In response to anonymous allegations of company wrongdoing, Consol Energy Inc. said Wednesday that while it believes the claims are without merit, it will launch an investigation.

The company acknowledged that it has received a copy of an anonymous letter addressed to the Securities and Exchange Commission and delivered to the company’s independent auditors, PricewaterhouseCoopers LLP. Contained in the letter are numerous allegations including assertions that certain directors and senior executive officers have “misappropriated corporate funds and other assets and engaged in other illegal or inappropriate activities.”

While claiming that it believes the charges are false, Consol Energy has appointed an independent member of the board of directors not charged in the anonymous letter to lead an investigation utilizing independent legal counsel.

“Pending the outcome of the investigation, the persons about whom allegations are made will continue to fulfill their normal management responsibilities,” the company said. Consol Energy added that it chose to disclose the existence of the letter — despite its anonymous source — in order to keep the investing public apprised of matters that may affect the company.

The allegations follow a shake-up in the company’s common stock. Since late September, Consol Energy’s largest shareholder, RWE of Essen, Germany, closed on sales of 41.4 million shares of Consol Energy common stock in private placement sales. RWE — which has stated its intent on leaving North American Trading to focus on Europe (see Daily GPI, Sept. 17) — now holds 16.6 million shares of Consol Energy common stock, or 18.5% of Consol’s common stock outstanding.

In late September, Consol Energy closed on a previously announced sale of 11 million primary shares of its common stock, increasing the total shares of common stock outstanding to 89.8 million.

In addition to being the largest producer of high-Btu bituminous coal in the United States and the largest exporter of U.S. coal, the company is also one of the largest U.S. producers of coalbed methane, with gas production of 135 MMcf/d. The company produces electricity from coalbed methane at a joint-venture generating facility in Virginia.

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