04/15/24 - 66 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/msuwtctm
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Governor Again Calls On General Assembly To Pass Natural Gas Severance Tax
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At a press conference this week announcing $128.3 million in revenues from State Forest Marcellus Shale natural gas leasing, Gov. Rendell called on the General Assembly to pass a natural gas production severance tax. In a letter to the General Assembly the Governor said in part--
"As you know, last year I proposed that we impose a tax on the Marcellus natural gas extraction. Based on information from the industry, I pulled back from that proposal with the intent of giving the industry a year to get its sea legs and embed itself in Pennsylvania. "We have seen tremendous activity in the past year, with DEP issuing 1,984 Marcellus Shale drilling permits, and in the same period operators reporting 763 Marcellus wells drilled (compared to just 195 Marcellus wells drilled in 2008). The industry has informed DEP that it expects it will seek to permit 5,200 Marcellus wells just in 2010: a huge jump or a tripling of the number of Marcellus wells now permitted. "This week's auction results of more than $4,000 bid per acre (for DCNR State Forest leases) anticipated - is further proof of how well the industry is doing and how much this commodity is valued." He said any revenues from the severance tax must go into the General Fund to help balance the budget, for the time being. In reaction to the call for a severance tax, House Minority Leader Sam Smith (R-Jefferson) said,"New or increased taxes were not, and ARE not, the answer to Pennsylvania's budget problems. The Marcellus Shale resource is an unprecedented opportunity for Pennsylvania government, residents and businesses to reap benefits of needed revenues, jobs and growth. "The marketplace has spoken. The energy job creators want to come to Pennsylvania, and their presence helps fill state coffers without new taxes. Still, House Republicans believe the current state budget spends more than the taxpayers can afford, and we will continue to fight to control state spending, ensure value for each tax dollar and find innovative ways to stretch our resources." Industry Meeting Gov. Rendell announced he has invited natural gas drilling companies, state agencies and environmental groups to a meeting next week to discuss adoption of a natural gas production severance tax, drilling wastewater and other issues. He said he expects these meetings to become a regular event. Drilling Expected To More Than Double Gov. Rendell reported Marcellus Shale activity is expected to more than double during 2010 according to the natural gas industry. DEP reported issuing 1,984 drilling permits in 2009 and the industry expects to apply for 5,200 permits during 2010. DEP issued 195 Marcellus permits in 2008. DEP said 763 wells were actually drilling during 2009. NewsClips: Rendell Proposes Natural Gas Tax Rendell To Revive Gas Drilling Tax Plan Drilling For Gas In State Forests Proves Lucrative Upside Surprise On Gas Leases Blog: Rendell Takes Second Bite At Natural Gas Tax Editorial: State's New Gas Rush Related Articles
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1/18/2010 |
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