Consol Energy Inc., Pittsburgh, (NYSE: CNX) plans to redeem all of its outstanding 7.875% notes due March 1, 2012. The redemption will be effective April 11, 2011.

Net proceeds from a recent offering of $250 million of 6.375% senior notes due 2021 will be the principal source of funding for the redemption.

"It's noteworthy that Consol was able to refinance this debt at our lowest historic interest rate," says William J. Lyons, chief financial officer. "This is an affirmation by the financial community of the company's financial strength; it reflects their belief in our strategic direction and operational plan."

Consol is also the leading Appalachian gas producer, with proved reserves of over 3.7 trillion cubic feet.