PROPERTY, PLANT AND EQUIPMENT:



	December 31,
E&P Property, Plant and Equipment	2016		2015
Intangible drilling cost	$	3,583,565	$	3,452,989
Proved gas properties	2,016,916		1,922,602
Unproved gas properties	1,116,282		1,421,083
Gas gathering equipment	1,138,299		1,147,173
Gas wells and related equipment	791,996		785,744
Other gas assets	190,406		125,691
Gas advance royalties	13,762		19,745
Total E&P Property, Plant and Equipment	$	8,851,226	$	8,875,027
Less: Accumulated Depreciation, Depletion and Amortization	3,106,296		2,695,674
Total E&P Property, Plant and Equipment - Net	$	5,744,930	$	6,179,353

PA Mining Operations Property, Plant and Equipment
Coal and other plant and equipment	$	2,307,668	$	2,284,103
Coal properties and surface lands	458,398		456,044
Airshafts	371,752		351,870
Mine development	326,152		326,225
Coal advance mining royalties	16,224		16,263
Leased coal lands	26,566		26,402
Total PA Mining Operations Property, Plant and Equipment	$	3,506,760	$	3,460,907
Less: Accumulated Depreciation, Depletion and Amortization	1,768,712		1,603,642
Total PA Mining Operations Property, Plant and Equipment - Net	$	1,738,048	$	1,857,265

Other Property, Plant and Equipment
Coal and other plant and equipment	$	532,919	$	569,333
Coal properties and surface lands	481,126		484,348
Airshafts	10,003		10,002
Mine development	17,988		18,073
Coal advance mining royalties	310,530		312,452
Leased coal lands	60,836		64,765
Total Other Property, Plant and Equipment	$	1,413,402	$	1,458,973
Less: Accumulated Depreciation, Depletion and Amortization	755,941		762,885
Total Other Property, Plant and Equipment - Net	$	657,461	$	696,088

Total Company Property, Plant and Equipment	$	13,771,388	$	13,794,907
Less - Total Company Accumulated Depreciation, Depletion and Amortization	5,630,949		5,062,201
Total Company Property, Plant and Equipment - Net	$	8,140,439	$	8,732,706

The following assets are amortized using the units-of-production method. Amounts reflect properties where mining or drilling operations have not yet commenced and therefore, are not being amortized for the years ended December 31, 2016 and 2015, respectively.



	December 31,
	2016		2015
Unproved gas properties	$	1,116,282	$	1,421,083
Coal properties	195,354		258,099
Leased coal lands	36,788		44,805
Airshafts	19,693		24,674
Coal advance mining royalties	16,270		21,544
Gas advance royalties	13,762		19,745
Mine development	7,771		7,930
Total	$	1,405,920	$	1,797,880

As of December 31, 2016 and 2015, plant and equipment includes gross assets under capital lease of $77,438 and $79,551, respectively. Included in Gas gathering equipment under the E&P division is a capital lease for the Jewell Ridge Pipeline of $66,919 at December 31, 2016 and 2015. The E&P division also maintains a capital lease for vehicles of $6,015 and $7,474 at December 31, 2016 and 2015, respectively, which is included in Other gas assets. At December 31, 2016 and 2015, the PA Mining segment maintains capital leases for vehicles of $2,525 and $1,923, respectively, which are included in Coal and other plant and equipment. At December 31, 2016 and 2015, the Other segment maintains capital leases for vehicles and computer equipment of $1,979 and $3,235, respectively, which are included in Coal and other plant and equipment. Accumulated amortization for capital leases was $51,213 and $46,503 at December 31, 2016 and 2015, respectively. Amortization expense for capital leases is included in Depreciation, Depletion and Amortization in the Consolidated Statements of Income. See Note 13–Leases for further discussion of capital leases.

Industry Participation Agreements

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

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

CNX Gas Company was party to a joint development agreement with Noble Energy, Inc. (Noble) with respect to approximately 700 thousand net Marcellus Shale oil and gas acres in West Virginia and Pennsylvania, in which each party owned a 50% undivided interest. On October 29, 2016, CNX Gas entered into an Exchange Agreement with Noble Energy, which terminated the joint development agreement related to the jointly owned gas assets held in connection with the joint venture with Noble and divided such jointly owned gas assets among CNX Gas and Noble Energy. The transactions contemplated by the Exchange Agreement was closed on December 1, 2016 with an effective date of October 1, 2016. As part of the exchange: each party will own and operate a 100% interest in its properties and wells in two separate operating areas; each party will have independent control and flexibility with respect to the scope and timing of future development over its operating area; and all acreage operated by CONSOL Energy and Noble Energy, Inc. in their respective operating areas will remain fully dedicated to CONE Midstream Partners LP. Cash proceeds of approximately $213,295 were received at closing and are included in cash flows from investing activities in the Consolidated Statements of Cash Flows. The exchange was accounted for as a mineral conveyance, thus no gain or loss was recorded in connection with the transaction.