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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 11-K
ANNUAL REPORT
PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1997
COMMISSION FILE NUMBER 1-815
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
CONSOL PLAZA
1800 WASHINGTON ROAD
PITTSBURGH, PENNSYLVANIA 15241
(FULL TITLE OF THE PLAN)
E. I. DU PONT DE NEMOURS AND COMPANY
1007 MARKET STREET
WILMINGTON, DELAWARE 19898
(NAME AND ADDRESS OF PRINCIPAL EXECUTIVE OFFICE OF ISSUER)
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1
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INDEX
INVESTMENT PLAN FOR SALARIED EMPLOYEES OF CONSOL INC.
Index to Financial Statements and Additional Information
Page(s)
-------
Report of Independent Auditors ................................ 4
Financial Statements:
Statements of Net Assets Available for 5 - 8
Benefits at December 31, 1997 and 1996 ....................
Statements of Changes in Net Assets Available
for Benefits for the Years Ended December 31,
1997 and 1996 ............................................. 9 - 15
Notes to Financial Statements ............................... 16 - 25
Additional Information:
Schedule of Assets Held for Investment Purposes at
December 31, 1997 (Schedule I) ............................ 26 - 28
Schedule of Loans in Default as of December 31, 1997
(Schedule II) ............................................. 29 - 31
Schedule of Reportable Transactions for the
Year Ended December 31, 1997 (Schedule III) ............... 32 - 33
EXHIBITS
Exhibit
Number
24 Consent of Independent Auditors ..................... 35
2
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Investment Plan Committee has duly caused this Annual Report to
be signed on its behalf by the undersigned hereunto duly authorized.
Investment Plan for Salaried Employees
of CONSOL Inc.
(Name of Plan)
Date: June 25, 1998
________________________________
Karen L. Zemba
Vice President & Treasurer
CONSOL Inc.
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SIGNATURE
REPORT OF INDEPENDENT AUDITORS
To the Investment Plan Committee of the
Investment Plan for Salaried Employees of CONSOL Inc.
We have audited the accompanying statements of net assets available for
benefits of the Investment Plan for Salaried Employees of CONSOL Inc. as of
December 31, 1997 and 1996, and the related statements of changes in net
assets available for benefits for the years then ended. 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 generally accepted auditing
standards. 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 at
December 31, 1997 and 1996, and the changes in its net assets available for
benefits for the years then ended, in conformity with generally accepted
accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The accompanying supplemental
schedules of assets held for investment purposes and reportable transactions,
as of and for the year ended December 31, 1997, are presented for purposes of
complying with the Department of Labor's Rules and Regulations for Reporting
and Disclosure under the Employee Retirement Income Security Act of 1974, and
are not a required part of the basic financial statements. The supplemental
schedules have been subjected to the auditing procedures applied in our audit
of the 1997 financial statements and, in our opinion, are fairly stated in
all material respects in relation to the 1996 basic financial statements
taken as a whole.
ERNST & YOUNG, LLP
Pittsburgh, Pennsylvania
May 7, 1998
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997
(Dollars In Thousands, Except for Share and Unit Amounts)
Investments (Notes 1, 2 and 3):
Fixed Income Fund, 5,217,495 units,
(participants' cost $566,689), unit value $108.6132.... $566,689
Fidelity Magellan Fund, 456,672 shares,
(participants' cost $35,314), share value $95.2700..... 43,507
Barclays 3-Way Fund, 954,292 units,
(participants' cost $11,452), unit value $20.1400...... 19,219
E. I. DuPont de Nemours & Company Common Stock,
6,157,293 shares, (participants' cost $208,671),
share value $60.062.................................... 369,819
Merrill Lynch Global Holdings Fund CL A, 265,982 shares,
(participants' cost $3,556), share value $13.1900...... 3,508
Templeton Growth Fund, 41,565 shares,
(participants' cost $925), share value $19.4000........ 806
Merrill Lynch Capital Fund CL A, 231,247 shares,
(participants' cost $7,153), share value $34.5100...... 7,980
Merrill Lynch Basic Value Fund CL A, 352,098 shares,
(participants' cost $11,072), share value $37.0800..... 13,056
Chrysler Corporation Common Stock, 10,277 shares,
(participants' cost $77), share value $35.1870......... 362
Aggressive Asset Allocation Portfolio, 45,680 shares,
(participants' cost $471), share value $10.5500........ 482
Conservative Asset Allocation Portfolio, 76,714 shares,
(participants' cost $793), share value $10.5700......... 811
Moderate Asset Allocation Portfolio, 39,056 shares,
(participants' cost $406), share value $10.5400......... 412
Fidelity Low Priced Stock Fund, 123,345 shares,
(participants' cost $3,096), share value $25.1300....... 3,100
Franklin Small Cap Growth Fund CL 1, 116,048 shares,
(participants' cost $2,802), share value $22.9300...... 2,661
Continued on next page
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997 (Continued)
(Dollars In Thousands, Except for Share and Unit Amounts)
Janus Enterprise Fund, 2,532 shares,
(participants' cost $79), share value $30.4800......... 77
Janus Mercury Fund, 17,685 shares,
(participants' cost $331), share value $16.500......... 292
Hotchkis & Wiley International Fund, 39,488 shares,
(participants' cost $952), share value $22.6700........ 895
Merrill Lynch Small Cap Index Trust, 115,248 shares,
(participants' cost $1,248), share value $11.0910...... 1,278
Merrill Lynch International Index Trust, 14,427 shares,
(participants' cost $137), share value $9.3810......... 136
MFS Total Return Fund, 2,899 shares,
(participants' cost $46), share value $15.8200......... 46
AIM Value Fund, 18,680 shares,
(participants' cost $663), share value $32.4200........ 606
Fidelity Growth and Income Fund, 46,156 shares,
(participants' cost $1,714), share value $38.1000...... 1,759
Merrill Lynch Growth Fund CL A, 158,662 shares,
(participants' cost $4,890), share value $28.6500...... 4,546
AIM Equity Constellation Fund CL A, 21,411 shares,
(participants' cost $638), share value $26.3800........ 565
Franklin Balance Sheet, 28,641 shares,
(participants' cost $995), share value $33.5400........ 961
Templeton Foreign Fund, 66,532 shares,
(participants' cost $740), share value $9.9500......... 662
Fidelity Fund, 13,815 shares,
(participants' cost $414), share value $29.8100........ 412
Continued on next page
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997 (Continued)
(Dollars In Thousands, Except for Share and Unit Amounts)
Fidelity Equity Income Fund, 11,158 shares,
(participants' cost $572), share value $52.4100......... 585
Franklin Custodian Fund Inc., 11,023 shares,
(participants' cost $295), share value $27.0900......... 299
MFS Research Fund, 22,586 shares,
(participants' cost $494), share value $21.2900.... 481
Merrill Lynch Large Company Stock Index Fund, 268,129
shares, (participants' cost $16,077), share
value $65.4410......................................... 17,547
Loans to participants (principal balance)................ 22,371
--------
Total Investments.................................... $1,085,930
Employer and employee contribution receivables
(including $3,281 from CONSOL)......................... 3,478
Net Assets Available for Benefits.................... $1,089,408
==========
The accompanying notes are an integral part
of these financial statements.
