A surgical pencil that enables simultaneous cutting with an electrode and coagulating with a coagulating material while also performing smoke evacuation. Several different sources of energy can be used for both open procedures and laparoscopy including electrosurgery and argon beam coagulation. In argon beam coagulation (ABC), current is applied to tissue by a directed beam of ionized argon gas which causes a uniform and shallow coagulation surface thereby stopping blood loss.