Initial Results From First-of-its-Kind Public-Private Data Monitoring and Disclosure Collaboration Demonstrating that CNX Natural Gas Development is Safe and Poses No Public Health Risks

Rhea-AI Summary

CNX Resources has released initial results from its Radical Transparency™ program, a public-private collaboration with Pennsylvania's government to monitor air emissions at natural gas well sites and compressor stations. After nine months of continuous monitoring, the data indicates that CNX's natural gas development poses no public health risk.

Key findings include:

• PM2.5 concentrations below NAAQS standards at all sites
• BTEX concentrations well below minimum risk levels
• Over 100,000 data measurements collected and reported

CNX urges industry peers to adopt similar transparency measures and criticizes the University of Pittsburgh Health Study for using loose statistical associations. The company aims to expand the program to cover all its unconventional operations, providing more data points across its operational footprint.

Positive

• Initial results show CNX's natural gas development poses no public health risk
• Over 100,000 data measurements collected and transparently reported
• PM2.5 concentrations below NAAQS standards at all sites
• BTEX concentrations well below minimum risk levels
• Collaboration with Pennsylvania government for independent data verification
• Plan to expand Radical Transparency™ program to all unconventional CNX operations

Negative

• None.

Insights

Environmental Health Expert

The initial results from CNX's Radical Transparency™ program provide valuable insights into the environmental impact of natural gas operations. Key findings show PM2.5 concentrations below NAAQS standards and BTEX levels well under minimum risk thresholds at all monitored sites. This data contradicts previous studies suggesting health risks from natural gas development.

However, it's important to note that this is only nine months of data from a single company's operations. While promising, a broader dataset covering multiple companies and longer timeframes would be necessary to draw definitive conclusions about the industry's overall safety. The commitment to expand monitoring across all CNX operations is a positive step, but industry-wide adoption would be ideal for comprehensive assessment.

The collaboration with PADEP for independent verification adds credibility to the findings. This transparent, data-driven approach could set a new standard for environmental monitoring in the natural gas industry, potentially influencing future regulations and public perception.

Energy Policy Analyst

CNX's Radical Transparency™ initiative represents a significant shift in the natural gas industry's approach to environmental monitoring and public disclosure. By providing real-time, continuous air emissions data and enhanced water quality testing results, CNX is setting a new benchmark for transparency in the sector.

The program's initial results, showing no public health risks from CNX's operations, could have far-reaching implications for energy policy. If these findings are corroborated over time and across multiple operators, it could:

• Ease regulatory pressures on the natural gas industry
• Potentially accelerate permitting processes
• Influence public opinion and local acceptance of natural gas operations

However, policymakers should exercise caution in extrapolating these results industry-wide. CNX's call for peers to adopt similar transparency measures is crucial. Only with comprehensive, industry-wide data can policymakers make fully informed decisions about the future of natural gas development in Pennsylvania and beyond.

Financial Analyst

From an investor perspective, CNX's Radical Transparency™ initiative could be a game-changer for the company and potentially the entire natural gas sector. The positive initial results demonstrating no public health risks could lead to several financial benefits:

• Reduced regulatory risk: Lower likelihood of costly new regulations or restrictions on operations
• Improved public perception: Potential for easier project approvals and reduced local opposition
• Competitive advantage: CNX may be seen as an industry leader in environmental responsibility

However, investors should note that this is an ongoing process and the full financial impact remains to be seen. If other companies adopt similar transparency measures, it could level the playing field. Conversely, if CNX remains the only major player with this level of disclosure, it could maintain a unique market position.

Long-term, this initiative could positively impact CNX's valuation by reducing perceived environmental risks associated with natural gas operations. It may also attract ESG-focused investors, potentially broadening the company's shareholder base.

Company urges industry peers to adopt Radical Transparency ™ across all Pennsylvania natural gas development and processing operations

Radical Transparency ™ objective, measured data contradicts loose statistical associations contained in University of Pittsburgh Health Study

PITTSBURGH, Aug. 14, 2024 /PRNewswire/ -- The initial results of nine months of continuous air emissions monitoring at natural gas well sites and compressor stations in southwestern Pennsylvania indicate that CNX natural gas development poses no public health risk, CNX Resources (NYSE: CNX) announced in its first Radical Transparency ™ assessment report released today.

Through the Radical Transparency ™ program – a first-of-its-kind public-private collaboration announced with Pennsylvania Governor Josh Shapiro's administration in November 2023 – CNX committed to sharing real-time continuous air emissions monitoring data, enhanced water quality testing results, disclosure of chemical usage, and additional waste reporting at well sites and midstream infrastructure in southwestern Pennsylvania. Since the collaboration began, more than 100,000 data measurements have been collected and transparently reported via CNXRadicalTransparency.com, with additional measurements added to the dataset by the hour. While still in the initial phase of the program, CNX has committed to expanding Radical Transparency ™ to cover all unconventional CNX operations, providing hundreds of thousands of additional data points across the company's operational footprint.

Importantly, the air quality data is collected by an independent third party and fed simultaneously to the Pennsylvania Department of Environmental Protection (PADEP), CNX, and the public in contrast to disputed results from previous NGO- and industry-funded studies.

"The initial results and ongoing monitoring from our Radical Transparency program indicate that natural gas development done the CNX way is safe and inherently good for the communities where we operate. We call on our industry peers to join us in these important efforts to ensure that public policy in Pennsylvania is driven by directly-measured data and facts instead of agendas and speculation," said Nick Deiuliis, CNX Resources President and CEO. "Our findings also expose the flawed nature of the oft-cited University of Pittsburgh Health Study and its highly suspect results that are used by NGOs to spread unchecked disinformation about natural gas development. While these are only the initial results, and the data collection is continuous and ongoing, we can say definitively that Radical Transparency is the superior path forward when setting public policy. Because of an already robust regulatory framework in Pennsylvania, our unique collaboration with state government, and CNX development practices, we are producing the most responsibly sourced natural gas molecule anywhere in the world right here in southwestern Pennsylvania. Better yet, residents now have direct and real-time access to measured environmental data from sites, rendering reliance on third-party innuendo obsolete."