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF
CONSOL INC.
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1996
(Dollars In Thousands, Except for Share and Unit Amounts)
Investments (Notes 1, 2 and 3):
Fixed Income Fund, 6,451,787 units,
(participants' cost $651,152), unit value $100.926... $651,152
Fidelity Magellan Fund, 496,849 shares,
(participants' cost $36,566), share value $80.650.... 40,071
Barclays 3-Way Fund, 1,066,933 units,
(participants' cost $12,247), unit value $16.370..... 17,466
E. I. DuPont de Nemours & Company Common Stock,
2,647,302 shares, (participants' cost $127,200),
share value $94.125.................................. 249,177
Merrill Lynch Equity Index Trust CL A, 222,460 shares,
(participants' cost $8,282), share value $49.161..... 10,936
Merrill Lynch Global Holdings Fund CL A, 374,467 shares,
(participants' cost $4,966), share value $14.080..... 5,272
Merrill Lynch Capital Fund CL A, 174,289 shares,
(participants' cost $5,091), share value $31.050..... 5,412
Merrill Lynch Basic Value Fund CL A, 193,281 shares,
(participants' cost $5,214), share value $31.000..... 5,992
Chrysler Corporation Common Stock, 11,188 shares,
(participants' cost $84), share value $33.000........ 369
Loans to participants (principal balance) ............. 22,157
----------
Total Investments ................................. $1,008,004
Employer and employee contribution receivables
(including $3,251 from CONSOL) ...................... 3,516
----------
Net Assets Available for Benefits ................. $1,011,520
==========
The accompanying notes are an integral part
of these financial statements.
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
Merrill Merrill
Fixed Fidelity Barclays DuPont Lynch Lynch Templeton
Income Magellan 3-Way Common Equity Index Global Growth
Fund Fund Fund Stock Trust Holdings Fund
========= ========= ========= ========= ============ ========== =========
Investment income $ 45,463 $ 2,956 $ 2 $ 6,852 $ 1 $ 419 $ 113
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments - 6,835 3,843 65,693 2,498 41 (123)
Deposits and withdrawals:
Employee deposits 9,961 1,242 424 6,362 221 169 11
Employer contributions 6,186 661 225 3,771 127 96 3
Rollover contributions 5,802 123 83 825 131 6 -
Employee withdrawals (79,684) (3,425) (580) (14,623) (945) (262) (48)
Transfers between investment
options (net) (71,127) (4,812) (2,240) 50,500 (13,034) (2,184) 852
Loan issues (6,582) (608) (171) (2,724) ( 23) (95) ( 6)
Loan repayments 4,660 377 137 3,119 72 37 4
Loan interest 959 87 30 667 16 9 -
Trust to Trust transfers (101) - - 200 - - -
_________ _________ _________ _________ ___________ __________ _________
Change in net assets available
for benefits for year (84,463) 3,436 1,753 120,642 (10,936) (1,764) 806
Net assets available for
benefits at beginning of year 651,152 40,071 17,466 249,177 10,936 5,272 -
_________ _________ _________ _________ ___________ __________ _________
Net assets available for
benefits at end of year $566,689 $ 43,507 $ 19,219 $369,819 $ - $ 3,508 $ 806
========= ========= ========= ========= =========== ========== =========
The accompanying notes are an integral part of these financial statements.
Continued on next page 9
PAGE 10
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997 (Continued)
(Dollars in Thousands)
Merrill Merrill Aggressive Conservative Moderate
Lynch Lynch Asset Asset Asset Fidelity
Capital Basic Value Chrysler Allocation Allocation Allocation Low Price
Fund Fund Stock Portfolio Portfolio Portfolio Stock Fund
======== =========== ======== ========== ========== ========== ==========
Investment income $ 681 $ 1,025 $ 18 $ - $ - $ - $ 135
(dividends and interest)
Net realized and unrealized
appreciation of investments 720 1,672 18 14 14 5 17
Deposits and withdrawals:
Employee deposits 228 328 - 3 1 6 13
Employer contributions 127 172 - 2 1 2 7
Rollover contributions 41 193 - - 9 37 -
Employee withdrawals (175) (457) (26) - (43) - (70)
Transfers between investment
options (net) 920 4,018 (17) 461 833 361 2,999
Loan issues (55) (46) - - (4) - (5)
Loan repayments 68 136 - 2 - 1 3
Loan interest 13 23 - - - - 1
Trust to Trust transfers - - - - - - -
________ ___________ ________ __________ ___________ __________ _________
Change in net assets available
for benefits for year 2,568 7,064 (7) 482 811 412 3,100
Net assets available for
benefits at beginning of year 5,412 5,992 369 - - - -
________ ___________ ________ __________ ___________ __________ _________
Net assets available for
benefits at end of year $ 7,980 $ 13,056 $ 362 $ 482 $ 811 $ 412 $ 3,100
======== =========== ======== ========== =========== ========== =========
Continued on next page
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997 (Continued)
(Dollars in Thousands)
Franklin Hotchkis & Merrill Merrill
Small Cap Janus Janus Wiley Lynch Small Lynch MFS Total
Growth Enterprise Mercury International Cap Index International Return
Fund CL 1 Fund Fund Fund Trust Index Trust Fund
========== ========== ======= ============= =========== ============= =========
Investment income $ 109 $ 5 $ 31 $ 15 $ - $ - $ 1
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments (142) 6 (40) (58) 20 (4) -
Deposits and withdrawals:
Employee deposits 21 1 1 3 8 2 -
Employer contributions 11 - 1 2 4 1 -
Rollover contributions 19 - - - 9 - 1
Employee withdrawals ( 85) - (2) (48) (3) (86) -
Transfers between investment
options (net) 2,716 68 299 974 1,236 223 44
Loan issues - (5) (2) - (3) (1) -
Loan repayments 10 2 3 7 6 1 -
Loan interest 2 - 1 - 1 - -
Trust to Trust transfer - - - - - - -
__________ __________ ________ _____________ ___________ _____________ _________
Change in net assets available
for benefits for year 2,661 77 292 895 1,278 136 46
Net assets available for
benefits at beginning of year - - - - - - -
__________ __________ ________ _____________ ___________ _____________ _________
Net assets available for
benefits at end of year $ 2,661 $ 77 $ 292 $ 895 $ 1,278 $ 136 $ 46
========== ========== ======== ============= =========== ============= =========
Continued on next page
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997 (Continued)
(Dollars in Thousands)
Fidelity Merrill
Growth & Lynch AIM Equity Franklin Templeton
AIM Value Income Growth Constellation Balance Foreign Fidelity
Fund Fund Fund CL A Fund CL A Sheet Fund Fund
========= ======== ========== ============= ======== ========= ========
Investment income $ 58 $ 43 $ 340 $ 41 $ 55 $ 51 $ 21
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments (55) 60 (323) (70) (14) (81) (2)
Deposits and withdrawals:
Employee deposits 2 11 26 6 10 6 3
Employer contributions 2 4 21 3 6 3 1
Rollover contributions - - 2 - - - -
Employee withdrawals (36) (104) (225) - (3) (48) -
Transfers between investment
options (net) 631 1,743 4,694 580 909 730 389
Loan issues - - (6) - (3) (1)
Loan repayments 4 2 13 5 1 1 1
Loan interest - - 4 - - - -
Trust to Trust transfers - - - - - - -
