by the Plan’s trustee, Bank of America Merrill Lynch (“Merrill Lynch”), based on certain demographics of the participant. A participant may also designate from 1% to 75% (not to exceed $10,000) of any quarterly or annual incentive compensation payment as a supplemental contribution. Contributions may be made with before-tax or after-tax dollars.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

1.	DESCRIPTION OF PLAN (Continued)

CONSOL Energy matches these contributions (excluding deferrals of incentive compensation payments), dollar for dollar, up to 6% of eligible compensation (fifty cents on every dollar up to 12% of eligible compensation for employees of Fairmont Supply Company and its subsidiaries). Company matching contributions for certain participants of the Plan are considered nonforfeitable, safe-harbor contributions within the meaning of that term under the final Internal Revenue Code (the “Code”) 401(k) and 401(m) regulations.

In addition, certain eligible employees of Fairmont Supply Company and its subsidiaries receive qualified non-elective (“QNEC”) contributions equal to $1,500 per year. In 2010, certain eligible employees of CNX Gas Corporation (“CNX Gas”) also received QNEC contributions equal to 3% of eligible compensation. Effective January 1, 2011, the Plan was amended to eliminate the QNEC contribution provision for CNX Gas participants. As a result, there were no QNEC contributions made to the participant accounts of employees of CNX Gas for the year ended December 31, 2011. The Company may also make discretionary contributions to the Plan ranging from 1% to 4% of eligible compensation for eligible employees (as defined by the Plan). There were no such discretionary contributions made by the Company for the years ending December 31, 2011 and 2010. Total contributions credited to a participant’s account (employee and Company contributions, exclusive of catch-up contributions) may not exceed $49,000 per year for the years 2011 and 2010, respectively.

Participant Accounts – Each participant’s account is credited with the participant’s contributions and allocations of the Company’s contributions and Plan investment earnings and is charged with an allocation of administrative expenses and Plan investment losses. Allocations are based on participant earnings or account balances, as defined. The benefit to which a participant is entitled is the benefit that can be provided from the participant’s account.

Investment Options – Upon enrollment in the Plan, a participant may direct employee and Company contributions in any of the funds included in the supplemental schedule of assets held for investment purposes at end of year, except for E.I. DuPont de Nemours & Company (“DuPont”) Common Stock. This investment option is no longer available to Plan participants.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

1.	DESCRIPTION OF PLAN (Continued)

Vesting – Participants are immediately vested in their contributions and any matching contributions, QNEC contributions, or discretionary contributions made by the Company plus actual earnings (losses) thereon.

Notes Receivable from Participants – Participants may borrow up to one-half of their account balances subject to a $1,000 minimum and required regulatory loan maximum limitations. Such loans are repayable over periods of 12 to 60 months (120 months maximum if for the purchase of a principal residence) and are secured by the balance in the participant’s account. The rate of interest on loans is commensurate with the average rate charged by selected major banks for secured personal loans and remain fixed for the life of the loan. Loans are repaid over the period in installments of principal and interest via payroll deductions or through ACH account debit for participants that terminate employment subsequent to the loan’s execution. A participant also has the right to repay the loan in full, at any time, without penalty. At December 31, 2011, loan interest rates ranged from 3.25% to 9.25%.

Payment of Benefits – Participants who retire from active service may elect to defer withdrawals until April of the calendar year following the later of the year in which the participant attains age 70¹/2 or the year following retirement or termination of employment. They may also elect an option to have their account distributed over a period of not less than two years or more than a period which would pay the account balance during the participant’s actuarial life in either a fixed or variable amount. Before-tax deposits may be withdrawn only in the event of a participant’s retirement, death, termination, attainment of age 59¹/2 or defined hardship. At December 31, 2011 and 2010, approximately $77,000 and $729,000 was payable to withdrawing participants, respectively.

Plan Termination – Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Accounting – The accompanying financial statements of the Plan have been prepared under the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America (“US GAAP”).

Fully Benefit-Responsive Investment Contracts – Investment contracts held by a defined-contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined-contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the Plan. The statements of net assets available for benefits presents the fair value of the fully benefit-responsive investment contracts held in the CONSOL Energy Inc. Stable Value Fund (“Stable Value Fund” or “SVF”) as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The statement of changes in net assets available for benefits is prepared on a contract value basis.

Investment Valuation and Income Recognition – The Plan’s investments are stated at fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. See Note 5 for discussion of fair value measurements.

Purchases and sales of investments are recorded on a trade-date basis. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Realized gains and losses on the sale of DuPont and CONSOL Energy common stock are based on the average cost of the securities sold. Net appreciation (depreciation) includes the Plan’s gains and losses on investments bought and sold as well as held during the year.

Notes Receivable from Participants – Notes receivable from participants are measured at their unpaid principal balance plus any accrued but unpaid interest. Interest on notes receivable from participants is recognized over the term of the notes and is calculated using a simple-interest method on principal amounts. If a participant does not make a loan repayment on at least a quarterly basis, the Plan administrator considers the loan to be defaulted on the last day of the calendar quarter following the calendar quarter in which the last payment was due, and reclassified as a distribution based upon the terms of the Plan document.

Payment of Benefits – Benefits are recorded when paid.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

Administrative Expenses – Expenses incurred in connection with the operation of the Plan with regard to the purchase and sale of investments and certain trustee and professional fees are paid by the Plan. Other administrative expenses are paid by CONSOL Energy at no cost to the Plan.

Use of Estimates – The preparation of financial statements in conformity with US GAAP requires Plan management to make estimates and assumptions that affect the reported amounts of assets and liabilities and changes therein, and disclosure of contingent assets and liabilities. Actual results could differ from those estimates.

ESOP – The Plan’s ESOP provision provides that participants may invest a portion or all of their account in Company stock. The ESOP provision also contains a put option in accordance with the requirements of the Code, which is a right for any participant who is otherwise entitled to a distribution from the Plan to require the Company stock in their ESOP account be repurchased by the Company if it is not readily tradable on an established market. Participants who elect to invest their account balance in Company stock have voting rights commensurate with their shares and participants are fully vested at all times in dividends paid on the acquired Company stock. A participant also has the right to diversify stock in their accounts pursuant to the provisions of the Plan document. At December 31, 2011 and 2010, and from the period since inception of the ESOP, there were no Company contributions in the form of stock.

New Accounting Pronouncements – In January 2010, the Financial Accounting Standards Board (“FASB”) issued new guidance which expanded the required disclosures about fair value measurements. In particular, this guidance requires (i) separate disclosure of the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements along with the reasons for such transfers, (ii) information about purchases, sales, issuances and settlements to be presented separately in the reconciliation for Level 3 fair value measurements, (iii) fair value measurement disclosures for each class of assets and liabilities and (iv) disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements for fair value measurements that fall into either Level 2 or Level 3. This guidance was effective for annual reporting periods beginning after December 15, 2009, except for (ii) above, which was effective for fiscal years beginning after December 15, 2010. The adoption of this guidance did not have a material effect on the Plan’s net assets available for benefits, changes in net assets available for benefits, or related disclosures.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

2.	SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

In May 2011, the FASB issued guidance to create a consistent framework for the application of fair value measurements between US GAAP and International Financial Reporting Standards. This guidance includes wording changes to US GAAP to clarify the intent about the application of existing fair value measurements and disclosure requirements and to change a particular principle or existing requirement for measuring fair value or disclosing information about fair value investments. There are no additional fair value measurements required upon adoption of this guidance. This pronouncement is effective for reporting periods beginning after December 15, 2011, with early adoption prohibited, requiring prospective application only. The Plan is currently evaluating the effect that the provisions of this pronouncement will have on its financial statements.

3.	ASSET TRANSFERS

Asset transfers to the Plan for the year ended December 31, 2011 of approximately $88,000 represents the remaining investment account balances attributable to former employees transferred from the Rochester & Pittsburgh Coal Company 401(k) Savings and Retirement Plan (the “R&P Plan”). The R&P Plan was terminated by the Board of Directors of the Company on December 31, 2008, and the termination of the R&P Plan was completed on October 31, 2011.

4.	CONTRACTS WITH INSURANCE COMPANIES

The Plan has direct holdings of fully benefit-responsive investment contracts in its SVF. The SVF is comprised of guaranteed investment contracts (“GIC”), separate account portfolios (“SAP”), and synthetic GICs (“SYN”), all of which are held with multiple insurance companies and banks.

