Note 14 - Long-term Incentive Plan

9 Months Ended

Sep. 30, 2020

Share-based Payment Arrangement [Text Block]

NOTE 14—LONG-TERM INCENTIVE PLAN:

Under the CONSOL Coal Resources LP 2015 Long-Term Incentive Plan (the “LTIP”), our general partner may issue long-term equity-based awards to directors, officers and employees of our general partner or its affiliates, or to any consultants, affiliates of our general partner or other individuals who perform services for us. These awards are intended to compensate the recipients thereof based on the performance of our common units and their continued service during the vesting period, as well as to align their long-term interests with those of our unitholders. We are responsible for the cost of awards granted under the LTIP and all determinations with respect to awards to be made under the LTIP will be made by the board of directors of our general partner or any committee thereof that may be established for such purpose or by any delegate of the board of directors or such committee, subject to applicable law, which we refer to as the plan administrator.

The LTIP limits the number of units that may be delivered pursuant to vested awards to 2,300,000 common units, subject to proportionate adjustment in the event of unit splits and similar events. Common units subject to awards that are canceled, forfeited, withheld to satisfy exercise prices or tax withholding obligations or otherwise terminated without delivery of the common units will be available for delivery pursuant to other awards. The Partnership recognizes forfeitures as they occur.

The general partner has granted equity-based phantom units that vest over a period of a recipient’s continued service with the Partnership. The phantom units will be paid in common units or an amount of cash equal to the fair market value of a unit based on the vesting date. The awards may accelerate upon a change in control of the Partnership. Compensation expense is recognized on a straight-line basis over the requisite service period, which is generally the vesting term. The Partnership recognized compensation expense of $75 and $344 for the three months ended and $308 and $1,082 for the nine months ended September 30, 2020 and September 30, 2019, respectively, which is included in Selling, General and Administrative Expense in the unaudited Consolidated Statements of Operations. As of September 30, 2020, there is $110 of unearned compensation that will vest over a weighted average period of 0.37 years. There were no phantom units that vested during the three months ended September 30, 2020 and $1 during the three months ended September 30, 2019. The total fair value of phantom units vested during the nine months ended September 30, 2020 and September 30, 2019 was $820 and $2,906, respectively. The following represents the nonvested phantom units and their corresponding weighted average grant date fair value:

	*Number of Units*			*Weighted Average Grant Date Fair Value per Unit*
Nonvested at December 31, 2019		78,345		$	18.62
Granted		33,705		$	8.90
Vested		(78,173	)	$	18.62
Forfeited		(172	)	$	18.95
Nonvested at September 30, 2020		33,705		$	8.90

CONSOL Coal Resources LP 10-Q