__________ _________ __________ _____________ _________ __________ ________
Change in net assets available
for benefits for year 606 1,759 4,546 565 961 662 412
Net assets available for
benefits at beginning of year - - - - - - -
__________ _________ __________ _____________ _________ __________ ________
Net assets available for
benefits at end of year $ 606 $ 1,759 $ 4,546 $ 565 $ 961 $ 662 $ 412
========== ========= ========== ============= ========= ========== ========
Continued on next page
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997 (Continued)
(Dollars in Thousands)
Fidelity Merrill Lynch Employer and
Equity Franklin MFS Large Company Employee
Income Custodian Research Stock Index Loan Contribution Total
Fund Fund Inc. Fund Fund Fund Receivables All Funds
======== ========== ======== ============= ========= ============ ==========
Investment income $ 20 $ 6 $ 22 $ 1 $ 1,829 $ 98 $ 60,411
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments 19 4 (13) 1,631 - - 82,185
Deposits and withdrawals:
Employee deposits 5 1 4 225 - (7) 19,297
Employer contributions 2 2 2 125 - 16 11,586
Rollover contributions - 102 - - 7,383
Employee withdrawals (1) - (35) (687) (1,372) - (103,073)
Transfers between investment
options (net) 540 284 494 16,093 - (177) -
Loan issues - - - (39) 10,379 - -
Loan repayments - 1 7 81 (8,793) 32 -
Loan interest - 1 - 15 (1,829) - -
Trust to Trust transfers - - - - - - 99
_________ __________ _________ _____________ __________ ____________ ___________
Change in net assets available
for benefits for year 585 299 481 17,547 214 (38) $ 77,888
Net assets available for
benefits at beginning of year - - - - 22,157 3,516 1,011,520
_________ __________ _________ _____________ __________ ____________ ___________
Net assets available for
benefits at end of year $ 585 $ 299 $ 481 $ 17,547 $ 22,371 $ 3,478 $1,089,408
========= ========== ========= ============= ========== ============ ===========
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996
(Dollars in Thousands)
Merrill Merrill Merrill
Fixed Fidelity Barclays DuPont Lynch Lynch Lynch
Income Magellan 3-Way Common Equity Index Global Balanced
Fund Fund Fund Stock Trust Holdings Fund
======== ======== ======== ======== ============ ======== =========
Investment income $ 48,734 $ 6,260 $ 2 $ 6,162 $ - $ 320 $ 22
(dividends and interest)
Net realized and unrealized
appreciation (depreciation)
of investments - (1,873) 1,898 69,920 1,567 231 4
Deposits and withdrawals:
Employee deposits 11,056 1,493 478 5,398 213 183 9
Employer contributions 6,637 810 251 3,255 124 104 6
Rollover contributions 10,166 388 291 863 149 35 -
Employee withdrawals (64,322) (2,185) (683) (9,111) (483) (339) (7)
Transfers between investment
options (net) 39,171 (137) 566 (45,387) 4,268 723 (796)
Loan issues (6,959) (475) (154) (2,434) (62) (30) (2)
Loan repayments 4,938 528 164 2,651 100 38 1
Loan interest 1,022 102 39 589 20 8 -
Trust to Trust transfers 45 (8) - 510 - - -
_________ _________ ________ _________ ____________ ________ _________
Change in net assets available
for benefits for year 50,488 4,903 2,852 32,416 5,896 1,273 (763)
Net assets available for
benefits at beginning of year 600,664 35,168 14,614 216,761 5,040 3,999 763
_________ _________ ________ _________ ____________ ________ _________
Net assets available for
benefits at end of year $651,152 $ 40,071 $17,466 $249,177 $ 10,936 $ 5,272 $ -
========= ========= ======== ========= ============ ======== =========
The accompanying notes are an integral part of these financial statements.
Continued on next page 14
PAGE 15
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1996 (Continued)
(Dollars in Thousands)
Merrill Merrill Employer and
Lynch Lynch Employee
Capital Basic Value Chrysler Loan Contribution Total
Fund Fund Stock Fund Receivables All Funds
======== =========== ======== ======== ============ ===========
Investment income $ 528 $ 394 $ 16 $ 1,770 $ 27 $ 64,235
(dividends and interest)
Net realized and unrealized
appreciation of investments 86 393 66 - - 72,292
Deposits and withdrawals:
Employee deposits 218 196 - - (50) 19,194
Employer contributions 134 124 - - (51) 11,394
Rollover contributions 58 33 - - - 11,983
Employee withdrawals (364) (282) (53) (2,127) - (79,956)
Transfers between investment
options (net) 1,045 1,638 (18) - (1,073) -
Loan issues (42) (67) - 10,225 - -
Loan repayments 69 91 - (8,624) 44 -
Loan interest 16 21 - (1,770) (47) -
Trust to Trust transfers - - - (7) - 540
________ ___________ ________ _________ ____________ ___________
Change in net assets available
for benefits for year 1,748 2,541 11 (533) (1,150) 99,682
Net assets available for
benefits at beginning of year 3,664 3,451 358 22,690 4,666 911,838
________ ___________ ________ _________ ____________ ___________
Net assets available for
benefits at end of year $ 5,412 $ 5,992 $ 369 $ 22,157 $ 3,516 $1,011,520
======== =========== ======== ========= ============ ===========
The accompanying notes are an integral part of these financial statements.
15
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INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL Inc.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF THE INVESTMENT PLAN:
THE PLAN
The Investment Plan for Salaried Employees of CONSOL Inc. (the
"Plan") is a defined contribution plan established in 1953. Salaried,
operations and maintenance, and, in certain circumstances, production and
maintenance employees of CONSOL Inc. ("CONSOL") and participating employers
are eligible to participate in the Plan on the first of the month following
regular full-time employment. In addition, temporary employees are eligible
to participate in the Plan upon completion of a period of 12 consecutive
months, commencing upon their employment date or anniversary date thereof,
during which the employee completes 1,000 or more hours of service. An
eligible employee may, with certain restrictions, contribute up to 16 percent
of monthly base pay to the Plan exclusive of supplemental make-up deposits.
CONSOL and participating employers match these contributions, dollar for
dollar, up to 6 percent of base pay (as defined by the Plan). Forfeitures of
company matching contributions as a result of withdrawals by nonvested
employees are used to offset future company matching contributions.
Contributions may be made with before-tax or after-tax dollars. Nondis-
crimination rules of the Internal Revenue Code require that the average
contribution rates in both the before-tax and after-tax accounts of "Highly
Compensated" employees (as defined by the Internal Revenue Service) should be
limited by the average contribution rates of "Non-highly Compensated"
employees. For the years ended December 31, 1997 and 1996, the after-tax
contribution maximum including supplemental make-up deposits was 19 percent
and the before-tax contribution maximum was 15 percent. In addition, subject
to certain limitations, a participant is allowed to make lump sum savings
deposits in cash to the Plan at any time.