Traditional GICs expose the Plan through the SVF to direct credit risk associated with each contract issuer. To mitigate this risk, investment guidelines prohibit the Plan from purchasing contracts with a credit rating lower than Aa3/AA. In addition, the weighted average credit rating of all GIC contracts must be A3/A- or higher at all times and no single GIC issuer may represent more than 5% of the total SVF. Additionally, the Plan administrator, together with the Plan’s third party investment advisors, continually monitor the issuers of these investments through external credit rating agencies and monitor credit rating history, downgrade/upgrade notifications, and analyst reports for all current and potential issuers. There are no reserves against contract value for credit risk of the contract issuers or otherwise.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

4.	CONTRACTS WITH INSURANCE COMPANIES (Continued)

Participants may ordinarily direct the withdrawal or transfer of all or a portion of their SVF investment at contract value for Plan permitted benefit payments. Certain events may limit the ability of the Plan to transact at contract value with the issuer. Such events include amendments to Plan documents (including complete or partial Plan termination or merger with another plan), changes to the Plan’s prohibition on competing investment options or deletion of equity wash provisions, bankruptcy of the Company or other Plan sponsor events (i.e. divestitures or spin-offs of a subsidiary, location closings or layoffs) which cause a significant withdrawal from the Plan, or failure of the Plan to qualify for exemption from federal income taxes or any required prohibited transaction exemption under ERISA. The Plan administrator does not believe that the occurrence of any such event, which would limit the Plan’s ability to transact at contract value with participants, is probable of occurring.

Based on certain events specified in the fully benefit-responsive investment contracts (i.e. GICs, SAPs and SYNs), both the Plan and issuers of such investment contracts are permitted to terminate the investment contracts. If applicable, such terminations can occur prior to the scheduled maturity date.

Examples of termination events that permit issuers to terminate investment contracts include the following:

•

The Plan sponsor’s receipt of a final determination notice from the Internal Revenue Service that the Plan does not qualify under Section 401(a) of the Code.

•

The Plan ceases to be exempt from federal income taxation under section 501(a) of the Code.

•

The Plan or its representative breaches material obligations under the investment contract such as failure to satisfy its fee payment obligations or failure to follow the contract’s equity wash provisions.

•

The Plan or its representatives makes a material misrepresentation.

•

The Plan makes a material amendment to the Plan (including complete or partial termination or merger with another plan) and/or the amendment adversely impacts the issuer.

•

The Plan, without the issuer’s consent, attempts to assign its interest in the investment contract.

•

The balance of the contract value is zero or immaterial.

•

Mutual consent.

•

The termination event is not cured within a reasonable time period, i.e., 30 days.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

4.	CONTRACTS WITH INSURANCE COMPANIES (Continued)

For SAPs and SYNs, additional termination events include but are not limited to the following:

•

The investment manager of the underlying securities is replaced without the prior written consent of the issuer.

•

The underlying securities are managed in a way that does not comply with the investment guidelines.

For GICs, the contract value is adjusted to reflect a discounted value based on surrender charges and other penalties at termination. For SAPs and SYNs, termination is at market value of the underlying securities less unpaid issuer fees or charges. If the termination event is not material based on industry standards, it may be possible for the Plan to exercise its right to require the issuer that initiated the termination to extend the investment contract for a period no greater than what it takes to immunize the underlying securities and/or it may be possible to replace the issuer of a SAP or SYN that terminates with another SAP or SYN issuer. Both options help maintain stable contract value.

The aggregate crediting rates for all contracts as of December 31, 2011 and 2010 were 3.26% and 3.50%, respectively. Contract or crediting rates for GICs are negotiated with the issuer and are effective for the life of the contract. The contract or crediting rates for SAPs and SYNs are reset either four times or six times per year and are based on the performance of the portfolio of assets underlying these contracts. Inputs used to determine the crediting rate include each contract’s portfolio market value of fixed income assets, current yield-to-maturity, duration, and market value relative to contract value. All contracts have a guaranteed rate of at least 0% or higher with respect to determining interest rate resets. If future crediting rates increase or decrease, the adjustment from fair value to contract value would change in the same direction. The average market value yield of the SVF based on the actual earnings of the underlying assets was approximately 4.16% and 5.89% in 2011 and 2010, respectively. The average yield of the SVF based on the actual interest rate credited to participants’ accounts in 2011 and 2010 was approximately 3.12% and 3.55%, respectively.

Participants investing in the SVF or collective trusts are assigned units at the time of investment based on the net asset value per unit.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS

US GAAP for fair value measurements provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

The three levels of the fair value hierarchy are described below:

•

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Plan has the ability to access. An active market for the asset or liability is a market in which the transaction for the asset or liability occurs with sufficient frequency and volume to provide pricing information on an ongoing basis.

•

Level 2: Inputs to the valuation methodology include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in inactive markets, inputs other than quoted prices that are observable for the asset or liability, or other inputs that are derived principally from or corroborated by observable market data by correlation or other means. If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

•

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

The asset’s or liability’s fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

Following is a description of the valuation methodologies used for assets and liabilities measured at fair value. There have been no changes in the methodologies used at December 31, 2011 and 2010.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS (Continued)

Stable Value Fund – The SVF is comprised of a short-term investment fund in addition to GICs, SAPs and SYNs, all of which are held with multiple insurance companies and banks. These fully benefit-responsive contracts are valued at fair value on the statements of net assets available for benefits and are credited with actual earnings on the underlying investments and charges for participant withdrawals and administrative expenses. The following disclosures provide information about the nature of the investments in the SVF and how fair value of these investments is measured.

•

U.S. Government Security Fund – This security is a short-term investment fund (i.e. money market fund) designed to provide daily liquidity to the SVF and is stated at cost plus accrued interest, which approximates fair value. The fund seeks to preserve a net asset value of $1 per share and can be validated with a sufficient level of market activity and therefore, is classified within Level 1 of the fair value hierarchy.

•

Guaranteed Investment Contracts – The insurer maintains the assets (underlying portfolio owned by insurer) of the GIC in a general account, backed by the full faith and credit of the insurer. Regardless of the performance of the general account assets a GIC will provide a fixed rate of return as negotiated when the contract is purchased. GICs are valued at fair value by discounting the related cash flows based on current yields of similar instruments with comparable durations (similar to weighted average life) considering the credit-worthiness of the issuer and have been classified within Level 2 of the fair value hierarchy.

•

Separate Account Portfolios – SAPs are investment contracts invested in insurance company separate accounts established for the sole benefit of SVF participants. SAPs are comprised of two components, an underlying pool of assets and a “wrap” contract. The insurer owns the individual underlying assets and the wrap contract (similar to a GIC); however, the assets in a SAP are maintained in a separate account, fully fenced-off from the general assets of the insurer. The Plan participates in the underlying experience of the SAP via future periodic rate resets. Fair value of SAPs are determined by the market values of the underlying securities and the value of the wrap using observable market data by the insurer as of the valuation date, which approximates fair value. SAPs held by the Plan provide for daily redemptions by the Plan at reported net asset value with no advance notice requirement. This Plan is permitted to redeem investment units at net asset value on the measurement date. SAPs are classified within Level 2 of the fair value hierarchy.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS (Continued)

•

Synthetic GICs – SYNs are comprised of an underlying pool of assets (owned by the Plan) and a “wrap” contract designed to provide principal protection and accrued interest over a specified period of time assuming that the underlying assets meet the requirements of a GIC. Short-term investment funds include cash and short-term securities (money market type funds) that mature within three months or less at date of purchase and are valued at amortized cost, which approximates fair value (Level 1), and liquid government debt securities valued using quoted market prices, broker or dealer quotations, or alternative pricing sources with reasonable levels of price transparency that are traded in markets that are not considered active (Level 2). Fixed income collective trusts invest in high quality fixed income securities across the short, intermediate, and core sectors, and are valued at the net asset value per share on the valuation date (Level 2). Other fixed income funds include government debt securities and corporate bonds valued using the observable quoted price reported in markets that are not considered active or pricing services based on market transactions for comparable securities of issuers with similar credit ratings (Level 2). In addition, there is one fixed income fund that is valued at fair value based on certain security price validations and a review based on unobservable inputs and is therefore classified within Level 3 of the fair value hierarchy. Swap contracts are valued at fair value utilizing pricing models and taking into consideration exchange quotations on underlying instruments, dealer quotations and other information (Level 2). Any accrued interest on the underlying investments in the SYNs is also included as a component of the fair value of those investments. Fair value of the wrap contracts is determined by taking the difference between the actual wrap fee of the contract and the price at which the wrapper would issue an identical contract under current market conditions. That change in fees is then applied to the year-end book value of the contract to determine the wrap contract’s fair value. Wrap contracts generally change the investment characteristics of underlying securities (such as corporate debt or U.S. government securities) to those of GICs. The wrap contract provides that benefit-responsive transactions may be processed at contract or face value. Benefit-responsive distributions are generally defined as a withdrawal due to a participant’s retirement, termination, or death, or participant-directed transfers, in accordance with the terms of the Plan (see Note 4).

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS (Continued)

Interests in Registered Investment Companies – The shares of registered investment companies are public investment vehicles valued at quoted market prices, which represent the net asset values of the shares held in such funds. Each of these funds is considered an open ended interest in a registered investment company and valued using a market approach. Fair value is based on a daily net asset value that can be validated with a sufficient level of observable activity in an active market (i.e. purchases and sales at net asset value) and therefore these interests in registered investment companies have been classified within Level 1 of the fair value hierarchy.

