07/08/24 - 115 New Stories - REAL Environmental & Conservation Leadership In PA: http://tinyurl.com/ype6tnrj
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Sen. Yaw To Introduce Bill To Tax Natural Gas Holdings To Benefit Communities
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Sen. Gene Yaw (R-Bradford) told the Sayre Morning Times this week he plans to introduce legislation to allow counties, school districts and other local governments to tax natural gas royalty interests as property for producing wells. He noted in 2002 the oil and gas industry succeeded in a lawsuit which found local governments had no statutory authority to tax natural gas and other mineral holdings as property (Independent Oil and Gas Association of PA v. Fayette County). As a result, counties and other local governments lost the ability to tax these holdings.
Sen. Yaw told the Times, “Gas wells should be treated the same as any other piece of property. I look at a gas well as a producing business on the property, and there is no reason that it should be treated the same — no better and no worse than any other piece of property.” Sen. Yaw has opposed efforts to enact a Marcellus Shale natural gas production severance tax which he said would send money to Harrisburg rather than benefitting local communities.
“I believe this is the best option rather than sending our money to Harrisburg and standing in line with our hand out — hoping to get a little back,” he said.
Similar legislation has been introduced before in the General Assembly. Rep. Bill DeWeese (D-Greene) proposed House Bill 10 in early 2009 which did not see action due to significant opposition from the oil and gas industry.
When that bill was introduced, the industry said, "History has shown that crude oil and natural gas drilling does not place a burden on local services that needs to be made up with new taxes. Even still, companies investing in Pennsylvania Marcellus Shale development have and will continue to work with local officials to minimize impacts and address and/or provide compensation for any impacts caused by operations. For instance, the industry has invested millions of dollars across the Commonwealth in constructing new roads -- at no cost to taxpayers or local governments."
54 of Pennsylvania's 67 counties are underlain by the Marcellus Shale natural gas formation.
NewsClip: Senator Discusses Royalty Assessments vs. Severance Tax |
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1/17/2011 |
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