Plan participants generally become vested upon completion of five
consecutive years of participation in the Plan or five cumulative years of
service. Participants who retire from active service may elect to withdraw
their entire account in a lump sum, to defer withdrawal until April 1 of the
calendar year following the year in which the participant attains age 70
1/2, or to elect an option to have their account distributed over a period of
not less than 2 years or more than a period which would pay the account
balance during the employee's actuarial life in either a fixed or variable
amount. Before-tax deposits may be withdrawn only in the event of an
employee's retirement, death, termination, attainment of age 59 1/2 or
defined hardship.
Participants may borrow up to one-half of their nonforfeitable
account balances subject to certain minimum and maximum loan limitations.
Such loans are repayable over periods of 12 to 60 months (120 months maximum
if for the purchase of a principal residence) and bear an interest rate equal
16
PAGE 17
to the average rate charged by selected major banks for secured personal
loans. A participant has the right to repay the loan in full at any time
without penalty.
INVESTMENT FUNDS
The following investment funds have been established with trustees
for the investment of employee savings and CONSOL's participating employers'
contributions. The nature of the investments maintained in each fund is
described below:
Fixed Income Fund Investments under agreement with one or
more financial institutions, including
insurance companies, banks and other
investment companies which provide for the
return of principal in full plus the
payment of interest at a predetermined rate
for a specific period of time. The fund's
blended rate of return for the 12 months
ended December 31, 1997 and December 31,
1996 was 7.62% and 7.99%, respectively.
Fidelity Magellan Fund A growth mutual fund offered through
Fidelity Investments.
Barclays 3-Way Fund Asset Allocation Fund with money invested
by BZW Global Investors among stocks,
bonds and cash (money market).
DuPont Common Stock Common stock of E. I. DuPont de Nemours and
Company ("DuPont"). DuPont owns 50% of the
stock of CONSOL Energy Inc., the parent of
CONSOL.
Loan Fund Participant loans - amounts transferred
from any of the investment options that are
loaned to participants.
Merrill Lynch Mutual Funds A group of seven (1997) different mutual
funds each with its own investment
objective offered through Merrill Lynch.
Templeton Growth Fund This fund invests in common and/or
preferred stocks of companies of any nation
and certain debt securities, rated or
unrated, such as convertible bonds selling
at a discount. The fund attempts to reduce
risk by investing in a highly diversified
portfolio.
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PAGE 18
Templeton Foreign Fund This fund invests in common and/or
preferred stocks of companies outside the
United States. It can also invest in debt
obligations of governments outside the
United States. The fund attempts to reduce
risk by investing in a highly diversified
portfolio.
Aggressive Asset Allocation This option has a 20% allocation to the
Portfolio Fixed Income Fund, 40% Merrill Lynch Equity
Index Trust, 20% Merrill Lynch Small Cap
Index Trust and 20% Merrill Lynch
International Index Trust.
Conservative Asset Allocation This option has a 70% allocation to the
Fixed Income Fund, 20% Merrill Lynch Equity
Index Trust and 10% Merrill Lynch Small Cap
Index Trust. This option is for those
investors who are willing to accept lower
returns to lessen risk.
Moderate Asset Allocation The Moderate option is for those investors
who seek higher growth and who may be
willing to accept the higher level of risk.
Its allocation is 50% Fixed Income Fund,
20% Merrill Lynch Equity Index Trust, 20%
Merrill Lynch Small Cap Index Trust and 10%
Merrill Lynch International Index Trust.
Fidelity Low Priced Stock Fund The fund invests mainly in low-priced
common stocks ($25 or less at time of
purchase). The fund is designed for
aggressive investors who believe low-priced
stocks may be undervalued and offer the
potential for growth.
Fidelity Growth and Income Fund The fund invests mainly in equity
securities of companies that pay current
dividends and offer potential growth of
earnings.
Fidelity Equity Income Fund The fund invests mainly in income-producing
equity securities.
Fidelity Fund The fund invests mainly in equity
securities. The fund is designed for those
looking for long-term growth potential and
some current income from equity and bond
investments.
18
PAGE 19
Franklin Small Cap Growth The fund invests primarily in equity
Fund CL 1 securities of small capitalization growth
companies which advisers believe to be
positioned for rapid growth in revenues or
earnings and assets.
Franklin Balance Sheet The fund seeks high total return and is
designed for long-term investors and not as
a trading vehicle. Invests in securities
that are undervalued in the marketplace,
and may include investments in smaller
capitalization companies.
Franklin Custodian Fund Inc. The fund invests primarily in common stocks
or convertible securities, some of which
may yield little or no current income. May
include investments in foreign securities
and smaller capitalization companies.
Janus Enterprise Fund The fund is a nondiversified fund that
invests primarily in common stocks, with an
emphasis on securities issued by
medium-sized companies.
Janus Mercury Fund The fund is a diversified fund that invests
primarily in common stocks of companies of
any size.
Hotchkis and Wiley The fund invests in international equity
International Fund securities in at least three non-U.S.
markets. Ordinarily, the fund will invest
in equity securities issued by companies
located in some or all of the developed
foreign equity markets.
MFS Total Return Fund The fund invests in the common stocks or
securities convertible into common stocks
of companies believed to possess
better-than-average prospects for long-term
growth. Investments may include any size
growth or value stocks, and may also
include international equities.
MFS Research Fund The fund invests in the common stocks or
securities convertible into common stocks
of companies believed to possess better
than average prospects for long-term
growth.
AIM Value Fund The fund invests chiefly in common stocks,
convertible bonds and convertible preferred
19
PAGE 20
stocks, but also may invest in preferred
stocks and debt securities. The fund may
invest up to 25% of its total assets in
foreign securities.
AIM Equity Constellation The fund seeks to invest in securities of
Fund, CL A companies which fund management
considers to have experienced above-average
and consistent long-term growth in
earnings, as well as companies that are
currently experiencing a dramatic increase
in profits.
The shares of Chrysler Corporation Common Stock are held by some
CONSOL Plan participants who elected to exercise their right as Plan
participants to retain the stock as of September 15, 1966. This investment
option is no longer available to Plan participants for additional
investments.
ADMINISTRATION
The designated trustee of all the aforementioned funds is Merrill
Lynch Trust Company of America (Merrill Lynch). The administration of the
Plan is vested in the Board of Directors of CONSOL. All recordkeeping and
trustee fees of the Plan are paid by CONSOL. The administrative fees for the
Fixed Income Fund are netted against the investment income of this fund.