Collective Trusts – Collective trusts are valued at the net asset values per unit as determined by the collective trusts as of the valuation date, which approximates fair value. The net asset values are based on the value of the underlying assets owned by the collective trusts, minus their liabilities, and then divided by the number of shares outstanding. Collective trusts are not available in an exchange and active market, however, the fair values are determined based on the underlying investments as traded in an exchange and active market. Collective trusts held by the Plan provide for daily redemptions by the Plan at reported net asset value with no advance notice requirement. The Plan is permitted to redeem investment units at net asset value on the measurement date. Due in part to the units of the collective trusts not being actively traded, the fair value measurements have been classified within Level 2 of the fair value hierarchy.

Common Stock and Common Stock Fund – DuPont Common Stock and the CONSOL Stock Fund are stated at fair value as quoted on a recognized securities exchange and are valued at the last reported sales price on the last business day of the respective Plan year. As a result, the fair value measurements of these investments have been classified within Level 1 of the fair value hierarchy.

The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS (Continued)

The following tables set forth by level, within the fair value hierarchy, the Plan’s assets and liabilities at fair value as of December 31, 2011 and 2010:


(in thousands of dollars)	Assets at Fair Value as of December 31, 2011
	Level 1		Level 2			Level 3		Total

Stable Value Fund:
Guaranteed Investment Contracts	$	0	$	43,336		$	0	$	43,336
Separate Account Portfolios		0		108,506			0		108,506
U.S. Government Security Fund		28,785		0			0		28,785
Fixed Income Collective Trusts		0		319,852			0		319,852
Other Fixed Income Funds		0		79,078			78		79,156
Short-Term Investment Funds		9,838		26,257			0		36,095
Wrap Contracts		0		28			0		28
Other Financial Instruments – Swaps		0		(40	)		0		(40	)

Total Stable Value Fund		38,623		577,017			78		615,718

Registered Investment Companies:
Foreign Large-Cap Blend Funds		53,311		0			0		53,311
Mid-Cap Growth Fund		56,380		0			0		56,380
Intermediate-Term Fixed Income Funds		49,529		0			0		49,529
Large-Cap Blend Fund		28,682		0			0		28,682
Large-Cap Value Fund		21,118		0			0		21,118
Large-Cap Growth Fund		15,790		0			0		15,790

Total Registered Investment Companies		224,810		0			0		224,810

Collective Trusts:
Mid-Cap Blend Fund		0		24,642			0		24,642
Index Fund		0		50,583			0		50,583

Total Collective Trusts		0		75,225			0		75,225
Common Stock:
E.I. DuPont de Nemours & Company		34,873		0			0		34,873
CONSOL Stock Fund		148,510		0			0		148,510

Total Assets at Fair Value	$	446,816	$	652,242		$	78	$	1,099,136

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS (Continued)


(in thousands of dollars)	Assets at Fair Value as of December 31, 2010
	Level 1		Level 2		Level 3		Total

Stable Value Fund:
Guaranteed Investment Contracts	$	0	$	53,389	$	0	$	53,389
Separate Account Portfolios		0		102,806		0		102,806
U.S. Government Security Fund		27,383		0		0		27,383
Fixed Income Collective Trusts		0		312,103		0		312,103
Other Fixed Income Funds		27,305		45,469		80		72,854
Short-Term Investment Funds		38,305		7		0		38,312
Wrap Contracts		0		56		0		56
Common Stock – Other		0		2		0		2

Total Stable Value Fund		92,993		513,832		80		606,905

Registered Investment Companies:
Foreign Large-Cap Value Fund		861		0		0		861
Foreign Large-Cap Blend Funds		52,093		0		0		52,093
Mid-Cap Growth Funds		41,194		0		0		41,194
Mid-Cap Blend Fund		8,766		0		0		8,766
Mid-Cap Value Fund		18,911		0		0		18,911
Intermediate-Term Fixed Income Funds		53,797		0		0		53,797
Large-Cap Blend Fund		39,878		0		0		39,878
Large-Cap Value Fund		23,934		0		0		23,934
Large-Cap Growth Fund		17,744		0		0		17,744

Total Registered Investment Companies		257,178		0		0		257,178

Collective Trusts:
Mid-Cap Blend Fund		0		12,643		0		12,643
Index Fund		0		40,285		0		40,285

Total Collective Trusts		0		52,928		0		52,928
Common Stock:
E.I. DuPont de Nemours & Company		43,881		0		0		43,881
CONSOL Stock Fund		188,764		0		0		188,764

Total Assets at Fair Value	$	582,816	$	566,760	$	80	$	1,149,656

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

5.	FAIR VALUE MEASUREMENTS (Continued)

The following table sets forth a summary of changes in the fair value of the Plan’s Level 3 asset for the year ended December 31, 2011:


	Level 3 Assets
(in thousands of dollars)	For the Year Ended December 31, 2011
	Stable Value Fund-Other Fixed Income Funds

Balance, Beginning of Year	$	80
Unrealized Gains Relating to Instruments Still Held at the Reporting Date		4
Sales		(6	)

Balance, End of Year	$	78


Amount of Total Gains for the Period Attributable to the Change in Unrealized Gains Relating to Assets Still Held at the Reporting Date	$	4

Gains and losses (realized and unrealized) included in changes in net assets for the period above are reported in net depreciation in fair value of investments in the statement of changes in net assets available for benefits.

The availability of observable market data is monitored to assess the appropriate classification of financial instruments within the fair value hierarchy. Changes in economic conditions or model-based valuation techniques may require the transfers from one fair value level to another. In such instances, the transfer is reported at the end of the reporting period. The Plan reclassified certain underlying SYN assets totaling approximately $4,000,000 from Level 1 to Level 2 within the fair value hierarchy because certain significant inputs became observable less frequently due to decreased market activity because the observable quoted prices were reported in markets that were not considered active during the year ended December 31, 2011.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

6.	INVESTMENTS

The following presents individual investments that represent 5% or more of the Plan’s net assets available for benefits at December 31:


(in thousands of dollars)	2011		2010

CONSOL Stock Fund	$	148,510	$	188,764
Columbia Acorn Fund		56,380		24,038	**
*Metropolitan Life Insurance Co. (SAP)		66,136		64,604
*Jennison Intermediate Core Bond Fund		66,665		62,561
*Prudential Core Cons. Inter. Bond Fund		64,997		61,443
*GEM Trust Short Duration		72,122		71,283

*	These investments are included in the Stable Value Fund.

**	For comparative purposes only. Amount does not exceed 5% of net assets available for benefits.

During 2011 the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) depreciated in value by approximately $(46,190,000) as follows:


(in thousands of dollars)	Net Appreciation (Depreciation) in Fair Value of Investments
Stable Value Fund	$	17,985
Registered Investment Companies		(18,593	)
Common Stock:
E.I. DuPont de Nemours & Company		(3,224	)
CONSOL Stock Fund		(42,132	)
Collective Trusts		(226	)

	$	(46,190	)

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

6.	INVESTMENTS (Continued)

The SVF is a separate account held by the Plan. The investment contracts are entered into based on an evaluation of the credit risk of the contract issuers and/or third party guarantors. Collateral is generally not provided. The SVF includes traditional GICs and SAPs as well as SYNs. SYNs provide for a return on principal over a specified period of time through the use of underlying assets and a benefit responsive wrap contract issued by a third party.

The following reflects the adjustment between the underlying securities and the insurance contract values in the SVF:


	December 31
(in thousands of dollars)	2011			2010

Investments at Fair Value	$	615,690		$	606,849
Wrap Contracts (at Fair Value)		28			56

		615,718			606,905
Adjustment from Fair Value to Contract Value		(28,392	)		(20,656	)

Investments at Contract Value	$	587,326		$	586,249

The composition of assets of the SVF at contract value as of December 31, 2011 and 2010 are as follows:


(in thousands of dollars)	2011		2010

Synthetic Guaranteed Investment Contracts	$	411,495	$	404,932
Separate Account Portfolios		105,268		103,360
Guaranteed Investment Contracts		40,794		49,299
Short-term Investment Fund		29,769		28,658

	$	587,326	$	586,249

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

6.	INVESTMENTS (Continued)

SYNs within the SVF are comprised of the following:


		December 31
(in thousands of dollars)	Credit Rating	2011		2010

SYNs (at Contract Value):
Prudential Retirement Ins. & Annuity Co.	AAA	$	128,735	$	125,396
ING Life Insurance & Annuity Co.	AA		43,398		42,371
Monumental Life Insurance Co.	AA		43,398		42,371
State Street Bank & Trust	AA		43,397		42,370
ING Life Insurance & Annuity Co.	AA		50,856		50,808
Monumental Life Insurance Co.	AA		50,856		50,808
State Street Bank & Trust	AA		50,855		50,808


Total SYNs (at Contract Value)		$	411,495	$	404,932

The composition of changes in net assets of the SVF for the year ended December 31, 2011 is as follows:


(in thousands of dollars)

Employer Contributions	$	7,920
Participant Contributions and Rollovers		29,079

Total Contributions		36,999
Asset Transfers In		2
Interest and Dividend Income		326
Net Realized/Unrealized Appreciation in Investment Value		17,985
Benefits Paid to Participants		(74,088	)
Administrative Expense		(179	)
Net Loan Activity		(471	)
Net Interfund Transfers		20,503

Increase in Net Assets Available for Benefits		1,077
Net Assets Available for Benefits
Beginning of Year		586,249


End of Year	$	587,326

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

7.	TAX STATUS

The Plan obtained its latest determination letter on June 3, 2011, in which the Internal Revenue Service (“IRS”) stated that the Plan, as then designed, was in compliance with the applicable requirements of the Code. Although the Plan has been amended since receiving the determination letter, Plan management and the Plan’s tax counsel believe that the Plan is designed and is currently being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements.

