| | | |

Marietta, OH Feels the Economic Effects of Utica Drilling

Marietta (Washington County), Ohio is starting to feel the impact from Utica and Marcellus Shale drilling. It’s showing up in a dramatic increase in tax revenue from hotels and motels. It’s also showing up in the local real estate market that’s turned from being a buyers market into a seller’s market:

Continue reading

| | | |

Marcellus Workers First to Get Studio 6 Motel in PA

Author Tom Bodett is perhaps best known for commercials in which he’s the spokesman for a motel chain, using the phrase, “We’ll leave the light on for ya.” Quick: Which motel chain is it? If you said “Motel 6,” you would be correct. So you’ve heard of Motel 6, but have you ever heard of Studio 6? Probably not—but you soon will.

Studio 6 is a long-stay motel started by Motel 6—think something between a hotel room and a small apartment. The state of Pennsylvania is about to get it’s very first Studio 6. And where might you think it’s being built? Philadelphia? Harrisburg? Pittsburgh? Nope. It’s being built halfway between Pittsburgh and Washington, PA (so to be fair, it is in the Pittsburgh “orbit”). But PA’s very first Studio 6 is not being built for business travelers—it’s being built for those working in the Marcellus Shale drilling fields of western PA.

Continue reading

| | | |

PA Housing Approves $7.6M in Spending from Impact Fee Fund

Part of the Pennsylvania “impact fee” assessed on Marcellus drillers in the state (collected by the state’s Public Utility Commission) was set aside for a special Housing Affordability and Rehabilitation Enhancement fund. In addition, local municipalities also set aside some of their own impact fee revenue for housing projects.

Yesterday, the Pennsylvania Housing Finance Agency (PHFA) approved using more than $2 million from a total pot of $7.6 million on a list of housing projects in northeast PA. The projects include new housing for senior citizens and low-income residents, help for landlords to rehabilitate rental properties, and aide to low-income individuals for rent. Here’s a list of some of the projects in NEPA funded by the impact fee money:

Continue reading

| | | | | | |

Chesapeake Energy Receives First ‘Labor Camp’ Permits in WV

Some people call them “man camps.” Others call them “labor camps.” Whatever you call them, small groups of people (usually men) working on location and living in trailers—like what happens at drill pad sites—are now officially called labor camps in West Virginia. If a site in WV has 10 or more people living and working on location, you need a special permit according to a new state law.

Chesapeake Energy has become the first driller in WV (Ohio County) to apply for and receive a labor camp permit:

Continue reading

| | | |

Hotel Tax Loophole in WV Benefits Drillers, Ending Soon?

A tax loophole in West Virginia on hotels and motels, designed to benefit politicians, has had an unintended consequence: It’s now benefiting the Marcellus Shale drilling industry.

In 1975 the West Virginia legislature passed a law allowing local municipalities the option of charging up to a 3% tax on hotel and motel rooms. In 2005, they raised it to 6%. However, the politicians included an exemption: No tax on hotel and motel stays of over 30 days.

Continue reading

| | |

PA Bed & Breakfast Expands to Meet Demand from Marcellus

One of the oft-heard refrains is that when drilling shows up in a region, housing gets tight—really tight. Rents for apartments soar, and hotels are booked solid. That’s certainly the case in Bradford County, PA where there has been a tremendous amount of drilling, and economic growth, over the past few years.

The beauty of capitalism is that although there may be short-term pain from time to time, there’s long-term gain. The free market will appropriately respond to meet demand (opposite of what the Occupy Wall Street types say). And that’s just what’s happening in Dushore, PA, a small community in Bradford County. This is a story of a small bed and breakfast more than doubling in size to meet the demand for rooms—because of Marcellus Shale gas drilling.

Continue reading

| | |

Marcellus Drilling Means High Housing Prices in Towanda PA

When an area sees a lot a drilling, one of the unintended consequences is a serious jump in the price of housing—both rental and for purchase. Towanda (Bradford County), PA seems to be ground zero for an extraordinary jump in housing prices over the past few years. How about $2,000 to rent a two-bedroom apartment in this relatively rural part of PA? Yeah, nosebleed-high prices.

An article in yesterday’s Towanda newspaper, The Daily Review, highlights the plight of a family flooded out of their Towanda home last year. Because of the high prices for real estate due to the Marcellus drilling boom, they still have not been able to leave their FEMA trailer.

Continue reading

| | |

New Study Claims Housing Crisis in NE PA from Gas Drilling

no rent controlA new report on a “housing crisis” in Pennsylvania’s northern-tier counties has just been released by The Institute for Public Policy and Economic Development, a research partnership among Keystone College, King’s College, Luzerne County Community College, Marywood University, Misericordia University, Penn State Wilkes-Barre, The Commonwealth Medical College, University of Scranton, and Wilkes University. A copy of the 200 page study is available to download below.

The study purports to show that when counties attract a lot of shale gas drilling activity, they also attract a housing crisis because workers in the drilling industry make more money than non-drilling industry residents and are willing to pay more to rent housing.

Continue reading

| | | | | |

Cornell Student Publishes “Study” Warning Marcellus Drilling in NY Will Impact Tourism in Finger Lakes

Yet another study from Cornell University about the effects of shale gas drilling. The Appalacian Regional Commission awarded a $7,000 grant to Cornell doctoral student Andrew Rumbach to write a term paper author a study on the potential impact of drilling on the tourism industry in the Southern Tier of New York—specifically in the Finger Lakes region of the state. The “study” predictably warns about heavy truck traffic, scenic destruction and the “industrialization” of our little piece of paradise. One of the the biggest threats? Our tourism “brand” will be tarnished.

Continue reading