While CONSOL has not expressed any intent to terminate the Plan, it
is free to do so at any time. In the event of termination, each participant
automatically becomes vested to the extent of the balance in his or her
individual account.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Investment Valuation and Income Recognition - For financial reporting
purposes, the assets of the Plan are reflected on the accrual and fair value
basis of accounting. The Fixed Income Fund guaranteed investment contracts
(GIC), separate account portfolios (SAP) and synthetic guaranteed investment
contracts (SYN) are fully benefit responsive and thus, are stated at cost
plus accrued interest, using the contracted interest rates applied to the
daily account balances. Investments in common stock and mutual funds are
stated at fair value based on publicly quoted market prices. Investments in
the Merrill Lynch Small Cap Index Fund, International Index Trust, Large
Company Stock Index Fund, Barclays 3-Way Fund, Aggressive Asset Allocation,
Conservative Asset Allocation and Moderate Asset Allocation Portfolios are
stated at the fair value of all underlying assets as reported by the
applicable custodian. The fair value of loans to participants in the Loan
Fund represent the outstanding principal balances of the loans.
20
PAGE 21
The unit value or price of all investments reflect the dollar amount
at which participant's accounts are valued at the end of the period reported.
There is no unit value for the Loan Fund since loans are identified directly
with participants' accounts.
Dividend income is recorded on the ex-dividend date and interest
income is recorded on the accrual basis. Gains and losses on the sale of the
DuPont Common Stock are based on average cost of the securities sold and are
recognized on the trade date. Brokerage commissions and Securities Exchange
Commission fees in connection with the purchase and sale of DuPont Common
Stock and the sale of Chrysler Corporation Common Stock are added to the cost
thereof or deducted from the sales proceeds derived therefrom.
Use of Estimates - The preparation of financial statements, in conformity
with generally accepted accounting principles, requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
NOTE 3 - INVESTMENTS
The following presents the Plan's investments:
December 31, 1997 December 31, 1996
Fixed Income Fund...................... $ 566,689 $ 651,152
DuPont Common Stock ................... 369,819 249,177
Fidelity Magellan Fund ................ 43,507 40,071
Barclays 3-Way Fund ................... 19,219 17,466
Merrill Lynch Mutual Funds ............ 48,051 27,612
Chrysler Corporation Common Stock ..... 362 369
AIM Equity Constellation Fund CL A..... 565
MFS Total Return Fund.................. 46
Franklin Small Cap Growth Fund CL 1.... 2,661
Janus Enterprise Fund.................. 77
Janus Mercury Fund..................... 292
Hotchkis & Wiley International Fund.... 895
Templeton Growth Fund.................. 806
AIM Value Fund......................... 606
Fidelity Growth and Income Fund........ 1,759
Franklin Balance Sheet................. 961
Templeton Foreign Fund................. 662
Fidelity Fund.......................... 412
Aggressive Asset Allocation Portfolio.. 482
Conservative Asset Allocation Portfolio 811
Moderate Asset Allocation Portfolio.... 412
Fidelity Low Priced Stock Fund......... 3,100
Fidelity Equity Income Fund............ 585
Franklin Custodian Fund Inc............ 299
MFS Research Fund...................... 481
Loans to Participants ................. 22,371 22,157
---------- ----------
Total Investments $1,085,930 $1,008,004
========== ==========
21
PAGE 22
The underlying assets of the Fixed Income Fund consist of (GIC),
(SYN) and separate account guaranteed investment contracts (SAGIC) and other
short-term investment securities. These contracts are jointly owned by the
Plan and the Thrift Plan for Employees of Conoco Inc. Conoco Inc. is a
wholly owned subsidiary of DuPont. The balance of all investment contracts
are allocated to the two plans by Merrill Lynch based on the relationship of
the Plan's Fixed Income Fund participant balances to total Fixed Income Fund
participant balances. 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 investment contracts
and short-term investments of the Fixed Income Fund consist of the following:
Description December 31, 1997 December 31, 1996
----------- ----------------- -----------------
CDC Inv. Mgmt. Corp.--7.10% ............................... $ 25,966 $ 12,549
CDC Inv. Mgmt. Corp.--6.80% ............................... - 10,348
Deutsche Bank--6.34% ...................................... 32,827 31,773
Aetna Life Insurance Company--7.53%........................ 36,947 -
Aetna Life Insurance Company--7.76% ....................... - 35,400
Aetna Life Insurance Company--9.32% ....................... 12,980 20,387
Aetna Life Insurance Company--9.89% ....................... 17,299 22,705
Bankers Trust--5.74% ...................................... 31,007 30,192
Metropolitan Life Ins. Co.--7.61% ......................... 66,382 63,625
New York Life Insurance Company--9.11% .................... 12,838 20,203
New York Life Insurance Company--9.71% .................... 13,447 21,046
Providian Capital Management Family--6.96% ................ - 39,832
Principal Mutual Life Insurance Company--9.10% ............ 12,423 19,551
Principal Mutual Life Insurance Company--9.50% ............ 6,863 19,369
Prudential Insurance Company of America--8.26% ............ 84,672 60,539
Prudential Insurance Company of America--7.08% ............ - 59,692
Prudential Insurance Company of America--9.66% ............ 6,954 19,600
Prudential Insurance Company of America--9.96% ............ 7,132 20,047
Bankers Trust--7.69% ...................................... 24,169 23,112
The Travelers Insurance Companies--9.66% .................. 16,323 21,468
Citibank 7.40% ............................................ 15,341 14,714
Union Bank of Switzerland--6.67% .......................... 41,183 39,742
JP Morgan--6.17% .......................................... 34,959 34,073
Capital Holding Corp.--6.59%............................... 41,314 -
Deutsche Bank--6.58%....................................... 19,844 -
-------- --------
Total Investment Contracts $560,870 $639,967
Short Term Investments (Incl. Merrill Lynch Government Fund) 5,819 11,185
TOTAL INVESTMENT IN FIXED INCOME $566,689 $651,152
======== ========
22
PAGE 23
The aggregate crediting rates for all contracts as of December 31,
1997 and December 31, 1996 were 7.59% and 7.84%, respectively. The crediting
rates for SAP and SYN contracts are reset annually and are based on the
market value of the underlying portfolio of assets backing these contracts.
Inputs used to determine the crediting rate include each contract's portfolio
market value, current yield-to-maturity, duration (i.e., weighted average
life), and market value relative to contract value. Guaranteed investment
contracts contain penalty provisions or other adjustments for early
termination of the contract not related to participant initiated events.
The carrying values and fair values of investment contracts as of
December 31, 1997 are as follows:
Carrying Value
(contract value) Fair Value
Guaranteed Investment Contracts $106,260 $109,011
Synthetic Guaranteed Investment Contracts 303,555 311,181
Separate Account Guaranteed Investment
Contracts 151,055 158,788
-------- --------
$560,870 $578,980
======== =========
Synthetic guaranteed investment contracts are supported by wrapper
contracts which guarantee the contract value of the synthetic guaranteed
investment contracts for participant-initiated withdrawal events.
Participants investing in the Fixed Income Fund, Barclays 3-Way
Fund, Merrill Lynch Large Company Stock Index Fund, Merrill Lynch Small Cap
Index Trust, Merrill Lynch International Index Trust, Aggressive Asset
Allocation, Conservative Asset Allocation and Moderate Asset Allocation
Portfolios are assigned units at the time of investment based on the net
asset value per unit. The following table presents the number of units
outstanding and related net asset value per unit at each month-end.