Accounting principles generally accepted in the United States of America require Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2011, there are no uncertain positions taken or expected to be taken that would require recognition of a tax liability (or asset) and related interest and penalties or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions, and the IRS completed its audit of the Plan for the year ended December 31, 2005. As a result of this examination, the Company made a corrective contribution on February 13, 2012 of approximately $72,000 (plus related earnings) to the Plan on behalf of certain casual employees that were improperly excluded from participating in the Plan on a timely basis for the Plan years ending December 31, 2004 through December 31, 2010. The resulting tax deficiency related to this examination was paid by the Company. As a result of the conclusion of this audit by the IRS, the Plan is no longer subject to income tax examinations for years prior to 2011.

8.	RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500

The following is a reconciliation of net assets available for benefits per the financial statements at December 31, 2011 and 2010 to Form 5500:


(in thousands of dollars)	2011			2010

Net Assets Available for Benefits per the Financial Statements	$	1,091,545		$	1,147,875
Amounts Allocated to Withdrawing Participants		(77	)		(729	)


Net Assets Available for Benefits per the Form 5500	$	1,091,468		$	1,147,146

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

8.	RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500 (Continued)

The following is a reconciliation of benefits paid to participants per the financial statements for the year ended December 31, 2011, to Form 5500:


(in thousands of dollars)

Benefits Paid to Participants per the Financial Statements	$	112,331
Amounts Allocated to Withdrawing Participants at December 31, 2011		77
Less: Amounts Allocated to Withdrawing Participants at December 31, 2010		(729	)


Benefits Paid to Participants per Form 5500	$	111,679

Amounts allocated to withdrawing participants are recorded on the Form 5500 for benefit claims that have been processed and approved for payment prior to December 31, 2011, but not yet paid as of that date.

9.	TRANSACTIONS WITH PARTIES-IN-INTEREST

Certain Plan investments include several underlying SYN assets within the SVF as well as two collective investment funds managed by Merrill Lynch or its parent company, Bank of America, N.A. Merrill Lynch is the trustee as defined by the Plan and, therefore, these transactions qualify as those conducted with a party-in-interest to the Plan. In addition, other underlying SYN assets include funds managed by State Street Bank & Trust, one of the custodians of the Plan. Therefore, these transactions qualify as those conducted with a party-in-interest to the Plan.

One of the investment vehicles available to participants, the CONSOL Stock Fund, contains stock of CONSOL Energy. The Plan held 4,046,582 shares and 3,872,881 shares of CONSOL Energy common stock at December 31, 2011 and 2010, respectively. Transactions in this investment qualify as party-in-interest transactions which are exempt from the prohibited transaction rules of ERISA.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

10.	RISKS AND UNCERTAINTIES

The Plan invests in various investment securities. Investment securities are exposed to various risks, such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the financial statements.

In accordance with the investment strategy of the Plan’s investment contracts, the Plan’s investment manager may execute transactions in interest rate swap contracts that may give rise to varying degrees of off-balance-sheet market and credit risk. These swap contracts can be executed on an exchange or negotiated in the over-the-counter market and involve an agreement to exchange periodic interest payment streams (fixed vs. variable) calculated on an agreed upon periodic interest rate multiplied by a predetermined notional principal amount. Market risk arises from the potential for changes in value of swap contracts resulting from fluctuations in interest rates. The gross notional (or contractual) amounts used to express the volume of these transactions do not necessarily represent the amounts potentially subject to market risk. In many cases, these swap contracts serve to reduce, rather than increase, the Plan’s exposure to losses from market and other risks. In addition, the measurement of market risk is meaningful only when all related and offsetting transactions are identified. The Plan’s investment managers generally limit the Plan’s market risk by holding or purchasing offsetting positions.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

Notes to Financial Statements

December 31, 2011 and 2010

11.	SUBSEQUENT EVENTS

Effective January 1, 2012, employees classified as casual employees no longer have to complete 1,000 hours of service during a 12 consecutive month period, commencing on the employee’s employment date or reemployment date, in order to be eligible to participate in the Plan. The Plan was amended to allow employees classified as casual employees to be eligible to begin participation on the first day of the first full pay period following their date of hire, subject to the Plan’s automatic enrollment provisions.

Bank of America, N.A., as trustee for the Merrill Lynch Extended Market Index Trust and the Merrill Lynch Equity Index Trust, announced that it would discontinue these collective trusts and remove them as investment options in the Plan effective February 29, 2012. As a result of this decision, the Plan administrator selected new investment options (Vanguard Institutional Index Fund, Vanguard Mid-Cap Index Fund, and Vanguard Small-Cap Index Fund) to replace these collective trusts. Any investments in the options that were eliminated were transferred to the new investment options on February 29, 2012, and contributions directed to the options that were eliminated were also allocated to the new investment options selected to replace these collective trusts.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

SUPPLEMENTAL SCHEDULE

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Common Stock
*	CONSOL Stock Fund			4,046,582	$	148,510
	E.I. DuPont de Nemours & Company			761,754		34,873

	Total Common Stock					183,383


	Interests in Registered Investment Companies
	Columbia	Acorn Fund		2,045,716		56,380
	PIMCO	Total Return Fund		2,974,533		32,333
	Davis New York	Venture Fund		873,932		28,682
	American Funds	Europacific Growth Fund		617,908		21,682
	BlackRock	Basic Value Fund		867,976		21,118
	Legg Mason ClearBridge	Large Cap Growth Fund		728,313		15,790
	Vanguard	Bond Market Index Fund		1,563,230		17,196
	Vanguard	International Stock Fund		2,421,811		31,629

	Total Interests in Registered Investment Companies					224,810


	Stable Value Fund
	Metropolitan Life Insurance Co.	GIC, 5.50%, 02/01/2014		6,072,669		6,073
	Metropolitan Life Insurance Co.	GIC, 5.83%, 12/01/2013		6,115,268		6,115
	Principal Life Insurance Co.	GIC, 4.95%, 11/02/2012		1,310,611		1,311
	Principal Life Insurance Co.	GIC, 5.20%, 01/01/2014		4,991,228		4,991
	Prudential Retirement Ins. & Annuity Co.	GIC, 5.68%, 12/01/2013		12,472,079		12,472
	Prudential Retirement Ins. & Annuity Co.	GIC, 4.62%, 12/02/2013		9,831,676		9,832
	Metropolitan Life Insurance Co.	Separate Account Portfolio, 1.43%, opened		39,131,677		39,132
	Metropolitan Life Insurance Co.	Separate Account Portfolio, 2.62%, opened		66,136,210		66,136
	FFI Government Fund	Money Market Fund, 0.01%		29,769,448		29,769
	Prudential Separate Account Wrap:
	Prudential Retirement Ins. & Annuity Co.	Synthetic GIC, 2.82%, opened		128,735,117
	Underlying Security Description:
	Jennison Intermediate Core Bond Fund	Collective Trust		6,218,685		66,665
	Prudential Core Cons. Inter. Bond Fund	Collective Trust		6,140,189		64,997
	Prudential Retirement Ins. & Annuity Co.	Synthetic Wrap Agreement***				(2,927	)
	Perpetual Window Global Wrap:
	ING Life Insurance & Annuity Co.	Synthetic GIC, 2.25%, opened		43,397,888
	Monumental Life Insurance Co.	Synthetic GIC, 2.25%, opened		43,397,888
*	State Street Bank & Trust	Synthetic GIC, 2.25%, opened		43,397,888
	Underlying Security Description:
	GEM Trust Short Duration	5,962,429.0322 units of participation				72,122