Air quality measurements during pad construction, drilling, completions, flowback, and production phases of natural gas development have been captured by the effort to date. In addition, CNX also reports the chemicals used in the natural gas production process. The results through the initial months of the program show that emissions from responsible CNX natural gas development measured to date fall well below science-based air quality standards that are designed to protect the public from negative health effects resulting from emission of PM_2.5 and BTEX. There have been no sustained high levels of any significance of PM_2.5 or BTEX at these sites during any phase of development measured to date.

Key findings:

• Particulate Matter (PM_2.5) concentrations were below NAAQS standards at all sites and were well below levels observed within regional urban environments.
• Measured concentrations of BTEX are well below minimum risk levels at all sites.
• While other studies, including the Pitt Health Study, have used loose and highly dubious statistical associations collected miles from gas operating sites, CNX's Radical Transparency program collects on-site data (500' perimeter to the wellbore), which would be the most concentrated reading of any air emissions from the site, as emissions decrease with distance due to dispersion.

CNX has also agreed to supplement the scope of data collected via its continuous monitoring program by providing PADEP with unprecedented access to air and water quality monitoring from construction through the production phase of two future, to-be-constructed CNX development sites. This expanded data set, in collaboration with PADEP, will allow for in-depth independent verification of air emissions monitoring across the sites' entire development lifecycle.

Mr. Deiuliis concluded, "With over 100,000 on-site measured data points accumulated to date, the true impacts of responsible natural gas development on the local environment are becoming clearer to all, and initial indications are very promising. But we are just getting started and more needs to be done; Pennsylvanians deserve more data and more locations to be included within the Radical Transparency framework. Success is defined by three simple goals: Radical Transparency is the accepted standard for the natural gas industry; residents and communities have direct access to measured data; and energy policy follows the data from the effort. Achieving these goals renders speculation, innuendo, and guesswork obsolete."

Cautionary Statements
We are including the following cautionary statement in this press release to make applicable and take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 for any forward-looking statements made by, or on behalf of us. With the exception of historical matters, the matters discussed in this press release are forward-looking statements (as defined in 21E of the Securities Exchange Act of 1934 (the "Exchange Act")) that involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. These forward-looking statements may include projections and estimates concerning the timing and success of specific projects and our future production, revenues, income, and capital spending. When we use the words "believe," "intend," "expect," "may," "should," "anticipate," "could," "estimate," "plan," "predict," "project," "will," or their negatives, or other similar expressions, the statements which include those words are usually forward-looking statements. When we describe a strategy that involves risks or uncertainties, we are making forward-looking statements. The forward-looking statements in this press release speak only as of the date of this press release; we disclaim any obligation to update these statements. We have based these forward-looking statements on our current expectations and assumptions about future events. While our management considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks, contingencies, and uncertainties, most of which are difficult to predict and many of which are beyond our control. Specific factors that could cause future actual results to differ materially from the forward-looking statements are described in detail under the captions "Forward-Looking Statements" and "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (SEC) and any subsequent reports filed with the SEC. Those risk factors discuss, among other matters, pricing volatility or pricing decline for natural gas and NGLs; local, regional and national economic conditions and the impact they may have on our customers; the impact of events beyond our control, including a global or domestic health crisis; dependence on gathering, processing and transportation facilities and other midstream facilities owned by others; conditions in the oil and gas industry; our current long-term debt obligations, and the terms of the agreements that govern that debt; strategic determinations, including the allocation of capital and other resources to strategic opportunities; cyber-incidents targeting our systems, oil and natural gas industry systems and infrastructure, or the systems of our third-party service providers; and changes in safety, health, environmental and other regulations.

ABOUT CNX RESOURCES
CNX Resources Corporation (NYSE: CNX) is unique. We are a premier, ultra-low carbon intensive natural gas development, production, midstream, and technology company centered in Appalachia, one of the most energy abundant regions in the world. With the benefit of a 160-year regional legacy, substantial asset base, leading core operational competencies, technology development and innovation, and astute capital allocation methodologies, we responsibly develop our resources and deploy free cash flow to create long-term per share value for our shareholders, employees, and the communities where we operate. As of December 31, 2023, CNX had 8.74 trillion cubic feet equivalent of proved natural gas reserves. The company is a member of the Standard & Poor's Midcap 400 Index. Additional information is available at www.cnx.com.

 

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FAQ

What are the initial results of CNX's Radical Transparency™ program?

The initial results from nine months of continuous air emissions monitoring indicate that CNX's natural gas development poses no public health risk, with PM2.5 concentrations below NAAQS standards and BTEX concentrations well below minimum risk levels at all monitored sites.

How many data measurements has CNX collected through its Radical Transparency™ program?

CNX has collected and transparently reported over 100,000 data measurements since the collaboration began, with additional measurements added to the dataset hourly.

What is CNX's stance on the University of Pittsburgh Health Study?

CNX criticizes the University of Pittsburgh Health Study, stating that its findings are flawed and based on loose statistical associations collected miles from gas operating sites, in contrast to CNX's on-site data collection.

How does CNX plan to expand its Radical Transparency™ program?

CNX has committed to expanding the Radical Transparency™ program to cover all its unconventional operations, which will provide hundreds of thousands of additional data points across the company's operational footprint.