Merrill Lynch Large
Fixed Income Fund Barclays 3-Way Fund Company Stock Index Fund
Units Unit Units Unit Units Unit
Outstanding Value Outstanding Value Outstanding Value
January 31, 1997 6,420,272 $101.56 1,043,400 $16.72 252,537 $52.22
February 28, 1997 6,369,804 102.14 1,061,903 16.77 274,267 52.62
March 31, 1997 6,300,426 102.78 1,076,671 16.20 257,018 50.45
April 30, 1997 6,155,811 103.41 1,059,798 16.85 256,211 53.44
May 31, 1997 6,132,094 104.03 1,071,820 17.43 258,925 56.69
June 30, 1997 6,014,608 104.69 1,046,307 17.99 258,326 59.21
July 31, 1997 5,846,486 105.34 1,014,986 19.22 275,387 63.92
August 31, 1997 5,634,688 105.95 984,371 18.38 279,451 60.33
September 30, 1997 5,556,144 106.63 982,324 19.15 274,520 63.63
October 31, 1997 5,323,992 107.29 953,251 19.13 270,402 61.50
November 30, 1997 5,296,492 107.90 950,365 19.77 265,941 64.34
December 31, 1997 5,217,495 108.61 954,292 20.14 268,129 65.44
23
PAGE 24
Merrill Lynch Merrill Lynch Aggressive Asset
Small Cap Index Trust International Index Trust Allocation Portfolio
Units Unit Units Unit Units Unit
Outstanding Value Outstanding Value Outstanding Value
January 31, 1997 - - - - - -
February 28, 1997 - - - - - -
March 31, 1997 - - - - - -
April 30, 1997 - - - - - -
May 31, 1997 - - - - - -
June 30, 1997 - - - - - -
July 31, 1997 14,982 $10.56 8,619 $10.22 11,661 $10.45
August 31, 1997 70,626 10.74 6,913 9.47 16,721 10.11
September 30, 1997 103,228 11.48 8,012 10.07 20,150 10.61
October 31, 1997 110,821 10.98 13,222 9.30 47,251 10.23
November 30, 1997 112,720 10.90 13,271 9.27 45,525 10.41
December 31, 1997 115,248 11.09 14,427 9.38 45,680 10.55
Conservative Asset Moderate Asset
Allocation Portfolio Allocation Portfolio
Units Unit Units Unit
Outstanding Value Outstanding Value
January 31, 1997 - - - -
February 28, 1997 - - - -
March 31, 1997 - - - -
April 30, 1997 - - - -
May 31, 1997 - - - -
June 30, 1997 - - - -
July 31, 1997 12,995 $10.24 6,455 $10.31
August 31, 1997 14,560 10.18 9,619 10.18
September 30, 1997 41,941 10.41 37,564 10.53
October 31, 1997 144,529 10.34 45,779 10.32
November 30, 1997 77,338 10.47 44,110 10.43
December 31, 1997 76,714 10.57 39,056 10.54
NOTE 4 - INCOME TAXES STATUS
The Plan received a favorable determination letter from the Internal
Revenue Service with respect to the 1994 amended plan. Management believes
the Plan is qualified under Section 401(a) of the Internal Revenue Code and
therefore the trust is exempt from taxation under Section 501(a).
Participants in the Plan are not subject to federal income taxes on
account balances arising from employer contributions, before-tax employee
deposits or accrued income until distributions or withdrawals are made.
24
PAGE 25
NOTE 5 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
The following is a reconciliation of net assets available for
benefits per the financial statements to the Form 5500:
December 31,
1997 1996
__________ __________
(Dollars in Thousands)
Net assets available for benefits
per the financial statements $1,089,408 $1,011,520
Includes: Amounts allocated to
withdrawing participants reported
as asset reductions per the
financial statements 119 219
Total Assets per the Form 5500: $1,089,527 $1,011,739
=========== ==========
Amounts payable to withdrawing participants are recorded on the Form 5500 as
a liability for benefit claims that have been processed and approved for
payment prior to December 31 but not yet paid as of that date. For financial
statement purposes the amounts were deducted from the respective assets.
25
PAGE 26
SCHEDULE I
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------
Identity of Issue, Borrower Current
Lessor or Similar Party Description of Investment Cost Value
- --------------------------------------------------------------------------------------------------------
E. I. DuPont de Nemours & Company Common Stock $ 208,671 $ 369,819
========= =========
Merrill Lynch Small Cap Index Trust $ 1,248 $ 1,278
International Index Trust 137 136
Global Holdings Fund 3,556 3,508
Capital Fund 7,153 7,980
Basic Value Fund 11,072 13,056
Large Company Stock Index Fund 16,077 17,547
Growth Fund CL A 4,890 4,546
$ 44,133 $ 48,051
========= =========
Capital Holding Corp. SYNGIC, 6.59% $ 41,314 $ 41,314
Aetna Life Insurance Company GIC, 9.32% 12,980 12,980
GIC, 9.89% 17,299 17,299
SYNGIC, 7.53% 36,947 36,947
Banker's Trust SYNGIC, 5.74% 31,007 31,007
SYNGIC, 7.69% 24,169 24,169
CDC Inv. Mgmt. Corp. SYNGIC, 7.10% 25,966 25,966
Deutsche Bank SYNGIC, 6.34% 32,827 32,827
SYNGIC, 6.58% 19,844 19,844
Metropolitan Life Insurance Company SAGIC, 7.61% 66,382 66,382
New York Life Insurance Company GIC, 9.11% 12,838 12,838
GIC, 9.71% 13,447 13,447
Principal Mutual Life Insurance Company GIC, 9.10% 12,423 12,423
GIC, 9.50% 6,863 6,863
Prudential Insurance Company of America SAGIC, 8.26% 84,672 84,672
GIC, 9.66% 6,954 6,954
GIC, 9.96% 7,132 7,132
The Travelers Insurance Companies GIC, 9.66% 16,323 16,323
Citibank SYNGIC, 7.40% 15,341 15,341
Union Bank of Switzerland SYNGIC, 6.67% 41,183 41,183
J.P. Morgan SYNGIC, 6.17% 34,959 34,959
Short Term Investments (Incl. Merrill
Lynch Government Fund) 5,819 5,819
$ 566,689 $ 566,689
========= ==========
Aggressive Asset Allocation Portfolio $ 482 $ 482
========= ==========
Conservative Asset Allocation Portfolio $ 811 $ 811