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**			(e) Current Value (in 000s)
	Citigroup	Cash as Collateral for Futures		10,000			10
*	State Street Bank & Trust	0.14% 31 Dec 2030 Short Term Invest. Fund		72,391			72
	Treasury Bill	0.113% 18 Oct 2012		100,000			100
	Treasury Bill	0.04% 17 May 2012		100,000			100
	Treasury Bill	0.04% 12 Apr 2012		100,000			100
	Treasury Bill	0% 19 Jan 2012		100,000			100
	Treasury Bill	0.043% 07 Jun 2012		200,000			200
	United States Treas Bills Dt	0% 24 May 2012		200,000			200
	Treasury Bill	0.048% 10 May 2012		400,000			400
	Treasury Bill	0.01% 12 Jan 2012		1,250,000			1,250
	Treasury Bill	0% 15 Mar 2012		1,400,000			1,400
	Treasury Bill	0.01% 22 Mar 2012		1,700,000			1,700
	WI Treasury Bill	0.043% 21 Jun 2012		5,400,000			5,399
	Treasury Bill	0.229% 05 Apr 2012		15,300,000			15,299
	FNMA TBA Jan 30 Single Fam	5.5% 01 Dec 2099		(1,500,000	)		(1,633	)
	FNMA TBA Single Family Mortgage	4% 01 Dec 2099		(1,000,000	)		(1,050	)
	SWU0498Q9 IRS USD PF 3.50000	3.5% 15 Jun 2021		(300,000	)		(300	)
	Fannie Mae	1% 25 Apr 2037		40,291			40
	Bear Stearns Commercial Mortgage	5.127% 12 Oct 2042		53,826			54
	Transocean Inc	6.5% 15 Nov 2020		60,000			62
	Fannie Mae	1% 25 Jul 2037		65,592			65
	Freddie Mac	1% 15 May 2037		73,655			73
	FNMA Pool MA0614	4% 01 Jan 2041		79,849			84
	DTE Energy Company	0.972% 03 Jun 2013		100,000			100
*	Merrill Lynch & Co	5.571% 04 Oct 2012		100,000			100
	National Rural Util Coop	1.9% 01 Nov 2015		100,000			101
	Healthcare Realty Trust	5.75% 15 Jan 2021		100,000			101
	Hospitality Properties	5.125% 15 Feb 2015		100,000			101
	JPMorgan Chase & Co	3.45% 01 Mar 2016		100,000			102
*	Merrill Lynch/Countrywide Comm	5.479% 12 Feb 2039		100,000			102
	Ensco PLC	3.25% 15 Mar 2016		100,000			102
	Intl Lease Finance Corp	6.75% 01 Sep 2016		100,000			102
	Kilroy Realty LP	5% 03 Nov 2015		100,000			103
	SLM Corp	8.45% 15 Jun 2018		100,000			103
	Kinder Morgan Ener Part	3.5% 01 Mar 2016		100,000			104
	FNMA Pool AH3854	4% 01 Aug 2041		98,924			104
	BP Capital Markets PLC	3.125% 01 Oct 2015		100,000			105
	HSBC Holdings PLC	5.1% 05 Apr 2021		100,000			106
	Bear Stearns Cos LLC	5.7% 15 Nov 2014		100,000			109
	BP Capital Markets PLC	4.5% 01 Oct 2020		100,000			110

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Fannie Mae	1% 25 Apr 2037		118,792		118
	Freddie Mac	0.835% 15 Jul 2037		131,599		131
	FNR 2010 141 FB	0.727% 25 Dec 2040		154,580		154
	Federal Home Ln Mtg Corp	1% 15 Aug 2028		169,264		170
	Abbey Natl Treasury Serv	1.832% 25 Apr 2014		200,000		182
	Prologis LP	4% 15 Jan 2018		200,000		189
	Lloyds TSB Bank PLC	4.875% 21 Jan 2016		200,000		195
	FNR 2010 129 FM	1% 25 Nov 2040		196,581		196
	Hewlett Packard Co	0.588% 24 May 2013		200,000		198
	FNR 2007 38 FC	0.677% 25 May 2037		199,472		198
	SLM Corp	5% 01 Oct 2013		200,000		200
	Caterpillar Inc	0.425% 21 May 2013		200,000		200
	EOG Resources Inc	1.061% 03 Feb 2014		200,000		201
	DCP Midstream Operating	3.25% 01 Oct 2015		200,000		202
	Transocean Inc	6% 15 Mar 2018		200,000		204
	Credit Suisse Mortgage Capital	1% 15 Sep 2040		200,000		209
	US Treasury N/B	3.125% 15 Nov 2041		200,000		209
	BP Capital Markets PLC	3.2% 11 Mar 2016		200,000		210
	HCP Inc	5.375% 01 Feb 2021		200,000		210
	New York City NY Transitional	3.02% 01 Feb 2016		200,000		212
	Wal Mart Stores Inc	3.25% 25 Oct 2020		200,000		214
	Tyco Electronics Group S	4.875% 15 Jan 2021		200,000		215
	Freddie Mac	1% 15 May 2037		217,801		216
	GNMA II Pool 783277	6% 20 Jul 2040		200,469		227
	US Treasury N/B	3.625% 15 Feb 2021		200,000		232
	Anadarko Petroleum Corp	8.7% 15 Mar 2019		200,000		255
	FNR 2007 109 GF	0.925% 25 Dec 2037		259,349		260
	SWU0498Q9 IRS USD R V 03MLIBO	1% 15 Jun 2021		300,000		260
	Fannie Mae	0.737% 25 Sep 2041		278,876		278
	FHR 3368 AF	0.951% 15 Sep 2037		293,672		294
	American Tower Corp	5.05% 01 Sep 2020		300,000		300
	Dow Chemical Co	2.5% 15 Feb 2016		300,000		301
	Agilent Technologies Inc	5% 15 Jul 2020		300,000		336
	Federal Natl Mtg Assn	0.797% 25 Mar 2035		349,966		348
	Wachovia Bank Commercial Mortg	5.738% 15 Jun 2049		348,494		357
	Rogers Communications Inc	6.8% 15 Aug 2018		300,000		365
	Teck Resources Limited	10.75% 15 May 2019		300,000		366
	FHR 3747 WF	0.736% 15 Oct 2040		373,559		372
	FHR 3743 FA	1% 15 Oct 2040		386,389		385
	JPMorgan Chase & Co	1.074% 24 Jan 2014		400,000		394

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**			(e) Current Value (in 000s)
	Altria Group Inc	9.25% 06 Aug 2019		300,000			403
	FNMA Pool AE7517	3.5% 01 Nov 2025		396,019			414
	FHR 3740 DF	0.74% 15 Oct 2040		422,058			420
	NBC Universal Media LLC	5.15% 30 Apr 2020		400,000			445
	FNMA Pool AH4680	4% 01 Mar 2026		422,480			446
	American Express Co	7.25% 20 May 2014		400,000			447
	Freddie Mac	0.8% 15 Dec 2041		480,000			478
	US Treasury N/B	1.375% 30 Nov 2018		500,000			502
	FNR 2010 136 FA	0.756% 25 Dec 2040		527,261			525
	Goldman Sachs Group Inc	7.5% 15 Feb 2019		500,000			552
	Citigroup Inc	1.753% 13 Jan 2014		600,000			583
	Fannie Mae	0.756% 25 Sep 2041		588,988			587
	FNMA Pool AL0212	5.5% 01 Feb 2038		539,678			590
	FNMA Pool 995113	5.5% 01 Sep 2036		539,934			590
	Verizon Communications	6.1% 15 Apr 2018		500,000			601
	Fannie Mae	6.318% 15 Jun 2027		600,000			614
	US Treasury N/B	2.125% 15 Aug 2021		600,000			615
	FNMA Pool 466319	3.23% 01 Nov 2020		589,579			615
	FNMA Pool 678899	5.5% 01 Jan 2033		583,740			638
	Fannie Mae	0.737% 25 Sep 2041		643,897			642
*	Bank of America Corp	7.375% 15 May 2014		700,000			726
	FNMA Pool AE2159	4% 01 Feb 2041		992,355			1,044
	Freddie Mac	1% 15 Nov 2040		1,781,972			1,772
	US Treasury N/B	3.125% 15 May 2021		1,800,000			2,010
	US Treasury N/B	0.375% 31 Jul 2013		6,000,000			6,014
	Various Receivables						2,852
	Various Insurance Companies	Synthetic Wrap Agreements***					(2,297	)
	Total Return Tier Global Wrap:
	ING Life Insurance & Annuity Co.	Synthetic GIC, 5.30%, opened		50,855,531
	Monumental Life Insurance Co.	Synthetic GIC, 5.30%, opened		50,855,531
*	State Street Bank & Trust	Synthetic GIC, 5.30%, opened		50,855,531
	Underlying Security Description:
	GEM Trust Risk-Controlled 2	1,984,573.0537 units of participation					29,046
	GEM Trust Opportunistic 2	2,360,027.9129 units of participation					36,182
	GEM Trust Opportunistic 3	3,515,004.8964 units of participation					50,841
*	State Street Bank & Trust	0.14% 31 Dec 2030 Short Term Invest. Fund		9,765,493			9,765
	FNMA TBA Single Family Nov 30	4% 01 Dec 2099		(200,000	)		(208	)
	FNMA Pool 318107	7% 01 Aug 2025		325			0
	FNMA Pool 306974	7.5% 01 Jun 2025		513			1

