Shale-Gas Tax on Hold

Gov. Ed Rendell said more time is needed to see how the industry develops in Pennsylvania. [In other words, lets wait until we lure them here and then we'll really fleece them]

An economic impact study by Penn State researchers said curtailment of drilling activity that would result from the imposition of a proposed severance tax would generate $1.4 billion less state and local total tax revenue between now and 2020 than if the industry is allowed to grow without the tax.

Opponents fear the tax would result in less job creation and overall economic benefits in Pennsylvania. The economic impact study predicts Marcellus Shale development will pump $14.17 billion into the state’s economy in 2010 and create more than 98,000 jobs, while generating $800 million in state and local tax revenues

Pike County Press Story

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Comment by Carolyn on September 21, 2009 at 2:55pm
that simply isn't true. The drillers coming to Pa are mostly huge multi national corporations who know they will make millions by draining the gas.Chesapeake Energy's CEO Aubrey McClendon's compensation package last year was $112.5 million. As far as jobs; most drillers bring workers from Texas, Missouri and West Virginia which are the license plates I see in Dimock. Once the drilling is complete, they leave along with 83% of the jobs. If you want to know the truth about gas drilling and the effects on land value, environment, landscape, wildlife, clean air and water, I urge you to talk to people who have had their land drilled on. The gas lobbyists have already spent more than $1 million lobbying the Penn legislature to avoid a severance tax.
Comment by BuckinghamGasMan on September 11, 2009 at 1:58pm
Keith, I should add that I also receive 20% royalty. Paying 20% of the severance tax at 20% royalty is better than paying none at 18% royalty.
Comment by BuckinghamGasMan on September 9, 2009 at 12:51pm
Yup
Comment by Keith Mauck (Site Publisher) on September 9, 2009 at 10:10am
you pay 20% of the severence tax?
Comment by BuckinghamGasMan on September 7, 2009 at 3:59pm
Logically and from a Statewide view, it would be unwise for Pa. not to have a severance tax. If the tax was comparable to every other State, it would not drive any company away to one of those states. Look at the remnants of the Coal industry where there was no severance tax. Philadelphia businessmen got the money and taxpayers got the acid mine drainage. Look at the problems local governments will have fixing their roads after the trucks pound them into the ground.

I'm in favor of a well constructed severance tax -- and my lease requires that I pay 20% of the tax on gas found on my property!

By the way, I could probably pay other Penn State researchers to reach a totally different conclusion.
Comment by Mmmarkkk on September 3, 2009 at 10:17pm
Thank goodness he's put this off. But you're probably right about wait and lure them in before taxing the crap out of us! Politicians are driven by money and power...with one feeding off of the other!

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