========= ==========
Moderate Asset Allocation Portfolio $ 412 $ 412
========= ==========
26
PAGE 27
SCHEDULE I
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued)
DECEMBER 31, 1997
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------
Identity of Issue, Borrower Current
Lessor or Similar Party Description of Investment Cost Value
- --------------------------------------------------------------------------------------------------------
Fidelity Investments Fidelity Fund $ 414 $ 412
Equity Income Fund 572 585
Magellan Fund 35,314 43,507
Low Priced Stock Fund 3,096 3,100
Growth & Income Fund 1,714 1,759
$ 41,110 $ 49,363
========= =========
Chrysler Corporation Common Stock $ 77 $ 362
========= =========
BZW Global Investors Barclays 3-Way Fund $ 11,452 $ 19,219
========= =========
Franklin Value Investors Trust Small Cap Growth CL 1 $ 2,802 $ 2,661
Balance Sheet 995 961
Custodian Fund Inc. 295 299
$ 4,092 $ 3,921
========= =========
Franklin Templeton Growth Fund $ 925 $ 806
Foreign Fund 740 662
$ 1,665 $ 1,468
========= =========
Janus Investments Janus Enterprise Fund $ 79 $ 77
Janus Mercury Fund 331 292
$ 410 $ 369
========= =========
Hotchkis and Wiley International Fund $ 952 $ 895
========= =========
MFS Investment Management Total Return Fund $ 46 $ 46
Research Fund 494 481
$ 540 $ 527
========= =========
27
PAGE 28
SCHEDULE I
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27a - SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES (Continued)
DECEMBER 31, 1997
(Dollars in Thousands)
- --------------------------------------------------------------------------------------------------------
Identity of Issue, Borrower Current
Lessor or Similar Party Description of Investment Cost Value
- --------------------------------------------------------------------------------------------------------
AIM Value Fund $ 663 $ 606
Equity Constellation Fund CL A 638 565
$ 1,301 $ 1,171
========= =========
Plan Participants Loans (interest rates ranging $ 22,371 $ 22,371
from 8.25% to 8.75%) ========= =========
28
PAGE 29
SCHEDULE II
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27b - SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1997
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Description of Loan Action
Amount ---------------------------- Taken on
Original Received During Unpaid Loan Overdue
Identity and Amount Reporting Year Balance at Loan Loan Interest Amount Overdue Loan
Address of Obligor of Loan Principal Interest End of Year Began on Payoff Rate Principal Interest Amounts
- ----------------------- ---------- --------- --------- ----------- -------- -------- -------- --------- -------- --------
Larry Calhoun $ 5,000.00 $ 856.19 $ 157.81 $ 1,891.54 05/03/94 05/03/99 8.00% $ 178.17 $ 24.63 <F1>
R. D. #2 Cottage Lane 8,000.00 1,167.98 454.42 6,167.59 05/13/96 05/13/00 8.00 243.05 81.43 <F1>
Rayland, OH 43943
David F. Casini 10,500.00 426.20 220.12 10,073.80 07/18/97 07/18/02 8.50 144.08 71.36 <F1>
9 Morgantown Road
Point Marion, PA 15474
Robert D. Gielow 7,500.00 1,555.36 117.52 744.87 03/24/93 03/24/98 8.00 147.11 4.97 <F2>
706 Chippendale
Steeleville, IL 62288
James R. Hall 5,000.00 697.56 322.44 4,302.44 11/25/96 11/25/01 8.25 145.34 58.66 <F1>
186 South Roberts Drive 2,000.00 198.06 54.58 1,801.94 05/30/97 05/30/00 8.50 101.15 25.17 <F1>
Prestonsburg, KY 41653
James L. Hamrick 6,200.00 981.30 409.98 4,879.81 07/24/96 07/24/01 8.25 92.93 33.55 <F2>
P. O. Box 797
Cowen, WV 26206
James M. Knaus 8,000.00 1,274.90 520.30 6,176.61 06/20/96 06/20/01 8.25 120.74 42.46 <F1>
1755 Morris Street
Washington, PA 15301
Richard L. Kovalski 18,530.00 2,873.38 1,018.17 11,261.85 06/14/95 06/14/00 9.50 602.46 175.94 <F1>
608 Township Road 15 5,000.00 1,311.96 260.84 3,065.01 06/12/96 06/12/99 8.25 273.35 41.21 <F1>
Rayland, OH 43943 6,500.00 1,654.93 397.07 4,685.91 10/07/96 10/07/99 8.50 345.24 65.16 <F1>
10,000.00 710.25 275.83 9,289,75 05/02/97 05/02/01 8.50 362.72 130.32 <F1>
8,500.00 208.15 60.21 8,291.85 08/14/97 08/14/00 8.50 420.74 115.98 <F1>
Continued on next page 29
PAGE 30 SCHEDULE II
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27b - SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1997 (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Description of Loan Action
Amount ---------------------------- Taken on
Original Received During Unpaid Loan Overdue
Identity and Amount Reporting Year Balance at Loan Loan Interest Amount Overdue Loan
Address of Obligor of Loan Principal Interest End of Year Began on Payoff Rate Principal Interest Amounts
- ----------------------- ---------- --------- --------- ----------- -------- -------- -------- --------- -------- --------
Joseph D. Marchani $10,000.00 $1,685.70 $ 139.50 $1,379.97 03/26/93 03/26/98 8.00% $584.68 $ 23.72 <F1>
401 W. Brentwood Ave. 10,000.00 1,545.00 269.40 3,769.12 04/25/94 04/25/99 7.75 535.21 69.59 <F1>
Moundsville, WV 26041 5,000.00 696.47 226.93 3,169.54 07/19/95 07/19/00 8.50 242.16 65.64 <F1>
Deborah L. McChesney 4,500.00 1,396.38 166.50 1,366.01 08/07/95 08/07/98 8.50 132.40 9.68 <F1>
114 Lutes Road 6,200.00 1,311.04 353.92 4,103.20 04/29/96 04/29/00 8.00 124.01 27.35 <F1>
Finleyville, PA 15332
Brian J. Michel 1,000.00 77.07 13.89 922.93 08/27/97 08/27/99 8.50 38.94 6.54 <F2>
1105 1/2 10th Ave.