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Coors Brewing Co	6.375% 15 May 2012		1,000		1
	GNMA Pool 373607	6.5% 15 Mar 2026		1,278		1
	GNMA Pool 780975	6% 15 Feb 2029		1,346		2
	Fed Hm Ln Pc Pool C90042	6% 01 Dec 2013		2,354		3
	Fed Hm Ln Pc Pool D28599	7.5% 01 Dec 2022		3,404		3
	Federal Natl Mtg Assn Remic	9.99% 25 Sep 2017		3,694		4
	GNMA Pool 412583	6.5% 15 Apr 2026		3,834		4
	Residential Asset Mortgage Prods	4.57% 25 Oct 2034		5,152		5
	Kraft Foods Inc	6.25% 01 Jun 2012		5,000		5
	FNMA Pool 987022	5.5% 01 Aug 2038		4,789		5
	Comcast Cable Communications	7.125% 15 Jun 2013		5,000		5
	GNMAPool 288117	10% 15 Mar 2020		6,146		6
	GNMA Pool 419569	6.5% 15 Feb 2026		5,478		6
	FNMA Pool 414547	7% 01 Feb 2028		6,323		7
	GNMA Pool 412234	6.5% 15 May 2026		7,403		8
	Dell Inc	5.625% 15 Apr 2014		8,000		9
	Black & Decker	8.95% 15 Apr 2014		8,000		9
	City Of Florence	6.14% 15 Apr 2014		9,502		9
	Citifinancial Mortgage Securities	1% 25 Oct 2033		10,344		10
	Marsh & McLennan Cos Inc	9.25% 15 Apr 2019		8,000		11
	Fed Hm Ln Pc Pool C80253	9% 01 Jan 2025		8,860		11
	CVS Caremark Corp	6.6% 15 Mar 2019		9,000		11
	GNMA Pool 296513	10% 15 Dec 2020		11,104		13
	GNMA Pool 426119	8% 15 Jun 2026		12,108		14
	Morgan Stanley Dean Witter Cap	6.39% 15 Jul 2033		14,997		15
	Hartford Finl Svcs Grp	5.375% 15 Mar 2017		15,000		15
	Fannie Mae	0% 09 Oct 2019		21,000		16
	Contl Airlines 1996 1	6.94% 15 Apr 2015		16,657		17
	Ingersoll Rand Gl Hld Co	9.5% 15 Apr 2014		15,000		17
	EOG Resources Inc	5.625% 01 Jun 2019		15,000		18
	Entergy Mississippi Inc	6.64% 01 Jul 2019		15,000		18
	Bemis Company Inc	6.8% 01 Aug 2019		15,000		18
	Citigroup Inc	5.5% 27 Aug 2012		18,000		18
	Citigroup Inc	5.25% 27 Feb 2012		19,000		19
	CS First Boston Mortgage Securities	6% 25 Nov 2018		18,728		19
	Bellsouth Corp	5.2% 15 Dec 2016		17,000		19
	Panhandle East Pipe Line	8.125% 01 Jun 2019		16,000		20
	Intl Bk Recon & Develop	0.01% 15 Feb 2015		21,000		20
	GNMA Pool 457932	6% 15 Dec 2028		17,863		20
	GNMA Pool 424276	6.5% 15 Mar 2026		17,788		21

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	BHP Billiton Fin USA LTD	6.5% 01 Apr 2019		17,000		21
	Comcast Corp	5.7% 15 May 2018		19,000		22
	Fed Hm Ln Pc Pool C90219	6% 01 May 2018		20,502		23
	Mastr Asset Securitization Tr	1% 25 May 2033		24,155		23
	Union Electric Co	6.7% 01 Feb 2019		19,000		23
	Valspar Corp	6.05% 01 May 2017		20,000		23
	Federal Natl Mtg Assn Remic	8.5% 25 Sep 2021		20,993		24
	Oracle Corp	5.75% 15 Apr 2018		20,000		24
	Fannie Mae	5.25% 01 Aug 2012		24,000		25
	Goldman Sachs Group Inc	5.375% 15 Mar 2020		25,000		25
	Arrow Electronics Inc	3.375% 01 Nov 2015		25,000		25
	Metlife Inc	7.717% 15 Feb 2019		20,000		25
	Commonwealth Edison	6.15% 15 Mar 2012		25,000		25
	Goldman Sachs Group Inc	5.95% 18 Jan 2018		25,000		26
	Harsco Corp	2.7% 15 Oct 2015		25,000		26
	Prudential Financial Inc	3.875% 14 Jan 2015		25,000		26
	Dr Pepper Snapple Group	2.9% 15 Jan 2016		25,000		26
	Time Warner Cable Inc	3.5% 01 Feb 2015		25,000		26
	Citigroup Inc	6.375% 12 Aug 2014		25,000		26
	Petrobras Intl Fin Co	5.375% 27 Jan 2021		25,000		26
	Sunoco Logistics Partner	5.5% 15 Feb 2020		25,000		27
	Petroleos Mexicanos	4.875% 15 Mar 2015		25,000		27
	Cliffs Natural Resources	5.9% 15 Mar 2020		25,000		27
	Federal Realty Invs Trst	5.95% 15 Aug 2014		25,000		27
	Reed Elsevier Capital	7.75% 15 Jan 2014		24,000		27
	Duke Realty LP	5.95% 15 Feb 2017		25,000		27
	Comcast Corp	6.3% 15 Nov 2017		23,000		27
	FNMA Pool 906693	5.5% 01 Dec 2036		25,055		27
	Petroleos Mexicanos	6% 05 Mar 2020		25,000		28
	FNMA Pool 928560	5.5% 01 Jul 2037		25,607		28
*	Merrill Lynch & Co	6.4% 28 Aug 2017		29,000		28
	Alleghany Corp	5.625% 15 Sep 2020		27,000		28
	Meccanica Holdings USA	6.25% 15 Jul 2019		35,000		29
	Federal Home Loan Bank	4.625% 09 Mar 2018		25,000		29
	Hartford Finl Svcs Grp	5.5% 30 Mar 2020		29,000		29
	Goldman Sachs Group Inc	5.7% 01 Sep 2012		29,000		30
	Capital One Financial Co	7.375% 23 May 2014		27,000		30
	Donnelley R.R. & Sons	8.6% 15 Aug 2016		30,000		30
	Small Business Administration	4.12% 10 Mar 2014		29,208		30
	Marathon Oil Corp	6.8% 15 Mar 2032		25,000		31

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Talisman Energy	7.75% 01 Jun 2019		25,000		31
	American Intl Group	6.4% 15 Dec 2020		31,000		31
	Pacific Life Global Fndg	5.15% 15 Apr 2013		30,000		31
	Valero Energy Corp	9.375% 15 Mar 2019		25,000		32
	Duke Energy Carolinas	7% 15 Nov 2018		25,000		32
	Bear Stearns Cos LLC	5.3% 30 Oct 2015		30,000		32
	FNMA Pool 323347	7% 01 Sep 2028		29,086		34
	Xerox Corporation	4.25% 15 Feb 2015		33,000		35
	Airgas Inc	4.5% 15 Sep 2014		33,000		35
	Prudential Financial Inc	6.1% 15 Jun 2017		32,000		35
	Duke Realty LP	8.25% 15 Aug 2019		30,000		35
	Magellan Midstream Partn	6.55% 15 Jul 2019		30,000		35
	GNMA Pool 377590	8% 15 Aug 2025		30,211		36
	Nevada Power Co	6.5% 15 May 2018		30,000		36
	FNMA Pool 906868	5.5% 01 Dec 2036		33,250		36
	Citigroup Inc	4.75% 19 May 2015		36,000		36
	Lincoln National Corp	8.75% 01 Jul 2019		30,000		36
	Autozone Inc	5.75% 15 Jan 2015		33,000		37
	Aflac Inc	8.5% 15 May 2019		30,000		37
	Nationwide Life Global Fund	5.45% 02 Oct 2012		37,000		38
	Financing Corp	10.35% 03 Aug 2018		25,000		38
	Simon Property Group LP	6.75% 15 May 2014		35,000		39
	American Express Co	8.125% 20 May 2019		30,000		39
	Biomed Realty LP	6.125% 15 Apr 2020		37,000		39
	Valero Energy Corp	6.125% 01 Feb 2020		35,000		39
	Kraft Foods Inc	4.125% 09 Feb 2016		36,000		39
	Metlife Inc	6.75% 01 Jun 2016		34,000		39
	Royal Bk Of Scot Group PLC	4.7% 03 Jul 2018		61,000		40
	Hershey Foods Corp	1.5% 01 Nov 2016		40,000		40
	Kellogg Co	1.875% 17 Nov 2016		40,000		40
	Keycorp	6.5% 14 May 2013		38,000		40
	JC Penney Corp Inc	7.625% 01 Mar 2097		45,000		40
	John Deere Capital Corp	7% 15 Mar 2012		40,000		41
*	Bank of America Corp.	7.8% 15 Sep 2016		40,000		41
	Ppl Energy Supply LLC	6.2% 15 May 2016		37,000		41
	Metlife Inc	6.817% 15 Aug 2018		35,000		42
	Natl Retail Properties	6.875% 15 Oct 2017		38,000		42
	Raytheon Co	1.4% 15 Dec 2014		42,000		42
	PSEG Power LLC	2.75% 15 Sep 2016		42,000		42
	Time Warner Inc	4.875% 15 Mar 2020		39,000		42

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	John Deere Capital Corp	1.25% 02 Dec 2014		42,000		42
	GNMA Pool 413641	6.5% 15 Apr 2026		37,225		43
	HCC Insurance Holdings I	6.3% 15 Nov 2019		39,000		43
	Fannie Mae	4.625% 01 May 2013		42,000		44
	Caterpillar Fin Serv Crp	6.125% 17 Feb 2014		40,000		44
	GNMA Pool 742401	4.5% 15 Jun 2040		40,666		44
*	Merrill Lynch & Co	6.875% 25 Apr 2018		45,000		44
	Time Warner Inc	3.15% 15 Jul 2015		43,000		45
	Allstate Corp	6.125% 15 Feb 2012		45,000		45
	Contl Airlines 1999 2	7.256% 15 Sep 2021		43,384		46
	Jackson Natl Life Global	6.125% 30 May 2012		47,000		48
	Diageo Capital PLC	5.5% 30 Sep 2016		42,000		48
	Westlb AG New York Brh	4.796% 15 Jul 2015		48,000		50
	Fed Hm Ln Pc Pool A73062	5% 01 Feb 2038		46,405		50
	Home Depot Inc	3.95% 15 Sep 2020		46,000		50
	Anheuser Busch Inbev Wor	7.75% 15 Jan 2019		39,000		51
	GNMA Pool 726414	4.5% 15 Oct 2039		46,361		51
	HCP Inc	3.75% 01 Feb 2016		50,000		51
	Hyundai Capital Services	4.375% 27 Jul 2016		50,000		51
	Axis Specialty Finance	5.875% 01 Jun 2020		50,000		51
	Principal Financial Group	8.875% 15 May 2019		42,000		52
	Sprint Capital Corp	8.75% 15 Mar 2032		65,000		53
	First Niagara Fin Group	6.75% 19 Mar 2020		50,000		53
	Contl Airlines 2007 1	5.983% 19 Apr 2022		51,121		53
	CSX Corp	7.375% 01 Feb 2019		43,000		54
	Simon Property Group	2.8% 30 Jan 2017		53,000		54
	Comcast Cable Comm Hldgs	8.375% 15 Mar 2013		50,000		54
	AT&T Inc	6.7% 15 Nov 2013		50,000		55
	Fannie Mae	5.125% 02 Jan 2014		51,000		55
	Niagara Mohawk Power	4.881% 15 Aug 2019		50,000		56
	IBM Corp	7.125% 01 Dec 2096		40,000		57
	Assurant Inc	6.75% 15 Feb 2034		55,000		57
*	Bank of America Commercial Mor	5.713% 10 May 2045		59,147		59
	Fed Hm Ln Pc Pool A73704	5% 01 Mar 2038		55,067		59
	Empresa Nacional De Elec	8.625% 01 Aug 2015		50,000		60
	EDP Finance BV	5.375% 02 Nov 2012		61,000		60
	General Elec Cap Corp	5.9% 13 May 2014		58,000		64
	Cincinnati Finl Corp	6.125% 01 Nov 2034		65,000		65
	Morgan Stanley Mortgage Loan	5.683% 25 Apr 2034		63,813		65
	US Treasury N/B	2.375% 15 Jan 2017		56,172		65

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Landwirtsch. Rentenbank	3.125% 15 Jul 2015		62,000		66
	GNMA Pool 699867	4.5% 15 May 2040		62,233		68
	US Treasury N/B	4.75% 15 Feb 2041		50,000		69
	CS First Boston Mortgage Securities	5% 25 Apr 2019		66,971		69
	Becton Dickinson	5% 15 May 2019		60,000		69
	Contl Airlines 2000 1	8.048% 01 May 2022		65,674		70
	Petroleos Mexicanos	8% 03 May 2019		57,000		71
	Qwest Capital Funding	6.875% 15 Jul 2028		76,000		71
	CRH America Inc	8.125% 15 Jul 2018		63,000		72
	Nomura Holdings Inc	5% 04 Mar 2015		73,000		74
	Corning Inc	7% 15 May 2024		59,000		76
	Mass Mutual Life Ins Co	5.625% 15 May 2033		70,000		76
	Ventas Realty LP/Cap Crp	4.75% 01 Jun 2021		80,000		77
	New Valley Generation I	7.299% 15 Mar 2019		64,219		78
	Lennox International Inc	4.9% 15 May 2017		74,000		78
	BBVA Global Finance LTD.	7% 01 Dec 2025		112,000		79
	JPMorgan Mortgage Trust	4.552% 25 Jun 2034		84,974		79
	GNMA Pool 708581	4.5% 15 Apr 2039		73,100		80
	Citigroup Inc	5.5% 11 Apr 2013		79,000		81
	Verizon Communications	8.75% 01 Nov 2018		60,000		81
	Stanley Black + Decker I	3.4% 01 Dec 2021		80,000		82
	Comerica Inc	4.8% 01 May 2015		80,000		82
	Smucker J.M. Co	3.5% 15 Oct 2021		80,000		82
	Gap Inc	5.95% 12 Apr 2021		86,000		82
	Toyota Motor Credit Corp	4.25% 11 Jan 2021		76,000		83
	Morgan Stanley	5.625% 23 Sep 2019		91,000		84
	Toyota Motor Credit Corp	1.25% 17 Nov 2014		84,000		84
	Johnson Controls Inc	2.6% 01 Dec 2016		84,000		85
	Joy Global Inc	5.125% 15 Oct 2021		81,000		86
	Owens Corning Inc	6.5% 01 Dec 2016		80,000		87
	Boston Scientific Corp	1% 15 Nov 2015		80,000		89
	Bear Stearns Cos LLC	7.25% 01 Feb 2018		76,000		89
	Allegheny Ludlum Corp	6.95% 15 Dec 2025		79,000		89
	Santander US Debt SA Uni	3.781% 07 Oct 2015		100,000		91
	Fico Strip Prin	0% 30 Nov 2017		100,000		91
	Morgan Stanley Capital I	5.317% 12 Nov 2041		88,047		91
	Tyson Foods Inc	7% 01 May 2018		86,000		92
	FNMA Pool AE4844	3.5% 01 Oct 2040		90,425		93
	DBS Bank LTD/Singapore	1% 15 Nov 2019		90,000		94
	Pub Svc Elec & Gas	9.25% 01 Jun 2021		65,000		97