Fultonn, IL 61252
Johnnie A. Milam 15,853.00 2,679.78 898.30 10,050.11 08/18/95 08/18/00 8.50 254.09 71.19 <F1>
Route 3 Box 282-D 14,228.00 2,939.91 899.53 10,272.79 07/12/96 07/12/00 8.25 278.41 70.63 <F1>
Princeton, WV 24740
William J. Moore 6,500.00 961.48 356.52 4,814.03 03/28/96 03/28/01 8.00 200.08 63.52 <F2>
314 E. Franklin Street 4,500.00 304.76 159.64 4,195.24 04/30/97 04/30/02 8.75 125.03 60.73 <F2>
Apt. 1-B 2,400.00 08/20/97 08/20/02 8.50 65.17 33.31 <F2>
DuQuoin, IL 62832
Gary E. Myers 23,200.00 4,736.93 941.47 8,813.54 07/18/94 07/18/99 8.25 412.61 60.59 <F1>
R. D. #1 Box 402A 20,500.00 2,029.24 559.40 18,470.76 06/25/97 06/25/00 8.50 516.33 130.83 <F1>
Smithfield, PA 15478
Jeffrey S. Myers 20,000.00 3,404.37 699.23 7,979.20 06/06/94 06/06/99 8.50 710.19 110.53 <F1>
Rt. 1 Box 76A 4,000.00 601.74 214.26 2,782.27 12/06/95 12/06/00 8.25 125.37 38.68
Aurora, WV 26705
Stephen L. Scott 35,573.00 14,372.15 499.39 287.78 08/01/95 08/01/00 8.50 287.78 - <F1>
72 High Street
Cameron, WV 26033
Continued on next page 30
PAGE 31 SCHEDULE II
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27b - SCHEDULE OF LOANS IN DEFAULT AS OF DECEMBER 31, 1997 (Continued)
(a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)
Description of Loan Action
Amount ---------------------------- Taken on
Original Received During Unpaid Loan Overdue
Identity and Amount Reporting Year Balance at Loan Loan Interest Amount Overdue Loan
Address of Obligor of Loan Principal Interest End of Year Began on Payoff Rate Principal Interest Amounts
- ----------------------- ---------- --------- --------- ----------- -------- -------- -------- --------- -------- --------
Michael E. Tacosik $13,000.00 $2,553.12 $636.08 $7,833.30 12/06/95 12/06/99 8.25% $ 531.96 $105.88 <F2>
4544 Primrose Road
Pinckneyville, IL 62274
John M. Terravecchia 4,812.00 - - 117.23 09/14/93 09/13/95 7.75 117.23 - <F3>
295 Fourth Street 1,997.00 - - 1,919.78 01/12/94 01/12/96 7.75 1,919.78 152.98 <F3>
Monongahela, PA 15417 3,044.00 - - 3,044.00 04/20/95 03/20/97 9.00 3,044.00 293.92 <F3>
Ralph E. Ward 14,423.00 786.74 101.02 4,228.00 06/21/94 06/21/99 8.50 2,464.78 198.50 <F2>
Box 173 7,700.00 332.31 138.93 6,514.22 10/12/95 10/12/00 8.25 1,038.91 374.81 <F2>
Crab Orchard, WV 25827 7,500.00 312.77 146.23 6,880.82 08/07/96 08/07/01 8.25 977.84 399.16 <F2>
10,337.00 422.50 213.74 9,775.64 10/09/96 10/09/01 8.50 1,474.77 433.95 <F2>
6,847.00 307.03 119.45 5,103.98 03/28/95 03/28/00 9.00 963.42 316.02 <F2>
[FN]
NOTE: None of the above identified obligors is known to be a party in
interest to the Investment Plan for Salaried Employees of CONSOL Inc.
The loans are funded by the liquidation of specified investments within
an individual's account; once these loans are issued, they are not
renegotiated at any time prior to the loan payoff date.
The action taken on the overdue loan amounts is as follows:
<F1> Repayment schedules have been established whereby monies are
deducted from their biweekly or monthly compensation to fund loan
payments that are in arrears.
<F2> For plan year 1998, loans have been reclassified as withdrawals
from the CONSOL Inc Investment Plan.
<F3> No action was able to be taken on this loan because it was issued
from the Before-Tax Account and the individual is younger than age
59 1/2. The obligor will continue to accrue unpaid interest (in
addition to the loan principal and interest that is owed) until
the earlier of the following events occur: he terminates
employment and/or becomes 59 1/2.
31
PAGE 32
SCHEDULE III
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997
(Dollars in Thousands)
________________________________________________________________________________________________________________________
Current Value
Number Cost of Asset on
Identity of of Purchase Selling of Transaction
Party Involved Description of Asset Transactions Price Price Asset Date Net Gain (Loss)
____________________ _____________________ ____________ ________ _______ ___________ ___________ _______________
Category 1 - Individual Transactions in Excess of 5% of Plan Assets - PURCHASES
CDC Inv. Mgmt. Corp. SYNGIC, 7.10% 1 $ 51,332 $ - $ 51,332 $ 51,332 $ -
Prudential Insurance SAGIC, 8.26% 1 345,199 - 345,199 345,199 -
Company of America
Prudential Insurance SAGIC, 7.08% 1 85,566 - 85,566 85,566 -
Company of America
Category 3 - Series of Securities Transactions - PURCHASES
Deutsche Bank SYNGIC, 6.34% 28 386,341 - 386,341 386,341 -
Merrill Lynch E.I. DuPont de Nemours 761 154,629 - 154,629 154,629 -
& Company Common Stock
Merrill Lynch Government Fund 64 206,103 - 206,103 206,103 -
Merrill Lynch Premier Fund 274 448,097 - 448,097 448,097 -
Category 1 - Individual Transactions in Excess of 5% of Plan Assets - SALES
Prudential Insurance SAGIC, 8.26% 1 - 115,000 115,000 115,000 -
Company of America
Prudential Insurance SAGIC, 8.26% 1 - 68,674 68,674 68,674 -
Company of America
Continued on next page
32
PAGE 33
SCHEDULE III
INVESTMENT PLAN FOR SALARIED EMPLOYEES
OF CONSOL INC.
ITEM 27d - SCHEDULE OF REPORTABLE TRANSACTIONS
YEAR ENDED DECEMBER 31, 1997 (continued)
(Dollars in Thousands)
________________________________________________________________________________________________________________________
Current Value
Number Cost of Asset on
Identity of of Purchase Selling of Transaction
Party Involved Description of Asset Transactions Price Price Asset Date Net Gain (Loss)
- -------------------- --------------------- ------------ -------- ------- -------- ------------ ---------------
Prudential Insurance SAGIC, 7.08% 1 - $321,320 $321,320 $321,320 $ -
Company of America
Category 3 - Series of Securities Transactions - SALES
CDC Inv. Mgmt. Corp. SYNGIC, 6.80% 2 - 58,572 58,572 58,572 -
Deutsche Bank SYNGIC, 6.34% 35 - 471,785 471,785 471,785 -
Merrill Lynch E. I. DuPont de Nemours 739 - 97,336 70,814 97,336 26,522
& Company Common Stock
Merrill Lynch Government Fund 185 - 289,199 289,199 289,199 -
Merrill Lynch Premier Fund 401 - 547,024 547,024 547,024 -
Principal Mutual GIC, 9.50% 12 - 54,571 54,571 54,571 -
Life Insurance Co.
Prudential Insurance SAGIC, 8.26% 2 - 183,674 183,674 183,674 -
Company of America
Prudential Insurance GIC, 9.96% 13 - 56,605 56,605 56,605 -
Company of America
Prudential Insurance GIC, 9.66% 13 - 55,273 55,273 55,273 -
Company of America
NOTE: All of the above transactions except for the DuPont Stock Fund
represent transactions for the Conoco & CONSOL Plans on a
commingled basis.
33
PAGE 34
EXHIBIT INDEX
Exhibit
Number Description
------- -----------
24 Consent of Independent Auditors
34
PAGE 35
SIGNATURE
Exhibit 24
CONSENT OF INDEPENDENT AUDITORS
We hereby consent to the incorporation by reference in the
Prospectus constituting part of the Registration Statement on Form S-8
(No. 33-26216) of E. I. DuPont de Nemours and Company of our report dated
June 6, 1997 appearing on Page 4 of the Investment Plan for Salaried
Employees of CONSOL Inc. Annual Report on this Form 11-K for the year
ended December 31, 1997.
ERNST & YOUNG, LLP
Pittsburgh, Pennsylvania
June 25, 1998
35