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	CRH America Inc	4.125% 15 Jan 2016		99,000		99
	Morgan Stanley	6% 28 Apr 2015		100,000		100
	Rabobank Nederland	3.2% 11 Mar 2015		100,000		102
	FNMA Pool AB3981	3.5% 01 Dec 2041		99,990		103
	Banco Bilbao Vizcaya ARG	5.75% 20 Jul 2017		100,000		103
	Kroger Co	6.4% 15 Aug 2017		87,000		103
	America Movil Sab DE CV	3.625% 30 Mar 2015		100,000		105
	Ally Financial Inc	7% 01 Feb 2012		105,000		105
	Time Warner Ent	8.875% 01 Oct 2012		100,000		105
	Procter & Gamble Co	8% 26 Oct 2029		69,000		106
	JPMorgan Chase & Co	5.15% 01 Oct 2015		100,000		106
	Korea Electric Power	5.5% 21 Jul 2014		100,000		106
	Banco Nac DE Desen Econo	5.5% 12 Jul 2020		100,000		108
*	Merrill Lynch & Co	5.45% 15 Jul 2014		110,000		109
	Financing Corp	9.4% 08 Feb 2018		80,000		115
	AT&T Inc	5.5% 01 Feb 2018		100,000		116
	Hutch Wham Int 09 LTD	7.625% 09 Apr 2019		100,000		123
	Pearson Funding Two	4% 17 May 2016		120,000		127
	Brunswick Corp	7.375% 01 Sep 2023		140,000		130
	Greenwich Capital Commercial F	5.444% 10 Mar 2039		120,000		130
	Transocean Inc	4.95% 15 Nov 2015		130,000		133
	Eastman Chemical Co	7.25% 15 Jan 2024		106,000		133
	Duke Cap Corp	6.75% 15 Jul 2018		121,000		136
	LB Baden Wuerttemberg	7.625% 01 Feb 2023		106,000		138
*	Bank Of America N.A.	1% 15 Jun 2016		171,000		138
	Province of Ontario	4.1% 16 Jun 2014		129,000		139
	Mastr Asset Securitization Tr	4.375% 25 May 2033		140,187		139
	US Treasury N/B	2% 15 Jan 2026		114,147		140
	First Horizon Mortgage Pass Th	4.5% 25 Sep 2018		137,156		141
	Morgan Stanley	5.3% 01 Mar 2013		143,000		145
*	Merrill Lynch & Co	6.5% 15 Jul 2018		150,000		146
	Credit Suisse Mortgage Capital	5.711% 15 Feb 2039		139,046		147
	US Treasury N/B	4.25% 15 Nov 2017		125,000		148
	British Sky Broadcasting	9.5% 15 Nov 2018		119,000		154
	EQT Corp	7.75% 15 Jul 2026		130,000		157
	USAA Capital Corp	3.5% 17 Jul 2014		150,000		158
	Fico Strip Ser 19	0.01% 06 Jun 2018		180,000		160
	Applied Materials Inc	7.125% 15 Oct 2017		132,000		160
	Aristotle Holding Inc	3.5% 15 Nov 2016		160,000		163
	USAA Capital Corp	2.25% 13 Dec 2016		168,000		169

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Senior Housing Prop Trus	4.3% 15 Jan 2016		173,000		171
	US Treasury N/B	1.625% 15 Jan 2018		162,216		185
	PNC Funding Corp	5.25% 15 Nov 2015		171,000		186
	Goldman Sachs Group Inc	5.35% 15 Jan 2016		184,000		189
	Santander US Debt SA Uni	2.991% 07 Oct 2013		200,000		191
	US Treasury N/B	1.875% 15 Jul 2013		185,031		193
	FNMA Pool MA0622	3.5% 01 Jan 2041		193,131		199
	GS Mortgage Securities Corp	5.162% 10 Dec 2043		180,000		205
	FNMA Pool AE8528	4% 01 Nov 2040		196,708		207
	FNMA TBA Single Family Nov 30	4% 01 Dec 2099		200,000		208
*	Merrill Lynch Mortgage Trust	5.405% 12 Nov 2037		206,433		208
	Federal Home Ln Mtg Pc Gtd	8% 25 Apr 2024		189,053		214
	Federal Home Loan Bank	4.875% 27 Nov 2013		200,000		217
	Fed Hm Ln Pc Pool A78453	5% 01 Jul 2038		201,617		217
	Landesbk Baden Wurtt NY	5.05% 30 Dec 2015		200,000		221
	US Treasury N/B	1.75% 15 Jan 2028		189,252		228
	US Treasury N/B	1.375% 15 Jul 2018		210,126		238
	Santander Issuances	5.911% 20 Jun 2016		300,000		256
	Inter American Devel Bk	0.5% 17 Apr 2023		400,000		267
	Wells Fargo Bank NA	5.75% 16 May 2016		250,000		273
	US Treasury N/B	3.5% 15 Feb 2039		250,000		281
	Fed Hm Ln Pc Pool A66380	6% 01 Sep 2037		260,625		287
	FNMA Pool AI1850	3.5% 01 May 2041		288,166		297
	Citigroup Inc	8.5% 22 May 2019		253,000		298
	Private Export Funding	5.45% 15 Sep 2017		250,000		303
	FHLMC TBA Jan 30 Gold Single	3.5% 01 Dec 2099		300,000		308
	FNMA Pool AH1174	1% 01 Jan 2041		300,000		309
	FNMA TBA Single Family Mortgage	4% 01 Dec 2099		300,000		315
	Freddie Mac	4.125% 27 Sep 2013		300,000		319
	Fed Hm Ln Pc Pool A77764	5.5% 01 Jun 2038		305,581		332
	Fed Hm Ln Pc Pool G03581	6% 01 Nov 2037		348,602		383
	Fed Hm Ln Pc Pool G04468	5% 01 Jul 2038		362,324		390
	GNMA Pool 748088	4.5% 15 May 2041		357,560		390
	Murphy Oil Corporation	7.05% 01 May 2029		320,000		391
	FNMA Pool AE0828	3.5% 01 Feb 2041		382,772		394
	Autopista Del Maipo Sociedad	7.373% 15 Jun 2022		379,777		394
	Fed Hm Ln Pc Pool A77796	5.5% 01 May 2038		375,502		408
	Federal Natl Mtg Assn	7.622% 25 Dec 2038		361,901		408
	FNMA Pool MA0932	3.5% 01 Dec 2041		400,000		412
	Fed Hm Ln Pc Pool G03812	5.5% 01 Feb 2038		407,703		443

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule


(a)	(b) Identity of Issue, Borrower, Lessor or Similar Party	(c) Description of Investment Including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value	(d) Cost and Number of Shares/Units**		(e) Current Value (in 000s)
	Fed Hm Ln Pc Pool G05255	5% 01 Dec 2038		414,121		445
	Fed Hm Ln Pc Pool C91184	6% 01 Apr 2028		407,686		448
	Federal Farm Credit Bank	4.85% 29 Jul 2020		400,000		479
	Financing Corp	8.6% 26 Sep 2019		358,000		523
	GNMA II Pool 004853	4% 20 Oct 2040		500,000		536
	FNMA Pool AE8151	4% 01 Jul 2039		510,757		537
	US Treasury N/B	2.625% 15 Aug 2020		500,000		539
	GNMAPool 721748	4.5% 15 Aug 2040		500,000		545
	Abbey Natl Treasury Serv	3.875% 10 Nov 2014		610,000		572
	Fed Hm Ln Pc Pool G05249	5% 01 Jan 2039		553,595		595
	Fed Hm Ln Pc Pool G06232	6% 01 May 2040		547,964		603
	FNMA Pool AH3811	4% 01 Feb 2041		574,525		604
	Financing Corp	9.65% 02 Nov 2018		450,000		672
	LBB Finance Ireland	7.125% 27 Feb 2012		700,000		701
	Fed Hm Ln Pc Pool G03819	6% 01 Jan 2038		697,835		768
	Irish Life & Permanent	3.6% 14 Jan 2013		900,000		787
	Fed Hm Ln Pc Pool A70591	5.5% 01 Dec 2037		739,444		803
	US Treasury N/B	1.375% 30 Sep 2018		800,000		804
	Fed Hm Ln Pc Pool G03616	6% 01 Dec 2037		794,427		874
	GNMA Pool 719082	4.5% 15 Nov 2039		842,320		921
	GNMA Pool 741270	4.5% 15 May 2040		880,540		961
	GNMA Pool 741877	4.5% 15 May 2040		897,102		979
	Fannie Mae	4.75% 19 Nov 2012		1,000,000		1,040
	US Treasury N/B	2.625% 15 Nov 2020		1,000,000		1,077
	GNMA Pool 697957	4.5% 15 Mar 2039		1,100,001		1,202
	Freddie Mac	8.25% 01 Jun 2016		1,019,000		1,266
	US Treasury N/B	1.875% 31 Oct 2017		1,350,000		1,411
	GNMA I TBA Jan 30 Single Fam	4% 01 Dec 2099		1,600,000		1,716
	Various Payables					(1,935	)
	Various Insurance Companies	Synthetic Wrap Agreements***				(18,344	)

	Total Stable Value Fund					587,326

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES

EIN Number 51-0337383, Plan Number 002

Schedule H, Part IV, Line 4(i) Schedule of Assets

Held for Investment Purposes at End of Year


December 31, 2011		Supplemental Schedule

(a)

(b) Identity of Issue, Borrower, Lessor or Similar Party

Date, Rate of Interest, Collateral, Par or

Maturity Value

(d) Cost and
Number of
Shares/Units**

(e) Current Value
(in 000s)

Collective Trusts

Merrill Lynch

Extended Market Index Trust

2,256,575

24,642

Merrill Lynch

Equity Index Trust

469,497

50,583

Total Collective Trusts

75,225

Participant Loans

Interest at 3.25% to 9.25%, maturing through 2021

20,489

1,091,233

*	Indicates parties-in-interest as defined by ERISA.

**	Cost information is not required for participant-directed investments and, therefore is not included.

***	Represents adjustment to arrive at contract value.

Signatures

The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the plan administrator of CONSOL Energy Inc. Investment Plan for Salaried Employees has duly caused this annual report to be signed on its behalf by the undersigned, thereunto duly authorized.

CONSOL ENERGY INC. INVESTMENT PLAN FOR SALARIED EMPLOYEES